Babler v. Futhey

• Decision Date: 25 August 2010
• Docket Number: No. 09-4455.,09-4455.
• Citation: 618 F.3d 514
• Parties: John W. BABLER; Victor Baffoni; James R. Cumby; John D. Fitzgerald; Constantino A. Iannone, Plaintiffs-Appellees,v.Malcolm B. FUTHEY, Jr., Individually and in his official capacity; Executive Board of the United Transportation Union; James Huston, Individually and in his official capacity; John Risch, Individually and in his official capacity; Joseph Boda, Jr., Individually and in his official capacity; Stephen T. Dawson, Individually and in his official capacity; Kevin Goring, Individually and in his official capacity, Defendants-Appellants.
• Court: U.S. Court of Appeals — Sixth Circuit

618 F.3d 514

John W. BABLER; Victor Baffoni; James R. Cumby; John D. Fitzgerald; Constantino A. Iannone, Plaintiffs-Appellees,v.Malcolm B. FUTHEY, Jr., Individually and in his official capacity; Executive Board of the United Transportation Union; James Huston, Individually and in his official capacity; John Risch, Individually and in his official capacity; Joseph Boda, Jr., Individually and in his official capacity; Stephen T. Dawson, Individually and in his official capacity; Kevin Goring, Individually and in his official capacity, Defendants-Appellants.

No. 09-4455.

United States Court of Appeals Sixth Circuit.

Argued: June 15, 2010.

Decided and Filed: Aug. 25, 2010.

COPYRIGHT MATERIAL OMITTED

ARGUED: Joseph Guerrieri, Jr., Guerrieri, Clayman, Bartos & Parcelli, P.C., Washington, D.C., for Appellants. Joyce Goldstein, Goldstein Gragel, LLC, Cleveland, Ohio, for Appellees. ON BRIEF: Joseph Guerrieri, Jr., Elizabeth A. Roma, Jeffrey A. Bartos, Guerrieri, Clayman, Bartos & Parcelli, P.C., Washington, D.C., Charles R. Both, Law Offices of Charles R. Both, Washington, D.C., for Appellants. Joyce Goldstein, Gina Fraternali, Goldstein Gragel, LLC, Cleveland, Ohio, for Appellees.

Before SILER and GIBBONS, Circuit Judges; REEVES, District Judge. ^*

OPINION

SILER, Circuit Judge.

This appeal is brought under the Labor-Management Reporting and Disclosure Act of 1959, 29 U.S.C. § 401 et seq. (“LMRDA”). Defendants Malcolm B. Futhey, Jr., the United Transportation Union (“UTU”) Executive Board, James Huston, John Risch, Joseph Boda, Jr., Stephen T. Dawson, and Kevin Goring (collectively “Defendants”) appeal the district court's grant of a preliminary injunction in favor of Plaintiffs John W. Babler, Victor Baffoni, James R. Cumby, and Constantino A. Iannone (collectively “Plaintiffs”). ¹ Because we conclude that the district court did not abuse its discretion in granting the preliminary injunction, we affirm.

BACKGROUND

The UTU is a labor union representing the operating employees of freight and passenger railways. This litigation arises out of a power struggle among UTU international officers relating to the UTU's proposed merger with the Sheet Metal Workers International Association (“SMWIA”). In 2004, Paul Thompson became the international president of the UTU. Upon taking office, Thompson explored the possibility of merging the UTU with another labor union in an effort to bolster its bargaining strength and political influence. The UTU ultimately entered into negotiations with the SMWIA. In June 2007, Thompson presented a proposed merger agreement between the UTU and the SMWIA at the UTU's regional meeting. The merger agreement stated that the two entities would merge to become the International Association of Sheet Metal, Air, Rail, and Transportation Workers (“SMART”). SMART would have a new constitution which would essentially be the SMWIA's constitution with the UTU's constitution appended and would be governed by officers from both of the former unions. The UTU's board of directors listened to Thompson's presentation and voted to submit the merger agreement to the UTU membership for their approval in accordance with the UTU constitution.

Pursuant to the merger agreement and the UTU's constitution, the proposed merger and the SMART constitution had to be approved by the UTU membership. The UTU constitution stipulates that the membership be provided with copies, by mail, of any agreements or merger documents that they were asked to ratify in a referendum. The UTU membership received an initial email that summarized the merger agreement and a later mailing that contained the merger agreement, supporting materials, and instructions for telephone and electronic voting. The UTU constitution and the SMWIA constitution were not included in the mailing sent to the UTU members, but both were posted on the UTU's website throughout the voting period. Although it was referred to in the merger agreement, a final version of the SMART constitution was not provided to the UTU membership before the merger was voted on. The merger was ultimately approved on a vote of 8,625 to 3,472.

