Guzman v. Bevona

90 F.3d 641, 1996 WL 414017
CourtCourt of Appeals for the Second Circuit
DecidedJuly 25, 1996
DocketNo. 1367, Docket 95-9090
StatusPublished
Cited by15 cases

This text of 90 F.3d 641 (Guzman v. Bevona) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guzman v. Bevona, 90 F.3d 641, 1996 WL 414017 (2d Cir. 1996).

Opinion

JON 0. NEWMAN, Chief Judge:

This case presents several issues regarding the scope of liability of a union and its officers under the Labor-Management Reporting and Disclosure Act (“LMRDA”), 29 U.S.C. § 401-531 (1994). Carlos Guzman brought suit on behalf of himself and his union, Local 32B-32J (“the Union”), against the defendants, all officers of the Union, after he discovered that the defendants had placed him under surveillance to determine whether his criticism of the Union and the defendants had been fueled by anti-Union management. The suit also complained of a threatening letter regarding Guzman’s comments sent to Guzman by the Union’s attorney. A jury awarded Guzman $100,000 for impairment of his free speech rights, and the Court ordered all the defendants to repay to the Union treasury the $19,343 expended for the surveillance. The Court also enjoined all the defendants from further violations of Guzman’s rights under the Act.

We conclude that the judgment should be affirmed, though with a slight modification to exempt from the injunction those defendants who had retired from all positions within the Union.

Background

In early 1991, Guzman began distributing literature criticizing the Union leadership and calling for a decrease in dues and officers’ salaries. Bevona, suspecting that Guzman was aiding management’s efforts to destabilize the Union in upcoming contract negotiations, hired APB Investigations, Inc. to conduct surveillance of Guzman’s home. In March Guzman noticed the investigators watching him and fled his home in fear. On the orders of Bevona, the investigators continued surveillance of Guzman’s wife.

Bevona asked the Union’s attorney, Ronald Raab, to send a letter responding to Guzman’s criticism of the Union and the defendants. The letter closed with the following sentence: “Dissemination of false information will make you vulnerable to legal action by the Union and its officers.”

Both Guzman’s open letter to Bevona complaining about high salaries and dues and the Raab letter responding to it were read to the Union’s Joint Executive Board. The board members then approved the ongoing surveillance of Guzman. In June, after news stories had reported on the harmful effects of the surveillance on Guzman, the board met again. At this meeting the letters from Guzman and his attorney charging a violation of the LMRDA based on the surveillance and calling for corrective action were read. The defendants again approved the surveillance.

Based on the surveillance and the Raab letter, Guzman brought suit against the defendants, in both their individual and official capacities, for $1.5 million in damages, claiming breach of his free speech rights guaranteed by section 101(a)(2) of the LMRDA, 29 U.S.C. § 411(a)(2) (1994).- He also asserted on the Union’s behalf a claim of breach of fiduciary duty under section 501(a) of the [645]*645LMRDA, 29 U.S.C. § 501(a) (1994), and requested that the defendants be ordered to repay to the Union the $19,343 spent on the surveillance. Finally, Guzman requested in-junctive relief against further violations of the Union constitution under section 301(a) of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185(a) (1994).

In a court conference in March 1992, the defendants questioned the propriety of permitting Guzman to seek damages against the Union under section 101 by suing the officers in their official capacities while also bringing an action on behalf of the Union under section 501. In response, Guzman withdrew his claim for damages against the Union by amending his complaint to sue the officers only in their individual capacities.

In 1992, the defendants’ attorney advised Guzman’s attorney that, by dropping the claim against the individual defendants in their official capacities, Guzman’s attorney appeared to have relinquished the right to recover attorney’s fees under the common benefit rule of Hall v. Cole, 412 U.S. 1, 93 S.Ct. 1943, 36 L.Ed.2d 702 (1973). In March 1995, in a ruling on the parties’ cross-motions for partial summary judgment, Judge Patterson accepted this proposition, but permitted Guzman to file a third amended complaint, renewing his claim against the individual defendants in their official capacities.

In the March 1995 ruling, the Court noted that, although unions may file civil suits against members for libelous or slanderous statements, section 609 of the LMRDA prohibits any disciplinary action against members for exercising their right to free speech about union issues. The Court denied summary judgment for the defendants as to the Raab letter because it found that an issue of material fact existed as to whether Guzman understood the last sentence of the letter to threaten union discipline. At trial, the Court instructed the jury to find for the plaintiff if it found that a reasonable union member would have understood the Raab letter to threaten disciplinary action.

On the section 101(a)(2) claim, the jury found that the surveillance and the Raab letter were authorized by Bevona in his individual and official capacities, and by the other defendants only in their official capacities. The jury also found that the surveillance had the effect, but not the purpose, of inhibiting Guzman’s free speech rights, and that the Raab letter had both such purpose and effect. The jury awarded $100,000 in damages, and the Court ordered Bevona and the Union to pay Guzman this sum.

In ruling on the equitable claim under section 501(a), the District Court found that both the surveillance and the Raab letter had both the purpose and the foreseeable effect of inhibiting Guzman’s free speech rights. The Court further held that all the defendants had acted for their own “personal and political benefit” in ordering and ratifying the surveillance and the Raab letter, and that the use of Union funds for the surveillance was manifestly unreasonable. The Court ordered that all the individual defendants repay the Union for the cost of the surveillance. The Court also enjoined the defendants from (a) conducting any further surveillance of Guzman or his family, (b) threatening any legal action against Guzman or his political supporters for exercising their free speech rights, and (c) engaging or directing, or inciting others to engage in actions that have the purpose or reasonably foreseeable effect of inhibiting Guzman’s exercise of his free speech rights.

Since the suit was filed, Guzman has not been threatened by any of the defendants. However, in June 1995, less than two months before trial, several shop stewards assaulted Guzman outside a shop stewards’ meeting and threw his leaflets into the street. The defendants took no disciplinary action against these individuals.

Discussion

I. Section 501

Section 501(a) of the LMRDA requires union officers “to hold [the union’s] money and property solely for the benefit of the organization and its members.” 29 U.S.C. § 501(a). Section 501(b) gives union members a right to sue on behalf of the union.

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Guzman v. Bevona
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Bluebook (online)
90 F.3d 641, 1996 WL 414017, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guzman-v-bevona-ca2-1996.