Trustees Of The New York City District Council Of Carpenters Pension Fund, Welfare Fund, Annuity Fund, and Apprenticeship, Journeyman Retraining, Educational and Industry Fund v. Coastal Environmental Group Inc.
1:17-cv-04667
S.D.N.Y.Nov 7, 2017Background
- Union and Coastal Environmental Group Inc. were parties to a collective bargaining agreement (CBA) requiring employer contributions to multiple benefit funds and authorizing audits and arbitration for disputes.
- Petitioners audited Coastal’s books for 6/30/2013–6/27/2015 and found $81,309.02 in unpaid contributions.
- Dispute submitted to arbitrator Roger Maher under the CBA; hearing held after proper notice.
- Arbitrator awarded $116,782.89 (principal, interest, liquidated damages, audit and admin fees, attorney and arbitrator fees), with interest at 5.75% from the award date.
- Petitioners filed to confirm the award in federal court; Coastal did not oppose, nor move to vacate.
- Petitioners sought additional attorney’s fees ($3,006.25) and costs (service and mailing); court denied duplicative $400 filing fee request because it was already included in the award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award should be confirmed under the LMRA | Award is final, draws its essence from the CBA, and should be confirmed | No opposition or challenge filed | Confirmed — award enforced; arbitrator acted within authority |
| Whether petitioners are entitled to post-award/prejudgment interest at 5.75% | Interest rate set by arbitrator and stated in award | No opposition | Confirmed — prejudgment interest at 5.75% awarded |
| Whether petitioners may recover attorney’s fees for confirmation proceedings | CBA authorizes reasonable attorney’s fees and submitted billing is reasonable | No opposition | Awarded $3,006.25 in attorney’s fees |
| Whether petitioners may recover court filing, service, and mailing fees incurred in confirmation action | Requested $400 filing fee, $75 service, $26.68 mailing | No opposition | Awarded service and mailing fees ($101.68); denied duplicative $400 filing fee |
Key Cases Cited
- Porzig v. Dresdner, Kleinwort, Benson, N. Am. LLC, 497 F.3d 133 (2d Cir. 2007) (courts give strong deference to arbitral awards)
- Nat’l Football League Mgmt. Council v. Nat’l Football League Players Ass’n, 820 F.3d 527 (2d Cir. 2016) (LMRA favors arbitration and limits judicial review)
- United Steelworkers of Am. v. Warrior & Gulf Navigation Co., 363 U.S. 574 (U.S. 1960) (favors industrial stability through collective bargaining and arbitration)
- Major League Baseball Players Ass’n v. Garvey, 532 U.S. 504 (U.S. 2001) (judicial review of labor arbitration is very limited)
- United Paperworkers Int’l Union v. Misco, Inc., 484 U.S. 29 (U.S. 1987) (award must be "even arguably" based on the contract to be enforceable)
- D.H. Blair & Co., Inc. v. Gottdiener, 462 F.3d 95 (2d Cir. 2006) (confirmation of arbitration award is a summary proceeding)