From August 13 to August 17, 2007, the UTU held its quadrennial convention, where UTU international officers were elected and amendments to the UTU constitution were considered. In anticipation of the merger being consummated, the UTU's election process was modified. Rather than electing the customary fifteen international vice presidents, only nine international vice presidents were elected at the convention. The UTU membership also chose a new international president, assistant president, general secretary and treasurer, and national legislative director. These officers were to become SMART vice presidents when the merger was consummated.

On December 3, 2007, Dale Edward Michael, John R. Hasenauer, Roy G. Arnold, and Jimmy D. Eubanks (collectively “ Michael Plaintiffs”) filed suit against Thompson and the UTU in the Southern District of Illinois, claiming that the pending merger with the SMWIA was unlawful because the UTU membership was not given sufficient information with which to evaluate the implications of the merger. The Michael Plaintiffs sought declaratory and emergency injunctive relief. The case was later transferred to the Northern District of Ohio, where the UTU is headquartered.

Shortly after the suit was filed, the officers who were elected at the UTU convention took office, with Futhey succeeding Thompson as international president. The Michael Plaintiffs petitioned the district court to substitute Futhey for Thompson as a defendant. Futhey had previously indicated that he was favorably disposed to the Michael Plaintiffs' position as he had submitted a declaration on their behalf and expressed opposition to the merger process. In reaction to this motion, John W. Babler, Victor Baffoni, Roy G. Boling, James R. Cumby, John D. Fitzgerald, Constantino A. Iannone, and James M. Brunkenhoefer (collectively “ Babler Plaintiffs”)-all of whom supported the merger-moved to intervene in the case because they were concerned that Futhey would not defend the merger against the Michael Plaintiffs' claims. The district court ultimately substituted Futhey for Thompson and granted the Babler Plaintiffs' motion to intervene.

On June 26, 2008, the district court granted the Michael Plaintiffs' motion for a preliminary injunction to restrain the UTU from consummating the merger with the SMWIA. This preliminary injunction was appealed to the Sixth Circuit. On December 22, 2009, our court issued three separate opinions, with the court reaching the result of reversing the district court's grant of the preliminary injunction and dismissing the action.

While the appeal in the Michael litigation was pending, several union members filed internal union charges against the Babler Plaintiffs. The charges brought against the Babler Plaintiffs alleged violations of the UTU constitution and included a request that the Babler Plaintiffs have their UTU membership revoked. At the time these charges were filed, Babler, Baffoni, Boling, Cumby, Fitzgerald, and Iannone held elected union office as international vice presidents and members of the board of directors. Brunkenhoefer held the elected office of national legislative director and also served on the board of directors. The Babler Plaintiffs claim that, at the time, they represented a voting majority of the board of directors.

In response to the internal union charges and pursuant to the LMRDA, the Babler Plaintiffs filed this suit against Futhey, the UTU Executive Board and its members, and the UTU members who filed the internal union charges against them. On January 12, 2009, the Babler Plaintiffs filed their initial motion for injunctive relief to preclude the UTU executive board from conducting an internal union trial, alleging that the charges were retaliatory and would violate the LMRDA by chilling free speech and preventing union members' free participation in litigation. On February 2, 2009, the district court denied the Babler Plaintiffs' initial motion for a preliminary injunction without prejudice to renewing the motion after the conclusion of the disciplinary trial.

The executive board held the internal union trial in February and May 2009.² On July 10, 2009, the executive board issued its opinion, finding that Plaintiffs, acting as officers of the UTU, had violated Articles 16, 18, 23, and 28 of the UTU's constitution. Articles 16 outlines the duties of the international president. The executive board found that Plaintiffs violated Article 16 by seeking to usurp the international president's authority by acting in conjunction with the SMWIA to oppose his policies with respect to the merger. Article 18 outlines the duties of international vice presidents. The executive board found that Plaintiffs violated Article 18 by failing to carry out presidential directives and taking a different position than the international president in the Michael litigation. Article 23 outlines the duties of the board of directors, which include the power to consider and implement plans of unification, affiliation, or merger with another labor union. The executive board found that Plaintiffs violated Article 23 by exceeding their authority to determine UTU policy in connection with the merger. Article 28 prohibits UTU officers, members, and subordinate bodies from resorting to civil courts until all appeals have been made in accordance with the UTU constitution. The executive board found that Plaintiffs improperly resorted to opposing the international president's policy decision in court rather than first pursuing any appeal rights they may have had within the union.

The executive board's key findings are summarized as follows in its opinion:

On January 1, 2008, Mike Futhey took office and determined that the Michael litigation should be settled and that the membership should have a new ratification vote after the

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