U.S. District Court Judge Richard J. Arcara Jan. 24 approved a consent decree jointly filed by the Laborers' International Union of North America and the Justice Department that will allow the parties to accelerate reorganization of Local 210 in Buffalo, N.Y. (U.S. v. Laborers Local 210, W.D.N.Y., No. 99-CV-0915A, 1/24/00).

Arcara said the consent decree was "appropriate and necessary" and that he found "substantial evidence" that the affairs of Local 210 have been influenced by members of organized crime for more than 20 years. The parties are entitled to the relief requested in the consent decree, Arcara said, entering the consent decree without modification.

The parties filed the consent decree on Dec. 2, 1999, which Arcara took under advisement.

The 114-page civil complaint filed under Racketeer Influenced and Corrupt Organizations Act sought injunctive relief to insure that Local 210 is "rid of domination and influence by members and associates of the La Cosa Nostra organized crime family." In addition, the parties sought a consent decree settling the racketeering action and providing a court-appointed liaison officer to oversee operation of Local 210 and ongoing efforts to remove organized crime influence in the local.

"Absent the injunctive relief sought in the proposed consent decree, there is a strong likelihood that LCN members will continue to exercise influence over the affairs of Local 210," the judge said.

"Where there exists evidence of pervasive racketeering activity within a local union occurring over a long period of time, courts have found that injunctive relief or other relief was appropriate to eviscerate that corrupt influence," he said.

The proposed consent decree "furthers the objectives of the law" upon which it was based, Arcara said, through its prohibition against racketeering and associating with LCN members or associates by Local 210 members or employees. The court also noted provisions in the consent decree for appointment of court liaison officer to oversee certain Local 210 operations.


Court's Conflict of Interests Concerns
Arcara acknowledged his previous concern about whether the trustee, a LIUNA employee, could act impartially in executing a consent decree to which the international union was a party.

Arcara said he is now satisfied that the consent decree was the product of arms-length negotiations between the Justice Department and Steven Hammond, the trustee for Local 210. He noted that after the court appearance, LIUNA voluntarily withdrew as a co-plaintiff and the consent decree was amended to exclude LIUNA, thereby eliminating what the court perceived as a conflict of interest.

Arcara was further satisfied that Hammond as the trustee acted in accordance with his fiduciary obligations, that he entered the consent decree in good faith, and that he signed the consent decree because he believed it was in the best interests of Local 210.

Two motions filed by Local 210 to intervene were rejected by Arcara. Marc Panepinto claimed a "special interest" in the litigation, Arcara said, but was not able to identify those interests. Similarly, Samuel Capitano alleged a "unique interest" and claimed that he will be an "enjoined party" but did not explain how.

Arcara found that intervention was unwarranted because the intervenors' interests are being "adequately represented" by the Local 210 trustee.

Copyright © 2000 by The Bureau of National Affairs, Inc., Washington D.C.