1991 U.S. Dist. LEXIS 10669, *; 121 Lab. Cas. (CCH) P10,088

 
UNITED STATES OF AMERICA, Plaintiff v. LOCAL 295 OF THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS, EXECUTIVE BOARD OF LOCAL 295 OF THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS, LOCAL 851 OF THE INTERNATIONAL BROTHERHOOD OF TEAMSTER, EXECUTIVE BOARD OF LOCAL 851 OF THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS, FRANK MANZO, HARRY DAVIDOFF, MARK DAVIDOFF SHARRON MASKOWITZ, NANCY SIANO, FRANK CALISE, ANTHONY CALAGNA, MICHAEL URSO-PERNICE, ROBERT REINHARDT, LEONE MANZO, RICHARD SCHROEDER, ANTHONY GUERRIERI, THOMAS GRECO, CARMELO AMATO, Defendants

No. 90 CV 0907

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW YORK

1991 U.S. Dist. LEXIS 10669; 121 Lab. Cas. (CCH) P10,088

 
July 23, 1991, Decided  
July 31, 1991, Filed


 
CASE SUMMARY

 
PROCEDURAL POSTURE: Plaintiff United States' renewed its motion for partial summary judgment with respect to defendant local union and sought the appointment of a trustee from outside the national union to run the local union. The United States renewed its motion based on new evidence, which included defendant local union president's conviction for extortion and conspiracy and defendant local union shop steward's conviction for a separate extortion conspiracy.

 
OVERVIEW: Another judge had removed all but one member of defendant local union's executive board and appointed a temporary trustee to run the local union. Pursuant to a consent decree, the temporary trustee had been appointed from within the national union. The court adopted the other judge's conclusions concerning the ongoing corruption in the local union and assumed that the judge had found a competent individual to act as temporary trustee. The court found that as a preliminary matter, it made eminent sense for the problems of the local union to be addressed by an individual from within the national union. However, the court found that the terms of the consent decree could effectively limit the ability of the temporary trustee to address the local union's problems. Thus, the court concluded that although a trustee should not be appointed from outside the national union, the United States could renew its motion at a future time if the temporary trustee arrangement proved inadequate.

 
OUTCOME: The court denied the United States' renewed motion for partial summary judgment with respect to the local union and its request for the appointment of a trustee from outside the national union to run the local union.

CORE TERMS: temporary, consent decree, appointed, new evidence, corruption, reputation, conspiracy, extortion, ongoing, renew

COUNSEL:  [*1] 

ANDREW J. MALONEY, United States Attorney, Eastern District of New York, (Pamela R. Perron, Thomas A. Carr, Varuni Nelson, of counsel) Brooklyn, New York, for plaintiff.

GORDON, HURWITZ, BUTOWSKY, WEITZEN, SHALOV & WEIN, (Victor Rocco, Lawrence Zweifach, of counsel) New York, New York, for defendants Local 295 of the International Brotherhood of TEamsters and Executive Board of Local 295 of the International Brotherhood of Teamsters.

IRA DROGIN, Esq., New York, New York, for defendants Local 295 of the International Brotherhood of Teamsters and Executive Board of Local 295 of the International Brotherhood of Teamster.

GOLDMAN & HAFETZ, (Frederick P. Hafetz, Edward R. Harris, of counsel) New York, New York, for defendants Local 851 of the International Brotherhood of Teamsters and Executive Board of Local 851 of the International Brotherhood of Teamster.

PAT V. STISO, Esq., Bronx, New York, for defendants Frank Manzo an Leone Manzo.

SHAW, LICITRA, ESERNIO & SCHWARTZ, (J. Stanley Shaw, of counsel) Garden City, New York, for defendants Harry Davidoff and Mark Davidoff.

STILLMAN, FRIEDMAN & SHAW, (Charles A. Stillman, Stephanie Present-Podolak, of counsel) New York, New York, for defendant [*2]  Sharron Moskowitz.

ROBERT D. FOGLIA, Esq., Ridgewood, New Jersey, for defendant Sharron Moskowitz.

NANCY SIANO, defendant pro se.

FRANK CALISE, defendant pro se.

MICHAEL B. POLLACK, Esq., New York, New York, for defendant Anthony Calagna.

SIMON & MILLER, (Herbert Simon, of counsel) for defendants Michael Urso-Pernice and Robert Reinhardt).

SUTTER, MARTEN & LAWRENCE, (John Joseph Sutter, of counsel) Mineola, New York, for defendant Richard Schroder.

RICHARD REHBOCK, Esq., New York, New York, for defendants Anthony Guerrieri, Thomas Greco, and Carmelo Amato.

JUDGES: Eugene H. Nickerson, United States District Judge.

OPINIONBY: NICKERSON

OPINION: MEMORANDUM AND ORDER

In a Memorandum and Order dated March 7, 1991, familiarity with which is assumed, this court denied plaintiff's motion for partial summary judgment with respect to Local 295. Plaintiff renews that motion based on new evidence and seeks the appointment of a trustee to run Local 295.

The government relies on the following new evidence. In January of this year, Anthony Calagna, president of Local 295 from 1986 until 1991, was convicted of extortion and conspiracy to extort money from P.C. Delivery Services which continued through December, 1987.  [*3] 

At sentencing, the court found the defendant to be a member of Organized Crime. Plaintiff has submitted evidence showing that the defendant associated with other members of Organized Crime, that he served as president of Local 295 at the behest of members of Organized Crime, and that he was aided and abetted by other members of the Local 295 Executive Board.

In June of this year, Carmelo Amato, a former shop steward of Local 295, pled guilty to a separate extortion conspiracy which continued through July, 1989.

On June 14 of this year, Judge Lacey, the Independent Administrator of the International Brotherhood of Teamsters (Teamsters) appointed as a result of a consent decree in a separate action before Judge Edelstein, issued a fifty-four page decision detailing the ongoing corruption in Local 295. Judge Lacey said that "in my two years as Independent Administrator, I have seen few IBT Locals with the sullied reputation associated with Local 295, a reputation richly deserved, as reflected by the record in this case."

Shortly thereafter, Judge Lacey removed all but one member of the Local 295 Executive Board and appointed a temporary trustee to run the Local. Pursuant to the consent [*4]  decree, the temporary trustee was appointed from within the Teamsters.

Plaintiff contends that a trustee should be appointed from outside the Teamsters and that the temporary trustee's term of service will be limited by the consent decree.

The court adopts Judge Lacey's conclusions concerning the ongoing corruption in Local 295 and assumes that Judge Lacey has found a competent individual to act as temporary trustee. As a preliminary matter, it makes eminent sense for the problems of Local 295 to be addressed by an individual from within the Teamsters.

At the same time, the court is cognizant that the terms of the consent decree may effectively limit the ability of the temporary trustee to address Local 295's problems. Plaintiff may renew its motion at a future time if the temporary trustee arrangement proves inadequate.

The court denies the motion.

So ordered.