Puma v. Brandenburg, 69 Civ. 3832.

Decision Date15 March 1971
Docket NumberNo. 69 Civ. 3832.,69 Civ. 3832.
Citation324 F. Supp. 536
PartiesMichael PUMA, John Sheridan, Lou Gutin, Michael Sabatino and Al Capolino, Plaintiffs, v. Mortimer BRANDENBURG, Joseph Matranga, Max Drexler, Edward Drexler, Howard Goldstein, Joseph Leff, Matthew Levitt, Jack Schwartzberg and Norman Joseph, Defendants.
CourtU.S. District Court — Southern District of New York

Godfrey P. Schmidt, New York City, for plaintiffs.

Graubard, Moskovitz, McGoldrick, Dannett & Horowitz, New York City, for defendants by Emanuel Dannett, Jacob Silverman, and Robert I. Gosseen, New York City, of counsel.

FINDINGS OF FACT*

POLLACK, District Judge.

A. PLAINTIFFS

1. Plaintiffs, Michael Puma, John Sheridan, Lou Gutin, Michael Sabatino and Al Capolino, at all relevant times were and still are members in good standing of Liquor Salesmen's Union Local 2 of the State of New York ("Local 2"), affiliated with Distillery, Rectifying, Wine and Allied Workers' International Union of America, AFL-CIO ("International").

2. Plaintiffs are all liquor salesmen, licensed as such by the State of New York, and employed by wholesale distributors of liquors under labor contracts negotiated by said employers and Local 2.

3. Plaintiffs duly obtained leave of this court to bring this action (see order made and entered herein on September 5, 1969).

B. DEFENDANTS

4. Local 2 is a "labor organization" under the Labor-Management Reporting and Disclosure Act of 1959 ("LMRDA"); and, at all relevant times, defendants are and were officers, agents and representatives of Local 2.

5. At all relevant times defendant Mortimer Brandenburg ("Brandenburg") was and still is President of Local 2; and, since 1958, he has also been President of the International.

6. Since April 29, 1957, Joseph Matranga ("Matranga") was and still is Executive Vice President of Local 2; and prior to that date and since 1955 he was a member of the Executive Board or Committee ("Executive Board") of Local 2.

7. Max Drexler was, for more than 20 years prior to his retirement in 1968, the Executive Secretary of Local 2.

8. Edward Drexler (son of Max Drexler) was, since January 1964 and until his resignation in 1968, the Second Vice President of Local 2.

9. Howard Goldstein ("Goldstein") since 1955 was and still is a member of the Executive Board of Local 2; and since April 9, 1957, he has been Treasurer of Local 2.

10. Joseph Leff ("Leff"), since 1964 and until his resignation in 1968, was a member of the Executive Board of Local 2.

11. Matthew Levitt ("Levitt"), since 1955 and until his resignation in 1968, was a member of the Executive Board of Local 2.

12. Defendant Jack Schwartzberg ("Schwartzberg") was a member of the Executive Board of Local 2 from January, 1956 to January 9, 1970.

13. Defendant Norman Joseph ("Joseph") since 1936 was and still is a member of the Executive Board of Local 2.

14. At all relevant times the individuals named in Findings 5 through 13 hereof, together with Nat Fox ("Fox"), now deceased, constituted a majority of the Executive Board of Local 2.

15. During his lifetime Fox was at all relevant times the Recording Secretary and a member of the Executive Board of Local 2.

16. In addition to being President of Local 2 and President of the International, defendant Brandenburg since 1967 or 1968 was and still is Executive Business Manager of the Wholesale Wine Salesmen's Union, Local 18 ("Local 18"), affiliated with the International.

C. ORGANIC LAW OF LOCAL 2

17. (a) The general powers and duties of the officers, agents and representatives of Local 2, for the period beginning some time prior to 1956 and ending November, 1959, were set forth in the Constitution of Local 2 (Plaintiffs' Exhibit A-1; "Local 2's Original Constitution"); and, for the period beginning November, 1959 and continuing to date, were set forth in the current Constitution of Local 2 (Plaintiffs' Exhibit A-2;1 "Local 2's Current Constitution").

(b) The general powers and duties of the officers, agents and representatives of Local 2 are to some extent also governed, for the period prior to 1956 and ending in 1960, by the Constitution of the International (Plaintiff's Exhibit B-1; "International's Original Constitution"); and, for the period beginning in 1960 and continuing to date, by the International's Current Constitution (Plaintiff's Exhibit B-2; "International's Current Constitution").

