Laborers' International Union of North America v. National Post Office Mail Handlers, Watchmen, Messengers & Group Leaders Division of the Laborers' International Union of North AmericaLaborers' International Union of North America v. National Post Office Mail Handlers, Watchmen, Messengers & Group Leaders Division of the Laborers' International Union of North America
Thеse consolidated cases arise out of a dispute between an international labor union and its affiliate over the power of the international to impose a supervision or trusteeship on the affiliate. The question presented is whether a federal district judge has the statutory power to enjoin the international union from conducting a hearing that, in the absence of an emergency, is required by its constitution before it may impose a trusteeship on its affiliate. We hold that Title III of the Labor-Management Reporting and Disclosure Act of 1959 (“LMRDA”), 29 U.S.C. §§ 462, 464, does not authorize the enjoining of such a pretrusteeship hearing. In addition, we vacate as moot certain other aspects of the district court’s rulings, as required by United States v. Munsingwear, Inc.,
I. Background
On December 16, 1985, the Laborers’ International Union of North America, AFL-CIO (“LIUNA”) imposed a trusteeship on its affiliate the Mail Handlers, Watсhmen, Messengers and Group Leaders Division (“Division”). Louis D. Elesie was appointed trustee of the Division by LIUNA President Angelo Fosco. The trusteeship ended on February 1, 1988, and is the subject of a lawsuit pending before the district court, see National Post Office Mail Handlers Division v. Laborers’ International,
On February 1, 1988, a slate of candidates critical of LIUNA was elected to positions of leadership within the Division, including Herbert Walker as president. Almost immediately, according tо Walker, the two unions disagreed over the appropriate term of office for the Division’s new leaders. LIUNA insisted that the officers elected in February should serve only seven months, to fill out the remainder of the term of the former officials who had been removed by the trusteeship in 1985. The Division’s officials replied that they had been elected to full four-year terms. On March 30, 1988, the Division notified Fosco that it planned to hold a National Conference in August, in order tо update and amend its constitution, but advised Fosco that it did not plan to hold new elections at that time.
On June 20, 1988, LIUNA President Angelo Fosco declared an emergency supervision over the Division, claiming that the move was “necessary to correct and guard against corruption and financial malpractice, assure the performance of the Division’s collective bargaining agreement and responsibilities, and in general carry out the Division’s legitimate objectives.” Laborers’ International v. Mail Handlers Division,
Fosco determined that for several reasons an emergency situation existed in this case. First, he noted that on June 16,1988, a federal grand jury in Columbus, Ohio, had issued a fifty-count indictment of Herbert Walker, alleging that he had embezzled approximately $100,000 while serving as the president of a Mail Handlers local. Walker later pled guilty to some of the charges, and is currently in prison. Members of the Division’s Policy and Steering Committee assert that on the morning of June 20th they resolved informally that Mr. Walker should take a leave of absence and that they should appoint an Acting Director to fill his vacancy. Later that day the emergency supervision was declared. On the evening of the 20th, the Committee adopted a resolution accepting a leave of absence from Walker pending the outcome of his criminal proceeding.
As the second factor justifying the supervision, Fosco asserted that the Division had committed fraud with respect to the
As the third factor creating the “emergency,” Fosco cited a dispute concerning money paid by the Division to LIUNA for collective bargaining and contract administration costs. LIUNA receives for this purpose $2.75 per Division member per year, and rebates money not spent on bargaining costs. On June 10, 1988, Walker sent Fosco a letter complaining that the Division had been forced to absorb many of LIUNA’s bargaining expenses beyond the $2.75 per capita tax, and that LIUNA had overbilled the Division for $664,335.75 since January 1987. The letter advised that if LIUNA believed any of the Division’s figures to be incorrect, the Division expected it to discuss and resolve any discrepancies. Walker also stated, “I wish formally to advise you that the Division cannot continue to advance any financial support to LIU-NA, particularly if it is unwilling to reimburse the Division.” LIUNA maintains that no money is owed to the Division and that Walker’s letter failed to subtract all the sums expended by LIUNA as bargaining costs. Fosco cited Walker’s threatened cutoff of funds as a factor in creating the emergency that led to the imposition of the supervision.
