Krokosky v. United Staff Union

291 F. Supp. 2d 835, 173 L.R.R.M. (BNA) 2535, 2003 U.S. Dist. LEXIS 20559, 2003 WL 22495524
CourtDistrict Court, W.D. Wisconsin
DecidedSeptember 30, 2003
Docket03-C-0078-C
StatusPublished
Cited by2 cases

This text of 291 F. Supp. 2d 835 (Krokosky v. United Staff Union) is published on Counsel Stack Legal Research, covering District Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krokosky v. United Staff Union, 291 F. Supp. 2d 835, 173 L.R.R.M. (BNA) 2535, 2003 U.S. Dist. LEXIS 20559, 2003 WL 22495524 (W.D. Wis. 2003).

Opinion

OPINION and ORDER

CRABB, District Judge.

This is a civil action for injunctive relief in which plaintiff Henry Krokosky, Jr. contends that defendant United Staff Union violated the Labor-Management Reporting and Disclosure Act of 1959, 29 U.S.C. §§ 401-531, and § 431 in particular, when it refused to disclose an itemized billing statement it paid in July 2002 for legal services rendered by Nola Cross. Section 431(c) provides that a union must disclose certain documents needed to verify the annual financial disclosure reports it files with the Secretary of Labor to its members if they show they have “just cause” to see the document. Jurisdiction is present under 28 U.S.C. § 1331 and 29 U.S.C. § 431(c). Venue is proper because defendant maintains its principal office in Onalaska, Wisconsin. 29 U.S.C. § 431(c).

Both parties have moved for summary judgment. Plaintiff contends that he had just cause to see Cross’s itemized bill under the Labor-Management Reporting and Disclosure Act because there is a significant disparity in professional fee expenditures reported on defendant’s financial disclosure reports between two successive years. Alternatively, plaintiff contends that he has just cause because defendant’s board of directors failed to follow proper procedures in hiring and paying Cross to investigate an employment dispute be *837 tween plaintiff and a co-worker. Defendant maintains that plaintiff has not shown just cause because his reasons for wanting to see the bill are pretextual and do not relate to the financial disclosure reports. Because plaintiff has not shown “just cause” to see the bill pursuant to 29 U.S.C. § 481(c), defendant’s motion for summary-judgment will be granted and plaintiffs motion will be denied.

From the parties’ proposed findings of facts, I find that the following facts are both material and undisputed.

UNDISPUTED FACTS

Defendant United Staff Union is a membership association and labor union incorporated in the state of Wisconsin. Plaintiff Henry V. Krokosky and Debra Armitage are both dues-paying members of defendant in good standing, but each are members of different caucuses within defendant. Both work for the Wisconsin Education Association Council — -Fox Valley.

In April 2001, Armitage filed a sexual harassment complaint against plaintiff and Roger Palek, another co-worker. John Carl Davis, who was defendant’s president at the time, and Anne Boley, who was then defendant’s vice president and grievance chair, agreed that the most appropriate way to respond to Armitage’s complaint would be to hire outside counsel to investigate. They hired Nola Cross, a lawyer who was providing unrelated legal services for defendant. Cross performed legal work relating to Armitage’s claim between April 2001 and April 2002 that led plaintiffs employer to issue a warning letter to plaintiff, Palek and Armitage.

Cross did not bill defendant for any of her services relating to the Armitage claim until either May or June of 2002. The bill she finally submitted included $12,906.61 in legal fees, of which $6,300 was for services relating to Armitage’s claim. Davis approved payment of the bill in June 2002. Neither Boley nor Davis notified the board of directors that legal fees relating to Ar-mitage’s claim had been accruing until a board of directors meeting in September 2002. At that meeting, defendant’s treasurer, Debrah Byers, informed the board that Cross’s bill had been paid. No board member questioned the bill or otherwise objected.

Defendant has a policy that provides that any member may get information about defendant’s expenditures, specifically “amount paid, to whom, for what, amounts spent/remaining in budgetary categories etc.,” upon a written request to the treasurer. Plaintiff made a demand to see Cross’s bill on December 2, 2002. Defendant has refused to provide an actual copy of the bill under this policy. However, it has informed those members who have requested a copy, including plaintiff, that it paid the $12,906.61 to Cross in July 2002 for work performed between April 6, 2001 and April 16, 2002. Byers also informed plaintiff that he was not entitled to see the Cross bill unless he could show just cause pursuant to the Labor-Management Reporting and Disclosure Act. Plaintiff has made three additional demands to see the bill. In response, defendant has repeatedly informed plaintiff that it will not produce the bill without a showing of just cause.

Plaintiff was not the only union member who demanded to see the bill during this time. On December 13, 2002, Palek sent an email to Byers regarding plaintiffs earlier demand. Byers responded to both Palek and plaintiff three days later by again requesting a just cause showing. Palek responded to Byers, stating: “[Ojffi-cers have a fiduciary responsibility that [union dues] are only spent in [an] appropriate manner. I have asked Anne [Boley] for an explanation of why attorney’s fees *838 were paid for Ms. Armitage. She has not provided an explanation.” Byers and Pa-lek exchanged more emails in which Byers characterized Palek’s reasons as “rhetoric on why I should not deny the request” and Palek reiterated his concern that “money could have possibly been inappropriately paid out.”

Defendant reported on its financial disclosure report for its 2000-01 fiscal year that $6,974 had been expended for professional services; it reported $15,307 on its 2001-02 report, which includes the entire $12,906.61 payment to Cross. Plaintiff has not requested any documentation of the $15,307 professional fee expenditures reported on the 2001-02 report other than the $12,906 Cross bill.

Defendant’s by-laws require that any expenses exceeding budgeted amounts must be approved by the board of directors and that “the general membership [must] be notified of the amount and rationale for such authorization.” Defendant’s proposed annual budget for 2002-03 shows that it budgeted $10,000 per year for legal services for the two fiscal years (2000-01, 2001-02) in which Cross performed legal work relating to Armitage’s claim and it had no expenditures for legal fees in the fiscal year 2000-01 and $14,064 in 2001-02. (There is some discrepancy regarding defendant’s legal fee expenditures for the fiscal year 2001-02. Byers has testified that defendant spent $14,064 for that period, but defendant’s May 2003 budget report indicates that the total defense spending was only $13,945, including legal fees. Both parties have accepted the $14,064 figure and neither has explained what additional professional services it paid for in 2001-02.) By comparison, defendant’s legal fee expenses were $10,889 in the fiscal year 1995-96, $17,433 in 1996-97, $73,375 in 1997-98, $10,181 in 1998-99 and $1,432 in 1999-2000.

Defendant has a general policy that provides as follows:

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Bluebook (online)
291 F. Supp. 2d 835, 173 L.R.R.M. (BNA) 2535, 2003 U.S. Dist. LEXIS 20559, 2003 WL 22495524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krokosky-v-united-staff-union-wiwd-2003.