Teamsters Local 372 v. Detroit Newspapers

• Decision Date: 24 February 1997
• Docket Number: Civil Action No. 95-40474.
• Citation: 956 F.Supp. 753
• Parties: TEAMSTERS LOCAL 372, DETROIT MAILERS UNION LOCAL 2040; Newspaper Guild of Detroit Local 22; GCIU Local 289, Graphic Communications International Union; GCIU Local 13N, Graphic Communications International Union; Detroit Typographical Union Local 18, Communications Workers of America, Plaintiffs and Counter-Defendants, v. DETROIT NEWSPAPERS, Defendant and Counter-Plaintiff, Asset Protection Team, Inc.; Huffmaster Associates, Inc.; City of Sterling Heights; Thomas Derocha, Individually and as Chief of Police of Sterling Heights; and Steve Duchane, Individually and as City Manager of Sterling Heights, Defendants, United Auto Workers Doe Defendants, Counter-Defendants.
• Court: U.S. District Court — Eastern District of Michigan

956 F.Supp. 753

TEAMSTERS LOCAL 372, DETROIT MAILERS UNION LOCAL 2040; Newspaper Guild of Detroit Local 22; GCIU Local 289, Graphic Communications International Union; GCIU Local 13N, Graphic Communications International Union; Detroit Typographical Union Local 18, Communications Workers of America, Plaintiffs and Counter-Defendants, v. DETROIT NEWSPAPERS, Defendant and Counter-Plaintiff Asset Protection Team, Inc.; Huffmaster Associates, Inc.; City of Sterling Heights; Thomas Derocha, Individually and as Chief of Police of Sterling Heights; and Steve Duchane, Individually and as City Manager of Sterling Heights, Defendants United Auto Workers Doe Defendants, Counter-Defendants.

Civil Action No. 95-40474.

United States District Court, E.D. Michigan, Southern Division.

February 24, 1997.

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Samuel C. McKnight, John R. Canzano, Klimist, McKnight, Sale, McClow & Canzano, Southfield, MI, Elizabeth A. Grdina, International Brotherhood of Teamsters, Legal Department, Washington, DC, Stuart M. Israel, Miller, Cohen, Martens, Ice & Geary, P.C., Southfield, MI, William A. Wertheimer, Jr., William Wertheimer Assoc., Royal Oak, MI, Mark H. Cousens, Mark H. Cousens Assoc., Southfield, MI, for Teamsters Local 372, Detroit Mailers Union Local 2040, Newspaper Guild of Detroit Local 22, Graphic Communications International Union Local 289, Graphic Communications International Union Local 13N, and Detroit Typographical Union Local 18, Communications Workers of America.

Robert J. Battista, Leonard M. Niehoff, Robin K. Luce, and Butzel Long, Detroit, MI, for Detroit Newspapers.

Theodore R. Opperwall, Dickinson, Wright, McKean & Cudlip, Bloomfield Hills, MI, and William J. Dempster, Holland & Knight, Washington, DC, for Vance International, Incorporated.

Theodore R. Opperwall, Dickinson, Wright, McKean & Cudlip, Bloomfield Hills, MI, William J. Dempster, Richard O. Duvall, and Edward V. Hickey, Holland & Knight, Washington, DC, for Asset Petroleum Team, Incorporated.

Albert B. Addis, Gagleard, Addis & Imbrunone, Royal Oak, MI, for Huffmaster Associates, Incorporated.

Bert T. Ross, O'Reilly, Rancilio, Nitz, Andrews & Turnbull, P.C., Sterling Heights, MI, for Sterling Heights, City of, Thomas Derocha, and Steven Duchane.

MEMORANDUM OPINION AND ORDER GRANTING, IN PART, AND DENYING, IN PART, PLAINTIFFS/COUNTER-DEFENDANTS MOTION, PURSUANT TO FEDERAL RULE OF CIVIL PROCEDURE 12(b)(6), TO DISMISS AMENDED COUNTERCLAIM OF DETROIT NEWSPAPERS.

GADOLA, District Judge.

Before the court is plaintiffs/counter-defendants', Detroit Mailers Union Local 2040, Teamsters Local 372, Newspaper Guild Local 22, GCIU Local 289, GCIU 13N, and Detroit Typographical Union Local 18 ("Unions"), motion to dismiss, pursuant to Federal Rule of Civil Procedure 12(b)(6), the amended counterclaim of the defendant/counter-plaintiff, Detroit Newspaper Agency ("DNA"). This court heard oral argument on January 22, 1997. For the reasons set forth below, this court will grant, in part, and deny, in part, the Unions' motion to dismiss.

I. PROCEDURAL BACKGROUND

This case arises from the labor strike against the Detroit Newspaper Agency which first began on July 13, 1995. Plaintiffs are six unions: Teamsters Local 372; Detroit Mailers Union Local 2040; Newspaper Guild of Detroit Local 22; GCIU Local 289, Graphics Communications International Union; GCIU Local 13N, Graphics Communications International Union; and Detroit Typographical Union 18, Communications Workers of America. Defendants are Detroit Newspaper Agency; Vance International, a private security firm; Asset Protection Team ("APT"), a private security company which is a subsidiary of defendant Vance; Huffmaster Associates, Inc., a private security firm; the City of Sterling Heights; Sterling Heights Police Chief Thomas Derocha; and Sterling Heights City Manager Steven Duchane. The Unions allege that the DNA had contracts with the three private security firms for security services.

