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