Cefalo v. Moffett
| Decision Date | 23 August 1971 |
| Docket Number | No. 71-1663-71-1665.,71-1663-71-1665. |
| Citation | 449 F.2d 1193 |
| Parties | Angelo J. CEFALO et al. v. Elwood MOFFETT, Individually and as International President of District 50, Allied and Technical Workers, et al., Appellants. Angelo J. CEFALO et al. v. Elwood MOFFETT et al. United Steelworkers of America, AFL-CIO, Appellant. Angelo J. CEFALO et al. v. Elwood MOFFETT et al. International Union of "District 50", Allied and Technical Workers of the United States and Canada, Appellant. |
| Court | U.S. Court of Appeals — District of Columbia Circuit |
Mr. Joseph C. Wells, Washington, D. C., with whom Mr. Winthrop A. Johns, Washington, D. C., was on the motion, for appellant International Union of District 50, Allied and Technical Workers in No. 71-1665.
Mr. George H. Cohen, Washington, D. C., for appellant United Steelworkers, of America, AFL-CIO, in No. 71-1664.
Mr. Ross O'Donoghue, Washington, D. C., was also on the motion for appellants Elwood Moffett, et al., in No. 71-1663.
Before LEVENTHAL, ROBB and WILKEY, Circuit Judges.
This case is before us on an appeal from a preliminary injunction that does not question the basic thrust of the injunction but seeks a modification that the District Judge declined to provide. Thus the matter is before us on the District Court's findings of fact, not challenged by appellants. While we have modified the injunction in one respect, the essence of our action, as explained in this opinion, is to enhance rather than to curb the District Court's latitude and discretion in achieving appropriate final disposition.
Appellees Cefalo and Vullo are members in good standing of the International Union of District 50, Allied and Technical Workers of the United States and Canada hereinafter "the Union". They brought this action in the District Court pursuant to § 501 of the Labor-Management Reporting and Disclosure Act.1 LMRDA seeking redress for a number of alleged breaches of fiduciary duty by the Officers of the Union.2 In addition to asking for an accounting of relevant expenditures, restoration of funds allegedly misspent, and actual and punitive damages against the appellant officers, appellees prayed that appellants be restrained from terminating the Union's existence by effectuating a contemplated merger of the Union with the United Steelworkers of America. The merger of the Union with the Steelworkers was to have been consummated at a Constitutional Convention of the Union scheduled for August 23-25, 1971, in Washington, D. C.3 By motion filed July 9, 1971, appellees sought a preliminary injunction preventing the convention from passing upon the merger. Following discovery proceedings, a hearing on the preliminary injunction was held on August 13, 1971, at which the District Court was presented with oral testimony and documentary evidence and heard argument of the parties.4 Thereafter, on August 18, 1971, the District Court filed findings of fact and conclusions of law and entered an order granting a preliminary injunction, enjoining, during the pendency of the litigation appellants, "their agents or anyone in concert with them * * * from presenting or voting upon or effectuating any merger between the International Union of District 50, Allied and Technical Workers and the United Steelworkers of America, AFL-CIO or dissolution of the International Union of District 50, Allied and Technical Workers."
Thereafter, later that same day, counsel for all parties appeared before the District Court at the request of counsel for the Union who sought clarification of the order. Essentially, counsel for the Union requested the District Court to amend or modify the order to permit the Union convention to authorize a referendum vote of the entire Union membership on the question of whether the merger with the Steelworkers Union should be carried out.5 The District Court declined to modify its order and we granted expedited hearing of this appeal, in which appellants sought partial summary reversal of the order so as to permit the convention to authorize the holding of a membership referendum on the merger question.
After hearing argument, we entered an order modifying the District Court's order so as to permit the August 23 convention to authorize the Executive Board of the Union elected at such convention to adopt a plan for the holding of a referendum of the membership of the Union on the question of the merger. However, we conditioned the implementation of such a plan and the holding of the referendum upon the prior approval of the plan by the District Court. We further directed that in considering whether to approve such a plan the District Court might require such provisions as it deemed necessary or appropriate to ensure a free and informed vote of the Union's membership. In particular we directed the District Court to consider whether the plan for conducting the referendum would avoid perpetuation of the consequences of the alleged breaches of trust which, on the District Court's finding of likelihood that appellees would prevail on the merits constituted the basis for the entry of its preliminary injunction.
Finally, we directed that in making its determination the District Court should seek and give consideration to the comments of the Secretary of Labor and that if the District Court declined to approve a referendum plan it should enter an order to that effect and set forth its findings and reasons.
The short time available for consideration of this appeal before the beginning of the Union convention on August 23, 1971, precluded the preparation and issuance of an opinion to accompany our order modifying the injunction. As a consequence of our order, however, the appellant Union now has the opportunity to prepare a referendum plan to be submitted in due course to the District Court for its consideration. We have therefore determined to issue this opinion to explain the basis for our order and to provide guidance to the parties and the District Court in the conduct of the forthcoming proceedings.
To gain an understanding of the positions of the parties and to elucidate the basis for our order modifying the District Court's injunction, it is necessary first to set forth certain background facts concerning this litigation. The conflict between the parties essentially arises in the context of a struggle for control of the Union between a group led by appellee Cefalo and the supporters of the incumbent President. Moffett.
In November 1969, appellee Cefalo, then serving as International Vice-President of District 50, announced his candidacy for the office of International President in opposition to appellant Moffett. In the election of International Officers conducted on May 12, 1970, Cefalo was defeated and Moffett reelected to the Presidency of the Union.
Under the Union Constitution, duly elected delegates to Constitutional Conventions (normally held every 5 years) elect the Union Executive Board. The Three General Officers (President, Vice-President, Secretary-Treasurer) of the International, however, are elected by a referendum vote of the entire membership.
After the 1970 referendum election of general officers (in which Moffett defeated Cefalo) and the election of the Executive Board by the 1970 Constitutional Convention, appellee Cefalo protested the conduct of those elections and filed a formal complaint with the Secretary of Labor under Section 402 of the LMRDA.6 The Secretary of Labor, as he is required by the Act, investigated the complaint, found reasonable cause to believe that the elections of International Officers and Executive Board Members had been improperly conducted in violation of LMRDA Section 401.7 Accordingly, the Secretary filed suit on September 25, 1970, in the District Court for the District of Columbia8 to set aside these elections.
Following negotiations between the Union and the Secretary, a stipulated order was agreed to on March 10, 1971, which provided that the Union would conduct under supervision of the Secretary: (1) nomination and election of Local Union delegates to a new convention; (2) nomination and election of the International Executive Board at a convention "to be held during the month of August, 1971"; and (3) after the convention, nomination of International Officers and secret ballot election among District 50's members in good standing for any such contested offices.
Thereafter, a Call for a Constitutional Convention was approved by the Union Executive Board and on March 15, was distributed to the local Union. The "Call" to convention specified that the "purpose" of the convention was "electing International Union District 50 Executive Board Members." The call further provided that "this convention will have authority to take appropriate action on all matters which may properly be submitted to the convention."9 Delegates to the convention were selected in secret ballot elections held in the local unions during the month of April under the supervision of the Secretary of Labor.10
The District Court found that because of a requirement that local unions pay the expense of their own delegates to the convention, it was the practice of many locals to elect members of the field staff of the International Union to represent them at the convention, since expenses of staff members who attend the convention as delegates are paid by the International rather than the locals. As a result of this practice the District Court found that a "decisive" block of votes at the convention was controlled by the union staff.11
Beginning in August 1970, and continuing during the period when the Secretary of Labor was seeking new elections, the...
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