Local 1575, International Longshoremen Ass'n v. NPR, Inc.

217 F.R.D. 99, 2003 WL 21949407
CourtDistrict Court, D. Puerto Rico
DecidedAugust 14, 2003
DocketCiv. No. 00-1512(JAG)
StatusPublished
Cited by2 cases

This text of 217 F.R.D. 99 (Local 1575, International Longshoremen Ass'n v. NPR, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local 1575, International Longshoremen Ass'n v. NPR, Inc., 217 F.R.D. 99, 2003 WL 21949407 (prd 2003).

Opinion

OPINION AND ORDER

GARCIA-GREGORY, District Judge.

Pending before the court is a request by petitioners Jorge Bringuier, Raul Rivera, [101]*101and Francisco Diaz (“Petitioners”), in their official capacity and as trustees and members of the Board of Directors of the Royalty Fund Mechanized Cargo-Local 1575 ILA (“Fund”) to intervene as plaintiffs (Docket No. 44) and to set aside the final judgment entered by this Court in the matter of Local 1575, International Longshoremen (“Union”) v. NPR, Inc. and Sealand Services, Inc. (“Employers”)(Docket No. 36). Based on the discussion below, this Court DENIES the petitioners’ motions requesting intervention and relief from judgment.

Factual Background

The Union, which is a labor organization consisting of defendant’s employees, filed a complaint against Employers on May 1, 2000, seeking a declaratory judgment for breach of an existing trust agreement and requesting specific performance (Docket No. 1). Jurisdiction was based on § 301 of the Labor Management Relations Act of 1947, 29 U.S.C. 185, which encompasses any action or proceeding arising under any act of Congress relating to commerce for breach of contract and for specific performance between the parties. The original trust agreement of 1976 required that the trust consist of four (4) representatives (two (2) representatives each from employees and employers)(Doeket No. 53). The agreement was amended in March of 1993 to require six (6) representatives three (three (3) representatives each from employers and employees) (Exhibit 11). By April of 2000 the tnxst fund consisted of three (3) employee and one (1) employer representative, creating an incomplete quorum. The incomplete quorum was not in compliance with the trust agreement, and the trust was unable to function properly. The Union thus brought suit against the Employers demanding that they appoint the remaining two (2) employer representatives needed to comply with the trast agreement. (Docket No. 1).

The Union and Employers then entered into a settlement agreement on March 24, 2003, where the Employers agreed to appoint the remaining representatives in order to complete the quorum, and the parties negotiated to lower the number of representatives in the committee (Docket No. 33). The agreement was subsequently approved by this court, and judgment was entered on March 26, 2003. Accordingly, the case was dismissed with prejudice. (Docket No. 33-35).

On April 8, 2003 the Petitioners (consisting of two employee trustee representatives and the sole employer representative) filed a motion for relief from judgment under Fed. R.Civ.P. 60(b) (Docket No. 36). The Petitioners argue that the settlement was reached under fraudulent circumstances because Mr. Padilla (who is the president of the trust fund and the third employee representative) did not have the authority to enter into a settlement agreement with the defendant Employers. Petitioners allege that such a decision must be made by a majority vote within the committee, and that no such vote was conducted. Furthermore, Petitioners claim that Mr. Padilla not only lacked authorization, but that he intentionally kept information from the trastee committee and the Court in order to benefit his own interests. The Petitioners then filed, on May 12, 2003, a Rule 24(b) motion to intervene as plaintiffs (Docket No. 44).

Discussion

I. Motion to Set Aside the Judgment

The Petitioners contend that the final judgment entered on March 26, 2003 should be set aside because it was based on a settlement agreement obtained under fraudulent conduct. Rule 60 of the Federal Rules of Civil Procedure governs when relief from judgment may be granted by the court. In pertinent part the rale states that:

“On motion and on such terms that are just, the court may relieve a party or a party’s legal representative from a final judgment, order, or proceeding for the following reasons ... (3) Fraud (whether heretofore denominated to as extrinsic or intrinsic), misrepresentation, or other misconduct from an adverse party.” FED. R.CIV.P. 60(b).

The moving party has the burden of demonstrating, by clear and convincing evidence, that the alleged misconduct, fraud, or misrepresentation occurred and that the mis[102]*102conduct impaired the moving party’s ability and opportunity to prepare or present its ease in a fair manner. Anderson v. Cryovac, 862 F.2d 910, 923 (1st Cir.1988).

A. Standing

The Petitioners lack the necessary standing in order to invoke relief from judgment in the case at hand. The rule clearly states that a “party or a party’s legal representative” may seek relief of a final judgment. The Petitioners, according to their own motions and exhibits (Docket No. 36, Exhibit 16), admit to having delegated the filing of this ease to the Union; consequently, the Petitioners are neither a party nor legal representatives in this case.

Furthermore, the moving party has the burden of demonstrating that the alleged misconduct substantially interfered with his/ her ability to fully and fairly prepare or present his/her case. Anderson, 862 F.2d at 926. The moving party must show that it has been harmed by the conduct. Id. at 924. The Petitioners were not a party in the original suit, therefore, their ability to present the case in a “full and fair” manner could not have been affected. Simply put, the Petitioners do not have standing.

B. Fraud, Misrepresentation, or Misconduct

In addition, the Petitioners have failed to produce clear and convincing evidence demonstrating that fraud, misconduct, or misrepresentation occurred. In order to show clear and convincing evidence of fraud the evidence on record must show a “color-able claim of fraud.” Pearson v. First NH Mortg. Corp., 200 F.3d 30, 35 (1st Cir.1999). Statements not supported by formal findings of facts are not considered clear and convincing evidence. AccuSoft Corp. v. Palo, 237 F.3d 31, 50 (1st Cir.2001).

The Petitioners allege that Mr. Padilla used his position as President of the union and of the trust to advance his own claim (a RICO Act claim filed by Padilla in 2000-2001), that he deliberately kept information from the committee, and that he was not authorized to sign the settlement agreement. None of the exhibits submitted on record support the allegations that Mr. Padilla attempted to use his position as President to advance his own interests, nor does the record demonstrate that Mr. Padilla deliberately kept information from the Petitioners.

Moreover, the Petitioners fail to support their allegation that Mr. Padilla lacked the authorization to sign the settlement agreement.

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Bluebook (online)
217 F.R.D. 99, 2003 WL 21949407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-1575-international-longshoremen-assn-v-npr-inc-prd-2003.