2011 WL 6337683
E.D.N.Y.2011Background
- Plaintiffs are current/former Local 1018 and Local 1010 members alleging ILUNA-related misconduct and challenging a dues increase.
- In May 2005 LIUNA placed Local 1018, and then Local 1010 and the Pavers District Council, under emergency trusteeships with Masino named as emergency trustee.
- Masino remained trustee of Local 1018 until its 2009 merger with Local 1010; trustee of Local 1010 until December 2008; and trustee of the Pavers District Council until April 2010.
- Working dues for Local 1018/1010 were increased in 2006 from set hourly rates to 4.5% of straight-time wages, without a member or delegates’ vote.
- The increase proceeded with claimed informal meetings and notice gaps, and without formal compliance with the UDCC/Local Constitution voting procedures.
- Plaintiffs sue under LMRDA Title I and UDCC/Local Constitution provisions, seeking injunctive, declaratory, and damages remedies; later, the Local 1018/1010 merger and lifting of trusteeships affected the scope of the claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| LMRDA §101(a)(3)(B) dues increase legality | Santo argues Masino lacked authority to unilaterally raise dues under §101(a)(3)(B) without member/delegate vote. | Masino, as trustee of the non-local council, had authority to increase dues and sought no vote under §101(a)(3)(B) criteria. | Plaintiffs win: unilateral dues increase violated §101(a)(3)(B). |
| Exhaustion of internal union remedies (UDCC/Local Constitution claim) | Exhaustion not required during trusteeship and internal processes were futile or unavailable. | Exhaustion required; LIUNA procedures available could provide relief; plaintiffs failed to exhaust. | Plaintiffs lose: exhaustion required; claim barred. |
Key Cases Cited
- Finnegan v. Leu, 456 U.S. 431 (U.S. 1982) (LMRDA Title I protects democracy in unions)
- King v. Randazzo, 346 F.2d 307 (2d Cir. 1965) (Section 101(a)(3) ensures dues are under member control)
- Sertic v. Cuyahoga, Lake, Geauga & Ashtabula Counties Carpenters Dist. Council, 423 F.2d 515 (6th Cir. 1970) (members entitled to meaningful vote on dues)
- Burroughs v. Operating Eng’rs Local Union No. 3, 686 F.2d 723 (9th Cir. 1982) (Section 101(a)(3) protects against autocratic dues increases)
- American Federation of Musicians v. Wittstein, 379 U.S. 171 (U.S. 1964) (Title I rights include member participation in dues decisions)
- Sheet Metal Workers’ Int’l Ass’n v. Lynn, 488 U.S. 347 (U.S. 1989) (trusteeship does not erase Title I rights; remedy must respect rights)
- Ranes v. Office Emps. Int’l Union, Local No. 28, 317 F.2d 915 (7th Cir. 1963) (dues increases at duly represented conventions protect rights)
- Clayton v. Int’l Union, United Auto., Aerospace & Agric. Implement Workers of Am., 451 U.S. 679 (U.S. 1981) (exhaustion appropriate when internal remedies exist)
- Patterson v. United Bhd. of Carpenters & Joiners of Am. AFL-CIO, 906 F.2d 510 (10th Cir. 1990) (member rights to participate and vote on dues decisions)
- Michelotti v. Air Line Pilots Ass’n, 61 F.3d 13 (7th Cir. 1995) (right to participate in dues decisions through representation)
- Wirtz v. Local 153, Glass Bottle Blowers Ass’n, 389 U.S. 463 (U.S. 1967) (trusteeship context; cautions against literal readings)