US v. INTERNATIONAL BROTH. OF TEAMSTERS, 88 CIV. 4486 (DNE).
| Decision Date | 13 May 1991 |
| Docket Number | No. 88 CIV. 4486 (DNE).,88 CIV. 4486 (DNE). |
| Citation | 764 F. Supp. 817 |
| Parties | UNITED STATES of America, Plaintiff, v. INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND HELPERS OF AMERICA, AFL-CIO, et al., Defendants. In re Petition for REVIEW OF DECISION 91-ELEC. APP.-106 OF THE INDEPENDENT ADMINISTRATOR. |
| Court | U.S. District Court — Southern District of New York |
Otto G. Obermaier, U.S. Atty., S.D.N.Y. (Edward T. Ferguson, III, Asst. U.S. Atty., of counsel), New York City, for the U.S.
Frederick B. Lacey, Independent Administrator of the International Broth. of Teamsters, New York City (Stuart Alderoty, Newark, N.J., of counsel), Michael Holland, Election Officer of the Intern. Broth. of Teamsters, New York City (Barbara Hillman, Chicago, Ill., of counsel), Cohen, Weiss & Simon, New York City (Susan Davis, of counsel), for Committee to Elect Ron Carey.
Gibson, Dunn & Crutcher (Robert Sacks, Steven Tallent, William Highberger, New York City, Pillsbury, Madison & Sutro, Robert A. Gordon, Christopher L. Byers, San Francisco, Cal., of counsel), for Western Conference of Teamsters Pension Fund and Joseph A. Ballew.
This decision arises from the implementation of the rules for the International Brotherhood of Teamsters ("IBT") International Union Delegate and Officer Election promulgated by the Election Officer (the "election rules") and approved by this Court by Opinion & Order dated July 10, 1990, 742 F.Supp. 94 (S.D.N.Y.1990), and the Court of Appeals United States v. International Brotherhood of Teamsters, 931 F.2d 177 (2d Cir.1991). These election rules provide a "framework for the first fully democratic, secret ballot election in the history" of the IBT. July 10, 1990 Opinion, supra, 742 F.Supp. at 97.
Petitioners Western Conference of Teamsters Pension Trust Fund (the "Trust") and Joseph Ballew, an employee of the Western Conference of Teamsters and Co-chairman of the Trust appeal decision 91-Elec. App.-106 of the Independent Administrator, which affirmed as modified the Election Officer's decision P-291A-LU278-CSF pursuant to Article X, § 1(a)(8) of the election rules. The Election Officer and Independent Administrator determined that Ballew had violated Article X, § 1.b.(1) of the election rules in connection with the preparation and distribution, at Trust expense, of written materials about Ron Carey, an accredited candidate for IBT General President. Petitioners seek to overturn the findings of the Independent Administrator. This petition was ripe for this Court's review on April 25, 1991. Petitioners twice moved this Court to stay the decision of the Independent Administrator. This Court denied the first application on April 11, 1991, and the second on May 10, 1991.
The decision of the Independent Administrator is affirmed.
The Trust is affiliated with the Western Conference of Teamsters ("WCT"), a subordinate entity of the IBT. The Trust is a multi-employer pension plan established pursuant to § 302(c) of the Labor Management Relations Act ("LMRA"), 29 U.S.C. § 186(c), and a pension plan as defined in the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. § 1002(2)(A). The Trust has 14 employee trustees, including Ballew, two other employees of the WCT, with the remaining employee trustees being officers or officials of the WCT. Four of the 14 employee trustees, Arnie Weinmeister, Chuck Mack, Ben Leal, and Michael Riley, are announced candidates for International Office on the "Durham-Mathis Unity Team" slate. (Decision of Independent Administrator Dec.In.Ad. at 2).
Ron Carey is the president of IBT local 804 in Long Island City, New York, and a Trustee of the Local 804 IBT/Local 447 IAM United Parcel Employees Pension Plan (the "Local 804 plan"). A notable feature of the Local 804 plan is the "30 and out" feature, where participants may begin receiving full benefits after 30 years of service, rather than benefits being tied to reaching a certain age. Carey negotiated the Local 804 plan. Carey is an accredited candidate for IBT General President. (Dec.In.Ad. at 3).
The following facts were found by the Election Officer and affirmed by the Independent Administrator. On January 23, 1990, Ballew wrote to Mr. Richard Pirnke, an independent trust administrator, asking Pirnke to review and comment on the Local 804 plan. In that letter, Ballew wrote "Since this plan will be the one that our WCT plan will be compared to, I am sending this to you for your review and comments." (Dec.In.Ad. at 3). That inquiry was not made for the purpose of any pending collective bargaining negotiations, or at the request of any participant in, or beneficiary of the Trust. That inquiry was found to be in response to Carey's campaign and candidacy. (Dec.In.Ad. at 4-5).
On March 19, 1990, Pirnke responded, adversely comparing the local 804 plan to the Trust (the "Pirnke letter"). That comparison noted in particular the demographic differences between the WCT and Local 804 memberships that made the "30 and out" feature less attractive to Trust participants. (Dec.In.Ad. at 5).
