Cavelli v. New York City Dist. Council of Carpenters

• Decision Date: 13 September 2011
• Docket Number: No. 10 Civ. 3708(BMC).,10 Civ. 3708(BMC).
• Citation: 816 F.Supp.2d 153
• Parties: John CAVELLI, et al., Plaintiffs, v. NEW YORK CITY DISTRICT COUNCIL OF CARPENTERS, et al., Defendants.
• Court: U.S. District Court — Eastern District of New York

816 F.Supp.2d 153

John CAVELLI, et al., Plaintiffs,

v.NEW YORK CITY DISTRICT COUNCIL OF CARPENTERS, et al., Defendants.

No. 10 Civ. 3708(BMC).

United States District Court, E.D. New York.

Sept. 13, 2011.

Edward Lee Sample, II, Neil Frank, Frank & Associates, P.C., Farmingdale, NY, for Plaintiffs.

Daniel M. Shanley, Jody Borrelli, Decarlo, Connor & Shanley, Los Angeles, CA, for Defendant New York City District Council of Carpenters.

MEMORANDUM DECISION AND ORDER

COGAN, District Judge.

This is an action for retaliatory discharge under § 101(a)(2) of the Labor–Management Reporting and Disclosure Act (“LMRDA”), 29 U.S.C. § 411(a)(2). Defendant New York City District Council of Carpenters (“NYCDCC”) employed plaintiffs John Cavelli and Anthony Rugolo as union organizers until March 2009, when it terminated their employment. Cavelli and Rugolo contend that NYCDCC terminated them, in violation of the free speech rights provided for under the LMRDA, because they spoke out against the union's leadership. NYCDCC maintains that it fired Cavelli and Rugolo because they were operating an OSHA training school without their supervisors' permission, potentially using union resources to advance their school, and training non-union students. The case is before me on NYCDCC's motion for summary judgment. ¹

I hold that Cavelli and Rugolo executed releases that bar their respective LMRDA claims. Moreover, even assuming the releases did not bar their claims, no reasonable jury could find that Cavelli and Rugolo's termination related to NYCDCC's purported scheme to suppress dissent within the union, or that their termination directly threatened union members' free speech rights. Accordingly, NYCDCC's motion is granted.

BACKGROUND

I have taken the facts set forth herein from the parties' affidavits, exhibits, and Rule 56.1 statements, and have viewed them in the light most favorable to Cavelli and Rugolo as the nonmoving parties. See Capobianco v. City of New York, 422 F.3d 47, 50 n. 1 (2d Cir.2005). The facts are undisputed except as noted.

I. The Financial Condition of the Officers' Pension Plan and the Opt–Out Provision

As employees of NYCDCC, Cavelli and Rugolo were beneficiaries under NYCDCC's Officers' Pension Plan (the “Plan”). Only NYCDCC's employees and staff were beneficiaries, members of “the union at large” were not.

At some point in 2003, Peter Thomassen (NYCDCC's President) informed Plan beneficiaries about a proposed “opt-out” provision to the Plan. Under the opt-out provision, an annuity would be set up independent of the Plan. Eligible beneficiaries (those who met either an age or years-of-service requirement and had “maxed out” their pension contributions to the Plan) would be allowed to make their pension contributions to the annuity rather than to the Plan; ineligible beneficiaries would not share in contributions made to the annuity.

When Thomassen first mentioned the opt-out provision in 2003, the Plan “was over funded” and “in great condition.” By 2006, however, that had changed. The Plan's financial condition had declined, and, in March 2007, the Plan's actuary reported that the Plan was underfunded by $11 million. To counteract the financial decline of the Plan, Thomassen initially informed beneficiaries that they would no longer accrue credit under the Plan. The Plan's actuary subsequently informed the beneficiaries that their scheduled raises would be diverted to offset the underfunded amounts in the Plan. In addition, he explained other measures that would be used to reduce the deficiency. Although the specifics of these measures are not clear, the net result was going to be a reduction in pension benefits.

Cavelli and Rugolo were upset about the decline of the Plan and the measures taken in response. Rugolo consistently voiced opposition at meetings held at NYCDCC's office. He specifically references three such meetings, which were held in January 2006, March 2007, and September 2007. During these meetings, Rugolo raised concerns about the Plan's financial condition and questioned whether the proposed opt-out provision had anything to do with its decline. NYCDCC's leadership (namely Thomassen and Michael Forde) did not respond well to Rugolo's out-spoken criticism of the Plan and the opt-out provision. During the meetings, Thomassen constantly tried to silence Rugolo by banging his gavel. Thomassen and Forde also cursed and yelled at him, told him he was “out of order,” ordered him to sit down, and accused him of not being a “team player.” Shortly after the January 2006 meeting, Forde and Eddie McWilliams (Rugolo's boss) separately reprimanded Rugolo for speaking out and for not being a “team player.” And, after the March 2007 meeting, Rugolo claims NYCDCC sent him to work as an organizer in “the outer regions of Staten Island” as a punishment for speaking up and so that he “could not talk to anybody.”

