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667 F.3d 1211
11th Cir.
2012
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Background

  • Mardi Gras Gaming and Unite Here Local 355 signed a 2004 agreement granting union access to non-public premises, a staff list, and neutrality during organizing.
  • In return, Unite pledged to support a ballot initiative on casino gaming with over $100,000 spent to campaign.
  • If Unite were recognized, it would refrain from picketing, boycotts, strikes, or other economic activity against Mardi Gras.
  • Mulhall, a Mardi Gras employee opposed to unionization, sued claiming the agreement violated LMRA § 302 by providing organizing assistance as a thing of value.
  • The district court dismissed, holding that organizing assistance could not be a thing of value; on appeal, the panel had previously noted Mulhall adequately alleged the organizing assistance was valuable to Unite.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Is organizing assistance a thing of value under § 302? Mulhall: organizing assistance can be a thing of value and thus violates § 302. Mardi Gras/Unite: it is not a thing of value and thus not a § 302 violation. Yes; organizing assistance can be a thing of value and may violate § 302.
Can a neutrality/cooperation agreement be a § 302 violation even if there is no monetary value? Mulhall contends § 302 can reach intangible benefits when used improperly. Defendants argue such agreements may be innocuous and not payments, loans, or deliveries. Not categorically exempt; can be illegal if used as payment in a scheme to corrupt or extort.
Does Mulhall state a claim given the alleged value and proposed facts? Mulhall alleged the value is evidenced by Unite's $100k campaign expenditure. The complaint lacks adequate factual allegations of improper intent or use of concessions as payment. Mulhall states a claim; remand to determine reason for accord.

Key Cases Cited

  • Arroyo v. United States, 359 U.S. 419 (1959) (purpose of § 302 is to protect integrity of collective bargaining)
  • United States v. Nilsen, 967 F.2d 539 (11th Cir.1992) (thing of value includes intangible benefits; value not limited to money)
  • Turner v. Local Union No. 302, Int'l Bhd. of Teamsters, 604 F.2d 1219 (9th Cir.1979) (dominant purpose of § 302; prevents bribery/extortion)
  • Adcock v. Freightliner LLC, 550 F.3d 369 (4th Cir.2008) (neutrality/assistance agreements not automatically § 302 violations)
  • Hotel Emps. & Rest. Emps. Union, Local 57 v. Sage Hospitality Res., LLC, 390 F.3d 206 (3d Cir.2004) (neutrality agreements not necessarily prohibited under § 302)
  • United States v. Roth, 333 F.2d 450 (2d Cir.1964) (value depends on desire to have the thing and circumstances)
  • United States v. Douglas, 634 F.3d 852 (6th Cir.2011) (court recognized non-monetary things of value as § 302 payments)
  • Mulhall v. UNITE HERE Local 355, 618 F.3d 1279 (11th Cir.2010) (prior holding that organizing assistance is valuable to a union)
Read the full case

Case Details

Case Name: Mulhall v. UNITE HERE LOCAL 355
Court Name: Court of Appeals for the Eleventh Circuit
Date Published: Jan 18, 2012
Citations: 667 F.3d 1211; 2012 U.S. App. LEXIS 944; 2012 WL 126908; 192 L.R.R.M. (BNA) 2513; 11-10594
Docket Number: 11-10594
Court Abbreviation: 11th Cir.
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    Mulhall v. UNITE HERE LOCAL 355, 667 F.3d 1211