In November, 1990, Jack R. Bookter, Secretary-Treasurer of Local 278 in San Francisco, California (affiliated with the WCT), sent Ballew a videotape of a campaign presentation by Carey. In that videotape, Carey makes specific reference to the Trust, and the Local 804 plan's "30 and out" feature. (Dec.In.Ad. at 6-7).
On November 28, 1990, Ballew wrote back to Bookter, on Trust stationery, in his capacity as co-chairman/secretary of the Trust (the "Ballew letter"). In that letter, Ballew made unfounded and pejorative remarks about Carey, stating that Carey took unfounded liberties in describing the Local 804 plan. The Ballew letter went on to set out the "limitations of significance" in the Local 804 plan, and then emphasized positive features of the Trust. (Dec.In.Ad. at 6-7).
The Election Officer and Independent Administrator found that Ballew did not circulate the information in the Pirnke letter or use that information for collective bargaining purposes until he was contacted by Bookter. (Dec.In.Ad. at 6-7).
Ballew then sent copies of his letter to all other employee trustees of the Trust. No employer trustee received a copy. Bookter distributed copies of the Ballew letter to members of his local who inquired about the Carey presentation at local 278 expense. Chuck Mack, a member of the WCT policy committee, distributed the Ballew letter to all members of his Local 70, at IBT expense. (Dec.In.Ad. at 6-7).
After considering the facts as found by the Election Officer and Independent Administrator, the Independent Administrator concluded the following:
It is readily apparent that Ballew's November 28, 1990 letter was designed to refute Carey's campaign statements regarding pensions and the Local Union 804 plan. In short, the Ballew letter is intended to influence the election of Carey as General President. Stated more plainly, the Ballew letter constitutes anti-Carey campaign literature. Given the fact that the Trust is prohibited from making any campaign contribution, its distribution of the November 28, 1990 letter violates the Election Rules.
The Election Officer ordered the Trust and Ballew to take curative steps (the "curative steps"). These steps were affirmed as modified by the Independent Administrator. Those steps are as follows:
1. The Trust is prohibited from making any further contributions of value, including distribution of the Ballew letter where the purpose, object, or foreseeable effect of that contribution is to influence the election of a candidate for delegate, alternate delegate or International Officer of the IBT.
2. Ballew is to reimburse the Trust for the cost and expense of the preparation and disbursement of the Ballew letter.
3. Ballew is to bear the expense and distribute copies of a notice to be sent to all persons to whom he had sent his letter advising the recipients of the subject Election Rules violation and a disclaimer by the Trust of the Ballew letter.
(Dec.In.Ad. at 13-16). The Trust and Ballew appeal the findings of the Independent Administrator to this Court.
With respect to the electoral provisions of the Consent Decree, the Court of Appeals and this Court have now determined that the Investigations Officer and Independent Administrator are stand-ins for the General President and GEB, who properly delegated their power to those Court Officers pursuant to Article XXVI, § 2 of the IBT Constitution. United States v. International Brotherhood of Teamsters, supra, 931 F.2d 177 aff'g July 10, 1990 Opinion & Order, 742 F.Supp. 94; May 6, 1991 Opinion & Order, 764 F.Supp. 787, 789 (S.D. N.Y.1991); January 17, 1990 Opinion & Order, 728 F.Supp. 1032, 1048-57, aff'd 907 F.2d 277 (2d Cir.1990);
This Court and the Court of Appeals have interpreted ¶ K.16 to mean that decisions of the Independent Administrator "are entitled to great deference." 905 F.2d 610, 616 (2d Cir.1990) aff'g March 13, 1990 Opinion and Order, 743 F.Supp. 155 (S.D.N. Y.1990); May 9, 1991 Memorandum & Order, 764 F.Supp. 797 (S.D.N.Y.1991); May 6, 1991 Opinion & Order, supra, 764 F.Supp. at 789; December 27, 1990 Opinion & Order, 754 F.Supp. 333, 337 (S.D.N.Y. 1990); September 18, 1990 Opinion & Order, 745 F.Supp. 189, 191-92 (S.D.N.Y. 1990); August 27, 1990 Opinion & Order, 745 F.Supp. 908, 911 (S.D.N.Y.1990); March 13, 1990 Opinion & Order, supra, 743 F.Supp. at 159-60, aff'd 905 F.2d 610, 622; January 17, 1990 Opinion & Order, supra, 728 F.Supp. at 1048-57, aff'd 907 F.2d 277 (2d Cir.1990); November 2, 1989 Memorandum & Order, 725 F.Supp. 162, 169 (S.D.N.Y.1989); Joint Council 73, et al. v. Carberry, et al., 741 F.Supp. 491, 493 (S.D.N.Y.1990); Local 27 v. Carberry, et al., July 20, 1990 at 3-4, 1990 WL 108348 (S.D.N.Y.1990).
Petitioners make the following four arguments on appeal to this Court: (1) There is no...
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US v. INTERNATIONAL BROTH. OF TEAMSTERS
... ... No. 88 CIV. 4486 (DNE) ... United States District Court, S.D. New York ... ...
- US v. INTERNATIONAL BROTH. OF TEAMSTERS, 88 CIV. 4486 (DNE).
- US v. INTERNATIONAL BROTH. OF TEAMSTERS, 88 Civ. 4486 (DNE).