Sacco v. Pataki, 95 Civ. 8627(MGC).

Citation982 F.Supp. 231
Decision Date10 October 1997
Docket NumberNo. 95 Civ. 8627(MGC).,No. 96 Civ. 9291(MGC).,95 Civ. 8627(MGC).,96 Civ. 9291(MGC).
PartiesThomas SACCO, et al., Plaintiffs, v. George E. PATAKI, et al., Defendants. Judith ABRAMSON, et al., Plaintiffs. v. George E. PATAKI, et al., Defendants.
CourtUnited States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York

Charles L. Weintraub, New York City, Snow Becker Krauss P.C., New York City by Leonard W. Wagman, for Sacco plaintiffs.

Law Office of Ronald L. Kuby, New York City by Ronald L. Kuby and Daniel Perez, Rabinowitz, Boudin, Standard, Krinsky & Lieberman, P.C., New York City by Hillary Richard, Caroline Rule and Andrew Fields, for Abramson plaintiffs.

Dennis C. Vacco, Attorney General of the State of New York, New York City by Daniel F. De Vita, Assistant Attorney General, for defendant George E. Pataki.

Elizabeth Bradford, General Counsel of New York Convention Center Operating Corp., New York City, Jackson, Lewis, Schnitzler & Krupman, White Plains, NY by Andrew A. Peterson, for defendants New York Convention Center Operating Corp., Robert E. Boyle, and William L. Mack.

Roberts & Finger, LLP, New York City by Joel L. Finger, and Jordan D. Schiffman, Testa, Hurwitz and Theibeault, Boston, MA by John F. Welsh and Maria H. Bowen, for defendant New York Trade Show Contractors' Association.

Cohen, Weiss and Simon, New York City by Richard M. Seltzer, Michael L. Winston and Joseph J. Vitale, for defendants International Brotherhood of Teamsters, Ronald Carey, Local 807, and Johnnie Brown.

OPINION

CEDARBAUM, District Judge.

These two related actions are brought by union members who worked for many years at the Jacob Javits Center but could not obtain employment there after a highly publicized effort to eradicate corruption and ties to organized crime from the Javits Center. Plaintiffs in Thomas Sacco, et al. v. George E. Pataki, et al., 95 Civ. 8627(MGC).("Sacco Plaintiffs" and "Sacco Action"), are sixty-two members of the Truck Drivers Local Union 807 ("Local 807") of the International Brotherhood of Teamsters ("IBT") who worked at the Javits Center until June of 1995. They sue Local 807, IBT, George A. Pataki, the Governor of New York, the New York Convention Center Operating Corporation ("Operating Corporation"), a public benefit corporation operating the Javits Center, Robert E. Boyle, President and CEO of the Operating Corporation and Special Assistant to the Governor, William L. Mack, Chairman of the Board of Directors of the Operating Corporation, Ronald Carey, President of IBT, Johnnie Brown, the Trustee of Local 807, and the New York Trade Show Contractors' Association ("TSA"). The Sacco Plaintiffs assert claims under 42 U.S.C. § 1983 and § 1985 for violations of the United States Constitution and the Labor Management Relations Act, as well as state law claims. The Sacco Plaintiffs were permitted to file an amended complaint (hereafter simply the "Sacco Complaint") because the initial complaint made vague and conclusory allegations. The Sacco Complaint, therefore, represents the best factual allegations that they can make in this case.

Plaintiffs in Judith Abramson, et al. v. George E. Pataki, et al., 96 Civ. 9291(MGC) ("Abramson Plaintiffs," "Abramson Action," and "Abramson Complaint"), are members of Local 829 of the Exposition Worker's Union who worked at the Javits Center moving exhibits, displays, and merchandise, as well as building and setting up exhibits prior to June of 1995. They sue Pataki, the Operating Corporation, and Boyle under 42 U.S.C. § 1983.1

The defendants move to dismiss both complaints pursuant to Fed.R.Civ.P. 12(b)(6). For the reasons that follow, the motions are granted in part and denied in part.

Allegations of the Complaints

The Javits Center, which is used for the presentation of various trade show exhibitions, was created by New York Public Authorities Law §§ 2560-2572 as a public benefit corporation. From the Javits Center's opening on April 3, 1986 until June 30, 1995, workers from various unions were employed to move exhibits, displays, and merchandise into the Javits Center and to set up and dismantle exhibits. The shows at the Javits Center were organized and labor was provided by various trade show contracting companies. The TSA is the largest association of trade show contractors that provided workers to the Javits Center. (Sacco Compl. ¶ 33; Abramson Compl. ¶ 16.) Until June of 1995, workers were selected by the trade show company which organized the particular show in accordance with the procedures established in written collective bargaining agreements between the individual unions and the TSA. (Sacco Compl. ¶ 33; Abramson Compl. ¶ 24.)

