United States v. International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers

141 F.3d 405
CourtCourt of Appeals for the Second Circuit
DecidedMarch 30, 1998
DocketNo. 97-6324
StatusPublished
Cited by8 cases

This text of 141 F.3d 405 (United States v. International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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. International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers, 141 F.3d 405 (2d Cir. 1998).

Opinions

WINTER, Chief Judge:

The International Brotherhood of Teamsters (“IBT”) appeals from a decision by Judge Edelstein interpreting a consent decree (“Consent Decree” or “Decree”) to require the IBT to pay for an Election Officer’s supervision of a rerun of the 1996 IBT elections. The IBT argues that under the terms of the Decree, the government must pay the cost of supervision if it chooses to have the rerun supervised. We agree. The Decree provides that if the government chooses to [407]*407supervise the 1996 elections, of which the rerun is conceded to be a part, the government will bear the cost. Because the allegedly improper conduct that necessitated the rerun is not attributable to the IBT under the terms of the agreement, the government’s argument that the IBT must pay for the rerun’s supervision is unavailing.

BACKGROUND

The instant matter involves another dispute over the meaning of the Consent Decree entered into by the IBT and the government in March 1989. See United States v. IBT (“1996 Election Rules Order ”), 86 F.3d 271, 272-73 (2d Cir.1996) (collecting cases). A history of the parties’ extensive litigation over the Decree is included in an earlier opinion of this court, United States v. IBT (“1991 Election Rules Order ”), 931 F.2d 177, 180-82 (2d Cir.1991), familiarity with which is assumed. In brief, the Decree, which arose from the settlement of the government’s civil RICO action against the IBT, instituted various reforms designed to help end the influence of organized crime within the IBT. Among the provisions of the Decree is one stating that a court-appointed Election Officer shall supervise the 1991 IBT elections at IBT expense. With regard to the 1996 elections, however, Paragraph 12(D)(ix) of the Decree states that supervision is at the government’s option and that, if the government chooses to exercise that option, the consequent supervision will be at the government’s expense.

In the course of administering the Consent Decree prior to the 1991 elections, the district court rejected a claim by the IBT that “supervise” was a narrow term, limited largely to passive oversight. Instead, the court adopted the government’s and Election Officer’s view that “supervise” was a “proactive” term that allowed the Election Officer to regulate, manage, and carry out virtually every step in the process of electing IBT international officers. United States v. IBT, 723 F.Supp. 203, 206-07 (S.D.N.Y.1989). In practice, this ruling led to the Election Officer’s involvement in many routine acts such as the printing, mailing, and counting of ballots. At the time, this broad interpretation pleased the government because it maximized the Election Officer’s powers and because, under the provisions of the Consent Decree, the IBT paid all the costs of supervising the 1991 elections.

With regard to the 1996 IBT elections, the government exercised its option under Paragraph 12(D)(ix) to have the elections supervised by the Election Officer. While the broad interpretation of the term “supervise” described above continued to maximize the Election Officer’s powers, it also increased the financial burden on the government because the Consent Decree now required the government to pay the costs of such supervision. As a result, the government paid for many routine expenses of the 1996 elections—again, for example, the printing, mailing, and counting of ballots—in addition to expenses that were directly incurred by the Election Officer.

After the 1996 elections resulted in the reelection of General President Ronald Carey, the Election Officer found that IBT funds had been embezzled and used to support Carey’s reelection campaign. The Election Officer refused to certify the results and thereafter ordered a rerun. Subsequently, three non-Teamsters—Martin Davis, Michael Ansara, and Jere Nash—pleaded guilty to various federal charges relating to the 1996 elections, including conspiracy to embezzle union funds (Ansara, Davis, and Nash) and embezzlement of union funds (Davis). The district court appointed Kenneth Conboy as an election officer with power to decide whether to disqualify Carey from participating in the rerun. Conboy concluded that Carey, along with another IBT official, Director of Government Affairs William Hamilton, had participated in the scheme to embezzle IBT funds and, accordingly, Conboy disqualified Carey from the rerun. Conboy’s decision was upheld by the district court, United States v. IBT, 988 F.Supp. 759 (S.D.N.Y.1997), and is now the subject of a separate appeal pending in this court.

Also subsequent to the Election Officer’s decision not to certify the election results, Congress enacted appropriations legislation prohibiting government funds from being used to pay for supervision of the rerun. [408]*408The Election Officer reacted to this development by filing an application with the district court requesting that it enter an order ensuring full funding for the rerun’s supervision. The Election Officer did not take a position as to who should be responsible for that funding. In response to the Election Officer’s request, the district court held that although the rerun constitutes part of the 1996 elections, the funding obligation for supervision must nevertheless be borne under the Consent Decree by the IBT rather than by the government. United States v. IBT, 989 F.Supp. 468 (S.D.N.Y.1997). In the district court’s view, because the IBT, through its agents Carey and Hamilton, engaged in the misconduct necessitating the rerun, the IBT is responsible for funding the rerun’s supervision.

DISCUSSION

We review de novo a district court’s interpretation of a consent decree. EEOC v. Local 40, Int’l Ass’n of Bridge, Structural & Ornamental Iron Workers (“Local 40 ”), 76 F.3d 76, 80 (2d Cir.1996). Although consent decrees are judicial orders subject to enforcement by courts, they are also agreements between parties that “should be construed basically as contracts.” United States v. IBT (“IRB Rules ”), 998 F.2d 1101, 1106 (2d Cir.1993) (quoting United States v. ITT Continental Baking Co., 420 U.S. 223, 236-37, 95 S.Ct. 926, 934-35, 43 L.Ed.2d 148 (1975)). In enforcing a consent decree, a court is constrained to read and apply the decree “ “within its four comers’ and may not look beyond the document to satisfy one of the parties’ purposes.” United States v. IBT (“Wilson, Dickens & Weber”), 978 F.2d 68, 73 (2d Cir.1992) (quoting United States v. Armour & Co., 402 U.S. 673, 682, 91 S.Ct. 1752, 1757-58, 29 L.Ed.2d 256 (1971)). A court is not entitled to expand or contract the agreement of the parties as set forth in the decree and must give the explicit language of the decree great weight. Local 40, 76 F.3d at 80; Berger v. Heckler, 771 F.2d 1556, 1568 (2d Cir.1985). In addition, “[a] court may not replace the terms of a consent decree with its own, no matter how much of an improvement it would make in effectuating the decree’s goals.” IRB Rules, 998 F.2d at 1107. Although courts have equitable powers to enforce consent decrees, see United States v.

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Bluebook (online)
141 F.3d 405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-international-brotherhood-of-teamsters-chauffeurs-ca2-1998.