Laborers' International Union of North America, Afl-Cio v. National Post Office Mail Handlers, Watchmen, Messengers and Group Leaders Division of the Laborers' International Union of North America, Afl-Cio and First American Bank, N.A. Laborers' International Union of North America, Afl-Cio v. National Post Office Mail Handlers, Watchmen, Messengers and Group Leaders Division of the Laborers' International Union of North America, Afl-Cio National Post Office Mail Handlers Local Unions Nos. 297, Intervenors

880 F.2d 1388
CourtCourt of Appeals for the First Circuit
DecidedJuly 28, 1989
Docket89-7013
StatusPublished
Cited by1 cases

This text of 880 F.2d 1388 (Laborers' International Union of North America, Afl-Cio v. National Post Office Mail Handlers, Watchmen, Messengers and Group Leaders Division of the Laborers' International Union of North America, Afl-Cio and First American Bank, N.A. Laborers' International Union of North America, Afl-Cio v. National Post Office Mail Handlers, Watchmen, Messengers and Group Leaders Division of the Laborers' International Union of North America, Afl-Cio National Post Office Mail Handlers Local Unions Nos. 297, Intervenors) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laborers' International Union of North America, Afl-Cio v. National Post Office Mail Handlers, Watchmen, Messengers and Group Leaders Division of the Laborers' International Union of North America, Afl-Cio and First American Bank, N.A. Laborers' International Union of North America, Afl-Cio v. National Post Office Mail Handlers, Watchmen, Messengers and Group Leaders Division of the Laborers' International Union of North America, Afl-Cio National Post Office Mail Handlers Local Unions Nos. 297, Intervenors, 880 F.2d 1388 (1st Cir. 1989).

Opinion

880 F.2d 1388

131 L.R.R.M. (BNA) 3179, 279 U.S.App.D.C. 315,
112 Lab.Cas. P 11,411

LABORERS' INTERNATIONAL UNION OF NORTH AMERICA, AFL-CIO, Appellant,
v.
NATIONAL POST OFFICE MAIL HANDLERS, WATCHMEN, MESSENGERS AND
GROUP LEADERS DIVISION OF THE LABORERS'
INTERNATIONAL UNION OF NORTH AMERICA,
AFL-CIO and First American Bank, N.A.
LABORERS' INTERNATIONAL UNION OF NORTH AMERICA, AFL-CIO, Appellant,
v.
NATIONAL POST OFFICE MAIL HANDLERS, WATCHMEN, MESSENGERS AND
GROUP LEADERS DIVISION OF THE LABORERS' INTERNATIONAL UNION
OF NORTH AMERICA, AFL-CIO National Post Office Mail Handlers
Local Unions Nos. 297, et al., Intervenors.

Nos. 89-7013, 89-7049 and 88-7207.

United States Court of Appeals,
District of Columbia Circuit.

Argued May 15, 1989.
Decided July 28, 1989.

Appeal from the United States District Court for the District of Columbia (Civil Action No. 88-1731).

George Kaufmann, with whom Joseph E. Kolick, Jr., Laurence E. Gold, and Orrin Baird, Washington, D.C., were on the brief, for appellant, Laborers' Intern. Union of North America, AFL-CIO.

William W. Osborne, Jr. and John R. Mooney, Washington, D.C., were on the brief for appellants, Nat. Post Office Mail Handlers Local Union Nos. 301, et al.

Charles R. Both, with whom John F. Colwell and Arthur L. Fox, II, Washington, D.C., were on the brief, for appellee, Nat. Post Office Mail Handlers, Watchmen, Messengers and Group Leaders Div. of the Laborers' Intern. Union of North America, AFL-CIO, and appellees/intervenors Nat. Post Office Mail Handlers Local Unions Nos. 297, et al.

Larry D. Sharp and Thomas P. Murphy, Washington, D.C., entered an appearance for appellee, First American Bank, N.A.

Before MIKVA and WILLIAMS, Circuit Judges, and WILL,* Senior District Judge.

Opinion for the Court filed by Circuit Judge MIKVA.

