464 F.Supp.3d 863
E.D. Ky.2020Background:
- Michael Philbeck served as president of Teamsters Local 651 from 2010–2018; after losing re-election he allegedly kept union property and changed passwords/removing other admins from Local 651’s Facebook Page and member groups.
- Local 651 sued (civil action) asserting conversion, invasion of privacy (misappropriation of name/likeness), breach of contract under §301 LMRA, breach of fiduciary duty under §501 LMRDA, Lanham Act false designation/unfair competition; sought return of social‑media admin access and a permanent injunction (not monetary relief for other alleged conversions).
- The Court had earlier issued and later modified a preliminary injunction requiring Philbeck to identify posts and disclaim officer status after finding violations; Philbeck failed to file a timely answer and his affidavits were unsworn.
- Key factual findings: the facebook.com/teamsterslocal651 page and the UPS Member Resource Group were created/used in an official capacity, promoted on union materials, administered by other union staff, and thus are Union property.
- Legal outcome: summary judgment granted for Local 651 on conversion and invasion‑of‑privacy (appropriation) claims; claims under §301 LMRA, §501 LMRDA, the Lanham Act, and unfair competition were dismissed; permanent injunction ordered returning passwords and barring Philbeck from administering or holding himself out as a current officer; attorney’s fees denied.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Ownership of social media accounts | Pages were created/used in official capacity, promoted on business cards/website, administered by staff, so Union owns them | Philbeck created and used pages personally and posts for his own benefit | Union owns the Facebook Page and UPS Resource Group; unsworn affidavits from Philbeck’s witnesses not considered |
| Conversion of social media accounts | Philbeck changed passwords, removed admins, denied Union access—wrongful dominion | Denies removing Union property | SJ for Union on conversion; defendant exercised dominion denying Union use |
| Invasion of privacy / appropriation of name & likeness | Philbeck used Union’s name/brand/goodwill on pages for his benefit | Implicit denial / argues personal use | SJ for Union: misappropriation of Union name/likeness established |
| §301 LMRA (breach of International Constitution re: marks/extraordinary expenditures) | Violations by refusing to relinquish property and misusing marks on social media | Use/control of social media unrelated to cited constitutional provisions; trademark control rests with General Executive Board | Claim dismissed: refusal to turn over passwords did not violate cited provisions and Union failed to show ownership/licensing of marks |
| §501 LMRDA (fiduciary duty) | Philbeck breached fiduciary duty by misusing property, converting rewards, and using social media for political gain | No deprivation of democratic rights shown; claim too broad when limited to passwords | Claim dismissed as Union failed to show which constitutional/bylaw provisions were violated re social media and no §501 expansion justified |
| Lanham Act / unfair competition | Use of Teamsters marks and logos on pages created likelihood of confusion and false designation | Trademark/control over marks is with International (General Executive Board); Local did not establish ownership or continuous use | Claim dismissed: Local 651 failed to prove trademark ownership or protectable common‑law mark |
| Remedy: permanent injunction & fees | Permanent injunction and return of passwords necessary; fees for bad faith | Fees unwarranted; defendant participated so default inappropriate | Permanent injunction ordered: deliver passwords within 30 days; permanently enjoined from administering accounts or holding out as officer; attorney’s fees and costs denied |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment burden and standards)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment — genuine issue standard)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (summary judgment credibility/standard discussion)
- In re CITI, LLC, 528 B.R. 359 (Bankr. S.D. Tex. 2015) (analysis of whether social‑media pages are business/organizational property)
- Bland v. Roberts, 730 F.3d 368 (4th Cir. 2013) (distinguishing Facebook Pages as organizational/public‑facing platforms)
- Davison v. Loudoun Cty. Bd. of Supervisors, 227 F. Supp. 3d 605 (E.D. Va. 2017) (describing Facebook Pages and admin roles)
- Jones v. Marquis Terminal, Inc., 454 S.W.3d 849 (Ky. Ct. App. 2014) (conversion elements under Kentucky law)
- Ky. Ass’n of Counties All Lines Fund Trust v. McClendon, 157 S.W.3d 626 (Ky. 2005) (conversion authority)
- UFCW Local 911 v. UFCW Int’l, 301 F.3d 468 (6th Cir. 2002) (§501 LMRDA fiduciary duties and nonfinancial aspects)
- Corea v. Welo, 937 F.2d 1132 (6th Cir. 1991) (scope of §501 and when to invoke general fiduciary duties)
- eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 (2006) (standards for permanent injunction)
- Eat BBQ LLC v. Walters, 47 F. Supp. 3d 521 (E.D. Ky. 2014) (Lanham Act/unfair competition analysis)