US v. LOCAL 30, UNITED SLATE, TILE ETC., Civ. A. No. 87-7718.
| Decision Date | 23 May 1988 |
| Docket Number | Civ. A. No. 87-7718. |
| Citation | 686 F. Supp. 1139 |
| Parties | UNITED STATES of America v. LOCAL 30, UNITED SLATE, TILE AND COMPOSITION ROOFERS, DAMP AND WATERPROOF WORKERS ASSOCIATION, Residential Reroofers Local 30B, United Slate, Tile and Composition Roofers, Damp and Waterproof Workers Association, Stephen Traitz, Jr., Edward P. Hurst, Michael Mangini, Robert Crosley, Michael Daly, Daniel Cannon, Mark Osborn, Robert Medina, Ernest Williams, James Nuzzi, Stephen Traitz, III, Joseph Traitz, and Richard Schoenberger. |
| Court | U.S. District Court — Eastern District of Pennsylvania |
COPYRIGHT MATERIAL OMITTED
Edward S.G. Dennis, Jr., U.S. Atty., Edward T. Ellis, Catherine Votaw, Asst. U.S. Attys., Philadelphia, Pa., for plaintiff.
Richard Markowitz, Stephen Richman, Ronald Kidd, Edward Daly, Philadelphia, Pa., for defendant.
Presently before the court is the motion of the United States for a preliminary injunction and appointment of a trustee pendente lite. For the reasons stated herein, the motion for a preliminary injunction will be granted to the extent set forth, and the motion for appointment of a trustee will be denied.
On December 2, 1987, plaintiff United States of America ("United States" or "the government" or "plaintiff") filed a complaint and a motion for a preliminary injunction seeking appointment of a trustee pendente lite under the civil injunctive provisions of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-1968 ("RICO"). The United States also requests that defendants Stephen Traitz, Jr. ("Traitz"), Edward P. Hurst ("Hurst"), Michael Mangini, a/k/a "Nails" ("Mangini"), Robert Crosley ("Crosley"), Michael Daly ("Daly"), Daniel Cannon ("Cannon"), Mark Osborn ("Osborn"), Robert Medina ("Medina"), Ernest Williams ("Williams"), James Nuzzi ("Nuzzi"), Stephen Traitz, III ("Traitz III"), Joseph Traitz and Richard Schoenberger ("Schoenberger") be enjoined from holding office or participating directly or indirectly in the affairs of defendant Locals 30 and 30B, United Slate, Tile and Composition Roofers, Damp and Waterproof Workers Association and its affiliated benefit plans (hereinafter collectively referred to as "the Roofers Union" or "the Union") and for the court to appoint a trustee pendente lite to conduct the affairs of the Roofers Union.
On November 23, 1987, a federal court jury in this district returned a verdict in a criminal action against the thirteen officers and employees of the Roofers Union who are named defendants in this civil action. The defendants were found guilty of conducting and participating in the affairs of the Roofers Union through a pattern of racketeering activity (substantive RICO offense), RICO conspiracy, bribery of federal, state and local public officials, mail fraud, extortion, illegal kickbacks from providers to an employee benefit plan, embezzlement from the employee benefit plan and collection of debts for organized crime.
The parties introduced evidence at a preliminary injunction hearing that began on December 16, 1987 and continued with several breaks to completion on February 5, 1988. The parties were given until March 15, 1988 to submit final proposed findings of fact and conclusions of law. On March 15, 1988 the court took the matter under advisement.
Plaintiff presented its evidence in three parts: (1) the testimony of approximately fifty (50) fact witnesses who described improper and/or illegal acts allegedly committed by the individual defendants and/or the Union and/or members or supporters of the Union; (2) approximately eleven (11) of the audio tapes that were recorded in accordance with the Title III wiretap Order authorized in conjunction with the federal criminal trial of the individual defendants (United States v. Traitz, et al., Criminal No. 86-451) (although the court received into evidence the entire set of 271 transcripts from the criminal proceeding); and, (3) the testimony of expert witness, law professor Clyde W. Summers. Plaintiff's evidence was received almost entirely without contradiction except for a few scattered episodes of primarily cosmetic and unrevealing cross-examination. Plaintiff's evidence thus stands virtually unchallenged.
The thirteen individual defendants were collectively represented by Ronald Kidd, Esquire until February 1, 1988, when Edward Daly, Esquire took over the representation of his brother Michael Daly and Mr. Kidd continued to represent the other twelve individual defendants. The individual defendants presented the testimony of approximately one dozen witnesses and the stipulated testimony of two (2) other persons to vouch for the individual defendants' character and in regard to the extent of a possible injunction, their need to continue to be able to work as roofers in the geographic jurisdiction covered by the Union.
The defendant Union presented the testimony of approximately nine (9) witnesses including expert witness, business school professor Janice R. Bellace, and the stipulated testimony of two (2) other persons. The Union's attorney, Bernard N. Katz, Esq., was replaced with the consent of the court and Mr. Katz, by Richard H. Markowitz, Esq. during the hearing.
