Lamb v. Carey, No. 73-1513

CourtUnited States Courts of Appeals. United States Court of Appeals (District of Columbia)
Writing for the CourtKillion v. Miller C.A. 292-73
Citation498 F.2d 789,162 US App. DC 247
Decision Date06 May 1974
Docket Number73-1514.,No. 73-1513
PartiesNewman A. LAMB v. Edward L. CAREY, Appellant, C. W. Davis, and Paul R. Dean, Trustees, United Mine Workers of America Welfare & Retirement Fund. Willie Ray BLANKENSHIP et al., v. W. A. (Tony) BOYLE et al., and Edward L. Carey, Individually and in their capacities as president, vice president and general counsel, respectively, of the United Mine Workers of America, Appellants, The United Mine Workers of America et al.

162 US App. DC 247, 498 F.2d 789 (1974)

Newman A. LAMB
v.
Edward L. CAREY, Appellant, C. W. Davis, and Paul R. Dean, Trustees, United Mine Workers of America Welfare & Retirement Fund.

Willie Ray BLANKENSHIP et al.,
v.
W. A. (Tony) BOYLE et al., and Edward L. Carey, Individually and in their capacities as president, vice president and general counsel, respectively, of the United Mine Workers of America, Appellants,
The United Mine Workers of America et al.

Nos. 73-1513, 73-1514.

United States Court of Appeals, District of Columbia Circuit.

Argued March 4, 1974.

Decided May 6, 1974.


498 F.2d 790

Ross O'Donoghue, Washington, D. C., with whom George A. Fisher, Washington, D. C., was on the brief, for appellant Carey, etc., in Nos. 73-1513 and 73-1514.

Joseph A. Yablonski, Washington, D. C., with whom Daniel B. Edelman, Washington, D. C., and Lewis D. Sargentich, Washington, D. C., were on the brief, for appellee, United Mine Workers of America.

Fred M. Vinson Jr. and Michael P. Bentzen, Washington, D. C., entered appearances for appellee United Mine Workers of America and Retirement Fund.

Before TAMM and ROBINSON, Circuit Judges, and GEORGE L. HART, Jr.,* Chief Judge, United States District Court for the District of Columbia.

HART, Chief District Judge:

In June of 1971 appellant, Edward L. Carey, was named a Trustee of the United

498 F.2d 791
Mine Workers of America Welfare and Retirement Fund of 1950 (hereinafter the "Fund") to fill the unexpired term of W. A. Boyle who had been removed pursuant to an Order entered in the case of Blankenship v. Boyle, 329 F. Supp. 1089 (D.D.C.1971). By the terms of the National Bituminous Coal Wage Agreement of 1971 between the United Mine Workers of America (hereinafter the "Union") and the coal operators (hereinafter the "Operators"), Carey was named as the Union's representative on the Fund's Board of Trustees, the appointment to expire upon the termination of the Agreement, November 12, 1974. On March 19, 1973, the District Court, after holding a hearing on the matter, entered an Order removing Carey as a Trustee of the Fund. The appeal from that Order raises two questions for decision here

1. Whether the District Court had jurisdiction to enter an order removing appellant; and

2. Whether the District Court abused its discretion in removing appellant.

BACKGROUND

The Fund is an irrevocable trust originally established in 1950 pursuant to Section 302(c) of the Labor-Management Relations Act of 1947, 29 U.S.C. § 186(c). A detailed discussion of the Fund is provided by the District Court in its opinion in Blankenship v. Boyle, supra. The salient features of the Fund relevant to this appeal are hereinafter set forth. The purpose of the Fund is to pay various benefits "from principal or income or both", to employees of coal operators, their families and dependents. These benefits cover medical and hospital care, pensions, compensation for work-related injuries or illness, death, or disability.

