AFL-CIO Laundry and Dry Cleaning Intern. Union v. AFL-CIO Laundry, AFL-CIO

• Decision Date: 12 September 1995
• Docket Number: AFL-CIO,Nos. 95-1224,95-1337,s. 95-1224
• Citation: 70 F.3d 717
• Parties: 150 L.R.R.M. (BNA) 3008, 131 Lab.Cas. P 11,482 LAUNDRY AND DRY CLEANING INTERNATIONAL UNION, Plaintiff-Appellant, v.LAUNDRY, et al., Defendants-Appellees. . Heard
• Court: U.S. Court of Appeals — First Circuit

Page 717

70 F.3d 717

150 L.R.R.M. (BNA) 3008, 131 Lab.Cas. P 11,482

AFL-CIO LAUNDRY AND DRY CLEANING INTERNATIONAL UNION Plaintiff-Appellant, v. AFL-CIO LAUNDRY, et al., Defendants-Appellees.

Nos. 95-1224, 95-1337.

United States Court of Appeals First Circuit.

Heard Sept. 12, 1995.

Decided Dec. 5, 1995.

Nathan S. Paven, with whom Paven & Norton, Braintree, MA, Warren H. Pyle, Lois H. Johnson and Angoff, Goldman, Manning, Pyle, Wanger & Hiatt, P.C. were on brief, Boston, MA, for appellant.

Shelley B. Kroll, with whom Anne R. Sills and Segal, Roitman & Coleman were on brief, Boston, MA, for appellees.

Before TORRUELLA, Chief Judge, LYNCH, Circuit Judge, and STEARNS, ^* District Judge.

TORRUELLA, Chief Judge.

The AFL-CIO Laundry and Dry Cleaning International Union ("the International") appeals the district court's decision to deny its motion for an injunction to compel the AFL-CIO Laundry and Dry Cleaning International Union, Local 66 ("Local 66") and several of its officers to turn over assets, books, and records to a trustee appointed by the International. We affirm the decision of the district court.

BACKGROUND

The following facts are not in dispute. Local 66 represents laundry workers in the Somerville, Massachusetts area. On August 25, 1993, Local 66 wrote to the International requesting its approval to disaffiliate from the International in order to reaffiliate with the Amalgamated Clothing & Textile Workers International Union ("ACTWU"). The International denied Local 66's request. Thereafter, Local 66's membership voted to disaffiliate, and Local 66 informed the International of this decision on November 18, 1994.

In response, the International declared that, under its constitution, an emergency existed with regard to Local 66. The International suspended all of Local 66's officers and appointed a trustee over Local 66. Local 66 did not recognize the trustee, and also refused to turn over its books, records, bank accounts and premises.

On December 12, 1994, the International filed a complaint requesting injunctive relief to force Local 66's officers to recognize the trustee. The district court denied this request in its Order of January 26, 1995. When the district court made its decision, the merits of the underlying dispute were before the National Labor Relations Board, which has since decided that Local 66 (now "Local 66L," but referred to in this opinion as "Local 66") will represent the workers as an ACTWU affiliate. See Aramark Uniform Services, Case 1-CA-32465 (N.L.R.B. May 10, 1995) (memorandum also addressing companion cases). Here, the International appeals the district court's decision denying injunctive relief.

DISCUSSION

We review a district court's denial of a motion for preliminary injunction only for "abuse of discretion" or "clear error" of fact or related law. Coastal Fuels v. Caribbean Petroleum, 990 F.2d 25, 26 (1st Cir.1993); Planned Parenthood League of Mass. v. Bellotti, 641 F.2d 1006, 1009 (1st Cir.1981).

To be entitled to a preliminary injunction, the International had to show the district court (1) that it would suffer irreparable harm if the injunction were not granted; (2) that such injury outweighed any harm which granting injunctive relief would inflict on the defendant; (3) a likelihood of success on the merits; and (4) that the public interest would not be adversely affected by granting the injunction. See, e.g., Pye on Behalf of NLRB v. Sullivan Bros., 38 F.3d 58, 63 (1st Cir.1994); Narragansett Indian Tribe v. Guilbert, 934 F.2d 4, 5 (1st Cir.1991).

The district court denied the International's motion on the grounds that the International failed to show either likelihood that it would succeed on the merits or that it would suffer irreparable harm if the injunction did not issue. In particular, the district court found that contrary to a likelihood of success, the International was likely to fail on the merits since the trusteeship aimed at the illegitimate purpose of preventing Local 66's disaffiliation. Additionally, the district court found that the true harm to the International, the loss of the workers in Local 66, had already occurred, while the harm that the International claimed, inability to exercise its rights under its constitution, was merely "symbolic."

On appeal, the International responds that it is not trying to use the trusteeship to prevent disaffiliation. It explains that since disaffiliation has already taken place, it simply wishes to recover the property, books, and records of the entity it terms "Local 66, Laundry Workers," which it claims is still extant. As a result of this asserted continued existence, the International further argues that its trusteeship is valid and it will likely succeed on the merits. Furthermore, the International contends that it is favored by the balance of harms test, since this test requires that the International be given the sought-after assets in order to compete with Local 66 for worker support.

The validity of a trusteeship, as the district court recognized, is governed by Section 462 of the Labor Management Reporting and Disclosure Act, which states that:

Trusteeships shall be established and administered by a labor organization over a subordinate body only in accordance with the constitution and bylaws of the organization which has assumed trusteeship over the subordinate body and for the purpose of correcting corruption or financial malpractice, assuring the performance of collective bargaining agreements or other duties of a bargaining representative, restoring democratic procedures, or otherwise carrying out the legitimate objects of such labor organization.

29 U.S.C. Sec. 462 (1988). Section 462 sets forth specific legitimate reasons for imposing a trusteeship that benefits a union's membership, including: correcting corruption or financial malpractice;...