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WHEREAS, plaintiff United States of America
commenced this action on June 28, 1988, by filing a Complaint seeking
equitable relief involving the International Brotherhood of Teamsters,
AFL-CIO (hereinafter, “the IBT”), pursuant to the civil remedies provisions
of the Racketeer Influenced and Corrupt Organizations (“RICO”) Act, 18 U.S.C.
ß 1964; and
WHEREAS, the Summons and Complaint have been
served, answers filed, and pretrial discovery commenced by and between the
parties; and
WHEREAS, plaintiff United States of America and
defendants IBT and its General Executive Board, William J. McCarthy, Weldon
Mathis, Joseph Trerotola, Joseph W. Morgan, Edward M. Lawson, Arnold
Weinmeister, Donald Peters, Walter J. Shea, Harold Friedman, Jack D. Cox,
Don L. West, Michael J. Riley, Theodore Cozza and Daniel Ligurotis
(hereinafter, the “union defendants”) have consented to entry of this order;
and
WHEREAS, the union defendants acknowledge that
there have been allegations, sworn testimony and judicial findings of past
problems with La Cosa Nostra corruption of various elements of the IBT; and
WHEREAS, the union defendants agree that it is
imperative that the IBT, as the largest trade union in the free world, be
maintained democratically, with integrity and for the sole benefit of its
members and without unlawful outside influence;
IT IS HEREBY ORDERED AND DECREED That:
COURT JURISDICTION
This Court has jurisdiction over the subject matter of
the action, has personal jurisdiction over the parties, and shall retain
jurisdiction over this case until further order of the Court.
Upon satisfactory completion and implementation of the
terms and conditions of this order, this Court shall entertain a joint
motion of the parties hereto for entry of judgment dismissing this action
with prejudice and without costs to either party.
DURATION
The authority of the court officers established in
paragraph no. 12 herein shall terminate after the certification of the 1991
election results by the Election officer for all IBT International Officers
as provided in this Order, except as follows:
The Election Officer and the Administrator shall have
the authority to resolve all disputes concerning the conduct and/or results
of the election conducted in 1991 under the authority granted to them under
paragraph 12(D) herein, the Investigations Officer and the Administrator
shall have the authority to investigate and discipline any corruption
associated with the conduct and/or results of the elections to be conducted
in 1991 under the authority granted them under paragraph 12(A) and (C)
herein, so long as said investigation is begun within six months of the
final balloting.
The Investigations Officer and the Administrator shall
have the authority to resolve to completion and decide all charges filed by
the Investigations Officer on or before the date on which the authority
granted to them under paragraphs 12(A) and (C) herein terminates pursuant to
subparagraph (3) below.
The role and authority provided for in paragraphs 12 and
13 of this Order regarding the Investigations Officer and the Administrator
and their relationship with the Independent Review Board shall terminate not
later than nine (9) months after the certification of the 1991 election
results.
As used herein, the date referred to as “the certification of the 1991
election results” shall be construed to mean either the date upon which the
Election Officer certifies the 1991 election results for all IBT
International Officers or one month after the final balloting, whichever is
shorter.
STATUS OF THE INDIVIDUAL UNION DEFENDANTS
The union defendants herein remain as officers of the
IBT, subject to all of the terms herein, including the disciplinary
authority of the Court-appointed officers, described in paragraph 12(A)
herein.
CHANGES IN THE IBT CONSTITUTION
The portion of Section 6(a) of Article XIX of the IBT
Constitution that provides, “Any charge based upon alleged conduct which
occurred more than one (1) year prior to the filing of such charge is barred
and shall be rejected by the Secretary-Treasurer, except charges based upon
the non-payment of dues, assessment and other financial obligations,” shall
be and herby is amended to provide for a five (5) year period, running from
the discovery of the conduct giving rise to the charge. This limitation
period shall not apply to any actions taken by the Investigations Officer or
the Administrator.
Section 6(a) of Article XIX of the IBT Constitution
shall be deemed and is hereby amended to include the following: “Nothing
herein shall preclude the General President and/or General Executive Board
from suspending a member or officer facing criminal or civil trial while the
charges are pending.”
Immediately after the conclusion of the IBT elections to
be conducted in 1991, Section 8 of Article VI of the IBT Constitution shall
be deemed and hereby is amended to provide that a special election be held
whenever a vacancy occurs in the office of IBT General President, pursuant
to the procedures described later herein for election of IBT General
President.
Article IV, Section 2 of the IBT Constitution shall be
deemed and is hereby amended to include a new paragraph as follows:
“No candidate for election shall accept or use any
contributions or other things of value received from any employers,
representative of an employer, foundation, trust or any similar entity.
Nothing herein shall be interpreted to prohibit receipt of contributions
from fellow employees and members of this International Union. Violation of
this provision shall be grounds for removal from office.”
