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. Eastern Elevations LLC
1:20-cv-08990
S.D.N.Y.Sep 29, 2021Background
- Petitioners are union trustee funds (ERISA and charity funds), the Carpenter Contractor Alliance, and the NYC District Council of Carpenters; Respondent is Eastern Elevations LLC, a contractor bound by Project Labor Agreements (PLAs) and Collective Bargaining Agreements (CBAs).
- Eastern signed letters of assent in Jan. 2017, obligating it under the PLAs/CBAs to remit contributions and provide records for audits.
- An audit found unpaid contributions of $3,325.33; petitioners arbitrated the dispute before Roger E. Maher. Eastern did not appear at the arbitration hearing.
- The arbitrator issued an award (Sept. 21, 2020) ordering Eastern to pay $16,329.59 (principal, interest, liquidated damages, audit costs, attorneys’ fees, arbitrator fees, and costs) and set interest at 5.25% from the award date; Eastern has not paid.
- Petitioners filed to confirm the arbitration award in district court; Eastern was served but did not respond, leaving the petition unopposed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award should be confirmed | Award is supported by the CBAs/PLAs, arbitrator had authority, and evidence shows unpaid contributions | No opposition/argument (failed to respond) | Confirmed; court enforces award under limited judicial review of arbitration outcomes |
| Whether the petitioners are entitled to fees and costs for bringing the confirmation action | Fees/costs appropriate where party refuses to comply with arbitration award and does not seek to vacate it | No opposition | Awarded $1,190 in attorneys’ fees and $73 in costs related to the petition |
| Whether pre-judgment interest as set by the arbitrator should apply and whether post-judgment interest accrues | Arbitrator set 5.25% interest from award date; post-judgment interest available under federal law | No opposition | Judgment includes 5.25% annual interest from award date through judgment; post-judgment interest accrues under 28 U.S.C. § 1961 |
| Whether any grounds exist to vacate or modify the award (arbitrability, excess of authority, or legal error) | No indication of arbitrary decision, excess jurisdiction, or contrary-to-law result; award supported by record | No opposition | Court finds no basis to vacate or modify; enforces award (streamlined review, "barely colorable justification" standard) |
Key Cases Cited
- D.H. Blair & Co., Inc. v. Gottdiener, 462 F.3d 95 (2d Cir. 2006) (court must confirm arbitration award unless vacated, modified, or corrected)
- Hall St. Assocs. v. Mattel, 552 U.S. 576 (2008) (confirmation of arbitration award is a streamlined proceeding)
- Willemijn Houdstermaatschappij, B.V. v. Standard Microsystems Corp., 103 F.3d 9 (2d Cir. 1997) (arbitral awards are subject to very limited judicial review)
- Landy Michaels Realty Corp. v. Local 32B-32J, 954 F.2d 794 (2d Cir. 1992) (award should be enforced if there is a "barely colorable justification" for outcome)
- Vt. Teddy Bear Co., Inc. v. 1800 Beargram Co., 373 F.3d 241 (2d Cir. 2004) (district court must independently review unopposed summary judgment motion evidence)
- Brod v. Omya, Inc., 653 F.3d 156 (2d Cir. 2011) (summary judgment standards and construing facts for nonmoving party)
- Lewis v. Whelan, 99 F.3d 542 (2d Cir. 1996) (postjudgment interest is mandatory under 28 U.S.C. § 1961)