US v. INTERNATIONAL BROTH. OF TEAMSTERS

Decision Date19 August 1992
Docket NumberNo. 88 CIV. 4486 (DNE).,88 CIV. 4486 (DNE).
PartiesUNITED STATES of America, Plaintiff. v. INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND HELPERS OF AMERICA, AFL-CIO, the Commission of La Cosa Nostra, Anthony Salerno, a/k/a "Fat Tony," Matthew Ianniello, a/k/a "Matty the Horse," Anthony Provenzano, a/k/a "Tony Pro," Nunzio Provenzano, a/k/a "Nunzi Pro," Anthony Corallo, a/k/a "Tony Ducks," Salvatore Santoro, a/k/a "Tom Mix," Christopher Furnari, Sr., a/k/a "Christie Tick," Frank Manzo, Carmine Persico, a/k/a "Junior," "The Snake," Gennaro Langella, a/k/a "Gerry Lang," Philip Rastelli, a/k/a "Rusty," Nicholas Marangello, a/k/a "Nicky Glasses," Joseph Massino, a/k/a "Joey Messina," Anthony Ficarotta, a/k/a "Figgy," Eugene Boffa, Sr., Francis Sheeran, Milton Rockman, a/k/a "Maishe," John Tronolone, a/k/a "Peanuts," Joseph John Aiuppa, a/k/a "Joey O'Brien," "Joe Doves," "Joey Aiuppa," John Phillip Cerone, a/k/a "Jackie the Lackie," "Jackie Cerone," Joseph Lombardo, a/k/a "Joey the Clown," Angelo Lapietra, a/k/a "The Nutcracker," Frank Balistrieri, a/k/a "Mr. B," Carl Angelo Deluna, a/k/a "Toughy," Carl Civella, a/k/a "Corky," Anthony Thomas Civella, a/k/a "Tony Ripe," General Executive Board, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Jackie Presser, General President, Weldon Mathis, General Secretary-Treasurer, Joseph Trerotola, a/k/a "Joe T," First Vice President, Robert Holmes, Sr., Second Vice President, William J. McCarthy, Third Vice President, Joseph W. Morgan, Fourth Vice President, Edward M. Lawson, Fifth Vice President, Arnold Weinmeister, Sixth Vice President, John H. Cleveland, Seventh Vice President, Maurice R. Schurr, Eighth Vice President, Donald Peters, Ninth Vice President, Walter J. Shea, Tenth Vice President, Harold Friedman, Eleventh Vice President, Jack D. Cox, Twelfth Vice President, Don L. West, Thirteenth Vice President, Michael J. Riley, Fourteenth Vice President, Theodore Cozza, Fifteenth Vice President, Daniel Ligurotis, Sixteenth Vice President, Salvatore Provenzano, a/k/a "Sammy Pro," Former Vice President, Defendants.
CourtU.S. District Court — Southern District of New York

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Otto G. Obermaier, U.S. Atty., S.D.N.Y., New York City (Steven C. Bennett, Christine Chung, Asst. U.S. Attys., of counsel), for the U.S.

Cohen, Weiss & Simon, New York City (Richard N. Gilberg, Richard M. Seltzer, Stephen Presser, of counsel), for the International Broth. of Teamsters.

Frederick B. Lacey, Independent Adm'r of the International Broth. of Teamsters, Newark, N.J.

OPINION & ORDER

EDELSTEIN, District Judge:

                                             TABLE OF CONTENTS
                  I. BACKGROUND ............................................................... 766
                     A. The Government's Suit ................................................. 766
                     B. The Court Appointed Officers .......................................... 767
                     C. The Independent Review Board .......................................... 768
                     D. History of Consent Decree Litigation .................................. 769
                         1. New York Office Space ............................................. 769
                         2. Election Officer's Authority to Supervise 1991 IBT Election ....... 770
                            a. Scope of Election Officer's Authority .......................... 770
                            b. Election Officer's Staffing Requests ........................... 771
                            c. Fund ........................................................... 771
                            d. Certification .................................................. 771
                         3. Communication with the Membership ................................. 772
                         4. Investigations Officer's Authority to Examine Books ............... 772
                         5. Independent Administrator's Power to Interpret IBT Constitution ... 772
                         6. All Writs Act Jurisdiction ........................................ 773
                         7. Names of IBT Members Facing Discipline ............................ 773
                         8. Election Rules .................................................... 774
                         9. Formal Ratification of the Consent Decree at 1991 IBT Convention
                              ................................................................. 774
                     E. Drafting Constitutional Amendments .................................... 776
                         1. Process of Incorporation .......................................... 776
                         2. Section G and the IBT's Proposed Ethical Practices Committee ...... 776
                     F. The Instant Application ............................................... 776
                
