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. Three Guys Floor Covering Workroom Inc.

District Court, S.D. New York·Decided October 18, 2021·No. 1:21-cv-00910·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK TRUSTEES OF THE NEW YORK CITY DISTRICT COUNCIL OF CARPENTERS PENSION FUND, WELFARE FUND, ANNUITY FUND, AND APPRENTICESHIP, JOURNEYMAN RETRAINING, EDUCATIONAL AND INDUSTRY FUND; TRUSTEES OF THE NEW YORK CITY CARPENTERS RELIEF AND CHARITY FUND; THE CARPENTER CONTRACTOR ALLIANCE OF METROPOLITAN NEW YORK; and THE NEW 21 Civ. 910 (KPF) YORK CITY DISTRICT COUNCIL OF OPINION AND ORDER CARPENTERS, Petitioners, -v.- THREE GUYS FLOOR COVERING WORKROOM INC., Respondent. KATHERINE POLK FAILLA, District Judge: Petitioners Trustees of the New York City District Council of Carpenters Pension Fund, Welfare Fund, Annuity Fund, and Apprenticeship, Journeyman Retraining, Educational and Industry Fund; Trustees of the New York City Carpenters Relief and Charity Fund; The Carpenter Contractor Alliance of Metropolitan New York (collectively, the “Funds”); and the New York City District Council of Carpenters (the “Union”) have filed this motion for summary judgment on their petition (the “Petition”) to confirm a November 21, 2020 arbitral award (the “Award”) against Respondent Three Guys Floor Covering Workroom Inc., pursuant to Section 301 of the Labor Management Relations Act of 1947 (the “LMRA”), as amended, 29 U.S.C. § 185. In addition to seeking confirmation of the Award, Petitioners also seek to recover pre- and post- judgment interest on the Award and attorneys’ fees and costs they have incurred in litigating this case. Respondent has not opposed the Petition or the

summary judgment motion, nor has it otherwise appeared in this action. For the reasons set forth below, the Court grants Petitioners’ motion. BACKGROUND1 A. Factual Background Respondent and the Union are parties to a Building Construction Agreement (the “CBA”), pursuant to which Respondent is required to make contributions to the Funds for all work performed within the trade and geographical jurisdiction of the Union. (Pet. 56.1 ¶¶ 6-14; see also 2011-2015 CBA, Art. XVI, § 1; 2017-2024 CBA, Art. XVII, § 1). The CBA also provides that Respondent must furnish its books and payroll records upon the Funds’

request for the purpose of conducting an audit to ensure compliance with the required benefit fund contributions. (Pet. 56.1 ¶ 15). In the event of a dispute between the parties, the CBA permits either party to initiate arbitration proceedings before a designated arbitrator. (Pet. 56.1 ¶ 19). If the arbitrator finds in favor of the Funds in a dispute regarding

1 The facts in this Opinion are drawn from the Petition (“Pet.” (Dkt. #1)); the Declaration of William Davidian (“Davidian Decl.” (Dkt. #13)) and exhibits appended thereto, including (i) the 2011-2015 Collective Bargaining Agreement (the “2011-2015 CBA” (id., Ex. B)), (ii) the 2017-2024 Collective Bargaining Agreement (the “2017-2024 CBA” (id., Ex. D)), and (iii) the November 21, 2020 Opinion and Default Award of Arbitrator (id., Ex. G (the “Arbitrator’s Opinion”)); the Declaration of Adrianna R. Grancio (“Grancio Decl.” (Dkt. #14)); the Award (Dkt. #1-7); and Petitioners’ Local Rule 56.1 Statement (“Pet. 56.1” (Dkt. #16)). Citations to Petitioners’ Rule 56.1 Statement incorporate by reference the documents cited therein. delinquent contributions, the CBA empowers the arbitrator to award interest, liquidated damages, and costs. (Id. at ¶ 20). The CBA also binds the parties to the Funds’ Collection Policy. (Pet. 56.1

¶ 16). As relevant here, the Collection Policy provides that, if Respondent fails to make its books and records available for an audit, a presumption arises that Respondent is delinquent in its contributions under the CBA. (Id. at ¶ 22). If that presumption is triggered, the CBA provides that the Funds shall determine the estimated value of the delinquent contributions “based on the assumption that [Respondent’s] weekly hours subject to contributions for each week of the requested audit period are the highest number of average hours reported per week for any period of four consecutive weeks during the audit period[.]” (Id.).