The United States contends that the convictions of the thirteen defendants in the criminal action, the evidence presented in this action and the expert testimony of Prof. Clyde W. Summers prove by a preponderance of the evidence that absent the injunctive relief requested including the removal of the current newly-elected officers of the Union and the imposition of a trusteeship, the persuasive and longstanding pattern of racketeering activity is likely to continue in the Roofers Union.1 The thirteen individual defendants oppose the injunctive relief sought and in any event ask the court to allow them to be allowed to work as roofers in the geographic jurisdiction covered by the Union. Defendant Roofers Union opposes removal of the current officers of the Union and the imposition of a trusteeship. Defendant Roofers Union asks the court to deny all the injunctive relief plaintiff seeks and preserve the status quo or at most to impose some sort of limited monitorship whereby the current officers would continue to run the Union but would be monitored by a court-appointed official. For the reasons stated herein the court will not grant the relief plaintiff has requested, nor will it preserve the status quo as defendants request; instead it will grant what it considers to be the appropriate injunctive relief to protect the Union, its members and the public.
1. The Roofers Union is a labor organization headquartered at 6447 Torresdale Avenue in Philadelphia, Pennsylvania, that represents approximately 2,000 persons employed in eastern Pennsylvania, southern New Jersey and Delaware. At all times relevant to this action, the members of the Roofers Union have been employed in an enterprise affecting interstate commerce within the meaning of RICO, 18 U.S.C. § 1961; the Labor-Management Reporting and Disclosure Act of 1959 ("LMRDA"), 29 U.S.C. §§ 401, et seq.; and the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. §§ 1001, et seq. Govt.Exh. 21.
2. The Roofers Union has, since at least the 1960's, negotiated collective bargaining agreements with two employer associations in the Philadelphia area. Local 30 (which has also been referred to by some as Local 30A), is the commercial roofing segment of the Union and has had an agreement with the Roofing and Sheet Metal Contractors Association of Philadelphia and Vicinity. Local 30B, the residential reroofing part of the Union, was formed in 1969 and has since that time had an agreement with the Roofing Metal and Heating Associates, a contractors' association. These agreements are re-negotiated approximately every three years, but terms other than wage and fringe benefit rates have remained essentially the same since the 1960's. Exhs. D-11, D-12.
3. The Roofers Union purports to be governed by the Constitution and Bylaws of the United Slate, Tile and Composition Roofers, Damp and Waterproof Workers Association, an international labor organization, and the Local 30/30B Constitution and Bylaws. Govt.Exhs. 20A, 20B.
4. The Constitution of the Roofers Union created the following offices:
Business Manager President Vice President Recording Secretary Five Executive Board Members
The chief executive of the Union is the business manager. Govt.Exh. 20B, p. 16.
5. The Constitution and Bylaws of the Roofers Union provide that all officers are elected by and from the membership of Locals 30 and 30B. Govt.Exh. 20B.
6. There has not been a contested election (i.e., more than one candidate) for the office of business manager in at least the past twenty years, except during this suit in December 1987. N.T. 1007.
7. The Roofers Union also employs salaried business agents and organizers, who are appointed by the business manager. The duties of business agents and organizers include obtaining the agreement of non-Union roofing companies to become signatories to one of the industry-wide collective bargaining agreements; ensuring compliance with those agreements; and handling problems for members either in their employment or in relation to the Union benefit plans.
8. The Roofers Union is associated with the following employee benefit plan funds that are subject to federal regulation:
9. Officers of the Roofers Union sit on the boards of trustees of each of the funds identified above. An equal number of management trustees sit on each fund except for the two Vacation Funds, which are controlled solely by the Union.
To continue reading
Request your trial
-
US v. International Broth. of Teamsters
...parallel to a criminal RICO prosecution, alleging essentially identical conduct. See, e.g., United States v. Local 30, United Slate, Tile and Composition Roofers, 686 F.Supp. 1139 (E.D.Pa.1988); United States v. Local 6A, Cement & Concrete Workers Union, 663 F.Supp. 192 (S.D.N.Y. 1986); Uni......
-
United States v. Dougherty, Criminal Action Nos. 14–69
...in the construction industry. See, United States v. Local 30, United Slate, Tile & Composition Roofers, Damp & Waterproof Workers Ass'n, 686 F.Supp. 1139, 1141 (E.D.Pa.1988), aff'd, 871 F.2d 401, 404 (3d Cir.1989). The court further “imposed a ‘decreeship’ ” over the union and appointed a “......
-
O'ROURKE v. Crosley, Civ. A. No. 93-1043 (SSB).
...v. Schoenberger et al., 141 BNA LRRM 2459, 1992 WL 372381 (3d Cir.1992); U.S. v. Local 30, United Slate, Tile and Composition Roofers, Damp and Waterproof Workers Association, et al., 686 F.Supp. 1139 (E.D.Pa.1988), aff'd, 871 F.2d 401 (3d Based on the aforementioned allegations, plaintiff ......
-
Geyer Roofing, Inc. v. Roofers Local 30B
...Roofing Inc. (hereinafter "Geyer Roofing"), for his testimony against the union in the trusteeship proceedings in United States v. Local 30, 686 F.Supp. 1139 (E.D.Pa.1988), aff'd, 871 F.2d 401 (3d Cir.1989) (hereinafter "Local 30"). Local 30B argues that the JCB decision was reached pursuan......