INTERNATIONAL BROTH. OF TEAMSTERS v. LOCAL 705
| Decision Date | 19 July 1993 |
| Docket Number | No. 93 C 3600.,93 C 3600. |
| Citation | 827 F. Supp. 513 |
| Parties | INTERNATIONAL BROTHERHOOD OF TEAMSTERS, a labor organization, and Harold E. Burke, as Trustee of Local Union 705, Truck Drivers, Oil Drivers, Filling Station and Platform Workers, Chicago, Illinois, affiliated with the International Brotherhood of Teamsters, Plaintiffs, v. LOCAL UNION 705, Truck Drivers, Oil Drivers, Filling Station and Platform Workers, Chicago, Illinois, affiliated with the International Brotherhood of Teamsters, Defendant. |
| Court | U.S. District Court — Northern District of Illinois |
Thomas Edward Johnson, Leslie Ann Jones, Johnson, Schaaf, Jones & Snelling, Chicago, IL, Peggy A. Hillman, Indianapolis, IN, Earl V. Brown, Jr., Washington, DC, for plaintiffs.
David J. Mathews, William A. Widmer, III, Adrianne Edith Hampo, Carmell, Charone, Widmer, Mathews & Moss, Chicago, IL, for defendant.
Before the court is the motion of plaintiffs International Brotherhood of Teamsters ("Teamsters") and Harold E. Burke ("Burke") for a preliminary injunction. For reasons stated below, the motion is granted.
On June 15, 1993, Teamsters general president Ron Carey ("Carey") imposed a temporary emergency trusteeship over the affairs of defendant Local 705, Truck Drivers, Oil Drivers, Filling Station and Platform Workers ("Local 705"), pursuant to Article VI, § 5 of the Teamsters' constitution. The Teamsters intended that the trustee take charge of the affairs of Local 705, a Teamster affiliate. The Teamsters' constitution provides for emergency trusteeships in cases of financial malpractice. Pursuant to the constitution, "where, in the judgment of the General President, an emergency situation exists within the Local Union," a temporary trustee may be appointed prior to any hearing, so long as a hearing is commenced within thirty days of the imposition of the trusteeship. This hearing must be conducted before neutral adjudicators; specifically, the Teamsters' general president is to designate a panel of members who are not involved in the transactions to serve at the hearing. A hearing to ratify the emergency trusteeship concerning the present allegations is set for July 21, 1993.
Carey imposed the emergency trustee in response to an investigation of Local 705 that was conducted by the Independent Review Board ("IRB"), an investigatory body established pursuant to a civil RICO consent decree which settled the government's civil RICO action against the Teamsters. See, e.g., United States v. International Brotherhood of Teamsters, 803 F.Supp. 761 (S.D.N.Y.1992). This investigatory body is charged to act in conjunction with the Teamsters' constitutional disciplinary process to assist in discovering and eradicating corrupt activities within the Teamsters' local unions. The IRB is empowered to conduct investigations and then make recommendations to the Teamsters. According to the rules of the IRB, the Teamsters must respond within thirty days to the IRB's recommendations either by taking action against a local union, or by informing the IRB of its proposed action. The IRB is to monitor the matters it refers to the Teamsters for action, and if the matter has not been pursued adequately or promptly in the judgment of the IRB, the IRB, after providing notice, can itself convene a hearing to resolve the matter.
The IRB's investigation of Local Union 705 resulted in recommended charges of financial malpractice against six officers of the executive board of Local 705. The IRB detailed evidence of continuing financial wrongdoing at Local 705, whose officials were "treating the union treasury like a piggy bank." On May 25, 1993, the IRB recommended to general president Carey that he place Local 705 in trusteeship. This task would require the trustee to look into the charges of the IRB and to retain accountants to study the local union's books. The trustee would also have the plenary authority to hire, fire, and spend money. Further, the constitution requires Local 705 to turn over assets and books to the trustee. Although some of the individuals specifically mentioned in the IRB report are no longer with Local 705, the people currently in control of Local 705 were on the executive board during the alleged financial mismanagement and permitted or authorized the various acts of mismanagement. The Teamsters thus emphasize that the IRB's charges do go to the current executive board and its management of Local 705.
When the trustee, Burke, arrived at the offices of Local 705 along with general president Carey, Local 705 resisted. Due to the resistance, the Teamsters and Burke filed a verified complaint to enforce the emergency trusteeship. On June 16, 1993 the court issued a temporary restraining order. This order required Local 705 to deliver funds, books, and records to trustee Burke in accordance with the Teamsters' constitution. The order further prevented Local 705's officers and agents from representing themselves as the authorized officers or representatives of Local 705, prevented Local 705 from interfering with the conduct of the emergency trusteeship, required Local 705 to provide a complete accounting of its financial condition to Burke, prevented Local 705 from destroying or removing financial records, and prevented Local 705 from otherwise resisting the emergency trustee. The temporary restraining order was extended for an additional ten days to provide the parties with time to prepare for the preliminary injunction motion. The court finds that, because the present issues do not turn on credibility determinations, there is no need for an evidentiary hearing and that the submissions of the parties provide an ample basis for deciding the motion.
In order to grant a preliminary injunction, the court must find: (1) the plaintiffs have at least a reasonable likelihood of success on the merits; (2) the plaintiffs have no adequate remedy at law and will be irreparably harmed if the injunction does not issue; (3) the threatened injury to the plaintiffs outweighs the threatened harm the injunction may inflict on the defendant; and (4) the granting of a preliminary injunction will not disserve the public interest. Adams v. Attorney Registration and Disciplinary Comm'n of Supreme Court, 801 F.2d 968, 971 (7th Cir.1986) (citing Fox Valley Harvestore, Inc. v. A.O. Smith Harvestore Prods., Inc., 545 F.2d 1096, 1097 (7th Cir.1976)); see also Roland Mach. Co. v. Dresser Indus., 749 F.2d 380, 386-89 (7th Cir.1984). The plaintiffs have the burden of proving each of these factors. Roland v. Air Line Employees Ass'n, Int'l, 753 F.2d 1385, 1392 (7th Cir. 1985). The ultimate decision in weighing and balancing these factors requires a high degree of discretion on the part of the district judge. Adams, 801 F.2d at 971. The plaintiffs have met their burden in this case.
The posture of this case differs little from its posture during the hearing on the temporary restraining order. Local 705 first argues that it can show that there are explanations for the alleged misconduct and therefore there is no need for an emergency trustee. The merits of the charges of financial mismanagement against the officers and executive board of Local 705 will be determined in internal proceedings within the Teamsters union, with a final determination by the hearing panel. Local 705 disputes in this court the alleged mismanagement and asserts that it can explain the incidents. But the proper venue for that course of action lies in the internal union hearing that is to review the decision of president Carey to impose an emergency trustee. The court's task presently is to determine whether there was a basis for the temporary emergency trustee.
Secondly, Local 705 argues there is no emergency situation requiring an emergency trustee and thus Carey's establishment of the emergency trustee was improper. The emergency trusteeship was imposed under the authority of the Teamsters' constitution and based on general president Carey's...
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