The Fund is administered by three Trustees: one designated by the Union, one designated by the Operators, and the third a "neutral party designated by the other two . . ." Trustees. Each Trustee serves for the duration of a given collective bargaining agreement, subject to termination by resignation, death, or an inability or unwillingness to serve. The Trustees have considerable discretion to determine the types and levels of benefits. The direct income to the Fund is provided by royalty payments made by the Operators as specified in the collective bargaining agreement and based on the tonnage mined.

The operation of the Fund has recently been the subject of complex and far-reaching legal challenges. See Blankenship v. Boyle, supra. The essence of that litigation was a class action on behalf of the coal miner beneficiaries challenging certain Trustees of the Fund for breaches of their fiduciary duty. That lawsuit, which also named the Union as a defendant, was divided into three parts: (1) fiduciary breaches, (2) challenges to Fund regulations, and (3) internal Union issues. The second issue was settled prior to trial, and the third part was consolidated with Yablonski v. UMWA, C.A. 3436-69 (now Weaver v. UMWA). For the purposes of this appeal we are concerned with the history of the litigation involving the fiduciary issues.

After lengthy consideration of the case in Blankenship, the District Court found a variety of breaches of fiduciary duty, some conspiratorially inspired, others not. As part of the equitable relief granted, the Court removed two of the Trustees, including W. A. Boyle, ordered the Fund to cease doing business with the National Bank of Washington, and set a limit on the Fund's non-interest bearing accounts. This Order was appealed, and stays were denied both in the District Court and in this Court.

As a result of Boyle's removal as Trustee, appellant, Carey, who was already serving as the Union's general counsel, was appointed by the Union to fill the vacancy. This appointment was incorporated in the terms of the new agreement signed with the Operators in November 1971.

Meanwhile Boyle's presidency of the Union was challenged in Hodgson and

498 F.2d 792
Trbovich v. UMWA, (D.D.C.1972), 344 F.Supp. 17. The plaintiffs there were ultimately successful in requiring a new election, in which the pro-Boyle forces were defeated. Arnold Miller was certified as the new president on December 22, 1972, and thereafter on January 8, 1973, sent a telegram to Carey stating that he was being removed as a Trustee of the Fund. On January 9 the Operator's Trustee and the neutral Trustee, over Carey's objection, directed the Fund's special counsel to seek instructions from the District Court, and the instant litigation resulted

Appellant contends that the District Court lacked jurisdiction to consider this matter because jurisdiction had vested in this appellate Court by virtue of the Blankenship appeal which is still pending, that in any event the District Court lacked any ancillary jurisdiction to decide the issues raised, and that the District Court abused its discretion in removing appellant. We will respond to each argument in turn.

JURISDICTION

Appellants cite Goldsborough v. Marshall, 100 U.S.App.D.C. 134, 243 F. 2d 240 (1957), to support the proposition that the pending appeal in Blankenship deprived the District Court of...

