Amendolare v. Schenkers International Forwarders, Inc.

747 F. Supp. 162, 1990 WL 133868
CourtDistrict Court, E.D. New York
DecidedAugust 24, 1990
DocketNo. CV-87-3023
StatusPublished
Cited by21 cases

This text of 747 F. Supp. 162 (Amendolare v. Schenkers International Forwarders, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amendolare v. Schenkers International Forwarders, Inc., 747 F. Supp. 162, 1990 WL 133868 (E.D.N.Y. 1990).

Opinion

MEMORANDUM AND ORDER

SIFTON, District Judge.

Plaintiffs, members of defendant Local 295 of the International Brotherhood of Teamsters (“Local 295”), commenced this action to recover for injuries caused by defendants’ alleged bribery, fraud, and extortion, which allegedly resulted in the termination of plaintiffs’ employment. The amended complaint alleges causes of action for negligence, breach of contract, tortious interference with contractual agreements, fraud, termination of employment, and violations of the Racketeering Influenced and Corrupt Organizations (“RICO”) Act.

This matter is before the Court on the motions of defendants Local 295 of the International Brotherhood of Teamsters (“Local 295”), Local 851 of the International Brotherhood of Teamsters (“Local 851”), and Harry Davidoff to dismiss all of plaintiffs’ claims against them pursuant to Rule 56 of the Federal Rules of Civil Procedure. Local 851 and Davidoff both assert that plaintiffs have failed to produce sufficient evidence connecting plaintiffs’ injury to the conduct of either party to avoid summary disposition of the cases against them. Defendant Local 295 asserts that plaintiffs cannot maintain a RICO claim which is solely premised upon vicarious liability stemming from the conduct of their former president, defendant Frank Calise. Local 295 has also moved to dismiss the pendent [164]*164state law claims as preempted by federal labor law.

In 1985, many of the defendants named in the current civil action, including Frank Manzo, Harry Davidoff, and Frank Calise, were indicted for violations of RICO. A trial was subsequently held before Judge Joseph McLaughlin of this Court. Defendant Schenkers International Forwarders, Inc. (“Schenkers”) was not named in the indictment, although many of the events described herein were the subject of the transactions described in the criminal proceedings.

The complaint in this action was filed in August 1987 and was amended in October of that year. Defendants Schenkers and Manfred Engst moved in June 1988 and in April 1989 to dismiss plaintiffs’ RICO claims upon the grounds that plaintiffs had failed to state a valid claim upon which relief may by granted, that plaintiffs had not suffered a RICO injury, and that the applicable statute of limitations barred the complaint. By oral decision on June 28, 1988, and by Memorandum and Order dated December 27 1989, this Court denied those motions in their entirety.

BACKGROUND

The following is undisputed except as noted. (Matters described as “alleged, “contended,” or “claimed” are the subject of dispute.) Plaintiffs Anthony Amendo-lare, Laurence Dexter, Frank Rudtner, and Joseph Siano were members of Local 295 and were employed by defendants Hi’s Airport Service, Inc. (“Hi’s”), Holsten Air Service, Inc. (“Holsten”), and Schenkers. These defendants were at all relevant times involved in the air freight and freight forwarding industry at JFK International Airport. Schenkers is an international air and ocean freight forwarder and customs broker. During the period in question, Schenkers maintained an office at JFK Airport where its services included clearing cargoes being imported into the United States and arranging for the export of cargoes to foreign countries. One of Schenk-ers’ principal clients was IBM. Defendant Manfred Engst was employed by Schenk-ers and held the position, among others, of vice president of corporate traffic. Defendant Heino Benthin owned and operated both Hi’s and Holsten, which plaintiffs claim had intermingled assets and equipment.

Defendant Frank Calise was the president of Local 295 from at least 1980 to 1985. Between approximately 1980 until 1987, defendant Harry Davidoff was the vice president of Teamsters Local 851. The Local 851 welfare and pension funds provide benefits for the members of both Local 851 and Local 295. Sharon Moskow-itz, Harry Davidoff’s daughter, is the current administrator of these pension and welfare funds.

In 1977 Schenkers contracted out its warehousing work to Sherwood Trucking (“Sherwood”). In order to gain permission to contract out this work, Schenkers entered into a letter agreement with Local 295. This agreement provided that Sherwood be deemed a co-employer for the purpose of all labor relations policies relating to the handling and documenting of its freight with Schenkers.

When Schenkers terminated its contract with Sherwood Trucking in 1980 and arranged to subcontract its warehouse work to Hi’s and Holsten, Schenkers entered into another co-employment agreement with Local 295. The agreement with respect to Hi’s contained the same terms as the contract formerly entered into regarding Sherwood and specifically stated that Hi’s was “for all purposes deemed to be a co-employer” with Schenkers. The agreement further provided that Schenkers would remain as a standby guarantor, that Hi’s would perform all of its obligations under the Schenkers-Local 295 contract, and that, in the event the Hi’s/Schenkers arrangement was terminated, Hi’s employees who previously had been employed by Schenkers would revert to the Schenkers payroll. Plaintiffs claim that Schenkers’ relationship with Holsten was also governed by a co-employer agreement.

The amended complaint alleges that beginning in 1978 various defendants combined and conspired to commit a pattern of [165]*165racketeering activity in violation of 18 U.S.C. §§ 1951 and 1952, and 29 U.S.C. § 186. Plaintiffs further contend that defendants Schenkers, Engst, Benthin, Calise, Davidoff, and the union defendants formed an enterprise that conducted criminal activities including bribery, extortion, attempts to extort money and valuable contractual rights from the air freight business at JFK Airport, and illegal payments to arrange the termination of plaintiffs’ employment. See, e.g., ¶ 74.

The complaint further alleges that beginning in late 1982 Schenkers told Benthin and Calise, president of Local 295, and Harry Davidoff, vice president of Local 851, that it wished to reduce its labor force. All of these defendants at that time agreed and conspired to extort, bribe, and pay sums of money in order to release Schenk-ers from certain contractual rights and to ensure labor peace. ¶¶ 81-83. To further said agreement, Schenkers and Engst are alleged to have made a series of payments through Benthin that resulted in the termination of plaintiffs’ employment. Id. This Court’s December 1989 decision concluded that “plaintiffs have raised substantial issues of fact over these allegations which if established at trial would constitute a pattern of predicate acts for purposes of RICO.” Slip op. at 11.

Although plaintiffs were not members of Local 851 and not party to any collective bargaining agreements involving Local 851, the parties have submitted evidence linking both Davidoff and Local 851 to the RICO payoff scheme that resulted in their termination, as well as similar schemes involving the termination of union workers at other air freight companies. According to a letter sent to Judge Constantino by the U.S.

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Bluebook (online)
747 F. Supp. 162, 1990 WL 133868, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amendolare-v-schenkers-international-forwarders-inc-nyed-1990.