Argentine v. United Steel Workers Ass'n, C2-96-463.

• Decision Date: 19 October 1998
• Docket Number: No. C2-96-463.,C2-96-463.
• Citation: 23 F.Supp.2d 808
• Parties: Charles ARGENTINE, et al., Plaintiffs, v. UNITED STEEL WORKERS ASSOCIATION, et al., Defendants.
• Court: U.S. District Court — Southern District of Ohio

23 F.Supp.2d 808

Charles ARGENTINE, et al., Plaintiffs, v. UNITED STEEL WORKERS ASSOCIATION, et al., Defendants.

No. C2-96-463.

United States District Court, S.D. Ohio, Eastern Division.

October 19, 1998.

COPYRIGHT MATERIAL OMITTED

Robert S. Moore, Youngstown, OH, Ira J. Mirkin, Timothy R. Piatt, Green Haines Sgambati Murphy & Macala, Youngstown, OH, for Charles Argentine, John Gooch, Clarence Wingo.

Stewart Ralph Jaffy, Stewart Jaffy & Associates, Columbus, OH, Jonathan D. Hacker, Washington, DC, Warren G. Kohlman, Washington, DC, Jeffrey Freund, Bredhoff & Kaiser, Washington, DC, for United Steel Workers of America, Santo Santoro, James A. Kirkpatrick.

OPINION & ORDER

MARBLEY, District Judge.

This opinion and order sets forth the full reasoning in support of the Court's September 3, 1998 Interim Order which ruled on the parties' Cross Motions for Summary Judgment, and rules on the § 411(a)(1) and state law issues.

Background

Plaintiffs Charles Argentine, Clarence Wingo and John Gooch filed this case against United Steel Workers of America on May 13, 1996. The three Plaintiffs brought five claims, both federal and state, against the International Union ("the International") based upon its removal of them from office and its establishment of a trusteeship over their Local Union ("the Local"). Two of Plaintiffs' claims, those of defamation and intentional infliction of emotional distress, were also brought against two individual members of the Union, Jim Kirkpatrick and Santo Santoro. Additionally, Plaintiff Argentine made a claim against both the International and Kirkpatrick for being ejected from a Union meeting.

Defendants filed a Motion for Summary Judgment in April of 1997. Plaintiffs' Memorandum Contra, filed in June, served also as a Motion for Partial Summary Judgment on their behalf.

Undisputed Facts

The heart of this case concerns the lawfulness of the trusteeship imposed upon the Local by the International during a period in which both organizations were negotiating a new contract with Timet, the Local's employer in Toronto, Ohio.

Plaintiffs Argentine, Wingo and Gooch were elected to the Local Union offices of President, Vice-President and Financial Secretary, respectively, in late April of 1994. They took office on May 3, 1994. In June, negotiations began with Timet for a new collective bargaining agreement. Plaintiffs appointed themselves and seven others to a negotiating committee which conducted the negotiations on the Union's behalf. Between May and July, the committee spent thirty days meeting with the employer, and eleven days meeting amongst themselves. For each of these days, the committee members were being paid "lost time" (if work was missed) or "service time" (if work was not missed), and some were being paid "lost overtime" if they would have earned overtime that week. The local officers also were receiving their salaries as officers during this time.

The Union voted to strike on July 31, 1994. The strike lasted until October 15, 1994, when an International District Director, Jim Bowen, negotiated a temporary, indefinite deal with Timet. Bowen had the authority to enter such a contract on behalf of the Union because, by its constitution, the International is the exclusive bargaining representative of the Union, and may enter contracts on the Local's behalf. Although the Local was involved in negotiating the new agreement before the strike, the International Union has ultimate authority, and the indefinite deal instituted by Bowen was lawful. The Local was not in favor of the indefinite temporary deal struck by Bowen and, after six months, requested Bowen to terminate the deal so negotiations could resume.

During union meetings between June 1994 and February 1995, a Local faction, allegedly comprised of political opponents of Plaintiffs, raised concerns about the financial practices of the officers and members of the negotiating committee. A few times, meetings headed by then-president Argentine became chaotic when these issues arose, and Argentine would allegedly adjourn them prematurely. Apparently, members of the Local also filed charges of financial malfeasance against Plaintiffs with the United States Department of Labor ("DOL").

