Mason Tenders Local Union 59 v. LIUNA, 96 Civ. 2406(RWS)

• Decision Date: 02 May 1996
• Docket Number: No. 96 Civ. 2406(RWS),96 Civ. 2417(RWS) and 96 Civ. 2544(RWS).,96 Civ. 2406(RWS)
• Citation: 924 F. Supp. 528
• Parties: MASON TENDERS LOCAL UNION 59, Plaintiff, v. LABORERS' INTERNATIONAL UNION OF NORTH AMERICA and Steve Hammond, Defendants. LABORERS' INTERNATIONAL UNION OF NORTH AMERICA, AFL-CIO, Mason Tenders District Council of Greater New York, and Steve Hammond, Plaintiffs, v. LOCAL 23, Local 46, Local 48, Local 59, and Locals A-C, affiliated with the Laborers' International Union of North America, AFL-CIO; Joseph Giardina, Business Manager of Local 23; Joseph Luciano, Business Manager of Local 46; Anthony Zambordi, Business Manager of Local 48; Michael Perrone, Business Manager of Local 59 and Business Managers of Locals A-C, Defendants. MASON TENDERS' UNION LOCAL 23 OF the LABORERS' INTERNATIONAL UNION OF NORTH AMERICA and Lawrence P. Giardina, individually and as President of Local 23, Plaintiffs, v. LABORERS' INTERNATIONAL UNION OF NORTH AMERICA (LIUNA), Mason Tenders District Council of Greater New York, Steve Hammond, in his official capacity as LIUNA Trustee of the Mason Tenders District Council of Greater New York, Richard Ello, in his official capacity as Office Manager and Comptroller of the Mason Tenders District Council of Greater New York, Arthur A. Coia, in his official capacity as General President of LIUNA, Rollin P. Vinall, in his official capacity as General Secretary-Treasurer of LIUNA, and the General Executive Board of the Laborers' International Union of North America, in their official capacity, Defendants.
• Court: U.S. District Court — Southern District of New York

924 F. Supp. 528

MASON TENDERS LOCAL UNION 59, Plaintiff, v. LABORERS' INTERNATIONAL UNION OF NORTH AMERICA and Steve Hammond, Defendants.

LABORERS' INTERNATIONAL UNION OF NORTH AMERICA, AFL-CIO, Mason Tenders District Council of Greater New York, and Steve Hammond, Plaintiffs, v. LOCAL 23, Local 46, Local 48, Local 59, and Locals A-C, affiliated with the Laborers' International Union of North America, AFL-CIO; Joseph Giardina, Business Manager of Local 23; Joseph Luciano, Business Manager of Local 46; Anthony Zambordi, Business Manager of Local 48; Michael Perrone, Business Manager of Local 59 and Business Managers of Locals A-C, Defendants.

MASON TENDERS' UNION LOCAL 23 OF the LABORERS' INTERNATIONAL UNION OF NORTH AMERICA and Lawrence P. Giardina, individually and as President of Local 23, Plaintiffs, v. LABORERS' INTERNATIONAL UNION OF NORTH AMERICA (LIUNA), Mason Tenders District Council of Greater New York, Steve Hammond, in his official capacity as LIUNA Trustee of the Mason Tenders District Council of

Greater New York, Richard Ello, in his official capacity as Office Manager and Comptroller of the Mason Tenders District Council of Greater New York, Arthur A. Coia, in his official capacity as General President of LIUNA, Rollin P. Vinall, in his official capacity as General Secretary-Treasurer of LIUNA, and the General Executive Board of the Laborers' International Union of North America, in their official capacity, Defendants.

Nos. 96 Civ. 2406(RWS), 96 Civ. 2417(RWS) and 96 Civ. 2544(RWS).

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

May 2, 1996.

D'Amato & Lynch (Michael K. Rappaport, of counsel), New York City, Lewis & Fiore (David L. Lewis, of counsel), New York City, for Mason Tenders' Local Union 23 and Lawrence P. Giardina.

