United States v. International Brotherhood of Teamsters

981 F. Supp. 233, 156 L.R.R.M. (BNA) 2741, 1997 U.S. Dist. LEXIS 15922, 1997 WL 634173
Procedural entryThis page is a short order in United States v. International Brotherhood of Teamsters. Read the opinion of the Court — 179 F.R.D. 444
District Court, S.D. New York·Decided October 14, 1997·No. No. 88 Civ. 4486(DNE)·Published

Opinion

OPINION & ORDER

EDELSTEIN, District Judge.

This opinion emanates from the voluntary settlement of an action commenced by the United States of America against, inter alia, the International Brotherhood of Teamsters (“IBT”) and the IBT’s General Executive Board. The settlement is embodied in the [234] voluntary consent order entered March 14, 1989 (“Consent Decree”). The goal of the Consent Decree is to rid the IBT of the hideous influence of organized crime through a two-phased implementation of the Consent Decree’s various remedial provisions. In the first phase of the Consent Decree, these provisions provided for three court-appointed officers: the Independent Administrator to oversee the Consent Decree’s provisions; the Investigations Officer to bring charges against corrupt IBT members; and the Election Officer to supervise the electoral process that led up to and including the 1991 election for IBT International Union Office. In the second phase of the Consent Decree, the IA was replaced by a three-member Independent Review Board (“IRB”).

The Consent Decree, during its more than eight-year history, has generated an enormous amount of litigation that has required this Court to issue numerous opinions. In one such opinion, this Court, pursuant to its authority under the All Writs Act, 28 U.S.C. § 1651(a), enjoined “all local unions, joint councils, area conferences, and other entities subordinate to or affiliated with the IBT, and any members, officers, representatives, agents and employees of the IBT or any such IBT affiliated entity, from filing or taking any legal action that challenges, impedes, seeks review of or relief from, or seeks to prevent or delay any act of any of the court officers appointed by this Court pursuant to the Consent Order in this action, in any court or forum in any jurisdiction except this Court[.]” December 15,1989, Order at 3; see also United States v. International Bhd. of Teamsters [All Writs Decision ], 728 F.Supp. 1032 (S.D.N.Y.), modification denied, 735 F.Supp. 502 (S.D.N.Y.), affd, 907 F.2d 277 (2d Cir.1990).

The instant ease is an action to enjoin Defendants from: (1) refusing to deliver and return all IBT Local Union 918 (“Local 918”) property in their possession, custody or control to Eugene P. Maney as Trustee of Local 918; (2) representing themselves as authorized officers and/or representatives of Local 918, unless so authorized by the Trustee; (3) interfering with the conduct of the emergency trusteeship; (4) refusing to provide a complete accounting of the financial condition of Local 918 and its funds to the Trustee, and refusing to provide all financial records and explanations for all receipts, disbursements, and financial transactions of any kind by Local 918; (5) destroying, removing, secreting, or altering any property of Local 918; and (6) litigating the action known as Local 918, et al. v. IBT, 97 Civ. 5708(CPS) (E.D.N.Y.) or any other action or proceeding challenging or relating to the Trusteeship of Local 918 in any court or forum other than this Court.

FACTS

Pursuant to its authority under the Consent Decree the IRB conducted an investigation of Local 918. On September 16, 1997, upon completion of the investigation, the IRB issued the IRB Trusteeship Recommendation Concerning Local 918 (“IRB Report”) to the IBT. The IRB Report charged that the Executive Board of Local 918 “has engaged in a pattern of conduct which violates the IBT Constitution and prevents the membership from obtaining information and exercising their rights.” IRB Report, at 1. Specifically, the IRB found that: (1) the Executive Board of Local 918 failed to adopt and operate under Bylaws approved by its members and the international as required by the IBT Constitution; (2) the leadership failed to regularly hold membership meetings and, from July 1992 to the present, held only eight general membership meetings at which a quorum of 15 members were met; (3) the Executive Board entered into questionable and improper financial arrangements, and had granted themselves salary increases, bonuses, and benefits without first gaining authorization from the membership as well as failing to reimburse the Local for improperly received fees for attending Executive Board meetings; and (4) Local 918’s officers negotiated sham collective bargaining agreements with employers who were permitted to be members of the Local. In conclusion, the IRB recommended the imposition of a Trusteeship over Local 918 and required General President Carey (“Carey”) to report to the IRB any actions taken or planned within two weeks. (Letter from John J. Cronin, Jr. to Ron Carey of 9/16/97).

[235] On October 1,1997, following receipt of the IRB Report, Carey issued a Notice (“IBT Trusteeship Notice”) to the officers and members of Local 918 imposing an emergency trusteeship over Local 918. The emergency trusteeship was effective as of October 2, 1997, and Eugene Maney (“Maney”) was appointed to serve as Temporary Trustee. IBT Trusteeship Notice at 1-2.

Maney arrived at the offices of Local 918 on October 2,1997, to assert control over the affairs of the Local. The building in which the offices are located was locked, and entrance by Maney was obstructed and refused by the Local’s officers and agents. That same day, Local 918 initiated an action in the Eastern District of New York seeking a Temporary Restraining Order (“TRO”) to enjoin the imposition of the emergency trusteeship. Local 918, et al. v. International Bhd. of Teamsters, 97 Civ. 5708(CPS) (E.D.N.Y.).

On October 3, 1997, in response to these actions, Plaintiffs by an Order to Show Cause moved this Court for a TRO to enjoin Defendants from interfering with the conduct of the emergency trusteeship over Local 918 and from litigating this case in any forum other than this Court. After conferring with this Court, Judge Patterson, who was sitting in Part I, signed the TRO and Order to Show Cause, and scheduled a hearing before this Court for October 7,1997.

Less than three hours prior to the October 7, 1997 hearing, this Court received papers from Defendants submitted in opposition to the Plaintiffs’ motion for a preliminary injunction. Accordingly, this Court found it necessary to adjourn the hearing so that Defendants’ papers could be given consideration and to provide Plaintiffs an opportunity to respond.

Having reviewed the arguments advanced by each party in its respective submissions to this Court, this Court finds that a preliminary injunction pursuant to Federal Rule of Civil Procedure 65 should issue.

DISCUSSION

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United States v. International Brotherhood of Teamsters, 981 F. Supp. 233, 156 L.R.R.M. (BNA) 2741, 1997 U.S. Dist. LEXIS 15922, 1997 WL 634173 (S.D.N.Y. 1997).

981 F. Supp. 233 (United States v. International Brotherhood of Teamsters) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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