MIKVA, Circuit Judge:

These consolidated cases arise out of a dispute between an international labor union and its affiliate over the power of the international to impose a supervision or trusteeship on the affiliate. The question presented is whether a federal district judge has the statutory power to enjoin the international union from conducting a hearing that, in the absence of an emergency, is required by its constitution before it may impose a trusteeship on its affiliate. We hold that Title III of the Labor-Management Reporting and Disclosure Act of 1959 ("LMRDA"), 29 U.S.C. Secs. 462, 464, does not authorize the enjoining of such a pre-trusteeship hearing. In addition, we vacate as moot certain other aspects of the district court's rulings, as required by United States v. Munsingwear, Inc., 340 U.S. 36, 41, 71 S.Ct. 104, 107, 95 L.Ed. 36 (1950). All told, we vacate completely the orders of July 28, 1988 and January 17, 1989.

I. BACKGROUND

On December 16, 1985, the Laborers' International Union of North America, AFL-CIO ("LIUNA") imposed a trusteeship on its affiliate the Mail Handlers, Watchmen, Messengers and Group Leaders Division ("Division"). Louis D. Elesie was appointed trustee of the Division by LIUNA President Angelo Fosco. The trusteeship ended on February 1, 1988, and is the subject of a lawsuit pending before the district court, see National Post Office Mail Handlers Division v. Laborers' International, 880 F.2d 1388 (D.D.C.).

On February 1, 1988, a slate of candidates critical of LIUNA was elected to positions of leadership within the Division, including Herbert Walker as president. Almost immediately, according to Walker, the two unions disagreed over the appropriate term of office for the Division's new leaders. LIUNA insisted that the officers elected in February should serve only seven months, to fill out the remainder of the term of the former officials who had been removed by the trusteeship in 1985. The Division's officials replied that they had been elected to full four-year terms. On March 30, 1988, the Division notified Fosco that it planned to hold a National Conference in August, in order to update and amend its constitution, but advised Fosco that it did not plan to hold new elections at that time.

On June 20, 1988, LIUNA President Angelo Fosco declared an emergency supervision over the Division, claiming that the move was "necessary to correct and guard against corruption and financial malpractice, assure the performance of the Division's collective bargaining agreement and responsibilities, and in general carry out the Division's legitimate objectives." Laborers' International v. Mail Handlers Division, 128 L.R.R.M. (BNA) 3178, 3179, 1988 WL 83091 (1988). The supervision was imposed prior to notice and a hearing, pursuant to Article IX, section 7 of LIUNA's constitution, which empowers LIUNA's president to impose a trusteeship or supervision without a hearing when, in his judgment, "an emergency situation exists," see Laborers' International v. Mail Handlers Division, 130 L.R.R.M. (BNA) 2426, 2427 n. 3 (1989).

Fosco determined that for several reasons an emergency situation existed in this case. First, he noted that on June 16, 1988, a federal grand jury in Columbus, Ohio, had issued a fifty-count indictment of Herbert Walker, alleging that he had embezzled approximately $100,000 while serving as the president of a Mail Handlers local. Walker later pled guilty to some of the charges, and is currently in prison. Members of the Division's Policy and Steering Committee assert that on the morning of June 20th they resolved informally that Mr. Walker should take a leave of absence and that they should appoint an Acting Director to fill his vacancy. Later that day the emergency supervision was declared. On the evening of the 20th, the Committee adopted a resolution accepting a leave of absence from Walker pending the outcome of his criminal proceeding.

As the second factor justifying the supervision, Fosco asserted that the Division had committed fraud with respect to the Mail Handlers Health Benefit Plan ("Health Plan"), a government procurement contract between the Division and the federal Office of Personnel Management ("OPM") that provides health insurance to approximately 517,000 federal employees as well as to the 40,000 members of the Division. The Health Plan is underwritten by the CNA Insurance Company. LIUNA contends that Mail Handlers Local No. 300 in New York attempted to force the Health Plan to pressure CNA to pay false and fraudulent claims submitted by a consortium of medical providers known as the Federal Plaza Medical Associates ("Federal Plaza"). The OPM ordered the Health Plan to conduct an audit, which revealed that a number of fraudulent claims had been paid, many during the 26-month period when LIUNA's trusteeship was in effect, see Laborers' International, 128 L.R.R.M. at 3183. When OPM instructed CNA to cease payment on questionable claims, Federal Plaza, supported by several Local No. 300 officials, filed suit to force payment.

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