18. Section 5 of Article XV of Local 2's Original Constitution provides:

"They members of the Executive Board shall have full right and power to fix compensation and award for services or employment rendered the Union and to fix terms and salaries of officers."2

19. Section 6 of Article XV of Local 2's Original Constitution provides:

"In any event, if it shall be impossible or not feasible to gather the memberships of the Union together expeditiously enough to act upon any situation requiring immediacy of action, it shall have full power to do any act or series of acts in behalf of the Union with the same force and effect as if it acted upon in like manner by the Union sitting as a whole in meeting."3

20. Article XXVIII of Local 2's Original Constitution, entitled "Meetings," provides as follows:

"MEETINGS
"Section 1. The regular meeting of the Union shall be held monthly on the first Monday of each month, at such place and hour of the day as may be designated by the Executive Committee.
"Section 2. The Chairman at the request of the Business Representative or majority vote of the Executive Committee may call a special meeting of the Union at any time or place in order to have the Union consider any emergency situation which the Executive Committee might refuse to determine or act upon within the limits of the time required by such situation, and any and all acts or decisions reached at such special meeting shall have the same force and effect as if acted upon at a regular meeting. Notice of such special meeting shall be sent to all members in good standing, giving sufficient time to accomplish attendance thereat."

21. Section 1 of Article XXXV of Local 2's Original Constitution and Section 1 of Article XXI of Local 2's Current Constitution provide as follows:

"Section 1. All officers, except those holding financial positions, shall have the privilege of resigning at any time, provided, however, that no charges exist against them. All officers not holding a financial position, and desiring to resign shall present their resignation in writing at a regular meeting, and if, at the following meeting, no charges exist against the officer or officers, the resignation may be accepted. Any officer holding a financial position shall present his resignation in writing at a regular meeting, and after his accounts have been audited and found correct, and a full report of same made to the Treasurer and received his approval, the resignation may be accepted at any following meeting; and if his accounts are not found correct the resignation shall not be accepted, nor shall he be released from his bond until his accounts are made good."

22. Section 2 of Article XX of Local 2's Current Constitution provides:

"Section 2. The pre-election meeting of the general membership shall be called in January of each election year by the Nominations and Elections Committee, on proper notice to the members. At such meeting, the membership will be advised of the official action of the Nominations and Elections Committee and of the candidates running for the several offices. Thereafter, when required, an election shall be held not less than seven days following the pre-election meeting. A second notice of election shall be mailed out to the membership by the Nominations and Election Committee."

23. Section 2(d) of Article III of the International's Original Constitution provides:

"(d) Any local union accepting and holding a charter from this International and becoming an affiliate in membership, does so only upon condition that it recognizes the supreme jurisdiction of the International Union and accepts the Constitution and By-Laws of this International Union as its fundamental law, reserving to itself no rights of self-government which are inconsistent or in violation of the Constitution and By-Laws of the International Union."4

24. Section 1 of Article IV of the International's Original Constitution provides:

"Section 1. The government of all local unions and members shall be vested in this International Union as the supreme head to which all matters of general importance shall be referred, and whose decision shall be final."**

25. Section 3 of Article IX of the International's Original Constitution and Section 4 of Article XI of the International's Current Constitution provide in part as follows:

"The revenue of the local unions shall be all receipts from initiation fees and dues subject to such limitation as provided for in Sections 4 and 5 of Article III hereof. Local unions shall retain the entire receipts from local assessments and local fines. Local funds shall be used only for local running expenses and shall, under no circumstances, be used in promoting the election of any person or persons or for the circulation of literature in opposition to or criticism of the Organization and its Executive Officers, either Local or International, nor shall funds be used for legal purposes to set aside any decision of any constitutional body within the union."

26. Section 7 of Article X of the International's Original Constitution and of Article XII of the International's Current Constitution provides:

"The Treasurer shall receive all Local funds from the Financial Secretary, pay all bills approved by the Local and signed by the President, keep a correct account of the same, report to the local union at each meeting and turn over to his successor all books, papers, funds and other property of the Local in his possession. The Treasurer shall furnish a surety bond to secure the funds and property of the union, deposit all funds not
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    • United States
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    ...is to be construed liberally in favor of the employee. See Dierks v. Thompson, supra, 295 F.Supp. at p. 1278. 5 Puma v. Brandenburg (D.C.N.Y.1971) 324 F.Supp. 536, 544; Cantor v. Berkshire Life Ins. Co., supra, 171 N.E.2d 518, 522. In the latter case, the Court "Therefore, whether a retirem......
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    ...Workers v. Boyle, 78 Lab.Cas. (CCH) # 11,183, 20,051 n.5 (D.D.C.1975) (judicial scrutiny of authorized expenditure); Puma v. Brandenburg, 324 F.Supp. 536, 544 (S.D.N.Y.1971) (same); Nelson v. Johnson, 212 F.Supp. 233, 257-59 (D.Minn.1962), aff'd, 325 F.2d 646 (8th Cir. 1963) (same); Highway......
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    ...a personal benefit on the union official, see, e. g., Morrissey v. Curran, 482 F.Supp. 31, 38 (S.D.N.Y.1979); and Puma v. Brandenburg, 324 F.Supp. 536, 544 (S.D.N.Y.1971); or where it confers no benefit on the union, cf. United States v. Ladmer, 429 F.Supp. 1231, 1240 (E.D.N.Y.1977). Leslie......
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