Trustees of the Northeast Carpenters Health, Pension, Annuity, Apprenticeship, and Labor Management Cooperation Funds v. Patt Construction, Inc.
2:17-cv-01544
E.D.N.YNov 1, 2017Background
- Petitioners (trustees of multiemployer Northeast Carpenters benefit funds) sought confirmation of an arbitration award against Patt Construction for delinquent contributions under collective bargaining agreements and the Funds’ Joint Policy for Collection of Delinquent Contributions.
- Audit (Apr. 15, 2010–Jun. 30, 2015) found $156,045.29 in unpaid contributions; arbitrator awarded a total of $247,226.82 (deficiency, interest, liquidated damages, audit and arbitration costs, and attorney’s fees).
- Petitioners served notice of intent to arbitrate; arbitrator held a hearing and issued written award on August 24, 2016; respondent did not appear in the confirmation proceeding.
- Petitioners moved in federal court to confirm the arbitration award under LMRA § 301 and to recover attorney’s fees and costs incurred in confirming the award.
- Court treated the confirmation motion under the summary-judgment standard for arbitration confirmation, concluded the award “drew its essence” from the CBA and was supported by uncontroverted evidence, and granted confirmation.
- Court held petitioners entitled to recover attorney’s fees and costs based on the parties’ agreement (Collection Policy/CBA); calculated lodestar and awarded $665 in attorney’s fees and $470 in costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award should be confirmed | Award is valid, draws its essence from the CBA, and is supported by audit/arbitrator findings | (No response/appearance in court) | Confirmed: award upheld under limited judicial review; court may not reweigh arbitrator’s factual findings. |
| Whether petitioners are entitled to attorney’s fees and costs in confirmation action | CBA/Collection Policy expressly provides for recovery of attorneys’ fees, arbitration fees, and audit costs | (No response) | Entitled: agreement authorizes fees and costs; court enforces contractual fee-shifting. |
| Appropriate method and amount for attorney’s fees | Lodestar based on reasonable hours and hourly rate; counsel sought $225/hr for junior associate | Court reduced hourly rate to $175/hr for Ms. Marimon given experience and awarded lodestar of $665 | Awarded $665 in fees (3.8 hours at $175/hr) |
| Recoverable costs and documentation | Requested filing and service fees ($470) with invoice/records | (No response) | Awarded $470 in costs as reasonable and documented. |
Key Cases Cited
- D.H. Blair & Co. v. Gottdiener, 462 F.3d 95 (2d Cir. 2006) (summary-judgment standard applies to motions to confirm arbitration awards)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (summary judgment standard regarding genuine disputes of material fact)
- United Paperworkers Int’l Union v. Misco, Inc., 484 U.S. 29 (1987) (arbitral awards should not be overturned lightly; courts’ role is limited)
- Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542 (2010) (lodestar method and its presumptive reasonableness in fee awards)
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (lodestar formula and reduction for excessive or unnecessary hours)
- Arbor Hill Concerned Citizens v. County of Albany, 522 F.3d 182 (2d Cir. 2008) (factors for assessing reasonable hourly rates and lodestar analysis)
- Int’l Chem. Workers Union, Local No. 227 v. BASF Wyandotte Corp., 774 F.2d 43 (2d Cir. 1985) (award of fees and costs in ERISA/union contribution contexts)