                  II. DISCUSSION ................................................................... 776
                      A. Consent Decree Law ........................................................ 777
                      B. Prior Interpretations of the Consent Decree ............................... 778
                      C. Promulgation of Rules for IRB Operation Is Consistent with the
                           Language and Purpose of the Consent Decree and the Intent of the
                           Parties ................................................................. 779
                          1. The Government's Application Is Proper ................................ 779
                          2. The IRB as Revealed Through the Language and Purpose of the
                               Consent Decree and the Intent of the Parties ........................ 780
                          3. Absence of Rules Threatens the IRB's Ability to Fulfill Its
                               Crucial Role under the Consent Decree ............................... 781
                      D. Promulgation of Rules Is Consistent with other Proffered Principles
                           and Policies ............................................................ 783
                          1. The Government Did Not Waive Its Right to Bring This Application
                               ..................................................................... 783
                          2. Federal Labor Policy Favors Promulgation of These Rules ............... 784
                          3. The Current IBT Administration's Stance Toward Reform Does
                               Not Affect the Propriety of These Rules ............................. 785
                          4. Cost .................................................................. 788
                      E. The Rules ................................................................. 790
                          1. Individual IRB Member Action .......................................... 790
                          2. Scope of IRB Investigative Authority .................................. 791
                          3. Enforcement ........................................................... 792
                          4. Cooperation ........................................................... 793
                          5. Review of IBT Decisions ............................................... 793
                          6. Communication ......................................................... 794
                          7. IRB Voting ............................................................ 794
                          8. Staff for IRB Members ................................................. 795
                          9. Independence of IRB Members ........................................... 796
                         10. Indemnification of IRB Members ........................................ 797
                         11. Applications .......................................................... 797
                         12. Investigative Reports and IBT Action .................................. 797
                         13. Compensation of IRB Members ........................................... 798
                III. CONCLUSION .................................................................... 799
                

This Opinion emanates from the voluntary settlement in the action commenced by the plaintiff United States of America (the "Government") against, inter alia, the defendants International Brotherhood of Teamsters (the "IBT") and the IBT's General Executive Board (the "GEB") embodied in the voluntary consent order entered March 14, 1989 (the "Consent Decree"). Pursuant to Section K.16 of the Consent Decree, the Government has made an application to this Court involving Section G of the Consent Decree, which provides for the establishment of an Independent Review Board (the "IRB" or "Review Board"). Specifically, the Government seeks to promulgate rules for the operation of the IRB and its staff. For the reasons stated below, the Government's application is granted as modified. The Rules and Procedures for Operation of the Independent Review Board for the International Brotherhood of Teamsters (the "Rules") are attached to this Opinion as Exhibit A.

1. BACKGROUND
A. The Government's Suit

On June 28, 1988, the Government filed this civil action pursuant to the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. § 1961, et seq., against the IBT, its GEB, the individual members of the GEB, the Commission of La Cosa Nostra, and 26 alleged members of La Cosa Nostra. The Government alleged that the Union suffered from rampant corruption and La Cosa Nostra domination. In order to purge the IBT of these nefarious influences and restore union democracy, the Government sought sweeping relief, including the appointment of court liaison officers vested with certain powers of the IBT General President and the GEB and with authority to supervise general elections for IBT International Union Officers.

On the eve of trial, March 14, 1989, the IBT and the Government settled the action and entered into the Consent Decree. In the precatory paragraphs of the Consent Decree, the IBT admits "that there have been allegations, sworn testimony and judicial findings of past problems with La Cosa Nostra corruption of various elements of the IBT." Consent Decree, at p. 2 (fourth Whereas clause). Based on this admission, the IBT agrees "that there should be no criminal element or La Cosa Nosa corruption of any part of the IBT." Id. (fifth Whereas clause). Moreover, the IBT agrees "that it is imperative that the IBT, as the largest trade union in the free world, be maintained...

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