Filippini v. Austin

106 F.R.D. 425, 1985 U.S. Dist. LEXIS 19640, 112 Lab. Cas. (CCH) 11,460
CourtDistrict Court, C.D. California
DecidedMay 21, 1985
DocketNo. CV 84-3318-ER
StatusPublished
Cited by15 cases

This text of 106 F.R.D. 425 (Filippini v. Austin) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Filippini v. Austin, 106 F.R.D. 425, 1985 U.S. Dist. LEXIS 19640, 112 Lab. Cas. (CCH) 11,460 (C.D. Cal. 1985).

Opinion

MEMORANDUM ORDER

RAFEEDIE, District Judge.

This ease involves- a dispute between the Script Supervisors Local 871, I.A.T.S.E. (“Local 871” or “the union”) and H. Matt-son Austin (“Austin”), a former business representative for the union. Austin contends that he was wrongfully terminated from his job. Local 871 denies this and alleges that Austin misappropriated union funds and otherwise breached his fiduciary duties to the union.

Over the past three years this relatively simple dispute has spawned three separate federal lawsuits—Austin v. Script Supervisors Local 871, et al., CV 82-6820; Script Supervisors Local 871 v. Austin, CV 83-5241; and Filippini and Mullen v. Austin, CV 84-3318—and involved, in varying degrees, five of the seventeen active Judges in the Central District of California.

In the first two actions attorney Robert D. Vogel represented Local 871. In the third action, attorney Vogel represented plaintiffs Sonny Filippini and Marjorie Mullen who sued in their representative capacities as member of Local 871.

On February 28, 1985 judgment was entered for defendant Austin in the third lawsuit. Arguing that the third lawsuit should never have been filed, defendant Austin moved for the imposition of sanctions against attorney Vogel in the amount of $6,753.75, the attorney’s fees Austin incurred in defending against the third action. This Court has carefully considered the motion for sanctions and all the pleadings that have been filed in the three law[427]*427suits. Attorney Vogel was given a full opportunity to explain his actions during a hearing before this Court on March 4, 1984. After giving due consideration to the above, this Court finds that sanctions against attorney Vogel are both appropriate and required under Federal Rule of Civil Procedure 11. The Court, however, finds that the fee request is excessive. After considering the purposes of Rule 11 and the reasonableness of the fee request, the court orders attorney Vogel to pay defendant $2,000 in sanctions to partially compensate defendant for the attorney’s fees incurred in defending against the third lawsuit.

PROCEDURAL HISTORY

The first lawsuit in the Austin trilogy was filed on November 18, 1982 in Los Angeles County Superior Court captioned Austin v. Script Supervisors Local 871, et. al., C 432682 (hereinafter “state suit”). Austin, the plaintiff in that action, alleged, inter alia, wrongful termination from his position as business representative.

On December 29, 1982 the union, represented by attorney Vogel, filed a Petition for Removal of the state suit, CV 82-6829. The removal petition alleged federal question jurisdiction pursuant to § 301(a) of the Labor-Management Relations Act, 29 U.S.C. § 185(a) (hereinafter “§ 185”).

On January 6, 1983 Local 871 answered Austin’s complaint and filed a counterclaim. Allegations of misappropriation of union funds had apparently precipitated Austin’s termination. The union sought to recover those misappropriated funds in their counterclaim. The Union alleged that Austin converted for personal use union funds that should have been deposited in various trust fund accounts. The Union further alleged that Austin took unauthorized paid vacations, improperly paid himself double time for work on Sundays, and improperly paid for personal automobile insurance. The Union sought $6,422.17 in damages and also alleged a generalized claim for breach of the implied covenant of good faith and fair dealing and sought such other relief the Court deemed appropriate.

On January 6, 1983 defendant Austin filed a motion to remand the action to state court. Defendant relied heavily on Kinney v. Intern. Broth. of Elec. Workers, 669 F.2d 1222 (9th Cir.1981) and attached a copy of the case, published by the Bureau of National Affairs (“BNA”), to the motion. Without explanation, the Motion to Remand was withdrawn on January 18, 1983.

On February 8, 1983 this Court remanded the action to state court as improvidently removed and issued a five-page order explaining its reasoning to the parties and explicitly relying on the Kinney case. Unbeknownst to the Court at the time, the BNA copy of the Kinney case had been withdrawn and an amended version of the opinion had been issued by the Ninth Circuit.1

Attorney Vogel knew that the Court relied on the BNA copy of the opinion but did not notify the Court for what attorney Vogel now terms “purely tactical reasons.” At the sanctions hearing Vogel explained that at the time of the remand he and the union had changed their minds and decided that they wanted to litigate in state court the case they had removed to federal court six weeks earlier. Apparently, neither Vogel nor his opposing counsel felt any ethical obligation to inform the Court that it had relied on an early copy of an opinion that had later been republished.

After the remand, Local 871 vigorously pursued the counterclaim in the state suit. During a deposition of Austin, attorney Vogel contends he discovered “new” information concerning misappropriation of union funds by Austin and breach of his fidu[428]*428ciary duties. Although this “new” information was unearthed, during discovery on the union’s counterclaim in the state suit, Vogel elected not to amend the counterclaim. As Vogel explained at the sanctions hearing, “I could have litigated [these claims] there [in state court] but for the reasons I’ve indicated as a matter of strategy and tactic I declined to amend the counterclaim.” Instead, on August 12, 1983, Vogel filed a new action in federal court against Austin captioned Script Supervisors Local 871, Etc. v. Austin, CV 83-5241 (hereinafter “First Federal Suit”). Apparently Vogel and the union changed their minds again and wanted to be back in federal court. The alleged jurisdictional base for this action was 29 U.S.C. § 501(b). The allegations in the first federal lawsuit were similar, though not identical, to those pending in the state counterclaim. For example, the state suit alleged misappropriation of union funds for car insurance and vacations and the First Federal Suit alleged misappropriation of union funds for mileage and lodging.2

The union also alleged in the First Federal Suit that Austin failed to prepare and submit certain financial statements.3

After hearing and considering a number of issues in the First Federal Suit, this Court on December 9, 1983 issued an Order to Show Cause why the proceeding should not be dismissed for lack of jurisdiction. “When jurisdiction may not exist ... the Court must raise the issue ... Fed.R. Civ.P. 12(h)(3).” Wash. Local v. Intern. Broth. of Boilermakers, 621 F.2d 1032, 1033 (9th Cir.1980) (emphasis added). On its face, 29 U.S.C. § 501(b), the jurisdictional base for the suit, only gives standing to union members, not unions themselves.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Claudia Cadena
C.D. California, 2022
Jonathan Gould v. Albert Bond
Eighth Circuit, 2021
Danik, Inc. v. Hartmarx Corp.
120 F.R.D. 439 (District of Columbia, 1988)
In Re Phillips
82 B.R. 914 (S.D. Ohio, 1988)
International Brotherhood of Boilermakers v. Freeman
683 F. Supp. 1190 (N.D. Illinois, 1988)
Illes v. City of Wilton Manors
654 F. Supp. 1212 (S.D. Florida, 1987)
Local 624, International Union of Operating Engineers v. Byrd
659 F. Supp. 274 (S.D. Mississippi, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
106 F.R.D. 425, 1985 U.S. Dist. LEXIS 19640, 112 Lab. Cas. (CCH) 11,460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/filippini-v-austin-cacd-1985.