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11 practice notes
  • Bass v. International Broth. of Boilermakers, No. 582
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • November 17, 1980
    ...been shown to exist and jurisdiction cannot rest on 28 U.S.C. § 1332. 18 Cf. Roark v. Lewis, 401 F.2d 425 (D.C.Cir.1968); Lamb v. Carey, 498 F.2d 789 (D.C.Cir.) cert. denied, sub nom. Carey v. Davis, 419 U.S. 869, 95 S.Ct. 128, 42 L.Ed.2d 108 (1974); Mestas v. Huge, 585 F.2d 450 (10th Cir. ......
  • National Labor Relations Board v. Amax Coal Company Division of Amax, Inc United Mine Workers of America, Local No 1854 v. National Labor Relations Board, Nos. 80-692
    • United States
    • United States Supreme Court
    • June 29, 1981
    ...Id., at 227-228 (citations omitted). See also Ader v. Hughes, 570 F.2d 303, 308 (CA10 1978); Lamb v. Carey, 162 U.S.App.D.C. 247, 251, 498 F.2d 789, 793 (1974), cert. denied sub nom. Carey v. Davis, 419 U.S. 869, 95 S.Ct. 128, 42 L.Ed.2d 108; Toensing v. Brown, 374 F.Supp. 191, 195 (N.D.Cal......
  • Chateaugay Corp., In re, No. 81
    • United States
    • U.S. Court of Appeals — Second Circuit
    • April 17, 1995
    ...of the miners' health and pension benefit delivery scheme. In the wake of court-ordered administrative reforms, see Lamb v. Carey, 498 F.2d 789 (D.C.Cir.1974), cert. denied, 419 U.S. 869, 95 S.Ct. 128, 42 L.Ed.2d 108 (1974), and Blankenship v. Boyle, 329 F.Supp. 1089 (D.D.C.1971), aff'd, 51......
  • Florida Medical Ass'n v. DEPARTMENT OF HEALTH, ETC., No. 78-178-Civ-J-S.
    • United States
    • United States District Courts. 11th Circuit. United States District Court of Middle District of Florida
    • July 11, 1978
    ...added). United States v. Wilson, 176 U.S.App.D.C. 321, 324, 540 F.2d 1100, 1103 (1976); Lamb v. Carey, 162 U.S.App.D.C. 247, 251, 498 F.2d 789, 793 (1974), cert. denied, 419 U.S. 869, 95 S.Ct. 128, 42 L.Ed.2d 108 (1974); N. W. Controls, Inc. v. Outboard Marine Corp., 349 F.Supp. 1254, 1257 ......
  • Request a trial to view additional results
11 cases
  • Bass v. International Broth. of Boilermakers, No. 582
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • November 17, 1980
    ...been shown to exist and jurisdiction cannot rest on 28 U.S.C. § 1332. 18 Cf. Roark v. Lewis, 401 F.2d 425 (D.C.Cir.1968); Lamb v. Carey, 498 F.2d 789 (D.C.Cir.) cert. denied, sub nom. Carey v. Davis, 419 U.S. 869, 95 S.Ct. 128, 42 L.Ed.2d 108 (1974); Mestas v. Huge, 585 F.2d 450 (10th Cir. ......
  • National Labor Relations Board v. Amax Coal Company Division of Amax, Inc United Mine Workers of America, Local No 1854 v. National Labor Relations Board, Nos. 80-692
    • United States
    • United States Supreme Court
    • June 29, 1981
    ...Id., at 227-228 (citations omitted). See also Ader v. Hughes, 570 F.2d 303, 308 (CA10 1978); Lamb v. Carey, 162 U.S.App.D.C. 247, 251, 498 F.2d 789, 793 (1974), cert. denied sub nom. Carey v. Davis, 419 U.S. 869, 95 S.Ct. 128, 42 L.Ed.2d 108; Toensing v. Brown, 374 F.Supp. 191, 195 (N.D.Cal......
  • Chateaugay Corp., In re, No. 81
    • United States
    • U.S. Court of Appeals — Second Circuit
    • April 17, 1995
    ...of the miners' health and pension benefit delivery scheme. In the wake of court-ordered administrative reforms, see Lamb v. Carey, 498 F.2d 789 (D.C.Cir.1974), cert. denied, 419 U.S. 869, 95 S.Ct. 128, 42 L.Ed.2d 108 (1974), and Blankenship v. Boyle, 329 F.Supp. 1089 (D.D.C.1971), aff'd, 51......
  • Florida Medical Ass'n v. DEPARTMENT OF HEALTH, ETC., No. 78-178-Civ-J-S.
    • United States
    • United States District Courts. 11th Circuit. United States District Court of Middle District of Florida
    • July 11, 1978
    ...added). United States v. Wilson, 176 U.S.App.D.C. 321, 324, 540 F.2d 1100, 1103 (1976); Lamb v. Carey, 162 U.S.App.D.C. 247, 251, 498 F.2d 789, 793 (1974), cert. denied, 419 U.S. 869, 95 S.Ct. 128, 42 L.Ed.2d 108 (1974); N. W. Controls, Inc. v. Outboard Marine Corp., 349 F.Supp. 1254, 1257 ......
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