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UNITED STATES v. INTL. BHD. OF TEAMSTERS

August 29, 1996

UNITED STATES OF AMERICA, Plaintiff, against INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND HELPERS OF AMERICA, AFL-CIO, et al., Defendants.

DAVID N. EDELSTEIN, U.S.D.J.


The opinion of the court was delivered by: EDELSTEIN

OPINION & ORDER

EDELSTEIN, District Judge :

 BACKGROUND

 During its more than seven-year history, the Consent Decree has spawned a tremendous amount of litigation that has required this Court to issue numerous opinions. In one of those opinions, pursuant to this Court's authority under the All Writs Act, 28 U.S.C. § 1651(a), this Court enjoined "all local unions, joint councils, area conferences, and other entities subordinate to or affiliated with the IBT, and any members, officers, representatives, agents and employees of the IBT or any such IBT affiliated entity, from filing or taking any legal action that challenges, impedes, seeks review of or relief from, or seeks to prevent or delay any act of any of the court officers appointed by this Court pursuant to the Consent Order in this action, in any court or forum in any jurisdiction except this Court[.]" December 15, 1989, Order at 3; see also United States v. International Bhd. of Teamsters [All Writs Act Decision], 728 F. Supp. 1032 (S.D.N.Y.), modification denied, 735 F. Supp. 502 (S.D.N.Y.), aff'd, 907 F.2d 277 (2d. Cir. 1990). In an Opinion and Order dated August 26, 1996, this Court found that the action International Bhd. of Teamsters v. Local Union 714 of the International Bhd. of Teamsters, 96 Civ. 4903 (N.D. Ill.) ("the Local 714 Case"), implicates the Consent Decree. Amended Opinion & Order, United States v. International Bhd. of Teamsters, et al., 88 Civ. 4486 at 10 (Aug. 26, 1996). In an August 23, 1996, telephone conference between Chambers and the Honorable Wayne R. Andersen ("Judge Andersen")--who was the judge hearing the Local 714 Case--it was agreed that the Local 714 case should be litigated in this Court. Accordingly, this Court enjoined defendant from pursuing the Local 714 Case in any forum other than this Court, and this Court ordered that the Local 714 case be transferred to this Court. Id. at 10.

 The Local 714 Case concerns a dispute regarding an emergency trusteeship that IBT General President Ron Carey ("Carey") imposed on IBT Local 714, which is located in Chicago, Illinois. Plaintiffs *fn2" are the IBT and John Metz ("Metz") as trustee to IBT Local 714. Defendant is IBT Local 714. *fn3" Plaintiffs claim that on August 5, 1996, the IRB "issued an investigative report detailing evidence of wrongdoing at Local 714, and recommending to the General President of the IBT that he place the Local in trusteeship." (Verified Complaint for Enforcement of Emergency Trusteeship ("Complaint") P 14.) The IRB's lengthy investigative report of Local 714 recommends that the IBT impose a trusteeship on Local 714 "because the Local is not being run for the benefit of its members . . . [but rather] the Local is being run for the benefit of its principal officer William Hogan, Jr., President James M. Hogan, Recording Secretary Robert Hogan and their family and friends." (IRB Investigative Report ("IRB's Report" or "the Report") at 1 (Aug. 5, 1996).) The IRB's Report alleges widespread nepotism and favoritism within Local 714. See generally id.. The IRB Report states that "since at least 1961, Local 714 has not held any contested elections for union office and each member of the current Executive Board was initially appointed to office." Id. at 2. The IRB's Report notes that "three relatives of former principal officer William Hogan, Sr. are Local Executive Board members originally appointed to fill vacancies," and that William Hogan, Sr.'s son-in-law "is a Local business agent." Id. The IRB's Report states that "Hogan relatives . . . have the contract to clean the Local's offices and have been Local clerical employees." Id. The Report further states that "with respect to the Local's trade show/movie division, . . . there are no written procedures governing how individuals may become part of the division or how the members are referred work." Id. The Report alleges that William Hogan, Sr. and his relatives operate this division for their own benefit. See id. at 3. The Report further contends that officers of the Local have entered into contracts with companies owned by the officers or their relatives, and that officers of the Local have entered into "sham contracts." See id. at 4-6.

 The IRB forwarded the IRB Report to Carey, and recommended that he impose a trusteeship over the Local. (Complaint P 15.) Plaintiffs claim that "the IRB required of the IBT and its General President a report on actions taken within two (2) weeks, pursuant to the Rules imposed upon the IBT for responding to the IRB reports and recommendations." Id. P 15.

 Carey imposed a temporary emergency trusteeship over the affairs of Local 714 effective August 8, 1996. (Complaint P 16.) By letter dated, August 8, 1996, President Carey appointed John Metz as Trustee over the affairs of Local 714, pursuant to the powers vested in the General President by Article VI, Section 5 of the IBT Constitution. Id. P 16; IBT Const., Art. VI, § 5. On August 8, 1996, President Carey also issued a Notice to the officers and members of Local 714 stating that he was imposing a temporary emergency trusteeship over Local 714 and explaining the reasons for the trusteeship. (Complaint P 17.)

 On August 8, 1996, Metz appeared at the address of Local 714 to present his certificate of appointment "and to begin carrying out his duties as Trustee." Id. P 17. "In response to the notice of trusteeship, Local 714, its officers, agents and employees, refused to recognize the trusteeship or cooperate with [Metz] and prevented him from carrying out his mandate as Trustee." Id. P 19.

 Plaintiffs allege that defendant's actions violated the IBT Constitution, Section 301(a) of the LMRA, and Sections 302 and 304 of the LMRDA. Id. PP 24, 26. In order to stop defendant from violating the IBT Constitution and federal labor law, and to prevent defendant from further obstructing the actions of the IBT and its Trustee, plaintiffs sought a Temporary Restraining Order from the United States District Court for the Northern District of Illinois, Eastern Division--the court in which this action originally was filed. On August 9, 1996, Judge Andersen issued a temporary restraining order, ordering:

 
A. Defendant, their officers, and their successors, agents, assigns, representatives, employees, attorneys and each and every other person acting at the direction of or in concert with them, shall:
 
1. Deliver all property, funds, books, records and assets of any kind in their possession to JOHN METZ as Trustee and/or his designee(s);
 
2. Cease and desist from representing themselves as the authorized officers and/or representatives of LOCAL 714, unless so authorized by JOHN METZ, as Trustee and/or his designee(s);
 
3. Cease and desist from interfering in any manner with the conduct of the temporary emergency trusteeship by JOHN METZ, as Trustee and/or his designee(s);
 
4. Provide a complete accounting of the financial condition of LOCAL 714 to JOHN METZ, as Trustee and/or his designee(s), along with any and all financial records and an explanation for all receipts, disbursements, and financial transactions of any kind by Local 714[;]
 
5. Refrain from any destruction, removal, secretion, or alteration of the financial records of LOCAL 714;
 
6. Provide a complete accounting of the collective bargaining relationships and agreements of LOCAL 714 TO JOHN METZ, as Trustee and/or his designee(s) along with any and all certificates, agreements or other indicia of recognition of LOCAL 714 as a representative of any person or persons plus any and all collective bargaining contracts, letters of modification and similar documents of any kind of LOCAL 714; and
 
7. Refrain from any destruction, removal, secretion, alteration of any documents reflecting the collective bargaining ...

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