Aho v. Bintz

• Decision Date: 10 October 1968
• Docket Number: No. 4-68 Civ. 286.,4-68 Civ. 286.
• Citation: 290 F. Supp. 577
• Parties: Thelma AHO, Delores Quam, June Carman, Carol Giles, Gladys Odman, James Richert, Myrtle Siegert, Catherine Sprute, and Thomas Grice, Plaintiffs, v. Patrick L. BINTZ, William A. Swint, and International Union, District 50 United Mine Workers of America, Defendants.
• Court: U.S. District Court — District of Minnesota

290 F. Supp. 577

Thelma AHO, Delores Quam, June Carman, Carol Giles, Gladys Odman, James Richert, Myrtle Siegert, Catherine Sprute, and Thomas Grice, Plaintiffs, v. Patrick L. BINTZ, William A. Swint, and International Union, District 50 United Mine Workers of America, Defendants.

No. 4-68 Civ. 286.

United States District Court D. Minnesota. Fourth Division.

October 10, 1968.

Helgesen, Peterson, Engberg & Spector, by Francis X. Helgesen, Minneapolis, Minn., for plaintiffs.

Maslon, Kaplan, Edelman, Borman, Brand & McNulty, by Hyman Edelman, Minneapolis, Minn., for defendants.

NEVILLE, District Judge.

Plaintiffs are former members and officers of Local Union #15257, District 50, United Mine Workers of America. This Local since 1962 had represented the employees of Grief Bros. Co., an employer with a plant at Rosemount, Minnesota. It was affiliated with and held a charter from the International Union, District 50, United Mine Workers of America. Defendants Bintz and Swint are representatives of this International Union maintaining offices in the Twin Cities area in Minnesota. In June 1968 a rival union petitioned the National Labor Relations Board for an election in the Grief plant, which election was won by the rival union on July 12, 1968. A month later on August 13, 1968 the rival union was duly certified as the exclusive bargaining agent for the Grief employees. Thereupon the contract between the employer and Local #15257 allegedly became superseded and defunct, though it provided a wage increase effective August 1, 1968. Counsel for plaintiffs attaches import to this fact. The Local had $2,400 cash more or less in its treasury at or about the time of the rival union's election. The Constitution of the International which chartered this Local provides in Art. XII, Sec. 15 that if a Local is abandoned or disbanded and thus ceases to function, title to all property, money and assets thereof vests in and becomes the property of the International. The complaint alleges, however, that some months prior to the demise of Local #15257, the International District 50 had been expelled from the United Mine Workers. Plaintiffs' counsel asserts that the doctrine of "frustration" as espoused in Local 1142 v. United Electrical, Radio & Machine Wkrs., 247 Minn. 71, 76 N.W.2d 481 (1956) renders nugatory this section of the International Constitution.

Plaintiffs base their assertion of jurisdiction solely on Sections 501(a) and (b) of the Landrum-Griffin Act (1959), 29 U.S.C. § 501(a) and (b). These sections provide:

"The officers, agents, shop stewards, and other representatives of a labor organization occupy positions of trust in relation to such organization and its members as a group. It is, therefore, the duty of each such person, taking into account the special problems and functions of a labor organization, to hold its money and property solely for the benefit of the organization and its members and to manage, invest, and expend the same in accordance with its constitution and bylaws and any resolutions of the governing bodies adopted thereunder, to refrain from dealing with such organization as an adverse party or in behalf of an adverse party in any matter connected with his duties and from holding or acquiring any pecuniary or personal interest which conflicts with the interests of such organization, and to account to the organization for any profit received by him in whatever capacity in connection with transactions conducted by him or under his direction on behalf of the organization. A general exculpatory provision in the constitution and bylaws of such a labor organization or a general exculpatory resolution of a governing body purporting to relieve any such person of liability for breach of the duties declared by this section shall be void as against public policy.

(b) When any officer, agent, shop steward, or representative of any labor organization is alleged to have violated the duties declared in subsection (a) of this section and the labor organization or its governing board or officers refuse or fail to sue or recover damages or secure an accounting or other appropriate relief within a reasonable time after being requested to do so by any member of the labor organization, such member may sue such officer, agent, shop steward, or representative in any district court of the United States or in any State court of competent jurisdiction to recover damages or secure an accounting or other appropriate relief for the benefit of the labor organization. * * *"

The first question and easily disposed of relates to the International Union as a defendant. As quoted above, § 501 applies to a number of officers and other individuals. On its face, it does not apply, nor was it intended to apply to actions against employers or labor organizations. Woody v. Sterling Aluminum Products, Inc., 244 F.Supp. 84 (E.D.Mo. 1965), aff'd 365 F.2d 448 (8 Cir. 1966), cert. denied, 386 U.S. 957, 87 S.Ct. 1026, 18 L.Ed.2d 105 (1967). Thus the motion of the International Union, District 50 must be granted and the complaint dismissed as to it.

The second question relates to the individual defendants who claim they are not within the scope of the statute on its face since they are admitted to be local representatives of The International and thus allege they are not representatives of the Local Union. Further, they claim that the statute was intended to operate against dishonest union officials and not against those validly acting under authority of the International Union and who did not receive and do not now retain the money said to be wrongfully taken. However true this may be, the complaint is against the individual representatives and alleges they caused the taking and directed it. The complaint in part alleges:

"That on or about July 18 the Defendants Swint and Bintz acting as agents of District 50 by use of threats, coercion intimidation, forced and compelled duly elected trustees and officers of

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