PATRICIA MANSON
December 20, 1999
A federal appeals court panel
has turned back another challenge to a battle by Laborers' International
Union of North America to rid itself of alleged mob influences.
In an opinion Friday, a panel
of the 7th U.S. Circuit Court of Appeals rejected the argument
that Laborers' International acted in bad faith and therefore
should have been barred from obtaining summary judgment in a lawsuit
against a local affiliate.
Laborers' International brought
the suit after officials of the Construction & General Laborers'
District Council of Chicago and Vicinity, or CDC, blocked the
Council's trustee from performing his duties.
The Council, a subordinate
organization of Laborers' International, acts as the central representative
of 21 affiliated local unions that have a total of about 19,000
members.
The Council's trustee was appointed
a couple of years ago as a result of a nationwide effort by Laborers'
International to oust alleged organized crime elements and to
prevent a government takeover of union affairs.
An independent hearing officer
had determined that a trusteeship of the Council was needed because
of the overwhelming evidence that organized crime had infiltrated
the top ranks of the existing CDC leadership and that the CDC
had been the continuous victim of undemocratic process for more
than 25 years," according to the 7th Circuit panel.
But the Council's leadership
voted that it would not accept the trusteeship and refused to
allow trustee Robert Bloch access to Council facilities, the panel
said.
The panel said those actions
led Bloch and Laborers' International to turn to the federal courts
for relief.
In February 1998, U.S. District
Judge James B. Moran entered a temporary restraining order barring
the Council and its former officers from interfering with the
trusteeship, the panel said. The panel said Moran the following
month directed that the terms of the order remain in force as
a preliminary injunction.
Bloch and Laborers' International
sought summary judgment in the case, but the Council opposed that
motion, the panel said.
The panel said the Council
argued that more discovery was needed and that the allegations
of corruption were too old to be used in determining whether to
impose a trusteeship.
The Council also contended
that the federal government was exercising too much control over
decisions by Laborers' International, the panel said.
And the panel said the Council
argued that the trusteeship amounted to a disciplinary action
against Bruno Caruso, who had made an unsuccessful bid for the
presidency of Laborers' International on a platform that included
eliminating government control of the union.
But Moran granted the motion
for summary judgment filed by Bloch and Laborers' International,
according to the panel.
The panel affirmed that decision,
describing as meritless" the contention that the bad faith
allegedly displayed by Laborers' International prevented Moran
from granting summary judgment.
And the panel said the Council
had waived two other arguments it raised on appeal by failing
to bring them up in its response to the motion for summary judgment.
The Council in its appeal had
argued that it was denied a fair hearing because of the evident
partiality" of the independent hearing officer who found that the Council was riddled
with mob elements, the panel said.
The panel said the Council
also contended that it was deprived of an intra-union appeal because
of Laborers' International's patently unreasonable" interpretation
of its own constitution and ethics and disciplinary rules.
Chicago attorney Allan A. Ackerman,
who represents the Council and its former officers in the case,
said his clients would consider seeking relief from the U.S. Supreme
Court on the bad-faith issue.
And saying that the issues
of the hearing officer's alleged partiality and the interpretation
of the union's procedures had been raised in District Court, Ackerman
said the Council may seek a rehearing on those matters.
Bloch and Laborers' International
were represented before the 7th Circuit by Chicago attorneys Robert
E. Shapiro and David E. Gordon.
The panel's opinion was written
by Judge John L. Coffey. Joining in the opinion were Judges William
J. Bauer and Frank H. Easterbrook.
Laborers' International Union
of North America, et al. v. Bruno Caruso, et al., No. 99-1276.
In 1994, Laborers' International
launched an effort to get rid of any Mafia influence and to keep
the federal government from taking direct control of union affairs,
according to the 7th Circuit panel.
The panel said that effort
-- which was prompted by a Justice Department investigation into
alleged racketeering violations -- led Laborers' International
to adopt a reform program in 1995.
The Justice Department then
agreed to provide strict government oversight" of the reform
program without exercising direct control over the union, the
panel said.
The panel said union officials
and union-affiliated entities including the Council challenged
the reforms through various suits, but the 7th Circuit upheld
the Justice Department's agreement with Laborers' International.
Serpico v. Laborers' International Union of North America, 97
F.3d 995 (1996).
Following the Serpico decision,
the attorney for the general executive board of Laborers' International
brought the trusteeship proceedings that eventually led to Friday's
ruling by the 7th Circuit panel.
In other court action related
to the effort to reform the union, U.S. District Judge Robert
W. Gettleman in August tapped two prominent attorneys to help
rid the Council of organized crime elements.
Gettleman appointed former
federal prosecutor Steven A. Miller as monitor and former Illinois
Supreme Court justice Seymour F. Simon as adjudications officer
as part of a consent decree reached in a suit against the Council.
U.S., et al. v. Construction
& General Laborers District Council of Chicago and Vicinity,
No. 99 C 5529.
Miller is responsible for seeking
the ouster of union officials alleged to have ties to the mob,
while Simon hears charges brought by Miller and decides what if
any sanctions to impose.