(a) The IBT Constitution shall be deemed and hereby is
amended to incorporate and conform with all of the terms set forth in this
order.
(b) By no later than the conclusion of the IBT
convention to be held in 1991, the IBT shall have formally amended the IBT
Constitution to incorporate and conform with all of the terms set forth in
this order by presenting said terms to the delegates for a vote. If the IBT
has not formally so amended the IBT Constitution by that date, the
Government retains the right to seek any appropriate action, including
enforcement of this order, contempt or reopening this litigation.
PERMANENT INJUNCTION
Defendants William J. McCarthy, Weldon Mathis, Joseph
Trerotola, Joseph W. Morgan, Edward M. Lawson, Arnold Weinmeister, Donald
Peters, Walter J. Shea, Harold Friedman, Jack D. Cox, Don L. West, Michael
J. Riley, Theodore Cozza and Daniel Ligurotis, as well as any other or
future IBT General Executive Board members, officers, representatives,
members and employees of the IBT, are hereby permanently enjoined from
committing any acts of racketeering activity, as defined in 18 U.S.C. ß 1961
et seq., and from knowingly associating with any member or associate of the
Colombo Organized Crime Family of La Cosa Nostra, the Genovese Organized
Crime Family of La Cosa Nostra, the Gambino Organized Crime Family of La
Cosa Nostra, the Lucchese Organized Crime Family of La Cosa Nostra, the
Bonnano Organized Crime Family of La Cosa Nostra, any other Organized Crime
Families of La Cosa Nostra or any other criminal group, or any person
otherwise enjoined from participating in union affairs, and from obstructing
or otherwise interfering with the work of the court-appointed officers or
the Independent Review Board described herein.
As used herein, the term, “knowingly associating,” shall
have the same meaning as that term in the context of comparable federal
proceedings or federal rules and regulations.
COURT-APPOINTED OFFICERS
The Court shall appoint three (3) officers — an
Independent Administrator, an Investigations Officer and an Election Officer
— to be identified and proposed by the Government and the union defendants,
to oversee certain operations of the IBT as described herein. The parties
shall jointly propose to the Court at least two persons for each of these
three positions. Such proposal shall be presented to the Court within four
weeks of the date of the entry of this Order, except that for good cause
shown such period may be extended by the Court. Except as otherwise provided
herein, the duties of those three officers shall be the following:
DISCIPLINARY AUTHORITY — From the
date of the Administrator’s appointment until the
termination of the Administrator’s authority as set forth in
paragraph 3(3) herein, the Administrator shall have the same
rights and powers as the IBT’s General President and/or
General Executive Board under the IBT’s Constitution
(including Articles VI and XIX thereof) and Title 29 of the
United States Code to discharge those duties which relate
to: disciplining corrupt or dishonest officers, agents,
employees or members of the IBT or any of its affiliated
entities (such as IBT Locals, Joint Councils and Area
Conferences), and appointing temporary trustees to run the
affairs of any such affiliated entities. The Investigations
Officer shall have the authority to investigate the
operation of the IBT or any of its affiliates and, with
cause,
To initiate disciplinary charges against any officer, member
or employee of the IBT or any of its affiliates in the
manner specified for members under the IBT Constitution and,
To institute trusteeship proceedings for the purpose and in
the manner specified in the IBT Constitution.
Prior to instituting any trusteeship
proceeding the Investigations Officer shall notify the
General President of the Investigations Officer’s plan to
institute said trusteeship proceeding and the basis
therefore and give the General President ten (10) days to
exercise his authority pursuant to the IBT Constitution to
institute such trusteeship proceedings. If the General
President timely institutes such proceedings and/or a
trusteeship is imposed, the Investigations Officer and the
Administrator shall have authority to review any action thus
taken by the General President and/or any trusteeship
imposed thereafter and to modify any aspect of either of the
above at any time and in any manner consistent with
applicable federal law. If the General President fails to
institute trusteeship proceedings within the ten-day period
prescribed herein, the Investigations Officer may
immediately proceed in accordance with the authority
specified above.
When the Investigations Officer files
charges, the following procedures shall be observed:
the Investigations Officer shall serve written specific
charges upon the person charged;
the person charged shall have at least thirty(30) days prior
to hearing to prepare his or her defense;
a fair and impartial hearing shall be conducted before the
Administrator;
the person charged may be represented by an IBT member at
the hearing; and
the hearing shall be conducted under the rules and
procedures generally applicable to labor arbitration
hearings.
