US v. International Broth. of Teamsters

• Decision Date: 27 June 1996
• Docket Number: 88 Civ. 4486 (DNE).
• Parties: UNITED STATES of America, Plaintiff, v. INTERNATIONAL BROTHERHOOD OF TEAMSTERS, et al., Defendants. In re APPLICATION XXI OF the INDEPENDENT REVIEW BOARD.
• Court: U.S. District Court — Southern District of New York

931 F. Supp. 1074

UNITED STATES of America, Plaintiff, v. INTERNATIONAL BROTHERHOOD OF TEAMSTERS, et al., Defendants.

In re APPLICATION XXI OF the INDEPENDENT REVIEW BOARD.

88 Civ. 4486 (DNE).

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

June 27, 1996.

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Mary Jo White, United States Attorney for the S.D. N.Y. (Karen B. Konigsberg, Assistant United States Attorney, of counsel), for U.S.

Charles M. Carberry, Independent Review Board Chief Investigator, New York City (Celia A. Zahner, of counsel), for Independent Review Board.

Winston & Strawn, New York City (Steven B. Rissman, James Terry, Matthew C. Rueter, of counsel), for respondent Robert T. Simpson, Jr.

OPINION & ORDER

EDELSTEIN, District Judge:

This opinion emanates from the voluntary settlement of an action commenced by plaintiff United States of America ("the Government") against, inter alia, defendants International Brotherhood of Teamsters ("the IBT" or "the Union") and the IBT's General Executive Board embodied in the voluntary consent order entered March 14, 1989 ("Consent Decree"). Pursuant to the Rules and Procedures for Operation of the Independent Review Board for the International Brotherhood of Teamsters ("IRB Rules"), ¶ O, the Independent Review Board ("IRB") has made an application to this Court seeking approval of its decision in this matter.

Application XXI presents for this Court's review the decision of the IRB regarding disciplinary charges brought against Robert T. Simpson, Jr. ("Simpson"), a former International Trustee of the IBT and the former President of IBT Local 743 ("Local 743" or "the Local"), located in Chicago, Illinois. Because the record in this application is voluminous, this Court will summarize the factual and procedural background of Application XXI before turning to the substance of this application and the numerous objections through which Simpson challenges this application.

BACKGROUND

On June 30, 1994, the IRB issued an investigative report concerning disciplinary charges it proposed against Simpson, and the evidence that supported these charges.¹ In this report, the IRB charged Simpson as follows:

From October 1989 to the present, while the principal officer of Local 743, you allowed and facilitated Donald Peters' continued representation of Local 743 and his continued involvement in IBT affairs, thereby bringing reproach upon the IBT and interfering with the Local's legal obligations in violation of Article II, Section 2(a) and Article XIX, Section 7(b)(1) and (5) of the IBT Constitution to wit:

As a result of the court-approved settlement agreement entered into by Donald Peters on March 14, 1989 in United States v. International Brotherhood of Teamsters, 88 Civ. 4486 (S.D.N.Y.), effective June 1, 1989 Donald Peters was prohibited from "any position as an officer, agent, representative or employee of the IBT or any IBT subordinate body...." Based upon this same court-approved settlement agreement, effective September 30, 1989 Donald Peters was prohibited from "all positions as a trustee, agent, representative or employee of any IBT-affiliated employee benefit fund...."

Despite these prohibitions on Donald Peters' involvement with Local 743 and any other IBT entity, subsequent to October 1, 1989, you allowed Donald Peters to act as a representative of Local 743 and to be involved in the affairs of Local 743 and other IBT entities. Such conduct included, but was not limited to, the following: providing Peters an office on Local 743 premises; allowing Peters to address a rally in 1990 of Local 743 members and a Local 743 shop stewards meeting in 1991; approving a resolution which authorized Local 743 to pay for Peters' expenses while he traveled representing Local 743; allowing Local 743 to pay for expenses in connection with meetings attended by you, Peters and others where union business was discussed; permitting Local 743 to pay for Peters' hotel expenses at the 1991 IBT Convention in Orlando, Florida; and condoning Peters presence at the 1993 Central Conference of Teamsters Convention in Las Vegas, Nevada.

(Independent Review Board, Proposed Charges Concerning Local 743 President and International Trustee Robert Simpson, Jr. ("Proposed Charges"), at 33-34 (June 30, 1994).) The IRB forwarded these charges and its report to the IBT on June 30, 1994.

By letter dated July 5, 1994, the IBT referred the charges against Simpson back to the IRB for adjudication. A hearing on the above-quoted charges was scheduled for November 3, 1994 ("the hearing"). On October 5, 1994, the IRB sent a Notice of Hearing ("the Notice"), a copy of the IRB investigative report with exhibits, and the IRB Operating and Hearing Rules to Simpson. The Notice informed Simpson that the purpose of the hearing was to determine whether the charges contained in the investigative report were supported by the evidence, and the Notice stated that Simpson would "be permitted to present any facts, evidence, or testimony that is relevant to the issues before the IRB." (Independent Review Board Notice of Hearing, at 1-2 (Oct. 5, 1994).) The Notice further informed Simpson that he had the right to be represented at the hearing by counsel or by an IBT member. Id. at 1.