Curtis, Mallet-Prevost, Colt & Mosle (Peter Fleming, Jr., of counsel), New York City, for Mason Tenders' Local Union 59.

Cohen, Weiss and Simon (Richard N. Gilberg, Nathaniel K. Charny, of counsel), New York City, for Laborers' International Union of North America, AFL-CIO, Mason Tenders' District Council of Greater New York, and Steve Hammond.

OPINION

SWEET, District Judge.

Mason Tenders Local Union 59 ("Local 59") has filed an action ("the Local 59 Action") and moved by order to show cause for a preliminary injunction pursuant to Rule 65, Fed.R.Civ.P., preventing Laborers' International Union of North America, AFL-CIO ("LIUNA") and Steven Hammond, as Trustee of the Mason Tenders District Council from revoking the charters and seizing the assets of Local 59 pursuant to a Reorganization Plan (the "Reorganization Plan" or "the Plan") approved by LIUNA's General Executive Board ("GEB"). Mason Tenders Local Union 23 ("Local 23") has filed an action ("the Local 23 Action") and a motion seeking the same relief with respect to Local 23.

In a separate action ("the LIUNA action") seeking to implement the Reorganization Plan, LIUNA has moved by order to show cause for a preliminary injunction under Rule 65, Fed.R.Civ.P., pursuant to which the charters of ten local unions, including Local 59 and Local 23, are to be revoked.

Upon the findings and conclusions set forth below, Local 59 and Local 23 are denied injunctive relief, and LIUNA's motion to enforce the Plan is granted.

Parties

LIUNA is a national labor organization headquartered in Washington, D.C. that oversees the operations of various local unions and district councils. LIUNA is a Plaintiff in the LIUNA action, and a Defendant in the Local 59 Action and the Local 23 Action. The General Executive Board ("GEB") of LIUNA is the governing body of the international union and a Defendant in the Local 23 Action.

Mason Tenders' District Council of Greater New York (the "District Council") is chartered by LIUNA to oversee the operations of its twelve constituent local unions in the New York City Metropolitan Area. The District Council is a Plaintiff in the LIUNA action, and a Defendant in the Local 23 Action.

Steven Hammond ("Hammond" or "the Trustee") is the Trustee of the District Council. Hammond is a Plaintiff in the LIUNA Action, and a Defendant in the Local 59 Action and the Local 23 Action. Hammond was appointed on November 3, 1995 to succeed David Elbaor as Trustee by Arthur A. Coia ("Coia"), the General President of LIUNA and a Defendant in the Local 23 Action.

Local 23, Local 59, Local 46 and Local 48 (collectively, "the Locals" or "the affected Locals") are unincorporated associations and Mason Tenders Local Unions chartered by LIUNA. All are defendants in the LIUNA Action; Local 23 is a Plaintiff in the Local 23 Action; and Local 59 is a Plaintiff in the Local 59 Action.

Also Defendants in the LIUNA Action are Joseph Giardina, Business Manager of Local 23; Joseph Luciano, Business Manager of Local 46; Anthony Zambordi, Business Manager of Local 48; and Michael Perrone, Business Manager of Local 59. Joseph Giardina is also a Plaintiff in the Local 23 Action.

Richard Ello, Office Manager and Comptroller of the District Council, and Rollin P. Vinall, General Secretary-Treasurer of LIUNA, are Defendants in the Local 23 Action.

Prior Proceedings

The three instant actions were filed on April 4, 1996 and April 10, 1996, and assigned to this Court based on their relation to United States v. Mason Tenders District Council, 94 Civ. 6487 (the "Civil RICO Action"), a civil RICO action filed on September 8, 1994.

On November 9, 1994, Coia proposed and the GEB approved the imposition of a temporary trusteeship on the District Council, the appointment of David Elbaor ("Elbaor") as temporary Trustee, and the appointment of Hammond as Deputy Trustee. On behalf of the District Council, Elbaor entered a consent decree on December 27, 1994 (the "Consent Decree") regarding the Civil RICO Action.

