United States v. Dist. Council of New York City

972 F. Supp. 756, 1997 U.S. Dist. LEXIS 10871, 1997 WL 418190
CourtDistrict Court, S.D. New York
DecidedJuly 24, 1997
Docket90 Civ. 5722 (CSH)
StatusPublished
Cited by2 cases

This text of 972 F. Supp. 756 (United States v. Dist. Council of New York City) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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United States v. Dist. Council of New York City, 972 F. Supp. 756, 1997 U.S. Dist. LEXIS 10871, 1997 WL 418190 (S.D.N.Y. 1997).

Opinion

MEMORANDUM OPINION AND ORDER

HAIGHT, Senior District Judge.

This matter is currently before the Court on motions by two separately represented groups of petitioners to intervene in this action.

The petitioners represented by the firm of Dublirer, Haydon, Straci & Victor, hereinafter referred to as the “Macagnone Petitioners,” seek leave to intervene as of right pursuant to Rule 24(a), Fed.R.Civ.P., or alternatively by permission under Rule 24(b), and also for class certification under Rule 23. The second group of petitioners, represented by the firm of Bisceglie & Friedman and hereinafter referred to as the “Local Petitioners,” join in the motion to intervene, although not in the motion for class certification.

The purpose of the proposed interventions, according to both sets of petitioners, is to urge the Court to (1) reject a series of restructuring measures (the “Restructuring Plan”) proposed by the District Council of New York City and Vicinity of the United Brotherhood of Carpenters and Joiners of America (the “District Council”) and its parent union, the United Brotherhood of Carpenters and Joiners of America (the “UBC”); and (2) “restor[e] the democratic process of the locals.” Macagnone Petitioners’ Notice of Motion at ¶ 2; Local Petitioners’ Notice of Motion at ¶ 2. 1 The government, the IRO and the District Council oppose all aspects of these petitions.

For the reasons set forth below, the motions are denied in their entirety and the petitions are dismissed.

I.

The long history of this case has been set forth in this Court’s prior opinions, including its opinion dated July 7, 1997 in a related case, Devine v. McCarron, 96 Civ. 5093(CSH), 1997 WL 379708. Familiarity with all these opinions is presumed. For present purposes, it is sufficient to recite the following facts.

In September 1990, the government filed a civil RICO action for injunctive relief against the District Council and certain of its offi *758 cers, including the District Council President, Frederick W. Devine. The complaint alleged that the individual defendants had engaged in a variety of forms of labor racketeering, and that organized crime had infected the operations of the District Council and its constituent locals, resulting in these entities being maintained in a corrupt and undemocratic manner. The litigation was terminated on March 4, 1994, when the parties entered into a Consent Decree.

The Consent Decree permanently enjoined all current and future officers, employees and members of the District Council and its constituent locals from engaging in any racketeering activity, from knowingly associating with any member of any La Cosa Nostra crime family or other criminal group, and from obstructing or otherwise improperly interfering with the implementation of the Consent Decree. Consent Decree, ¶ 2. The Consent Decree also required the constituent locals to adopt certain job referral rules and procedures, and prohibited any District Council officer from simultaneously holding any elected, appointed or salaried position in any local union. Consent Decree, ¶¶ 5, 10. To effectuate and implement the terms of the Consent Decree, an Investigations and Review Officer (“IRO”) was appointed by the Court and given a variety of “powers, rights, and responsibilities.” Consent Decree, ¶4.

One of the IRO’s duties under the Consent Decree was to draft rules for and supervise a rank-and-file secret ballot election for the District Council Executive Board. That election was held in June 1995, and resulted in the re-election of Devine and several other District Council officers who were defendants in the original civil RICO litigation. Finding no violations of the election rules that may have effected the outcome of the election, the IRO certified the results to the Court on October 30,1995.

However, in the spring of 1996, the IRO found evidence of the continuing influence of organized crime over the District Council and financial mismanagement at the District Council. The IRO presented that evidence to the General President of the UBC, Douglas McCarron. On June 25, 1996, McCarron invoked his authority under the UBC constitution and federal labor law by placing the District Council under supervision. 2 As part of the supervision, the five sitting officers of the District Council were removed and Douglas Banes, First Vice President of the UBC, was appointed supervisor.

In addition to imposing supervision on the District Council, the UBC announced plans to restructure District Council operations. News of an impending restructuring prompted a substantial number of rank-and-file union members to write to the Court, some opposing and some supporting the proposed reforms. Following a hearing on April 3, 1997, at which additional rank-and-file union members expressed their views on the proposed restructuring, and the receipt by the Court of additional letters on the subject from union members, the present motions to intervene were filed by the two law firms named above on behalf of a number of individual union members and various local unions. According to the petitions, these individual union members and local unions seek leave to intervene in this matter so that they may object to the Restructuring Plan as contrary to the letter and spirit of the Consent Decree.

Prior to the conclusion of briefing on these motions, the IRO submitted a Special Interim Report, dated May 30, 1997, setting forth his conclusion that the District Council Restructuring Plan was “entirely consistent with the terms and objectives of the Consent Decree.” By letter dated June 12, 1997, the government joined in the IRO’s conclusions. Having received this approval from both the IRO and the government, the District Council, still operating under supervision, informed the Court that it planned to implement the Restructuring Plan immediately. On June 16,1997 the Court held a hearing on the motions to intervene. At the conclusion of that hearing, I entered a stay of implementation, so that the motions could be carefully considered on their merits before the *759 District Council made any substantial changes.

Having completed that consideration, the Court denies the motions to intervene and the motion for class certification, and vacates the stay.

II.

A

The District Council and the IRO contend that this Court has no authority under the Consent Decree to subject the Restructuring Plan to judicial review. This threshold issue must be resolved. If this Court does not have the power to review the Restructuring Plan, then intervention by the petitioners in this action, for the purpose of objecting to a Plan that the Court cannot review, becomes a futile endeavor. The answer to this threshold issue lies in the nature and the wording of the Consent Decree, which brought to an end the civil RICO action commenced by the United States.

Although consent decrees are a hybrid of contract and judicial pronouncement, they “should be construed basically as contracts.” United States v. ITT Continental Baking Co.,

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972 F. Supp. 756, 1997 U.S. Dist. LEXIS 10871, 1997 WL 418190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-dist-council-of-new-york-city-nysd-1997.