Fosco installed Louis Elesie as supervisor and ordered him to begin an immediate audit of the Division’s finances since the end of the trusteeship on February 1, 1988. Fosco directed the Division to allow Elesie complete access to its financial records, and not to make any expеnditures of Division funds without express authorization from Elesie. On June 24, 1988, LIUNA obtained a temporary restraining order from the district court preventing the Division from interfering with the supervision. The Division was restrained from denying Elesie unrestricted access to and control of the books and records of the Division, from violating or impeding any of Elesie’s directives, and from executing any checks or otherwise exercising control of its funds.
On July 28, 1988, the district court denied LIUNA’s motion for a preliminary injunction for continued judicial enforcement of the supervision, on the ground that Fosco had not had a reasonable basis to believe that an “emergency” existed on June 20. See Laborers’ International,
In the meantime, a special LIUNA panel held a hearing from July 13 to 16, 1988,
On September 20, the district court held oral argument on cross-motions asking it to rule on the continued enforceability of the supervision, and to consider the implications of the hearing held by LIUNA’s special panel and the votе of the General Executive Board imposing a supervision. On November 14, 1988, the court referred the motions to a special master, who was instructed to submit a report by February 1, 1989. Due to illness, the special master has been delayed and the motions remain pending.
The Division contends that it was forced to postpone a planned constitutional conference from August until November 1988, because Elesie delayed in approving the purchase of necessary supplies, and because he refused to permit outside counsel to be hired to draft proposed amendments. Elesie denies any culpability for the postponement of the conference.
When the meeting was finally held in November, the Division adopted a revised constitution providing for the direct election of national officers by secret ballot. The election was set for January and February 1989. LIUNA maintains that the Division has violatеd the international constitution (which is binding on the Division as well) by failing to hold an election at the November conference, and by failing to submit the revisions in its constitution to LIUNA’s General Executive Board for approval.
By letter of December 8, 1988, Fosco proposed the appointment of a trustee for the Division and called for a hearing on December 20 to determine whether such a trusteeship should be imposed. Fosco listed three factors as justifying this move: (1) the implementation of the Division’s constitutional amendments without the prior approval of LIUNA’s General Executive Board; (2) the Division’s failure to conduct an election under the procedures and within the period mandated by the Division’s old constitution; and (3) instances of financial malpractice.
On December 19, the district court granted the Division a temporary restraining order preventing the hearing from being held the next day. On January 17, 1989, the district court preliminarily enjoined LI-UNA from conducting the hearing and imposing a trusteeship for for the reasons proffered by Fosco. See Laborers' International,
•II. Discussion
A. Mootness
At the outset we confront the suggestion that changing circumstances have mooted
We find that the district court’s ruling of July 28, 1988, which denied LIUNA’s motion for a preliminary injunction to enforce its emergency supervision over the Division, is now moot. “A case is rendered moot when events so unfold as to preclude the possibility of meaningful relief.” Safe Energy Coalition v. U.S. Nuclear Regulatory Comm’n,
If we upheld the district court’s decision of July 28, LIUNA would be without an injunction, of course, but it would still be able to file a new motion requesting one— as in fact it has already done. Even if we reversed the district court’s decision, we would do no more than remand the case to the district court for further consideration of the matter—as is now occurring. Although we have the raw power to ordеr an injunction if necessary to protect the rights of the parties, see Charles v. Carey,
In addition, we find moot that aspect of the district court’s ruling of January 17, 1989 holding that a pre-trusteeship hearing would unduly disrupt the electoral process and' result in violations of rights guaranteed by Title I of the LMDRA. See Laborers’ International,
B. Injunction of Pre-Trusteeship Hearing Under Title III
The live issue remaining in this case is the power of a district court under Title III of the LMRDA to enjoin a union from
The LMRDA regulates, inter alia, the purposes for which a trusteeship can be “established,” “maintained,” or “administered,” §§ 302, 304(c), 29 U.S.C. §§ 462, 464(c) (emphasis added). Judicial review is available “for such relief (including injunctions) as may be appropriate.” § 304(a), 29 U.S.C. § 464(a). The implication, if not the plаin meaning, of the statute is that an injunction might be used to prevent the establishment of a trusteeship that was imposed in bad faith or for other impermissible purposes. Accordingly, a number of courts have enjoined the imposition of trusteeships pursuant to Title III, see Retail Clerks Union, Local 770 v. Retail Clerks Int’l Ass’n,
This does not mean, however, that a district court has the power to enjoin a hearing that under a union constitution is required, in the absence of an emergеncy, before a trusteeship may be declared. A hearing itself does not constitute the “establishment” of a trusteeship; rather, it is an internal union proceeding that may or may not lead to a trusteeship. In this case, LIUNA’s president had merely recommended a trusteeship and called for a hearing. It was up to the General Executive Board to decide whether or not to impose a trusteeship. LIUNA’s constitution provides:
prior to the appointment of [a] trustee or suрervisor [the president] shall cause to be issued a notice setting a time and place for hearing for the purpose of determining whether such temporary trustee or supervisor shall be appointed * * *.
