Erbacci, Cerone, and Moriarty, Ltd. v. United States

939 F. Supp. 1045, 155 L.R.R.M. (BNA) 2606, 1996 U.S. Dist. LEXIS 11938, 1996 WL 467515
District Court, S.D. New York·Decided August 15, 1996·No. 96 Civ. 1664 (DNE)·Published·Cited by 3 cases

Opinion

OPINION & ORDER

EDELSTEIN, District Judge:

Currently before the Court are six motions pursuant to Federal Rule of Civil Procedure (“Rule”) 12(b) to dismiss plaintiffs’ Amended Complaint. These motions are brought respectively by defendants the United States of America (“the Government”), Charles M. Carberry as Investigations Officer (“Carberry”), Frederick B. Lacey as Independent Administrator (“Lacey”), the International Brotherhood of Teamsters (“IBT”), IBT Local 738 (“Local 738”), and IBT Local 726 (“Local 726”). 1 Defendant IBT Local 727 Health and Welfare Fund has made no response to plaintiffs’ Amended Complaint and does not join in any of the instant motions to dismiss. For the reasons discussed below, each of these motions is granted, and plain *1049 tiffs’ Amended Complaint is dismissed in its entirety.

BACKGROUND

This opinion emanates from the voluntary settlement of an action commenced by the Government against the IBT and the IBT’s General Executive Board. This settlement was embodied in the voluntary consent order entered March 14, 1989 (“the Consent Decree”). The goal of the Consent Decree is to rid the IBT of the hideous influence of organized crime through a two-phased implementation of the Consent Decree’s various remedial provisions. In the first phase of the Consent Decree, these provisions provided for three court-appointed officers: the Independent Administrator to oversee the Consent Decree’s provisions, the Investigations Officer to bring charges against corrupt IBT members, and the Election Officer to supervise the electoral process that led up to and included the 1991 election for International Union Office. In the second phase of the Consent Decree, the Independent Administrator was replaced by a three-member Independent Review Board (“the IRB”).

During its more than seven-year history, the Consent Decree has spawned a tremendous amount of litigation that has required this Court to issue numerous opinions. In one of those opinions, pursuant to this Court’s authority under the All Writs Act, 28 U.S.C. § 1651(a), this Court enjoined “all local unions, joint councils, area conferences, and other entities subordinate to or affiliated with the IBT, and any members, officers, representatives, agents and employees of the IBT or any such IBT affiliated entity, from filing or taking any legal action that challenges, impedes, seeks review of or relief from, or seeks to prevent or delay any act of any of the court officers appointed by this Court pursuant to the Consent Order in this action, in any court or forum in any jurisdiction except this Court[.]” December 15, 1989, Order at 8; see also January 17, 1990, Opinion & Order, 728 F.Supp. 1032 (S.D.N.Y.) (“All Writs Act Decision”), modification denied, 735 F.Supp. 502 (S.D.N.Y.), affd, 907 F.2d 277 (2d. Cir.1990).

Although the instant action originally was filed in the United States District Court for the Northern District of Illinois, Eastern Division, the Government applied to this Court for an order enjoining plaintiffs from pursuing the instant case in any forum other than this Court. Citing this Court’s All Writs Act Decision, the Government argued that “[o]n the face of the complaint, it is plain that the Erbacci action directly implicates the [Consent Decree].” (Memorandum of Law in Support of Government’s Motion for Injunctive Relief at 1.) This Court granted the Government’s application, finding “that plaintiffs must be enjoined from pursuing the Erbacci litigation in any court or forum other than this Court because the Erbacci litigation falls squarely within the four corners of this Court’s All Writs Act Decision.” January 19, 1996, Opinion & Order, 911 F.Supp. 743, 748 (S.D.N.Y.1996).

Plaintiffs are two individuals, one law firm, and one insurance company that provided legal representation and insurance services to Local 738, Local 726, and Local 727’s Health and Welfare Fund. (Erbacci et al. v. United States, et. al., 96 Civ. 1664, Amended Complaint (“Amended Complaint”) ¶¶ 1-3.) Plaintiff Anthony G. Erbacci (“Erbacci”) “is a citizen of the State of Illinois [and] is licensed to practice law in the State of Illinois.” Id. ¶ 2. Plaintiff Jack P. Cerone (“Cerone”) is a citizen of Illinois and is an attorney licensed to practice in Illinois. Id. ¶ 3. Cerone also “is the sole proprietor of and does business as Marble Insurance Agency.” Id. Plaintiff Erbacci, Cerone, and Moriarty, Ltd. is a law firm that is the successor-in-interest to Erbacci, Syracuse & Cerone, Ltd, which was a law firm — apparently organized as a limited partnership — in which both Erbacci and Cerone were shareholders. Id. ¶¶ 1-3. Plaintiff Marble Insurance Agency is the insurance agency owned and operated by plaintiff Cerone. Id. ¶ 3. Defendants are: (1) the Government; (2) the IBT; (3) Carberry in his capacity as Investigations Officer; (4) Lacey in his capacity as Independent Administrator; 2 (5) IBT Local 738; (6) IBT Local 726; *1050 and (7) IBT Local 727 Health and Welfare Fund. Id. ¶¶ 4-10.

Plaintiffs contend that they previously provided legal and insurance services to Local 738, Local 726, and Local 727’s Health and Welfare Fund. Plaintiffs assert that they provided legal services to Local 738, “including organizing efforts and day-to-day business.” Id. ¶ 16. Plaintiffs claim that they also provided legal services to Local 726, including “negotiations with several municipalities.” Id. ¶ 17. Plaintiffs assert that Cerone sold insurance to Local 727’s Health and Welfare Fund. Id. ¶ 20.

Plaintiffs contend that defendants improperly interfered with plaintiffs’ business relationships with Local 738, Local 726, and Local 727’s Health and Welfare Fund. Plaintiffs assert that defendants informed Local 738, Local 726, and Local 727’s Health and Welfare Fund that plaintiffs had ties with organized crime. Id. ¶¶31-40. Plaintiffs state that in January 1986, Cerone’s father “was convicted of conspiracy to promote racketeering enterprise [sic], and interstate fraud or communication in aid of racketeering, and has been identified as a member of La Cosa Nostra.” Id. ¶ 23. Plaintiffs claim that Carberry “initiated an investigation regarding plaintiff Jack P. Cerone and informed Defendant [IBT] Local 738 and others regarding this investigation.” Id. ¶31. Plaintiffs assert that the IBT wrote to Local 738, stating that Cerone was associated with organized crime. Id. ¶ 33. Plaintiffs further contend that FBI Supervisory Special Agent Duncan J. Wainwright wrote a letter to the IBT, stating that the IBT’s “contacts with Jack P. Cerone violated the Consent Decree.” Id. ¶ 36.

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Erbacci, Cerone, and Moriarty, Ltd. v. United States, 939 F. Supp. 1045, 155 L.R.R.M. (BNA) 2606, 1996 U.S. Dist. LEXIS 11938, 1996 WL 467515 (S.D.N.Y. 1996).

939 F. Supp. 1045 (Erbacci, Cerone, and Moriarty, Ltd. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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