Monzillo v. BillerMonzillo v. Biller
In Mаrch, 1982, members of the American Postal Workers Union (APWU or the Union) were informed that the Union’s National Executive Board (the Board) had decided to purchase a new national headquarters. Appellees, individual members of the Union, and an association of Union affiliates brought this action under section 501 of the Labor Management Reporting and Disclosure Act of 1959,
Background
On February 11, 1982, the Union’s National Executive Board voted unanimously to finalize the acquisition of a new national headquarters. The Board had been considering various relocation options for several months. Contrary to the Board’s usual practice, however, this February meeting was not publicized and was held in closed executive session. The president and general secretary-treasurer of the Union intended to commit the Union to the new building by July, 1982, one mоnth before the Union’s National Convention. The decision was announced to the membership in an article that appeared in the March 1982 edition of the Union’s magazine, the American Postal Worker. Following publication of the article, appellees, individual officers of state and local Union affiliates, and the Trine Council, an informal association of Union affiliates, filed this lawsuit in district court to prevent the Board from proceeding with the headquarters project.
Appellees brought the lawsuit pursuant to the Labor Mаnagement Reporting and Disclosure Act (LMRDA or the Act),
Appellees brought this suit under
The district court consolidated the hearing on appellees’ application for a preliminary injunction with the trial on the merits. Testimony at the one-day hearing focused on the section of the constitution which provides that the Board “shall be the highest ranking governing body of the [Union] in between conventions.” APWU Constitution, art. X, § 18. One of appellees’ witnesses testified that section 18 was added to the constitution in 1980 to force the Board to follow membership resolutions between conventions and that it was designed to limit, not enlarge, the Board’s powers. Appellants’ witness, the general secretary-treasurer of the Union, testified that section 18 gave the Board the full authority, in between conventions, to engage in any business which it deems necessary or proper to protect the interests of the Union and its members.
An interpretation of a union constitution rendered by officials of a labor organization is entitled to considerable deference by a reviewing court and should not be overruled unless the court finds that the interpretation was unreasonable or made in bad faith. See Local 334, United Association of Journeymen and Apprentices v. United Association of Journeymen and Apprentices,
The court’s two page order enjoined the appellants from committing the Union to the “sale or other disposition” of the current headquarters or to the “purchase or other acquisition” of a new headquarters “until the August 1982 APWU National Convention convenes, has the opportunity to consider the [transactions], and adjourns ...”
One week after the district court issued its order, appellants filed a motion for a new trial. While that motion was pending, the Board adhered to the court’s injunction by formally withdrawing from the proposed headquarters project. The district court denied the motion for a new trial on July 19, 1982 on the ground that the case had become moot. The court stated that, as a result of the withdrawal, “there is no longer a live controversy. Defendants seek an advisory opinion from the Court as to the [Board’s] authority to conduct business.” Appellees subsequently filed a request for attorneys’ fees pursuant to
The Union’s National Convention convened on-August 23,1982 and adjourned on August 27, 1982. At that meeting, the Convention adopted an “interpretative resolution” which appeared to dispute the district сourt’s interpretation of the Union’s constitution. That resolution interpreted the constitution as giving the Board “full authority, except when a convention is in session, to make decisions and engage in transactions that the National Executive Board deems necessary in the best interests of the Union.” See Appendix, post.
Appellants here claim that the appellees had not met the jurisdictional prerequisites for filing suit under
Appellees filed a motion to dismiss the appeal as moot. A motions panel of this court referred that motion to the merits panel and ordered the parties to brief two additional issues: whether either the injunction bond filed in district court or appellees’ request for attorneys’ fees bars a determination of mootness. We now hold that the underlying controversy is moot and that nеither the $250 injunction bond nor the request for attorneys’ fees preserves the merits of that controversy for our consideration.
Discussion
I. The Underlying Controversy
Appellants contend that there is a continuing dispute between the parties concerning the Board’s authority to acquire a new national headquarters on behalf of the Union. They claim that at least one appellee has threatened future litigation if the Board proceeds with any new transaction and argue that the district court’s opinion has placed a clоud on the Board’s authority to enter into agreements with outside parties. Specifically, appellants express concern that they will be subject to. future liability if they proceed with the acquisition of a new headquarters.