On February 23, 1995, at the prompting of the International Staff Representative, Andy Powley, Bowen requested that an audit be performed of the Local's books. On April 10, 1995, at Plaintiffs' insistence, Bowen notified the employer that the Union wished to terminate the indefinite agreement and resume negotiations. On May 22, 1995, at Plaintiffs' insistence, Bowen notified the company that the temporary agreement would terminate on June 22, 1995. In late April and early May of 1995, negotiations resumed concerning a new collective bargaining agreement.

Also in late May, the audit was completed by auditor Ron King. The audit covered the period from January 1, 1993 to December 31, 1994, and showed expenditure over income in excess of $108,000. The audit allegedly showed that the negotiating committee was engaged in excessive spending as it related to income, that one member of the committee had been paid improperly, that a Certificate of Deposit of the Local's had been cashed in prematurely, and a penalty incurred, but that the penalty had not been reflected in the books, and that a donations fund was largely unaccounted for.

Sometime in the Spring of 1995, the DOL requested and took control of the Local's books in response to the complaints about financial practices lodged against the Local's officers and negotiating committee. Around the same time the audit was completed, Timet had communicated its final offer to Bowen regarding the new collective bargaining agreement. At their last meeting with Bowen in May, Plaintiffs made clear that they were going to recommend that Local not accept Timet's final offer. On May 30, 1995, Charles G. Canelakes, Head of the IU Audit Dept., wrote a memo to Jim Bowen recommending that a trusteeship be imposed due to the results of the audit. The recommendation made by Canelakes was approved by District Director Frank Vickers on June 5, 1995, who submitted it on to the International President, George Becker.

On June 9, 1995, letters were sent to each of the Plaintiffs by James English, acting on behalf of the International President, informing them that a trusteeship was being imposed effective June 7, 1995 and that they were being removed from office. The letter described the reason for imposing the trusteeship as "to assure the performance of the collective bargaining process or other duties of a bargaining representative." It made no mention of the audit or any alleged financial malpractice. Furthermore, the letter stated that this action "should not be viewed as in any way reflecting on your performance as an officer."

Ten days later, Bowen revoked the notice to terminate the indefinite agreement and extended the agreement again indefinitely. The parties dispute whether this timing was merely coincidental. On June 23, 1995, Bowen entered into a four year collective bargaining agreement with Timet on behalf of the Local. Instead of seeking ratification of the agreement at a Local meeting (where Plaintiffs would presumably attend and voice their objection), Bowen arranged for the ratification vote to be held by a mail poll. Plaintiffs were outspoken in their opposition to ratification of the deal Bowen had struck, and made their views known through conversations and flyers at the plant, and through the news media. On June 28, 1995, Jim Bowen, who by then had taken the position of Special Assistant to the International President, sent the ballots to the Local members, along with a letter urging ratification of the agreement. On July 10, 1995, the agreement was ratified by a mail vote of 149 to 106.

On August 7, 1995, Plaintiffs were notified that a hearing would be held on August 9, 1995 to "investigate the trusteeship" imposed by the International Union. Plaintiffs attended the hearing before the International's Commission, where only one witness was called to testify against them — Ron King, the auditor. Plaintiffs claimed they were not aware the hearing would concern financial matters and requested a postponement, which was denied.

Plaintiffs cross-examined King as best they could, and argued to the Commission that they were "ousted" because of their opposition to the new collective bargaining agreement struck by Bowen. Because the Local's books had been seized by the DOL for its investigation, neither King nor the Commission had any of the supporting documents for the audit. The Commission took the matter under advisement because they wanted to review the Local's books at the DOL's office before reaching a conclusion. The two-member Commission subsequently reviewed the Local's 1994 books at the DOL, and produced a Report and Recommendation concluding that the trusteeship was necessary, and that Plaintiffs should be barred from holding office for three years.

The Report was completed and sent to the International President around September 20, 1995. By October 24, Plaintiffs had yet to hear about the Commission's determination, and sent letter to the Commission requesting its Report.

On November 17, the Commission Report was sent to two of the three Plaintiffs without the attachments referenced in the Report. Along with the Report was a letter notifying Plaintiffs of the International Executive Board Appeal Panel hearing to be held on November 29, 1995. Plaintiffs state that they did not receive the Report and notice letter until November 24. Argentine further states that he did not receive the Report at all until he called on November 27 to request it and the attachments. Only the Report, however, not the attachments, was sent to Argentine that day.

On November 29, 1995, the Appeals Panel hearing took place, and all three Plaintiffs attended. No witnesses or evidence were put forward....