In Count I of their complaint, filed October 2, 1995, the Unions sue under 42 U.S.C. § 1983, alleging that the defendants engaged in a conspiracy to violate their rights under the National Labor Relations Act ("NLRA"), 29 U.S.C. § 151 et seq. In Count II, the Unions sue under 42 U.S.C. § 1983 for an alleged conspiracy to violate their First, Fourth, and Fourteenth Amendment rights. The Unions claim that they engaged in conduct protected by the NLRA, including their rights to strike, to engage in concerted activity in support of their strike, to engage in concerted activity in support of their strike, to engage in peaceable assembly, and to picket. In response to this conduct, the Unions allege, the defendants conspired to enforce laws against the DNA; harassed striking union members; conducted unlawful searches and seizures of striking union members; unlawfully arrested union members and their sympathizers; used excessive and unreasonable force to detain and/or arrest union members and sympathizers; failed to take action to secure the safety of union members; and failed to investigate and stop the defendants' employees who engaged in unlawful conduct. In Count III, the Unions allege a state law claim for conspiracy and violations of the Michigan Constitution. Plaintiffs seek injunctive relief and compensatory and punitive damages.

Defendant Detroit Newspaper Agency filed a counterclaim on November 15, 1995, alleging that the Unions violated the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. § 1962(c), and conspired to violate § 1962(d). In Count I, the DNA alleges that the Unions engaged in extortion and physical and verbal threats of extortion directed at DNA independent contractors, employees, and vendors; robbery resulting from theft of newspapers from subscribers, vendors, distribution racks, drop spots, and independent contractors; and arson by setting fire to and/or bombing vehicles at DNA facilities, placing and/or igniting pipe bombs in news racks, and throwing incendiary and explosive devices at and onto DNA property and/or at individuals working for DNA. Count Two alleges that the Unions conspired with and aided and abetted one another to accomplish the pattern of racketeering activity described in Count One.

The six unions filed four motions to dismiss the counterclaim pursuant to Federal Rule of Civil Procedure 12(b)(6) on February 12, 1996. On April 2, 1996 Judge Friedman, to whom this case was originally assigned, denied the various motions to dismiss and ordered the DNA to file a more detailed counterclaim and RICO case statement. The DNA complied with this request and filed an amended counterclaim alleging 248 predicate acts in support of its RICO claim. On August 9, 1996, the six plaintiff unions filed this joint motion to dismiss the defendants' amended RICO counterclaim. October 24, 1996, the case was reassigned to this court. This court held a status conference on December 19, 1996. On January 21, 1997, DNA supplemented the original RICO case statement by alleging an additional 11 predicate acts bringing the total alleged predicate acts to 259. Oral argument on the instant motion was heard on January 22, 1997.

II. LEGAL STANDARD

Federal Rule of Civil Procedure 12(b)(6) authorizes the district courts to dismiss any complaint (or counterclaim) which fails "to state a claim upon which relief can be granted." Rule 12(b)(6) affords plaintiff/counter-defendant unions an opportunity to test whether, as a matter of law, the defendant/counter-plaintiff DNA is entitled to legal relief on its counterclaim against plaintiff/counter-defendant unions even if everything alleged in the counterclaim is true. In applying the standards under Rule 12(b)(6), the court must presume all well-pleaded factual allegations in the counterclaim to be true and draw all reasonable inferences from those allegations in favor of the non-moving party. Mayer v. Mylod, 988 F.2d 635, 638 (6th Cir.1993); Miller v. Currie, 50 F.3d 373, 377 (6th Cir.1995). The court need not, however, accord the presumption of truthfulness to any legal conclusion, opinions or deductions, even if they are couched as factual allegations. Western Mining Council v. Watt, 643 F.2d 618, 629 (9th Cir.1981); Mitchell v. Archibald & Kendall, Inc., 573 F.2d 429, 432 (7th Cir.1978); Sexton v. Barry, 233 F.2d 220, 223 (6th Cir.1956). Dismissal for failure to state a claim is disfavored:

[A] complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.

Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957). See also Cameron v. Seitz, 38 F.3d 264, 270 (6th Cir.1994) (stating that a motion to dismiss should be denied unless "it is clear that the plaintiff can prove no set of facts in support of [its] claim that would entitle [it] to relief.").

III. APPLICABLE LAW

In 1935, the National Labor Relations Act (the "NLRA") was enacted by Congress as a broad statutory scheme designed to facilitate industrial peace. The NLRA immunized peaceful strike conduct from federal and state court action, and granted the National Labor Relations Board (the "NLRB") exclusive jurisdiction over labor-management disputes pertaining to wages, hours, and other conditions of employment. The NLRA is remedial and not punitive, thus leaving federal and state courts to respond to civil and criminal matters that arise from, but are in some way independent of, the underlying labor dispute.

In 1970, Congress enacted the Racketeer Influenced and Corrupt Organizations Act ("RICO") to assist the federal government in stemming the growth of organized crime. RICO provides criminal sanctions as well as civil remedies for a private plaintiff whose business or property is injured by violations of the statute. Specifically, the relevant section of RICO states the following:

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