It is well settled that “[federal courts lack jurisdiction to decide moot cases because their constitutional authority extends only to actual cases or controversies.” Iron Arrow Honor Society v. Heckler, — U.S. -,
In general, a case becomes moot where the activities for which an injunction is sought have already occurred and cannot be undone. In this case, appellees obtained all the relief that they sought: the Board was enjoined from proceeding with the particular headquarters project under chailenge
Appellants contend, however, that the issue of declaratory relief is still “live” because the parties disagree over the Board’s authority to commit the Union to the sale or acquisition of a national headquarters. While it is true that the complaint sought both injunctive and declaratory relief, it exрlicitly sought such relief only “until these issues can be considered and decided by the members of the APWU at the August 1982 National Convention____” The district court’s order did not provide any declaratory relief and enjoined the Board from acting only until the Convention adjourned. The court’s ruling on the motion for a new trial demonstrates that its initial order was limited to enjoining the Board from acting on that one particular project until the Convention adjourned. The relief sought and granted by the district court has expired on its own terms; there is nothing left for us to review. See Alton Southern Railway Co. v. International Association of Machinists,
We also reject appellants’ argument that the underlying controversy is “capable of repetition, yet evading review,” and, therefore, should not be dismissed as moot. Southern Pacific Terminal Co. v. ICC,
We also find that appellants’ reliance on cases where the defendants have voluntarily discontinued the behavior sought to be enjoined is misplaced. See County of Los Angeles v. Davis,
II. The Injunction Bond
Appellants claim that the $250 injunction bond filed by appellees precludes us from dismissing this ease as moot.
No restraining order or preliminary injunction shall issue except upon the giving of security by the applicant, in such sum as the court deems proper, for the payment of such costs and damages as may be incurred or suffered by any party who is found to have been wrongfully enjoined or restrained.
Since a preliminary injunction may be granted on a mere probability of success on the merits, generally the moving party must demonstrate confidence in his legal position by posting bond .in an amount sufficient to protect his advеr- ■ sary from loss in the event that future proceedings prove that the injunction issued wrongfully.
Edgar v. Mite Corp.,
In this case, the district court “consolidated the hearing of the application for preliminary injunction with trial on the merits pursuant to
Even assuming, however, that the district court properly ordered the posting of the bond, the bond does not preserve the underlying controversy. The mere fact of the bond is insufficient to keep the case alive; otherwise no appeal from a preliminary injunction could ever be dismissed as moot. In Japan Air Lines Co. v. International Association of Machinists,
University of Texas v. Camenisch,
No such claim for damages arising from the injunction has been asserted in this case. If we were to extend Camenisch to these facts, no preliminary injunction or temporary restraining order could ever be dismissed as moot. In every case where a bond must be filed under
The Supreme Court’s opinion in Liner v. Jafco, Inc.,
[A]n employer armed with a state injunction would have no incentive to initiate Board proceedings. It would encourage such interference with the federal agency’s exclusive jurisdiction if a state court’s holding of mootness based on the chance event of completion of construction barred this Court’s review of the state court’s adverse decision on the claim of federal preemption. We have given significant weight to the vital importance of preventing state injunctions from frustrating federal labor policy in situations which the Congress has ordained shall be dealt with exclusively by the Board.
Id. at 307-08,
III. Application for Attorneys’ Fees
The LMRDA permits a trial judge to award attorneys’ fees to the party bringing suit under
A request for attorneys’ fees “does not preserve a case which otherwise has become moot on appeal____” U.S. v. Ford,
Nor is it necessary to have a final determination on the merits of appellees’ claim to decide whether they are entitled to attorneys’ fees "under the LMRDA. The question is whether appellees’ efforts to bring about the district court’s injunction — properly granted or not — conferred a substantial benefit on the Union. The application for attorneys’ fees doеs not preserve the
Although appellees’ application for fees must be considered by the district court in the first instance, that court’s discretion to award fees will be limited in this case. The LMRDA “does not give courts a license to interfere broadly in internal union affairs.” Morrissey v. Curran,
Conclusion
We hold that these appeals must bе dismissed as moot. The relief sought and granted by the district court has expired on its own terms, and neither the $250 injunction bond nor the application for attorneys’ fees preserves the underlying controversy for final adjudication on the merits.
Appellants have expressed concern that the district court’s judgment has placed a cloud on their authority to commit the Union to any major real estate agreement. Any such cloud will be removed with the issuance of our decision today directing the district court to vacate its judgment and order. See United States v. Munsingwear,
It is so ordered.
APPENDIX
The full text of the interpretative resolution, which was adopted by a vote of 1,087 to 843, is as follows:
ARTICLE 10 — INTERPRETATIVE RESOLUTION
WHEREAS, Under Article 10, Section 13 (presently, Section 18) it notes that the National Executive Board is the ranking governing body of the APWU between conventions with all authority necessary to conduct the affairs of the Union between conventions; and
WHEREAS, A District Court Judge has recently seen fit to interpret the Constitution for the Union and to tell the Union that the Natiоnal Executive Board does not have the necessary authority to run the affairs of the Union between conventions; and
WHEREAS, The power to interpret its own constitution properly lies with the Union itself;
THEREFORE, Be It Resolved, That Article 10, Section 13 (presently Section 18) of the Constitution be, and it hereby is, interpreted by this APWU Sixth Biennial National Convention, convened in Miami, Florida, to give the National Executive Board the full authority, except when a convention is in session, to make decisions and engage in transactions that the National Executive Board deems necessary in the best interests of the Union.