Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

INTERNATIONAL BHD. OF TEAMSTERS v. LOCAL UNION NO.

September 27, 1993

INTERNATIONAL BROTHERHOOD OF TEAMSTERS, and JOSEPH PADELLARO as TRUSTEE of LOCAL UNION NUMBER 810, affiliated with the INTERNATIONAL BROTHERHOOD OF TEAMSTERS, Plaintiffs,
v.
LOCAL UNION NUMBER 810, affiliated with the INTERNATIONAL BROTHERHOOD OF TEAMSTERS, DENNIS SILVERMAN, MAX SANCHEZ, JOHN CHAMBERS, STEPHEN SILVERMAN, THOMAS AULD, JOSE CUEVAS, AND MELL JONES, Defendants.



The opinion of the court was delivered by: WHITMAN KNAPP

 WHITMAN KNAPP, SENIOR D.J.

 Plaintiff International Brotherhood of Teamsters ("IBT") moves for preliminary injunctive relief to enforce an emergency trusteeship imposed by IBT General President Ron Carey ("the President") on Defendant Local Union 810 ("the Local"). Defendant opposes the motion, arguing that the Court should order an evidentiary hearing to determine whether the Emergency Trustee was appointed by the President in accordance with the IBT Constitution. *fn1" For the reasons that follow, plaintiff's motion is granted without further hearing.

 BACKGROUND

 Following a RICO lawsuit brought against the IBT by the United States Department of Justice, United States v. International Brotherhood of Teamsters, (S.D.N.Y. 1993) 814 F. Supp. 1165 (Edelstein, J.), the parties entered into a Consent Decree which granted officers authority to supervise the IBT and to investigate corruption. Former District Judge Frederick B. Lacey was appointed Independent Administrator for this purpose; Charles Carberry was appointed Independent Investigator. Following an investigation, Carberry brought two charges of misconduct in violation of the IBT Constitution and the Local's bylaws against several Local officials: 1) Dennis Silverman and Max Sanchez were charged with improperly increasing the amount of monthly contributions required for the Local's Staff Retirement Plan and with personally receiving the proceeds of the subsequently dissolved plan; and 2) Dennis Silverman, Max Sanchez, Stephen Silverman and John Chambers were charged with improperly causing the Local to pay $ 7,500 in legal fees to defend a Local member in criminal proceedings. In August of 1992, Judge Lacey ordered the suspension of the four officials for periods ranging from three to six months.

 On or about August 31, 1993, Aaron Belk, an Administrator of the Ethical Practices Committee ("the EPC"), an internal IBT investigative body created by the President, informed the President by letter of allegations of ongoing misconduct on the part of Local officials, and recommended that he place the Local under immediate temporary trusteeship. Attached to the letter was a document entitled "TEAMSTERS LOCAL UNION 810 - Notes, August 25, 1993 Meeting." The first paragraph of this document reads as follows:

 
As Administrator of the IBT Ethical Practices Committee, I am forwarding the following information on Teamsters Local Union 810. Based on the seriousness of this information, I am requesting that you consider a temporary Trusteesh9ip [sic] until a Trustee Panel hearing considers whether a continued Trusteeship is warranted, as a result of the following allegations and charges from Pat Monaco, a former employee of Local 810, who was recently discharged, and Louis Smith, a Delegate/Business Agent. I met with former Organizer Pat Monaco and Business Agent Louis Smith on August 25, 1993 in Somerset, New Jersey.

 On September 10, 1993, the president issued a Notice to the Officers and Members of Local Union 810 stating his reasons for placing Local 810 in Trusteeship. The Notice of Trusteeship sets out the President's basis for his decision as follows (Padellaro Decl. Ex. 5):

 
Based upon information provided to the Ethical Practices Committee and the decision of the Independent Administrator . . . it appears that the Local Union has not been conducted in accordance with the Constitution of the International Union or for the benefit of the membership and that the interests of the Local and International are being jeopardized. The IA's decision indicates that the Executive Board of Local 810 . . . breached their fiduciary duties to the membership of Local 810 . . .
 
In addition to the IA decision, sources, including former business agents, have made substantial allegations to the EPC that the Local 810 officers engaged in serious financial improprieties including the following: (1) mismanagement of the Local 810 pension and health and welfare funds; (2) collecting cash from Local 810 business agents and staff for no apparent reason; (3) instituting pay and severance pay increases for officers without . . . approval of the Local 810 membership; (4) paying "abusive" salary and benefits to the Silverman family and paying full time salaries to Local 810 Employees who actually work part-time . . .
 
In addition, sources, including former business agents, have made substantial allegations to the EPA that Local 810 officers: (1) failed to hold general membership meetings and discouraged members from attending . . . meetings which did take place; (2) held "closed" membership meetings which were limited to the employees of Local 810 and the Local 810 health and welfare fund; and (3) refused to furnish Local Union business agents with Local Union bylaws.
 
Finally, the Independent Administrator has agreed that the imposition of an emergency trusteeship is appropriate.

 On September 10 the President appointed a Joseph Padellaro ("Padellaro") as Temporary Emergency Trustee of the Local. Three days later Padellaro went to the office of the Local to present the Local Executive Board with his certificate of appointment and to assert control over its affairs. He found the doors of the building locked, and was soon informed by lawyers who came out of the building that the Local would not accept his appointment without a court order directing it to do so. (Padellaro Decl. p 2-3). Later that day this Court ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.