In response to the Notice, Simpson requested that the IRB change the hearing date to accommodate a scheduling conflict. (Letter from Dan K. Webb, Esq., to John J. Cronin, Jr., Administrator, Independent Review Board, at 1-2 (Oct. 7, 1994).) The hearing was rescheduled for December 20, 21, and 22, 1994 in Chicago, Illinois. Simpson then "requested that the IRB cause to be issued a subpoena ad testificatum to Mr. Leroy Ellis ("Ellis") requiring him to be present for cross-examination at the hearing in this case...." (Letter from Peter C. McCabe III, Esq., to John J. Cronin, Jr., Administrator, Independent Review Board, at 1-2 (Nov. 14, 1994) (requesting that this Court issue subpoenas to Leroy Ellis requiring him to be present at Simpson's hearing).) In a Memorandum and Order dated December 15, 1994, this Court denied the request that this Court issue subpoenas. December 15, 1994, Memorandum & Order Simpson Subpoenas, 870 F.Supp. 557 (S.D.N.Y.1994).

On December 20 and 21, 1994, the IRB held the hearing on the charges against Simpson. At this hearing, the IRB heard from Celia Zahner ("Zahner"), counsel to Chief Investigator Charles Carberry ("the Chief Investigator" or "Carberry") of the IRB. (In re: Robert Simpson, Transcript ("Tr."), at 12 (Dec. 20, 1994).) Zahner offered into evidence three volumes of exhibits as evidence of the charges against Simpson. Id.; see (Investigative Officers' Exhibits, In re: Robert Simpson, Local 743 ("I.O.Ex.") Vols. I-III.) Zahner categorized the exhibits, and she briefly explained to the IRB the information that the exhibits contain. (Tr. 18-29.) Zahner offered no other evidence or testimony at the hearing.

The exhibits that Zahner provided the IRB set forth both the background and the substance of the charges against Simpson. (Opinion and Decision of the Independent Review Board, In re: Robert Simpson, IBT Local 743 ("IRB Opinion and Decision"), at 2 (July 30, 1995).) Donald Peters ("Peters"), the former President of Local 743 and a former International Vice President, was a named defendant in the civil RICO case United States v. International Brotherhood of Teamsters, 88 Civ. 4486 (DNE) ("the civil RICO case"). Id. at 3. On March 14, 1989, the eve of trial in the civil RICO case, Peters entered into a voluntary, court-approved settlement agreement with the Government ("Peters's consent decree"). Id. at 8; see (I.O.Ex. 11.) Under the terms of Peters's consent decree, Peters agreed to resign permanently from all his IBT International positions effective immediately, "permanently retire from all positions as an officer, agent, representative or employee of the IBT or any IBT subordinate body by June 1, 1989," and "to permanently retire from all positions as a trustee, agent, representative or employee of any IBT-affiliated employee benefit fund no later than September 30, 1989." (IRB Opinion and Decision at 8-9); (I.O. Ex. 11.)

The IRB's Opinion and Decision determined that despite the terms of Peters's settlement agreement, Peters continued to have an active role in the affairs of Local 743. Pursuant to a resolution passed by the Local 743 Executive Board, Peters maintained an office at Local 743, attended Local 743 meetings, was paid "for consulting work while traveling and representing the interests of Local 743 and its members," and continued to travel to various IBT functions including the 1991 IBT Convention in Orlando, Florida, (IRB Opinion and Decision at 22); (I.O. Ex. 54-55), and the 1993 Central Conference of Teamsters Convention in Las Vegas, Nevada. (IRB Opinion and Decision at 23); (I.O. Ex. 45 at 19-25.) In addition, Peters joined Simpson in attending meetings pertaining to union business for which Local 743 paid Peters's expenses. (I.O. Ex. 6 at 43.)

The IRB found that although Local 743's Bylaws require investigation into allegations of wrongdoing by an officer of the Local, (I.O.Ex. 13), Simpson failed to investigate Peters during the period from June 28, 1988, when Peters was named as a defendant in the civil RICO case, to May 31, 1989, when Peters permanently resigned from the Local pursuant to his settlement agreement with the United States. (IRB Opinion and Decision at 5.) Moreover, Simpson facilitated Peters's continued prohibited involvement with the Local and the IBT in contravention of the terms of Peters's consent decree from the time that Peters agreed to resign permanently from the IBT until approximately early 1993. Id. By allowing Peters to maintain an ongoing relationship as a representative of Local 743, to incur expenses that were paid by Local 743, and to attend IBT functions, Simpson ignored the...