United States v. Burhoe

871 F.3d 1, 2017 WL 3947056, 209 L.R.R.M. (BNA) 3552, 2017 U.S. App. LEXIS 17422
CourtCourt of Appeals for the First Circuit
DecidedSeptember 8, 2017
Docket15-1542P
StatusPublished
Cited by202 cases

This text of 871 F.3d 1 (United States v. Burhoe) 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
United States v. Burhoe, 871 F.3d 1, 2017 WL 3947056, 209 L.R.R.M. (BNA) 3552, 2017 U.S. App. LEXIS 17422 (1st Cir. 2017).

Opinion

TORRUELLA, Circuit Judge.

INDEX

INDEX... 5

INTRODUCTION.. .6

I. BACKGROUND... 6

II. HOBBS ACT OVERVIEW... 7

A. The Hobbs Act and Labor Law.. .7

B. ‘Wrongful”... 8

C. “Property”... 9

III. EXTORTION OF NONUNION COMPANIES.. .10

A. Background... 10

1. Four Pints... 10

2. Brigham and Women’s Hospital... 11

3. U.S. Green Building Council & Wolfgang Puck Catering.. .11

4. Great Bridal and Westin Waterfront Hotel... 12

5. Massachusetts General Hospital.. .12

B. Analysis... 12

IV. EXTORTION OF UNION MEMBERS... 22

A. Background... 22

*6 1. Edward Flaherty.. .28

2. James Lee.. .23

3. Robert Wellman... 24

4. 2009 CBA vote... 24

B. Analysis.. .24

1. LMRDA Rights... 24

2. Wages and Benefits.. .26

a. Property.. .26

b. Consent.. .28

c. Threats...29

V. RACKETEERING AND REMAINING CONSPIRACY COUNTS.. .31

VI. PROHIBITION AGAINST CERTAIN PERSONS HOLDING OFFICE.. .32

VII. CONCLUSION... 35

This case involves an attempt by the federal government to use the Hobbs Act to police the activities of members of a labor union. Joseph Burhoe and John Perry, who are union members, challenge the sufficiency of the evidence of their convictions for, inter alia, extortion under the Hobbs Act, as well as the jury instructions with respect to that offense. The government attempted to prove that the defendants extorted property from nonunion companies when they threatened to take certain actions, including picketing, if those companies did not give union members jobs. The government further charged that the defendants extorted wages, benefits, and rights to democratic participation within the union from their fellow union members.

We sustain the convictions of both defendants on count 29 under 29 U.S.C. § 504(a). We vacate the conviction for extortion of a nonunion company on count 4 and remand for a new trial because the jury instructions allowed the jury to convict upon a finding that the work performed was merely unwanted. On all other counts, we reverse the convictions.

I. BACKGROUND 1

This case is factually complex. We therefore will initially set out only the most basic relevant facts and leave to later sections a more detailed exposition.

Teamsters Local 82 (“Local 82” or “the Union”) was a division of the International Brotherhood of Teamsters (“Teamsters”) located in South Boston. Its members worked at trade shows and other events in Boston. This work included bringing in materials and setting up events (“load-in”) and dismantling and removing materials from events (“load-out”). Most of the work occurred at the Hynes Convention Center and the Boston Convention and Exhibition Center, both of which require the use of union labor. Three local companies dominated the trade show industry: Freeman Decorating Services, Champion Exposition Services, and Greyhound Exposition Services. The Union negotiated Collective Bargaining Agreements (“CBAs”) with those companies. The Union also sought work at locations that did not have CBAs with the Union, including area hotels. Local 82 had a unit called the “strike unit” that would pursue jobs with employers currently using nonunion labor.

The indictment at issue here covers a period between 2007 and 2011. The Union had approximately 600 members during this time period. During this time the head' of Local 82 was John Perry. Joseph Bu- *7 rhoe became a member of Local 82 in 1987, but was inactive for many years until he resumed active participation in 2007. He held no official position within the Union but was seen by many union members to be Perry’s right-hand man. Perry and Burhoe were charged with extorting nonunion employers and other union members in a thirty-count indictment. 2 They were also both charged with violating a prohibition against persons with certain criminal convictions serving in particular capacities within the Union. They were jointly tried in a trial that lasted over six weeks. Bu-rhoe and Perry were each found guilty of racketeering, racketeering conspiracy, conspiracy to extort and extortion of nonunion companies and union members, and serving (or allowing a person to serve, respectively) in a prohibited union capacity.

II. HOBBS ACT OVERVIEW

The Hobbs Act provides in pertinent part:

Whoever in any way or degree obstructs, delays, or affects commerce or the movement of any article or commodity in commerce, by robbery or extortion or attempts or conspires so to do, or commits or threatens physical violence to any person or property in furtherance of a plan or purpose to do anything in violation of this section shall be fined under this title or imprisoned not more than twenty years, or both.

18 U.S.C. § 1951(a). This same Act defines “extortion” as “the obtaining of property from another, with his consent, induced by wrongful use of actual or threatened force, violence, or fear, or under color of official right.” Id. § 1951(b)(2).

A. The Hobbs Act and Labor Law

The Hobbs Act explicitly states that its provisions do not “repeal, modify or affect” certain labor law provisions, including the National Labor Relations Act (“NLRA”). 18 U.S.C. § 1951(c); see also 29 U.S.C. §§ 151-166. The NLRA “is a comprehensive code passed by Congress to regulate labor relations in activities affecting interstate and foreign commerce.” Tamburello v. Comm-Tract Corp., 67 F.3d 973, 976 (1st Cir. 1995) (quoting Nash v. Fla. Indus. Comm’n, 389 U.S. 235, 238, 88 S.Ct. 362, 19 L.Ed.2d 438 (1967)). It “reflects congressional intent to create a uniform, nationwide body of labor law interpreted by a centralized expert agency— the National Labor Relations Board (NLRB). Accordingly, the NLRA vests the NLRB with primary jurisdiction over unfair labor practices.” Id.

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871 F.3d 1, 2017 WL 3947056, 209 L.R.R.M. (BNA) 3552, 2017 U.S. App. LEXIS 17422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-burhoe-ca1-2017.