Dzwonar v. McDevitt

828 A.2d 893, 177 N.J. 451, 20 I.E.R. Cas. (BNA) 371, 2003 N.J. LEXIS 871
CourtSupreme Court of New Jersey
DecidedAugust 12, 2003
StatusPublished
Cited by248 cases

This text of 828 A.2d 893 (Dzwonar v. McDevitt) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dzwonar v. McDevitt, 828 A.2d 893, 177 N.J. 451, 20 I.E.R. Cas. (BNA) 371, 2003 N.J. LEXIS 871 (N.J. 2003).

Opinion

The opinion of the Court was delivered by

ZAZZALI, J.

This appeal requires us to determine whether the jury’s verdict in favor of plaintiff is sustainable under the Conscientious Employee Protection Act (CEPA), N.J.S.A. 34:19-1 to -8. Plaintiff, formerly a paid arbitration officer and an unpaid elected Executive Board member of Local 54 of the Hotel and Restaurant Employees International Union (Local 54 or the Union), alleges that the Union wrongfully discharged her from her paid position after she repeatedly voiced concerns regarding the Executive Board’s failure to read its minutes at general membership meetings. Plaintiff claims that she believed that the Board’s conduct denied Union members the right to participate, deliberate, and vote in Union matters as prescribed by federal labor law and the Union’s internal bylaws.

The jury found that defendants had violated CEPA, but the Appellate Division set aside the verdict on the ground that federal labor law preempted plaintiffs CEPA claim. We conclude as a matter of law that plaintiffs asserted belief that. defendants’ conduct violated a law or public policy was not objectively reasonable. We therefore affirm the Appellate Division. Our conclusion that plaintiff has failed to present a CEPA claim makes it unnecessary to address the panel’s holding that federal labor law preempts plaintiffs state law claim.

*457 I.

Local 54 is a labor organization that represents approximately 15,000 employees in the hotel and restaurant industries in Atlantic City and elsewhere in the state. In accordance with the Union’s bylaws and constitution, an Executive Board governs its day-today operations, which include approving expenditures, hiring and firing staff, holding Executive Board and general membership meetings, and handling other ministerial aspects of Union business. The Board consists of a President, Vice-President, Secretary-Treasurer, Recording Secretary, Chairman of the Trustees and four members elected from the rank and file. General membership meetings occur quarterly and Executive Board meetings occur at least monthly.

In August 1996, the general membership elected defendants Robert McDevitt, President, A1 Cohen, Vice-President, and Jabiel Santiago, Secretary-Treasurer, to Local 54’s Executive Board. Plaintiff Regina Dzwonar, a dues-paying member of the Union since 1983, also ran on MeDevitt’s slate and was elected to the unpaid position of Recording Secretary. According to the bylaws, the Recording Secretary is required to “keep records of all proceedings of the Executive Board and General Membership meetings under the direction of the Secretary-Treasurer.” Later that year, plaintiff accepted a full-time paid position as an Arbitration Officer/Representative for the Union. In that capacity, she represented the Union and individual Union members in grievance and arbitration proceedings.

Shortly after the 1996 election, Dzwonar came into conflict with McDevitt and other members of the Executive Board over several of the Union’s internal procedures and policies. Specifically, plaintiff claims that certain actions taken by the Executive Board, including the hiring of a business agent, the authorization of overtime pay to the Union Controller, the issuance of credit cards to certain Union officers, a loan arrangement with Local 54’s parent International Union, and the prepayment of rent for a newly hired Union organizer, should have been but were not fully *458 disclosed to the rank-and-file members for their approval pursuant to Local 54’s bylaws. Plaintiff relied on Article III, Section (4)(a) & (b) and Article IX, Section 10(a) & (b) of Local 54’s bylaws, which provide, in pertinent part:

Section 4.
(a) All applications for donations, and all proposed expenditures other than the routine operating expenses, shall when timely, first be referred to the Executive Board for their approval, which approval shall be subject to membership ratification by a majority vote of the membership present at a regular or special meeting.
(b) All wages, salaries and regular expense allowances paid to officers, employees, delegates and committees must be determined by a recommendation of their Executive Board and approval of a regular meeting of the Union.
Section 10.
(a) ----All actions of the Executive Board are subject to the approval of the membership meetings. There shall be no stay of execution from Executive Board actions. All expenditures of the Local Union shall be subject to the approval of the Executive Board. The Executive Board shall in general take up for discussion and decision all business of the Local Union. A majority of the Executive Board members present shall constitute a quorum.
(b) All applications for donations, and all proposed expenditures other than routine operating expenses shall first be referred to the board for their approval, which approval shall be subject to membership ratification by a majority vote of the membership present at a regular or special meetings. All wages, salaries and regular expense allowances paid to officers, employees, delegates and committees must be determined by a recommendation of their Executive Board and approval of a regular meeting of the Union.

At trial, plaintiff testified that although she did not believe that the Executive Board’s actions were illegal, her objections to the Board’s refusal to read its minutes at the general membership meetings reflected her concern that the Board was denying the rank-and-file members the right to participate, deliberate, and vote in Union matters as prescribed by the Labor Management Reporting and Disclosure Act (LMRDA), 29 U.S.C.A §§ 401 to - 531.

Plaintiff explained that she was “familiar with Local 54’s Bylaws and the LMRDA prior to attending the George Meaney [sic] Center for Labor Studies in May of 1997.” While at the Meany Center, plaintiff overheard other union representatives state that “many union locals were reading their Executive Board minutes at *459 general membership meetings in order that the members could deliberate and vote upon the actions being taken by the Board.” Accordingly, plaintiff “pursued this issue” with the Board, “demanding that the general membership be informed of, and approve, all Executive Board actions.” When the Board did not respond to plaintiff’s concerns, plaintiff sent a letter in July of 1997 to the Board, stating:

There is some feedback from the rank and file that some members are suggesting that we are violating the By-Laws because we do not read the minutes of the E-Board meetings into the record at the G.M. meetings. We should at least offer them even if we ask for a motion to enter them as read. I really think we should address this A.S.A.P.

In September of 1997, McDevitt, with the approval of a majority of the Executive Board, discharged plaintiff from her position as an arbitration officer, allegedly for mishandling “internal documents,” including the official minutes of the Executive Board meetings, and more generally for insubordination.

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Bluebook (online)
828 A.2d 893, 177 N.J. 451, 20 I.E.R. Cas. (BNA) 371, 2003 N.J. LEXIS 871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dzwonar-v-mcdevitt-nj-2003.