The Collection Policy also permits the Funds to recover certain expenses incurred in arbitrating or litigating a dispute over unpaid contributions, including: (i) the delinquent contributions; (ii) interest on the unpaid contributions at the prime rate of Citibank plus 2%; (iii) liquidated damages in the amount of 20% of the unpaid contributions; and (iv) reasonable attorneys’ fees and costs. (Pet. 56.1 ¶¶ 20, 23). In this case, Petitioners requested an audit of Respondent’s contributions covering the period from September 25, 2015, through the present. (Pet. 56.1

¶ 24). Respondent failed to make its books and records available for Petitioners’ requested audit. (Id. at ¶ 25). Proceeding under the CBA’s arbitration clause, Petitioners initiated an arbitration proceeding before the designated arbitrator, Roger E. Maher (the “Arbitrator”). (Id. at ¶ 27). The Arbitrator notified Respondent by regular and certified mail that he would conduct a hearing on November 19, 2020. (Id. at ¶ 27; see also Davidian Decl., Ex. F (Notice of Hearing)). Respondent did not appear at the hearing.

(Arbitrator’s Opinion at 1). The Arbitrator found Respondent in default and proceeded to hear Petitioners’ testimony and evidence. (Id. at 1-3). On November 21, 2020, the Arbitrator issued the Award, finding that Respondent had violated the CBA by refusing to permit the Funds to audit its books and records. (Arbitrator’s Opinion at 2). Pursuant to this finding, the Arbitrator ordered Respondent to pay Petitioners $353,149.58, consisting of: (i) the estimated principal deficiency of $251,934.48; (ii) total interest of $47,928.20; (iii) liquidated damages of $50,386.90; (iv) court costs of $400;

(v) attorneys’ fees of $1,500; and (vi) an arbitrator’s fee of $1,000. (Id. at 3). The Arbitrator also found that interest at the annual rate of 5.25% would accrue on the Award from the date of its issuance. (Id.). B. Procedural Background On February 2, 2021, Petitioners filed a Petition to confirm the Award and recover attorneys’ fees and costs incurred in filing the Petition. (Dkt. #1). On February 3, 2021, the Court ordered Petitioners to move for confirmation of the Award in the form of a motion for summary judgment, with opening papers due March 5, 2021. (Dkt. #9). The Court ordered Respondent to file its

opposition papers by April 5, 2021, and ordered Petitioners to file any reply papers by April 19, 2021. (Id.). On February 4, 2021, Petitioners filed an affidavit indicating that the Petition and the Court’s February 3, 2021 Order had been served on Respondent by mail that same day. (Dkt. #10). Petitioners filed their summary judgment motion on March 5, 2021 (Dkt. #12-16), and submitted an affidavit to the Court indicating that their motion papers had

been served upon Respondent on March 9, 2021 (Dkt. #17). Respondent has neither filed opposition papers nor appeared in the case. As such, Petitioners’ motion is ripe for the Court’s consideration. DISCUSSION A. The Court Confirms the Arbitration Award 1. Applicable Law a. Confirmation of Arbitration Awards The Second Circuit has “repeatedly recognized the strong deference appropriately due arbitral awards and the arbitral process, and has limited its review of arbitration awards in obeisance to that process[.]” Porzig v. Dresdner,

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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. Three Guys Floor Covering Workroom Inc., (S.D.N.Y. 2021).

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. Three Guys Floor Covering Workroom Inc. (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. Three Guys Floor Covering Workroom Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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