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STROUD v. SENESE

September 2, 1993

FRANK STROUD, FLOYD STROUD, ANTHONY MARTINEZ, ROBERT FIASCONE, IRMA AGUILAR, Plaintiffs,
v.
JOSEPH V. SENESE, PHIL V. CAPPITELLI, ROBERT MONDO, GLADYS LUNDBERG, JOHN OLIVERIO, PABLO RODRIGUEZ, DON PENNINGTON, JAMES DiVITO, LEM REDMOND, LANDIS WALLACE, ANTHONY MONACO, PHIL F. CAPPITELLI, VINCE GREGONSAC, RONALD HENDRICHS, MARY ANNE HERMAN, SUE SCHRIENER, NATIONAL PRODUCTION WORKERS UNION, PRODUCTION WORKERS UNION OF CHICAGO AND VICINITY LOCAL 707, and TRUCK DRIVERS, CHAUFFEURS, WAREHOUSEMEN AND HELPERS UNIONS LOCAL 707, Defendants.


ALESIA


The opinion of the court was delivered by: JAMES H. ALESIA

Before the court is defendants Joseph V. Senese' s ("Senese"), National Production Workers Union's ("the National"), Production Workers Union of Chicago and Vicinity Local 707's ("PW Local"), and Truck Drivers, Chauffeurs, Warehousemen and Helpers Unions Local 707's ("Drivers Local") Motion to Dismiss the claims against them pursuant to FED. R. CIV. P. 12(b)(1) and 12(b)(6). For the reasons stated below, the motion is granted in part and denied in part.

 I. Background

 This suit is based on an employment dispute between plaintiffs as employees and/or officers of defendant unions and the defendant unions and officers thereof. Each plaintiff was at one time employed by one or more defendant union. Between December 1992 and March 1993 each plaintiff was allegedly removed from his or her employment position by one or all of the defendants, as set out more fully below. Based on these involuntary changes in employment status, the plaintiffs brought suit alleging that defendants violated sections 101 and 102 of the Labor-Management Reporting and Disclosure Act of 1959 ("LMRDA"), 29 U.S.C. §§ 411 and 412. For the alleged violations, plaintiffs seek an injunction preventing similar actions in the future, an injunction restoring plaintiffs to their former positions, compensatory damages and punitive damages.

 Defendants Senese, the National, PW Local and Drivers Local now move to dismiss the claims against them for lack of jurisdiction over the subject matter and for failure to state a claim upon which relief can be granted.

 II. Facts1

 Defendants PW Local and Drivers Local are subordinate union affiliates of defendant the National Production Workers Union. The Constitution of the National provides for an Executive Board composed of seven officers ("the National Board") comprised of, at the relevant times, defendant Joseph V. Senese ("Senese"), President, plaintiff Frank Stroud, Vice President, defendant Robert Mondo ("Mondo"), Secretary-Treasurer, defendant Gladys Lundberg ("Lundberg"), Recording Secretary, defendant Phil V. Cappitelli, Trustee, defendant Pablo Rodriguez ("Rodriguez"), Trustee, and defendant John Oliverio ("Oliverio"), Trustee.

 The Constitution of PW Local provides for an Executive Board of seven officers comprised of, at the relevant times, defendant Anthony Monaco ("Monaco"), President, defendant James DiVito ("DiVito"), Vice President, defendant Phil F. Cappitelli, Secretary-Treasurer, defendant Vince Gregonsac ("Gregonsac"), Recording Secretary, defendant Rodriguez, Trustee, defendant Ronald Hendrichs ("Hendrichs"), Trustee, and plaintiff Floyd Stroud, Trustee.

