Simoni v. Civil Service Employees Ass'n

133 Misc. 2d 1, 507 N.Y.S.2d 371, 1986 N.Y. Misc. LEXIS 2958
CourtNew York Supreme Court
DecidedOctober 20, 1986
StatusPublished
Cited by11 cases

This text of 133 Misc. 2d 1 (Simoni v. Civil Service Employees Ass'n) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simoni v. Civil Service Employees Ass'n, 133 Misc. 2d 1, 507 N.Y.S.2d 371, 1986 N.Y. Misc. LEXIS 2958 (N.Y. Super. Ct. 1986).

Opinion

OPINION OF THE COURT

Harold J. Hughes, J.

Plaintiffs move for a preliminary injunction and request partial summary judgment in this declaratory judgment action.

This case involves a power struggle for control of the State’s largest public employee union (CSEA), pitting the union president (McGowan) and delegates against the vice-president (McDermott) and the board of directors. At stake is command of a union that wields influence at the highest levels of State and local governments through political indorsement and contributions and the size and nature of its membership. The court enters the fray reluctantly, well aware that in the ordinary case the judiciary will not interfere with the internal affairs of a not-for-profit corporation, including a labor union absent a showing of fraud or substantial wrongdoing (Matter of Gilheany v Civil Serv. Employees Assn., 59 AD2d 834). However, this is not the ordinary case in that this controversy could paralyze the operation of a 200,000-member public employee union, to the detriment of the general public. Consequently, declaratory relief is appropriate.

CSEA is a 75-year-old labor union organized as a not-for-profit corporation. From its incorporation in 1941 until March of 1976, CSEA’s counsel was the DeGraff firm. The enactment of the Public Employees’ Fair Employment Act (L 1967, ch 392), commonly called the Taylor Law, greatly expanded the duties and powers of all public employee unions through the enactment of agency shops, exclusive representation, and the granting of the statutory right to public employees to collective bargaining over the terms and conditions of employment. CSEA grew in size and influence. During 1976 it broke its long relationship with the DeGraff firm and retained the Roemer [4]*4firm as its counsel.1 In the present action each firm claims to be the attorneys of record for CSEA.

This controversy stems from resolutions adopted by the board of directors of CSEA on February 27, 1986 and May 6, 1986. CSEA’s board of directors consists of 115 members elected by the general membership. Section 2 of article IV of CSEA’s constitution provides that the "power and authority to transact all business of the Association shall, subject to the power and authority of the Delegates at meetings of the Association, be vested in a Board of Directors”. Section 1 of article I of the bylaws states that the "President shall be responsible for the organization and direction of the staff of the Association”.

Prior to the adoption of the February 27, 1986 resolution, the board of directors concluded that there existed many problems in the internal organization of CSEA’s staff, and through the implementation of the two resolutions, attempted to redress the perceived deficiencies. The board’s reorganization plan created 13 new positions and provided that the persons holding these positions report directly to Vice-President McDermott, rather than to President McGowan. The May 6, 1986 resolution further implemented the reorganization plan by directing all professional and management staff responsible for field operations to report in accordance with the new chain of command, and providing that all appointments and dismissals of management confidential staff above grade 14 not be effective without the prior approval of the personnel committee of the board of directors.

President McGowan was of the opinion that the board of directors was attempting to usurp his authority to organize and direct the staff, and commenced an action to set aside the board’s resolutions. Simultaneously, during August of 1986, a number of presidents of CSEA locals petitioned President McGowan to call a special meeting of the delegates with an agenda to review: (1) "the power and authority of the elected President of CSEA to carry out his constitutional duties including his responsibility to organize and direct the staff of the Association; and (2) the delivery of legal services to CSEA”.

Not-For-Profit Corporation Law § 603 (d) states that a corpo[5]*5ration may provide that its members elect representatives or delegates who when assembled exercise all of the powers, rights and privileges of members of the corporation. Since more than 200,000 people belong to CSEA, it would be impractical to have members meetings. Therefore, the union’s constitution provides that each local elect delegates. In effect, the delegates are the representatives of the union rank and file.

Three actions were taken at the September 9, 1986 special delegates meeting. The first action was the passage of a resolution reaffirming the bylaw directing the president to be responsible for the organization and direction of the staff and providing "the Board of Directors of the Association has no power to interfere with the chain of command between the President and the staff of the Association or to interfere with the directives of the President to the staff”. The resolution went on to rescind the February 27 and May 6 resolutions of the board. The second action was to pass a resolution directing President McGowan to appoint a committee of members to review the delivery of legal services to CSEA and to report its findings and recommendations to the delegate body at the annual meeting commencing October 25, 1986. Finally, the delegates, acting upon an item not listed on the agenda of the special meeting, adopted a resolution naming John Francisco as treasurer to replace the retiring treasurer.

President McGowan determined that the actions taken at the special meeting removed the basis for his lawsuit to undo the board’s resolutions and his motion to discontinue his action was granted. Vice-President McDermott then commenced an action against CSEA and Francisco challenging Francisco’s appointment upon the ground that it was not listed on the agenda to be discussed at the special meeting of delegates, and upon the further ground that the union’s bylaws provide that "Vacancies in the office of Secretary and Treasurer may be filled for the remainder of the term by the Board of Directors”. This court has granted a preliminary injunction in the McDermott action restraining Francisco from taking office upon the reasoning that McDermott will be likely to succeed on the merits due to the lack of notice to the delegates that filling the vacancy in the treasurer’s position would be addressed at the special meeting, and upon the ground that no emergency existed permitting the delegates present at the meeting to add the issue to the agenda. Thereafter, the plaintiffs in this action, presidents of four CSEA locals plus delegate Robert Simoni, commenced this action to [6]*6declare all resolutions passed at the September 9, 1986 special meeting void upon the grounds that: (1) delegates were not given proper notice of the meeting; (2) the credentials committee improperly determined voting strength based upon paid membership in the association as of June 1, 1985 rather than June 6, 1985, the date required by the union’s constitution; and (3) CSEA’s constitution and the Not-For-Profit Corporation Law direct that a not-for-profit corporation is to be managed by its board of directors and the resolutions adopted by the delegates improperly attempt to limit the authority of the CSEA board of directors to manage the union.

Plaintiffs in this action made the present motion for a preliminary injunction restraining CSEA from implementing the resolutions of the delegates adopted at the September 9, 1986 special meeting. President McGowan retained the De-Graff firm to represent CSEA in both the McDermott and the Simoni actions.

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Bluebook (online)
133 Misc. 2d 1, 507 N.Y.S.2d 371, 1986 N.Y. Misc. LEXIS 2958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simoni-v-civil-service-employees-assn-nysupct-1986.