Article IX, section 7, as quoted in Laborers’ International,
In the absence of exceptional circumstances, Title III contemplates judicial review of the trusteeship order itself, rather than review of a decision to hold a hearing. The statute regulates only the establishment, maintenance, оr administration of a “trusteeship,” which it defines as a method of control “whereby a labor organization suspends the autonomy otherwise available to a subordinate body under its constitution or bylaws.” § 3(h), 29 U.S.C. § 402(h). A hearing by an international union to determine whether to establish a trusteeship does not “suspend” its affiliate’s autonomy and does not itself constitute a trusteeship. “[T]he statutory scheme * * * clearly evidences an expectation that disputes over trusteeships would be litigated with the trusteeship in effect.” National Association of Letter Carriers v. Sombrotto,
The legislative history of the LMRDA shows that Congress was concerned
(a) Some trusteeships have been baselessly imposed.
(b) Some have lasted for as long ás 30 years. '
(c) Rank-and-file efforts to throw-off such shackles have been ignored, rejected, and sometimes met with violence and intimidation.
(d) Locals under trusteeship have been plundered by the very officials entrusted with the management of their affairs.
(e) Locals under trusteeship have been used as pawns in political battles within international unions, often in order to boost the ambitions of particular candidates for high office.
S.Rep. No. 1417, 85th Cong., 2d Sess. 4 (1958). Significantly, these problems pertain only to existing trusteeships. In the same vein, the House and Senate reports accompanying the final version of the bill stated that it “[a]uthorize[d] Federal court proceedings to dissolve trusteeships when not imposed in accordance with the provisions of this bill,” S.Rep. No. 187, 86th Cong., 1st Sess. 3 (1959) (emphasis added); H.R.Rep. No. 741, 86th Cong., 1st Sess. 3 (1959), U.S.Code Cong. & Admin.News 1959, pp.' 2318, 2319, 2425 (same). The reports also refer to legal actions “staying or upsetting trusteeships,” the power to file suit in district courts against “improper trusteeships,” and thе preservation of the right of a local union “to challenge a trusteeship in the State courts,” S.Rep. No. 187 at 17, 19; H.R.Rep. No. 741 at 13, 15, U.S.Code Cong. & Admin.News 1959, pp. 2333, 2336, 2436, 2438. This language implies that injunctions are available against trusteeships themselves but not against pre-trusteeship hearings.
Another feature of the LMRDA confirms our interpretation of Title III. Union constitutions are “contracts” within the meaning of section 301(a) of the Taft-Hartley Act, 29 U.S.C. § 185(a), see Plumbers & Pipefitters v. Local 334,
Our reading of Title III does not eliminate the incentive of parent unions to hold héarings in good faith. Congress provided in section 304(c) of the LMRDA, 29 U.S.C. § 464(c), that a presumption of validity would attach only to trusteeships declared after a “fair hearing,” and the Committee reports nоted that “[t]his limitation will encourage the use of fair procedure within the union.” S.Rep. No. 187 at 18; H.R.Rep. No. 741 at 14, U.S.Code Cong. & Admin.News 1959, pp. 2334, 2436. In addition, section 302, 29 U.S.C. § 462, requires unions whose constitutions so provide to hold impartial hearings before imposing trusteeships. This court has previously held that “[ajbsent a reasonable belief in the necessity for immediate action, all practical steps must be taken to hold a hearing before a trusteeship is imposed” and that any such hearing must be a “fair” one. Local Union 13410,
It might be objected that the district court’s order in the case sub judice enjoined not merely the hearing alone but also the establishment of the trusteeship itself, see Laborers’ International,
Because we find that the district court’s order was without statutory basis, we have no occasion to pass on its factual findings. Similarly, because the election has already been held, we do not decide whether a district court has the power to enjoin a pre-trusteeship hearing under Title I of the LMRDA. We express no view on the motions currently pending before the district court.
For the reasons stated, the orders of July 28, 1988, and January 17, 1989 are Vacated.