The GEB ratified the imposition of the trusteeship on January 17, 1995. On April 17, 1995, this Court, while finding that the GEB did not meet certain procedural requirements for the imposition of an emergency trusteeship, held that the trusteeship was ultimately imposed legally and affirmed its validity. Mason Tenders Dist. Council of Greater New York v. LIUNA, 884 F.Supp. 823 (S.D.N.Y.1995).

On November 3, 1995, Hammond was appointed to succeed Elbaor as Trustee. On January 9, 1996, Hammond submitted a proposal to reorganize the District Council's constituent Locals ("the Reorganization Proposal") to Coia and Consent Decree Monitor Lawrence Pedowitz. Hammond proposed the consolidation of District Council Local Unions 13, 23, 33, 37, 46, 47, 48, 51, 59 and 104 into two newly-chartered local unions with exclusive craft jurisdictions.

Hammond presented the Reorganization Proposal to the GEB on January 29, 1996. The GEB appointed the Hearings Panel to conduct a hearing to consider the merits of the Proposal. At the Hearing, conducted on February 14-16, 1996, the affected Locals, as well as Hammond, made statements and submitted evidence in favor of and opposed to the Reorganization Proposal.

On April 1, 1996, the Hearings Panel issued its recommendation that Hammond's Reorganization Proposal be adopted in its entirety by the GEB, and the GEB voted to adopt the Hearing Panel's recommendation and implement the Reorganization Proposal immediately. On April 4, 1996, LIUNA officials advised the affected Locals that the GEB had adopted the Reorganization Plan and that it was effective immediately. The same day, Hammond attempted to implement the GEB's order to revoke the charters of the Locals and transfer their assets and property to LIUNA.

Six of the ten Locals complied. The remaining four affected Locals (Locals 23, 46, 48, and 59) refused to turn over their premises to the LIUNA deputies. Local 59 filed an action in this Court on April 4, 1996, alleging that the Reorganization Plan was approved in violation of LIUNA's Constitution and the Labor Management Relations Act ("LMRA"), 29 U.S.C. § 185(a), and seeking to enjoin LIUNA and the GEB from implementing the consolidation. LIUNA also filed an action on April 4, 1996, seeking to enforce the implementation of the Reorganization Plan. On April 10, 1996, Local 23 filed an action seeking to enjoin implementation of the Plan. Although no formal order of consolidation has been entered, the hearing on injunctive relief in all three cases was consolidated.

On April 4, 1996, this Court issued a temporary restraining order enjoining the immediate implementation of the Reorganization Plan with respect to the Locals which had not yet complied, but allowing LIUNA representatives access to those Locals' premises, books and records pending this Court's resolution of the parties' motions for injunctive relief.

On April 15 and 16, 1996, this Court held an evidentiary hearing on the parties' pending applications for preliminary relief. At that hearing, counsel for Local 59 represented to the Court that Local 46 and Local 48 sought to be included as parties in the instant proceedings. The Court granted that informal request, but no formal application has been made regarding the inclusion of Locals 46 and 48 as parties. On April 16, 1996, at the close of the hearing, this Court extended the previously issued temporary restraining order until April 26, 1996. The parties presented final arguments and posthearing memoranda to the Court on April 25, 1996, at which time the motions were considered finally submitted, and the temporary restraint was extended until May 3, 1996.

FACTS

Union Structure and Governance

LIUNA is an international labor organization representing laborers in the United States and Canada. Pursuant to LIUNA's Constitution, the International Union Constitution ("IUC"), LIUNA has authority over all aspects of the operation and control of the activities of LIUNA's subordinate bodies. IUC Art. II, § 2. LIUNA's supreme authority resides in the Convention, an assembly of delegates from each local union chosen by its members. IUC Art. I, § 2. The convention this year will take place in...