Unlike Rugolo, Cavelli did not speak out against the opt-out provision or the Plan's financial condition during these three meetings (or during any other meetings). Rather, he objected “on the side” because he is a “sideline kind of guy.” Despite his lack of public criticism, on at least two occasions, NYCDCC leadership reprimanded Cavelli for speaking out. First, in August 2007, Cavelli had a private discussion with Forde about the Plan's financial condition. Forde told Cavelli to “shut up” and suggested that continued complaints would result in termination. Nevertheless, Cavelli continued to “speak[ ] out” about the Plan's financial condition “on the sidelines to men.” As a result, in September 2007, he was called into a meeting with Forde and others. Forde told him that he was not being a “team player” and threatened to fire him if he continued.

After September 2007, Rugolo admits that the opt-out provision was never mentioned at meetings again. He did, however, continue to “complain” and “talk” about the Plan's condition during “almost every meeting.” Forde, Thomassen, and others told him that meetings were not the place to discuss the Plan. In addition, Rugolo also continued talking to Forde privately about the Plan's condition. Forde told Rugolo “to be more one of us [referring to NYCDCC's leadership].” There is nothing in the record suggesting that Cavelli continued to speak out about the Plan's financial condition after September 2007.

II. Cavelli and Rugolo's Termination

In April 2008, Rugolo incorporated DLB Trinits, Inc. (“DLB”). Although he did not conduct any business through DLB at first, Rugolo eventually began to offer OSHA training courses through the company. Rugolo is DLB's only shareholder. Cavelli is a consultant and teaches some of the courses.

The parties dispute when and how NYCDCC learned of DLB. Cavelli and Rugolo maintain, albeit in a conclusory manner, that they received NYCDCC's permission to operate DLB before they started offering training courses; ² NYCDCC maintains that it learned of DLB after-the-fact. Regardless, on March 7, 2009, Maurice Leary (NYCDCC's Director of Operations) visited the building where Cavelli and Rugolo were teaching a course. Leary told Cavelli and Rugolo that Thomassen, Forde, and Denis Sheil wanted to meet with them and that they should bring paperwork for DLB's students to the meeting.

Cavelli and Rugolo attended this meeting on March 10. Rugolo brought with him DLB's sign-in sheets from three classes. At the meeting, Thomassen accused them of keeping DLB a secret from NYCDCC and of teaching “non-union workers.” Someone (presumably Thomassen) suspended Cavelli and Rugolo for secretly operating DLB, for training non-union workers, or, perhaps, for doing both.

Cavelli and Rugolo then attended a second meeting with Forde, Thomassen, and Sheil on March 12. At this meeting, Thomassen and Forde told Cavelli and Rugolo that they were going to terminate their employment as union organizers at NYCDCC. Thomassen yelled and cursed at Cavelli and Rugolo and once again accused them of teaching non-union workers. Thomassen gave them each copies of release agreements and “told [them] that if [they] did not sign [the releases], he was throwing them out of the Union and bringing [them] to carpenter court to get [them] expelled.” He also threatened them with the loss of their medical benefits (for them and their families) “the very next morning.”

Cavelli and Rugolo returned to NYCDCC on March 17. They admit that they read the releases a few times between March 12 and March 17; however, they claim that they did not understand the terms. Even though Cavelli and Rugolo had not consulted with lawyers, the releases indicated that they had.³ Rugolo requested that the provision in his release be removed or that he be given a chance to consult with a lawyer. Leary refused Rugolo's request and told him to sign the release. Cavelli and Rugolo signed the releases that day.

There is no dispute that the releases Cavelli and Rugolo signed “contain broad general releases of all claims ..., including, specifically for claims brought under the [LMRDA].” ⁴ In fact, except for the provisions related to representation by counsel, Cavelli and Rugolo do not in any way challenge the substance of the releases.

As consideration for signing the releases, NYCDCC paid Cavelli and Rugolo $35,000 and $27,000 respectively. In addition, NYCDCC provided Cavelli and Rugolo with medical benefits through June 30, 2009. Rugolo testified that NYCDCC did not pay for his medical benefits because he was working as a carpenter from March until June and therefore received his medical benefits from the union as a union member. He also admitted, however, that he did not know whether NYCDCC paid for his medical benefits pursuant to the terms of the release.

DISCUSSION

I. Summary Judgment Standard

Rule 56 of the Federal Rules of Civil Procedure provides that summary judgment is warranted where the “movant shows that there is no genuine dispute as to any material fact and the movant is...