Opinion
01 CIV. 9474 (DLC)
January 14, 2002
For Petitioner: Judith Greenspan, Esq., Amalgamated Life, New York, NY.
For Respondent: No Appearance
MEMORANDUM OPINION AND ORDER
Petitioner brings this action to confirm an arbitration award pursuant to Section 301 of the Labor Management Relations Act, 29 U.S.C. § 185, and the Federal Arbitration Act, 9 U.S.C. § 9. Respondent has not submitted an opposition. For the reasons discussed below, the petition is granted.
BACKGROUND
Petitioner The Amalgamated Insurance Fund (the "Fund") is an employee benefit plan within the meaning of Section 3 of the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended, 29 U.S.C. § 1002(3), established pursuant to an Agreement and Declaration of Trust and by a Collective Bargaining Agreement entered into between the Amalgamated Clothing and Textile Workers Union, AFL-CIO, CLC, presently known as the Union of Needletrades, Industrial and Textile Employees, AFL-CIO, CLC (the "Union"), and employers in the men's and boys' clothing industry. The Fund was created to provide benefits to eligible employees of contributing employers. Respondent S S Tailoring is a party to a Collective Bargaining Agreement and Supplemental Agreement thereto (the "Collective Bargaining Agreement"), with the Chicago Central States Joint Board of the Union. The Collective Bargaining Agreement obligates respondent to contribute to the Fund, based upon stated percentages of its gross payroll. The Collective Bargaining Agreement requires that any dispute between the Union and the respondent be submitted to arbitration and that any arbitration award may be confirmed and enforced as a final judgment in a court of appropriate jurisdiction in any state where the decision is rendered.
A dispute arose concerning respondent's obligation to contribute to the Fund for certain periods. Pursuant to the Collective Bargaining Agreement, the dispute was referred to arbitrator Philip Ross (the "Arbitrator") for resolution. A hearing was held on October 11, 2001. The respondent did not appear. On the same day, the Arbitrator issued an award in favor of the Fund, directing the respondent to pay delinquent contributions in the amount of $3,789.26, plus interest, liquidated damages and incidental costs, for a total award of $4,202.38. To date, respondent has failed to pay the amount owed the Fund. Petitioner now also seeks interest and liquidated damages from the date of the arbitration award to the date of judgment, pursuant to Section 502(g)(2) of ERISA. Section 502(g)(2) requires the payment of "interest on the unpaid contributions" plus "an amount equal to the greater of: (i) interest on the unpaid contributions, or (ii) liquidated damages provided for under the plan." 29 U.S.C. § 1132(g)(2). The Fund's plan provides for both interest and liquidated damages at the rate of 10% per annum. Petitioner also seeks to recover the costs incurred in connection with this petition, pursuant to Section 502(g)(2).
DISCUSSION
The Federal Arbitration Act ("FAA"), 9 U.S.C. § 1-14 (1988), governs arbitration in the United States and "reflects a legislative recognition of the `desirability of arbitration as an alternative to the complications of litigation.'" Genesco, Inc. v. T. Kakiuchi Co., 815 F.2d 840, 844 (2d Cir. 1987) (internal citation omitted). Section 2 of the FAA provides, in relevant part:
an agreement in writing to submit to arbitration an existing controversy . . . shall be valid, irrevocable, and enforceable, save upon such grounds as exist in law or in equity for the revocation of any contract.9 U.S.C. § 2. This proceeding seeks confirmation of an arbitration award pursuant to the written agreement of the parties to arbitrate any controversy between them. This Court is not aware of any grounds for the revocation of this contract, and finds that the disputed subject matter is capable of resolution by arbitration.
CONCLUSION
For the reasons discussed above, the arbitration award is confirmed. The Clerk of Court shall enter judgment for the petitioner in the amount of $4,202.38, with interest and liquidated damages each at the rate of 10% per year to accrue from October 11, 2001, to the date of entry of the judgment, as well as costs. All reasonable costs incurred by the petitioner in enforcing this Order shall be recoverable and considered a part hereof. The Clerk of Court shall close this case.
SO ORDERED.