McNamara v. Johnston

360 F. Supp. 517, 83 L.R.R.M. (BNA) 2497, 1973 U.S. Dist. LEXIS 13316
CourtDistrict Court, N.D. Illinois
DecidedJune 6, 1973
Docket71 C 654
StatusPublished
Cited by3 cases

This text of 360 F. Supp. 517 (McNamara v. Johnston) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNamara v. Johnston, 360 F. Supp. 517, 83 L.R.R.M. (BNA) 2497, 1973 U.S. Dist. LEXIS 13316 (N.D. Ill. 1973).

Opinion

MEMORANDUM OPINION AND ORDER

BAUER, District Judge.

This cause comes on the defendants’ motion to dismiss the complaint.

This is an action for an alleged breach of the fiduciary duty imposed on defendants under Section 501(a) of the Labor-Management Reporting and Disclosure Act of 1959 (commonly referred to as the Landrum-Griffin Act) 29 U.S.C. § 501(a).

The plaintiffs are employed as production unit workers in the Fisher Body Plant of General Motors Corporation at Willow Springs, Illinois, and are dues paying members of the International United Automobile, Aerospace and Agricultural Implement Workers of America (“UAW”), the designated collective bargaining representative of production unit workers in the plant. The plaintiff, Bernard W. McNamara, in addition to being a dues paying member of UAW, also serves in the capacity of Recording Secretary of UAW, Local 558, a post to which he was duly elected by the membership of the Local. The plaintiffs bring this action as members of UAW for the benefit of the union and its members.

The defendant, Robert Johnston, is Regional Director of UAW, Region 4, a region which includes the State of Illinois. Robert Johnston also serves as Chairman of the UAW Illinois State Community Action Program Council (“CAP”).

Defendant James Wright is Chairman of the UAW Chicago Area CAP Council. Defendants Johnston, Wright and Peterson exercise custody and control over Illinois CAP funds, and all decisions respecting the use and expenditure of such funds.

Defendant Emil Mazey is Secretary-Treasurer of UAW International and in such capacity receives and handles union funds as hereinafter described.

Defendant Leonard Woodcock is International President of UAW and in such capacity exercises control and direction over the handling and expenditure of union funds.

The plaintiffs, in the complaint, allege, inter alia, the following facts:

1. Pursuant to the provisions of the UAW Constitution and the administrative instructions issued by the president of UAW International on May 19, 1969, each local union in the State of Illinois, including Local Union 558, is required to set aside a minimum of 3% of' each member’s monthly membership dues as a per capita payment to the UAW Illinois State CAP, and to remit such money to defendant Robert Johnston. Upon receipt of said money defendant Johnston allocates it proportionately to UAW Illinois State CAP and Chicago Area CAP.
2. The defendants Johnston, Wright and Peterson, unlawfully and wrongfully diverted a large part of said money into the political campaign coffers of candidates for public office and for various political expenditures and purposes totally unrelated to the interests and welfare of the union and its members or to the functions and purposes of the union as collective bargaining representative of plaintiffs and their fellow dues paying members of the union. 1 These actions of the de *520 fendants were in violation of 29 U.S.C. § 501(a) which sets forth their statutory duty of fidelity and trust to hold such money solely for the benefit of the union and its members. 2
3. Defendants Mazey and Woodcock instructed, controlled and directed defendants Johnston, Wright and Peterson in violation of their aforesaid statutory duty of fidelity and trust to hold such money solely for the benefit of the union and its members. Further, defendants Mazey and Woodcock, in violation of their statutory duty, have unlawfully and wrongfully diverted a substantial part of the membership dues for various political expenditures and purposes totally unrelated to the interests and welfare of the union and its members or to the functions and purposes of the union as a collective bargaining representative of plaintiffs and their fellow dues paying members of the union. 3
4. The “unlawful and unauthorized” diversion of union money and assets into political campaigns was not only made by defendants in violation of their statutory duty of fidelity and trust, but was also done contrary to an express and explicit resolution adopted by a referendum vote of the membership of UAW Local 558 on May 6, 1969 4 Defendants were given *521 formal notification of such a resolution and of the explicit objections of the members of UAW Local 558 to use of any part of their membership dues money by defendants for partisan political candidates and activites, or for ideological causes or support of organizations or groups espousing ideological causes. The defendants have ignored the objections expressed by the members of UAW Local 558 and the executive officers of UAW have failed and refused to institute a legal action in the name of the union to require defendants to render an accounting.
*520 National Students Association (NSA)
Students for a Democractic Society (SDS)
Students Non-Violent Coordinating Committee (SNCC)
New Mobilization for Peace
Turn Toward Peace
Citizens Committee for a Nuclear Test Ban
National Committee for a Sane Nuclear Policy (SANE)
Americans for Democractic Action (ADA)
United World Federalists
Peace with Freedom, Inc.
Dubois Memorial Committee
United States Committee for the U.N.
American Association for the U.N.
Confederation Spanish Societies
United States Committee for Democracy in Greece

*521 The plaintiffs seek an order of this Court requiring defendants to furnish an accounting and repay in damages to the Union all monies unlawfully diverted by them. 5

The defendants, in support of their motion to dismiss the complaint, contend:

1. The complaint does not state a cause of action upon which relief can be granted because the alleged unlawful expenditures are expenses entirely proper under Section 501, and the UAW Constitution.
2. Plaintiffs have failed to exhaust their Union remedies prior to bringing this action.
3. Plaintiffs have failed to allege the performance of the procedural requirements contained in Section 501(b) of the Act.
4.

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Related

Farrington v. Benjamin
468 F. Supp. 343 (E.D. Michigan, 1979)
Gabauer v. Woodcock
425 F. Supp. 1 (E.D. Missouri, 1976)
Bernard W. McNamara v. Robert Johnston
522 F.2d 1157 (Seventh Circuit, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
360 F. Supp. 517, 83 L.R.R.M. (BNA) 2497, 1973 U.S. Dist. LEXIS 13316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcnamara-v-johnston-ilnd-1973.