On November 7, 1985, prior to the Javits Center's opening, the Operating Corporation entered into a Memorandum of Understanding ("MOU") with a number of unions including Local 807 and Local 829. The MOU provided that collective bargaining agreements must contain "no-strike" provisions and that disputes concerning the MOU and jurisdiction of the unions would be resolved by "an Impartial Chairman." (Sacco Compl. Ex. B; Abramson Compl. Ex. A.) The MOU also provided that freight handling at the Javits Center would be performed by workers represented by the unions that had jurisdiction over work at the New York Coliseum, which included Local 807 and Local 829. (Id.)

Both Local 807 and Local 829 had collective bargaining agreements with the trade show contractors. The Operating Corporation was not a party to any of the collective bargaining agreements, and the agreements contemplated providing work to other locations in addition to the Javits Center. In October of 1994, the TSA and Local 807 entered into a collective bargaining agreement covering the period from October 1, 1994 to September 30, 1998. (Id.) Local 807's collective bargaining agreement included a seniority provision under which a seniority list of forty-seven people was to be maintained and those on this list were to have preference for the highest paying jobs. (Id.) The agreement also prohibited sub-contracting, (id.), and conflicting agreements with individual employees, (id.). Section 23(A) of the agreement provided that it was binding on all the successors of the parties. Thirty-four of the workers on the seniority list are plaintiffs in the Sacco Action, and the remaining Sacco Plaintiffs would have been eligible to be on the list. (Sacco Compl. ¶¶ 37-38).

Local 829, the Abramson Plaintiffs' union, entered into identical collective bargaining agreements with various trade show contractors. (Abramson Compl. ¶ 37). Their collective bargaining agreements provided that Local 829 was to be the exclusive representative of employees who installed exhibits and booths at trade shows and expositions. (Id. ¶ 39). The most recent of such agreements covered the period from September 1, 1993 to August 31, 1996. (Id. ¶ 38).

Until June 30, 1995, the TSA provided much of the labor for the various trade shows held in the Javits Center, and the workers were hired under the provisions of the various collective bargaining agreements between the unions and the trade show contractors. In early 1995, there was growing publicity concerning corruption at the Javits Center and alleged ties of the workers to organized crime. In response, Pataki, Boyle, and Carey made several public statements about eradicating inefficiency and mob corruption at the Javits Center. (Sacco Compl. ¶¶ 52-54; Abramson Compl. ¶¶ 51-54.) Pataki allegedly stated that he would "take back control" of the Javits Center and rid it of its mob taint. (Id.)

On or about June 30, 1995, Pataki, Boyle, and the Operating Corporation abrogated the collective bargaining agreements between the TSA and the various unions and took direct control of hiring at the Javits Center. They informed the TSA and the workers then employed at the trade shows, including the Sacco and Abramson Plaintiffs, that the collective bargaining agreements were no longer valid and that workers needed to apply directly to the operating Corporation for employment at the Javits Center. (Sacco Compl. ¶ 55; Abramson Compl. ¶ 47.)

In a letter dated June 28, 1995 addressed generally to "Labor Leaders," Boyle wrote as the President and CEO of the Operating Corporation that "[a]lthough we do not believe that the Javits Center is legally bound by the November 7, 1985 Memorandum, this letter will as a matter of courtesy to the union signatories, serve as notice that we formally disavow and terminate that document." (Sacco Compl. Ex. C; Abramson Compl. Ex. B). The letter was signed only by Boyle, but made references to the "Governor's firm commitment to do whatever is necessary" and stated that the "Governor, the Board of Directors, and [Boyle]" were grateful to the honest and productive union members. (Id.)

Both the Sacco and Abramson Plaintiffs allege that on June 29, 1995, the Operating Corporation, through Boyle, Mack, and Brown, entered into secret agreements with Local 807 and Local 829 respectively. According to the Sacco Complaint, the secret agreement with Local 807 provided that a prearranged collective bargaining agreement was to be executed immediately after Local 807 obtained recognition as one of the bargaining representatives of the Javits Center's workers. (Sacco Compl. ¶ 58). Pursuant to this secret agreement, a new collective bargaining agreement was entered into between the Operating Corporation and Local 807, the terms of which were never presented to the rank and file members of Local 807. (Id. ¶ 59).

The Abramson Plaintiffs allege upon information and belief that in negotiating the June 29 secret agreement, Local 829 officials sought and received assurances from the Operating Corporation that Local 829 members would be rehired. (Abramson Compl. ¶ 67). Furthermore, during the negotiations, the Javits Center officials allegedly confirmed that members of the public would be hired only if jobs remained after all...

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