Noble v. Sombrotto

525 F.3d 1230, 381 U.S. App. D.C. 136, 184 L.R.R.M. (BNA) 2134, 2008 U.S. App. LEXIS 10546, 2008 WL 2065834
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 16, 2008
Docket06-7170
StatusPublished
Cited by25 cases

This text of 525 F.3d 1230 (Noble v. Sombrotto) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noble v. Sombrotto, 525 F.3d 1230, 381 U.S. App. D.C. 136, 184 L.R.R.M. (BNA) 2134, 2008 U.S. App. LEXIS 10546, 2008 WL 2065834 (D.C. Cir. 2008).

Opinions

Opinion for the Court filed PER CURIAM.

Separate opinion concurring in part and dissenting in part filed by Circuit Judge KAVANAUGH.

Separate opinion concurring in part and dissenting in part filed by Senior Circuit Judge WILLIAMS.

PER CURIAM:

David W. Noble, Jr., is a member and former employee of the National Association of Letter Carriers (“NALC” or the “union”). In 1994 he brought suit against Vincent R. Sombrotto, then president of the union, as well as eleven other union officers, accusing them of violating them fiduciary duties under § 501(a) of the Labor-Management Reporting and Disclosure Act (“LMRDA”), 29 U.S.C. § 401 et seq. He later joined the union itself as an additional defendant.

Noble alleged that the officers had directed union funds to their personal benefit in three ways: (1) an unmonitored “in-town” expense allowance; (2) union reimbursement of the employee portion of the officers’ Federal Insurance Contributions Act (“FICA”) taxes; and (3) unnecessary “per diem” payments made during the union’s biennial National Conventions. By way of relief, he sought an accounting from the officers and the recovery by the union of all unlawful expenditures. He also sought the release of certain financial documents under § 201(c) of the LMRDA, 29 U.S.C. § 431(c).

After a bench trial, the district court dismissed all of Noble’s claims. Noble v. Sombrotto, No. 94-302, slip op., 2006 WL 2708796 (D.D.C. Sept. 20, 2006). The court held that the various payments to the officers had been properly authorized under the union’s constitution and internal procedures, and therefore could not have violated § 501(a). Id. at 15-19. It also dismissed Noble’s § 201(c) claim as moot. Id. at 20-21.

We reverse the district court’s judgment as to the expense allowance program and vacate its dismissal of Noble’s § 501(a) claim on this issue. We affirm the district court’s dismissal of Noble’s § 501(a) claims on the FICA reimbursements and the per diem payments. Finally, because we cannot identify the factual basis for the district court’s mootness finding, we vacate its dismissal of his § 201(c) claim.

I. Background

In 1959, Congress passed the Landrum-Griffin Act, also known as the Labor-Management Reporting and Disclosure Act (“LMRDA”) to protect against misuse of [1233]*1233union funds by corrupt union officials. See, e.g., Tile, Marble, etc. v. Ceramic Tile Finishers Union Local 25, 972 F.2d 738 (7th Cir.1992). LMRDA’s § 501(a) makes union officers fiduciaries of union funds and commands that they keep and use those funds solely for the benefit of the organization and its members. It also forbids unions from adopting provisions or resolutions purporting to absolve union officials for breaches of these duties. LMRDA’s § 501(b) gives union members a private right of action to sue officers in breach of their fiduciary duties in federal or state court to recover damages on behalf of the labor organization. LMRDA’s § 201(c) requires unions to make available to their members all information the organizations are required to file with the Secretary of Labor. That section also provides a private cause of action by which members may compel the union to allow them to inspect records necessary for the members to verify the accuracy of a union’s report.

The National Association of Letter Carriers (“NALC” or the “union”) is a labor union that represents approximately 300,-000 active and retired letter carriers of the U.S. Postal Service. NALC is governed by a constitution which may be amended by majority vote of its biennial National Convention. NALC’s constitution provides for the union to be administered by an Executive Council, whose power is secondary only to that of the National Convention, and gives the council authority to “act between Conventions on all matters related to the welfare of the Union not specifically prohibited by the membership.” NALC Const, art. 9, § 11(e) (1992) (The relevant sections of the constitution have been renumbered over time; for the sake of convenience we use the 1992 numbering throughout unless noted otherwise.). The Executive Council is made up of 28 union officers, including 10 “Resident Officers” (including the President), 15 “National Business Agents,” and 3 “Trustees.” The Executive Council has explicit authority to act between Conventions to “authorize and/or ratify the payment of salaries, wages, expenses, allowances, and other disbursements which it deems necessary and appropriate to the purpose and functioning of this Union, other than provided for.” Id. § 11(e)(3).

Following the 1992 National Convention, appellant David W. Noble, Jr., then a union employee as well as a longtime union member, became aware of various union expenditures authorized by the Executive Council that redounded to its members’ personal benefit. Conducting his own investigation, Noble determined that union officials had longstanding practices of taking $500 monthly expense allowances without providing any supporting documentation justifying such payments; that NALC officers were accepting per diem during meetings of the National Convention even if they incurred no personal expenses; and that the council had decided to reimburse their members for their share of Social Security and Medicare taxes withheld from their NALC paychecks. Noble also found records from past conventions revealing that union officials who had been challenged by union members on some of these practices had given misleading responses, leaving union members under the incorrect impression that the accusations were inaccurate.

Noble filed internal charges against the NALC officers on August 16, 1993, by hand-delivering his accusations to union president Vincent Sombrotto. Sombrotto immediately suspended Noble from his job without pay, after which Noble returned from his long-term leave from the U.S. Postal Service to work as a letter carrier. In accordance with the NALC constitution, Sombrotto called for a five-member investigating committee to investigate Noble’s [1234]*1234charges and report to a special meeting of the NALC convention. The investigating committee, constituted of NALC members who were not members of the Executive Council, rejected Noble’s attempts to participate in the investigation by attending investigatory meetings and calling witnesses, and denied his request to receive a copy of its report in advance of the special convention. After conducting its investigation, which confirmed that Noble’s complaints were based in fact, the investigating committee presented its findings to the special convention on October 13, 1993.

At the meeting, the investigating committee reported that the $500 monthly “in-town” expense allowance was a longstanding practice dating to the 1950s. Similarly, it reported that officers’ receipt of per diem during convention weeks was both longstanding and justified by a ban on reimbursement for other expenses incurred during that period. The committee also found that NALC was reimbursing officers and staff for their share of Social Security taxes because those members were simultaneously required to pay into the Civil Service Retirement System (“CSRS”). Delegates to the special convention roundly rejected each of Noble’s charges of wrongdoing by an average margin of 25 to 1.

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525 F.3d 1230, 381 U.S. App. D.C. 136, 184 L.R.R.M. (BNA) 2134, 2008 U.S. App. LEXIS 10546, 2008 WL 2065834, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noble-v-sombrotto-cadc-2008.