Hotel & Restaurant Employees & Bartenders International Union Local 54 v. Read

597 F. Supp. 1431, 1984 U.S. Dist. LEXIS 22212
CourtDistrict Court, D. New Jersey
DecidedNovember 5, 1984
DocketCiv. A. 81-2630
StatusPublished
Cited by7 cases

This text of 597 F. Supp. 1431 (Hotel & Restaurant Employees & Bartenders International Union Local 54 v. Read) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Hotel & Restaurant Employees & Bartenders International Union Local 54 v. Read, 597 F. Supp. 1431, 1984 U.S. Dist. LEXIS 22212 (D.N.J. 1984).

Opinion

OPINION

BROTMAN, District Judge.

For the second time in several years, 1 this court is asked to restrain application of certain provisions of the New Jersey Casino Control Act, L.1977, c. 110, § 1 et seq., as amended by L.1978, c. 7, § 1 et seq., N.J.Stat.Ann. § 5:12-1 et seq. (West Supp. 1984) (“the Act”) to the Hotel and Restaurant Employees and Bartenders International Union Local 54 (“the Union”). The Union and its President, Frank Gerace, seek a preliminary injunction, damages and a declaration that the New Jersey Casino Control Commission (“the Commission”) may not enforce sections 93 and 86 of the Act 2 against them. In their complaint *1434 plaintiffs challenge two orders by the Commission, the first of which issued on September 28, 1982 and disqualified Frank Ge-race and two others as officers of the Union, and the second of which issued on September 12, 1984 and directed the Union to remove the three individuals from their positions as Union officers. Plaintiffs’ amended complaint asserts claims based on the federal labor laws, causes of action under the due process clauses of the Fifth and Fourteenth Amendments, various claims under the First and Fourteenth Amendments and a claim based on 42 U.S.C. § 1983. For the purposes of this motion, plaintiffs allege only that the qualification requirements of Section 86(f) of the Act, as applied to two of the Union’s officers, violate the First, Fifth and Fourteenth Amendments.

The defendants in this action include the Casino Control Commission, the chairman and other members of the Commission, the New Jersey Division of Gaming Enforcement (“the Division”), 3 the director of the Division and the Governor of the State of New Jersey. Frank Gerace, Frank Materio and Karlos LaSane, the three union officers facing the removal sanction, have petitioned to intervene in this action as plaintiffs in their individual capacity. The intervenor-applicants propose to challenge the validity of section 86(f) of the Act as applied and on its face, on the ground that it violates First Amendment guarantees of freedom of association. The intervenor-applicants also seek to assert claims that section 86(f) is impermissibly vague, in viola-, tion of the First, Fifth and Fourteenth Amendments.

I. Procedural History

The history of this litigation is complex. At various times, the case has involved proceedings before the federal courts, the state courts and the Commission, a state regulatory agency. This matter originated with recommendations by the Division of Gaming Enforcement to the Commission to hold hearings as to the Union’s compliance with sections 93 and 86 of the Act. 4 The Union and its President then presented this court with a motion for injunctive and declaratory relief in which plaintiffs sought an order prohibiting the Commission from conducting hearings as to the qualifications of Gerace and others to serve as officers of the Union. Plaintiffs argued that sections 93 and 86 of the Act were preempted by the federal labor laws and in violation of the First, Fifth and Fourteenth Amend *1435 ments to the United States Constitution. 5 The court denied plaintiffs’ motion. Hotel & Restaurant Employees & Bartenders International Union Local 54 v. Danziger, 586 F.Supp. 317 (D.N.J.1982).

Plaintiffs appealed this court’s ruling and then sought a stay pending the outcome of the appeal, pursuant to Fed.R.App.P. 8(a). Initially, they were turned down by this court and the Court of Appeals. As a result, the Commission proceeded with disqualification hearings. Subsequently, the commission declared Frank Gerace, Frank Materio and Karlos LaSane to be disqualified as officers of the Union and decided to bar the Union from collecting dues from its members unless the three individuals left their posts. Plaintiffs returned to this court for a stay of the sanctions imposed by the Commission and received such relief from the court pending resolution of their appeal. 6

The Court of Appeals ruled that the federal labor laws, in particular section 7 of the National Labor Relations Act (“NLRA”) and section 504 of the Labor Management Reporting and Disclosure Act (“LMRDA”), preempt the field of regulation of qualification of union officials. Hotel & Restaurant Employees & Bartenders International Union Local 54 v. Danziger, 709 F.2d 815 (3rd Cir.1983). Accordingly, the court remanded the case for “entry of an order enjoining the Commission and the Division from taking any action, pending final hearing, to enforce section 93 against the casino.” 709 F.2d at 833. Having resolved the appeal on federal statutory grounds, the court found it unnecessary to reach plaintiffs’ constitutional claims based on vagueness and over-breadth. Id.

The same issues of federal preemption received a different treatment on review in the Supreme Court. Brown v. Hotel & Restaurant Employees & Bartenders International Union Local 54, — U.S.-, 104 S.Ct. 3179, 82 L.Ed.2d 373 (1984). Justice O’Connor, speaking for the majority, held that section 7 of the National Labor Relations Act “does not preclude ... imposition of qualification standards on casino industry union officials.” The Court de *1436 dined to dedde, in the absence of a fully-developed factual record, whether the specific sanctions imposed by the Commission are permissible. 7 The Court noted that

even a finding that § 7 prohibits imposition of the dues collection sanction need not imply that New Jersey’s disqualification standards are not otherwise enforceable by the Commission. The Act, for example, apparently grants broad powers to the Commission to impose sanctions directly on disqualified persons and to limit or restrict a labor organization’s registration. See N.J.Stat.Ann. § 5:12-64 (Supp.1983-1984). 8

In its instructions to the court below, the Supreme Court ordered this court to consider on remand the factual issue of whether a dues collection ban would seriously conflict with the Union’s “statutory functions as bargaining representative.” 104 S.Ct. at 3192.

Since the Supreme Court announced its decision in June 1984, the Commission has taken several steps which have altered the posture of the case before this court. First, in its order of September 12, 1984, effective September 28, 1984 (“the 1984 Order”), the Commission withdrew its decision to impose the dues collection sanction. Second, the Commission chose to employ another sanction; that is, it ordered the Union to remove Gerace, Materio and La-Sane from their positions.

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597 F. Supp. 1431, 1984 U.S. Dist. LEXIS 22212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hotel-restaurant-employees-bartenders-international-union-local-54-v-njd-1984.