 The Constitution of Drivers Local provides for an Executive Board of seven officers comprised of, at the relevant times, defendant Phil V. Cappitelli, President, defendant Don Pennington ("Pennington"), Vice President, plaintiff Robert J. Fiascone ("Fiascone"), Secretary-Treasurer, plaintiff Anthony Martinez ("Martinez"), Recording Secretary, defendant DiVito, Trustee, defendant Lem Redmond ("Redmond"), Trustee, and defendant Landis Wallace ("Wallace"), Trustee. Defendant Mary Anne Herman ("Herman") is the current Recording Secretary of the National. Defendant Sue Schriener ("Schriener") is a union member employed as the Controller by the National. Lastly, plaintiff Irma Aguilar ("Aguilar") was employed as an office manager/business agent liaison, apparently by Drivers Local. *fn2"

 The National sponsors, through local union contributions, trust funds which provide medical insurance and retirement income for its members. The National Production Workers Insurance Trust Fund ("Insurance Fund") provides the medical insurance. The Insurance Fund has a contract with an entity known as Chicago H.M.O. to provide medical benefits to approximately 2,200 members. The National Production Workers Union Severance Trust Fund ("Severance Fund") provides retirement benefits to members. All union officers and employees participate in the Severance Fund and Insurance Fund through their employment. Defendant Mondo serves as Plan Manager of both funds.

 In 1991, the National had gross receipts of $ 1,117,203.00. That same year, the National spent $ 483,285.00 for security for Senese and his family, and $ 192,192.00 for Senese's salary and expenses. On September 16, 1992, certified public accountants Jeffrey W. Krol & Associates wrote to Senese explaining the dire financial picture of the National. On September 21, 1992, Senese sent a memorandum to all officers, agents and staff of the National informing all recipients that immediate salary cuts had to be made and that these cuts would be reflected in the next payroll. Plaintiff Frank Stroud requested a meeting of the Executive Board *fn3" to discuss this action. Senese declined to convene such a meeting.

 In the same vein, the National's Constitution requires the Secretary-Treasurer to submit financial reports to the Executive Board. No such reports were submitted in 1991 or in 1992. Furthermore, throughout 1992, and in previous years, defendants Senese and Mondo directed all Union officers to implement the Chicago H.M.O. plan for insurance coverage in contracts. In the Fall of 1992, plaintiffs Stroud *fn4" and Martinez negotiated a contract with Yellow Cab Co. which included an insurance plan other than Chicago H.M.O. On November 29, 1992 Martinez was reprimanded by Senese and Monaco for failing to include Chicago H.M.O. in the contract. Furthermore, Senese told Martinez that his association with Frank Stroud would be cause for discharge. Sometime in 1992, plaintiff Stroud advised defendant Senese that members of the union were displeased with Chicago H.M.O. services. Senese responded that Chicago H.M.O. must be included in all contracts.

 On December 15, 1992 defendant Phil V. Cappitelli advised plaintiff Martinez that his salary was to be reduced by 50% and that all accounts were taken away from him "since you are having a hard time understanding who you work for." On December 18, 1992, the Drivers Local Executive Board convened to discuss the disciplining of Martinez. No written charges were provided to Martinez prior to the meeting. Defendants Phil V. Cappitelli, DiVito, Pennington, Redmond and Wallace voted to cut Martinez's salary by 50% for four days and permanently by $ 200.00 per month. Plaintiff Fiascone, the only other voting Board member present, voted against the sanction. During the meeting, Cappitelli and Pennington told Martinez that Senese had ordered them to punish Martinez.

 Martinez subsequently received a telephone call from Phil V. Cappitelli who informed him that a second meeting would be held on December 21, 1992. On that date, the same group of Drivers Local officers reconvened. Again, no written charges were provided to Martinez. The Executive Board voted to terminate Martinez. Plaintiff Fiascone voted against the termination. On February 23, 1993, after Martinez continued to come in to work and use his desk, Phil V. Cappitelli told Martinez to clear out his desk and go home.

 On February 24, 1993, the Executive Board published a memorandum stating that Martinez and Fiascone were no longer to serve as business agents for the union. Fiascone was not provided with any written charges of misconduct regarding his performance. No ...


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