United States v. International Brotherhood of Teamsters

764 F. Supp. 787, 139 L.R.R.M. (BNA) 2369, 1991 U.S. Dist. LEXIS 6121, 1991 WL 81990
District Court, S.D. New York·Decided May 6, 1991·No. 88 CIV. 4486 (DNE)·Published·Cited by 33 cases

Opinion

OPINION & ORDER

EDELSTEIN, District Judge:

This opinion emanates from the voluntary settlement in the action commenced by plaintiff United States of America (the “Government”) against the defendants International Brotherhood of Teamsters (the “IBT”) and the IBT’s General Executive Board (the “GEB”) embodied in the voluntary consent order entered March 14, 1989 (the “Consent Decree”). The provisions in the Consent Decree provided for three Court-appointed officials, the Independent Administrator to oversee the remedial provisions, the Investigations Officer to bring charges against corrupt IBT members, and the Election Officer to oversee the electoral process leading up to and including the 1991 election for International Officers (collectively, the “Court Officers”). The goal of the Consent Decree is to rid the IBT of the hideous influence of organized crime through the election and prosecution provisions.

On March 19, 1991, the Government moved this Court for (i) a declaration that the function of the International Union nominating convention as set out in ¶ F.12.(D) of the Consent Decree may not be altered except by compliance with ¶ L.17 of the Consent Decree; and (ii) an order enjoining the IBT, as the representative of the GEB, and its employees, members, agents, attorneys and affiliates (including local unions, joint councils, and area conferences [hereinafter the “subordinate entities”] ) from taking any action to alter the function of the International Union nominating convention as set out in ¶ F.12.(D) of the Consent Decree. This Court held oral argument on this motion on March 20, 1991, after which the parties submitted proposed findings of fact and conclusions of law.

This dispute arises because the Government has reasons to believe that constituencies of the IBT are planning for the IBT convention delegates to “vote out” the Consent Decree, more particularly, the provisions for direct rank and file elections of International Officers. The Government contends that with the Consent Decree’s electoral provisions voted out, the IBT would attempt to revert to its prior election process. Thus, the convention delegates themselves elect the General President at the convention, eliminating the rank and file vote, and thereby disenfranchising the membership. The Government seeks to prevent this situation. The Government asks this Court to rule on the legal status of provisions of the Consent Decree.

The validity of the Consent Decree’s electoral changes to the IBT constitution are no longer at issue. Accordingly, the relevant ruling for this Court to make is a substantive determination of the legal effect of the Consent Decree in the event that the convention delegates vote against its constitutional changes. In the alternative, this Court will also rule on the Government’s motion de novo.

I. Background

The Consent Decree settled the litigation between the Government and the IBT (the “underlying litigation”). As has been discussed more fully in opinions of this Court and the Court of Appeals this RICO litigation involved allegations of a massive racketeering enterprise and conspiracy to participate in that enterprise. See, e.g. United States v. International Brotherhood of Teamsters, et al., 931 F.2d 177 (2d Cir.1991) (Election Rules); United States v. *789 International Brotherhood of Teamsters, et al., 907 F.2d 277 (2d Cir.1990) (All Writs Act injunction); United States v. International Brotherhood of Teamsters, et al., 905 F.2d 610 (2d Cir.1990) (Friedman & Hughes); United States v. International Brotherhood of Teamsters, et al., 708 F.Supp. 1388 (S.D.N.Y.1989) (Opinion denying motion to dismiss complaint in underlying litigation).

The Consent Decree amended the electoral and disciplinary provisions of the IBT constitution. By H 9(a), the entire Consent Decree immediately became part of the IBT constitution:

The IBT Constitution shall be deemed and hereby is amended to incorporate and conform with all of the terms set forth in the order.

Paragraph 9(b) further stated that the provisions of the Consent Decree would formally be voted a part of the IBT constitution by the delegates to the 1991 IBT Convention.

By no later than the conclusion of the IBT convention to be held in 1991, the IBT shall have formally amended the IBT constitution to incorporate and conform with all of the terms set forth in this order by presenting said terms to the delegates for a vote. If the IBT has not formally so amended the IBT constitution by that date, the Government retains the right to seek any appropriate action, including enforcement of this order, contempt, or reopening this litigation.

Among its substantive provisions, the Consent Decree amended the IBT constitution’s then existing procedure for electing the General President and International Officers. Under the prior system, officers of IBT subordinate entities had been ex offi-cio delegates to the IBT convention. At such a convention, those delegates would directly elect the General President and International Officers. The Consent Decree created a three-step election process culminating in direct rank and file secret ballot elections. First, the local unions have been holding local secret ballot delegate elections during the fall of 1990 and the spring of 1991. Second, these elected delegates will attend the 1991 IBT national convention to be held June 24-28 in Epcot Center, Florida (the “convention”). There, the delegates will vote (i) to approve the Consent Decree’s changes to the IBT constitution as provided by ¶ 9 and ¶ F.12.(D) of the Consent Decree, and (ii) to nominate candidates for IBT International Officers. In the fall of 1991, the IBT will hold a union-wide, direct, secret ballot election of the rank and file for the International Officers.

Since the Consent Decree was executed on March 14, 1989, its scope, terms, and meaning have been repeatedly challenged. With respect to the disciplinary provisions of the Consent Decree, the Court of Appeals and this Court have now determined that the Investigations Officer and Independent Administrator are standins for the General President and GEB, who properly delegated their disciplinary power to those Court Officers pursuant to Article XXVI, section 2 of the IBT Constitution. United States v. International Brotherhood of Teamsters, supra, 931 F.2d 177, 184; United States v. International Brotherhood of Teamsters, supra, 905 F.2d at 622; December 27, 1990 Opinion & Order, 754 F.Supp. 333, 337 (S.D.N.Y.1990); September 18, 1990 Opinion & Order, 745 F.Supp. 189, 191-92 (S.D.N.Y.1990); August 27, 1990 Opinion & Order, 745 F.Supp. 908, 911 (S.D.N.Y.1990); March 13, 1990 Opinion & Order, 743 F.Supp. 155, 159-60, aff'd

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United States v. International Brotherhood of Teamsters, 764 F. Supp. 787, 139 L.R.R.M. (BNA) 2369, 1991 U.S. Dist. LEXIS 6121, 1991 WL 81990 (S.D.N.Y. 1991).

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