The Administrator shall preside at
hearings in such cases and decide such cases using a “just
cause” standard. The Investigations Officer shall present
evidence at such hearings. As to decisions of the IBT
General Executive Board on disciplinary charges and
trusteeship proceedings during the Administrator’s tenure,
the Administrator shall review all such decisions, with the
right to affirm, modify or reverse such decisions and, with
respect to trusteeship proceedings, to exercise the
authority granted above in this paragraph. Any decision of
the Administrator shall be final and binding, subject to the
Court’s review as provided herein. For a period of up to
fourteen (14) days after the Administrator’s decision, any
person charged or entity placed in trusteeship adversely
affected by the decision shall have the right to seek review
by this Court of the Administrator’s decision. The
Administrator shall also have the right to establish and
disseminate new guidelines for investigation and discipline
of corruption within the IBT. All of the above actions of
the Administrator and Investigations Officer shall be in
compliance with applicable Federal laws and regulations.
REVIEW AUTHORITY — From the date
of the Administrator’s appointment until the certification
of the IBT elections to be conducted in 1991, the
Administrator shall have the authority to veto whenever the
Administrator reasonably believes that any of the actions or
proposed actions listed below constitutes or furthers an act
of racketeering activity within the definition of Title 18
U.S.C. ß 1961, or furthers or contributes to the association
directly, or indirectly, of the IBT or any of its members
with the LCN or elements thereof:
any expenditures or proposed expenditure of International
Union funds or transfer of International Union property
approved by any officers, agents, representatives or
employees of the IBT,
any contract or proposed contract on behalf of the
International Union, other than collective bargaining
agreements, and
any appointment or proposed appointments to International
Union office of any officer, agent, representative or
employee of the IBT.
In any case where the Administrator
exercises veto authority, the action or proposed action
shall not go forward. The Administrator, upon request of the
IBT’s General President or General Executive Board, shall,
within three (3) days, advise the IBT’s General President
and/or General Executive Board whichever is applicable, of
the reasons for any such veto. For a period of up to
fourteen (14) days after the Administrator’s decision, the
IBT’s President and/or General Executive Board shall have
the right to seek review by this Court of the
Administrator’s decision. The Administrator may prescribe
any reasonable mechanism or procedure to provide for the
Administrator’s review of actions or proposed actions by the
IBT, and every officer, agent, representative or employee of
the IBT shall comply with such mechanism or procedure.
ACCESS TO INFORMATION — (i) The
Investigations Officer shall have the authority to take such
reasonable steps that are lawful and necessary in order to
be fully informed about the activities of the IBT in
accordance with the procedures as herein established. The
Investigations Officer shall have the right:
To examine books and records of the IBT and its affiliated,
provided the entity to be examined receives three (3)
business days advance notice in writing, and said entity has
the right to have its representatives present during said
examination.
To attend meetings or portions of meetings of the General
Executive Board relating in any way to any of the officer’s
rights or duties as set forth in this Order, provided that
prior to any such meeting, the officer shall receive an
agenda for the meeting and then give notice to the General
President of the officer’s anticipated attendance.
To take and require sworn statements or sworn in-person
examinations of any officer, member, or employee of the IBT
provided the Investigations Officer has reasonable cause to
take such a statement and provided further that the person
to be examined receives at least ten (10) days advance
notice in writing and also has the right to be represented
by an IBT member or legal counsel of his or her own
choosing, during the course of said examination.
To take, upon notice and application for cause made to this
Court, which shall include affidavits in support thereto,
and the opportunity for rebuttal affidavits, the sworn
statements or sworn in person examination of persons who are
agents of the IBT (and not covered in subparagraph (c)
above).
To retain an independent auditor to perform audits upon the
books and records of the IBT or any of its affiliated
entities (not including benefit funds subject to ERISA),
provided said entity receives three (3) business days
advance notice in writing and said entity has the right to
have its representatives present during the conduct of said
audit.
The Independent Administrator and the
Election Officer shall have the same rights as the
Investigations Officer as provided in sections (a), (b), (c)
and (d) of C, herein.
The Independent Administrator,
Investigations Officer and Election Officer shall each be
provided with suitable office space at the IBT headquarters
in Washington, D.C.
IBT ELECTION — The IBT
Constitution shall be deemed amended, and is hereby amended,
to provide for the following new election procedures:
The procedures described herein shall apply to elections of
the IBT’s General President, General Secretary-Treasurer,
International Union Vice Presidents, and International Union
Trustees;
Delegates to the IBT International convention at which any
International Union officers are nominated or elected shall
be chosen by direct rank-and-file secret balloting shortly
before the convention (but not more than six months before
the convention, except for those delegates elected at local
union elections scheduled to be held in the fall of 1990),
and with all convention Candidate election voting by secret
ballot of each delegate individually;
Delegates shall nominate candidates for eleven (11) Regional
Vice Presidents, as follows: Three (3) from the Eastern
Conference, three (3) from the Central Conference, two (2)
from the Southern Conference, two (2) from the Western
Conference, and one (1) from the Canadian Conference. In
addition, there shall be nominated candidates for five (5)
Vice Presidents to be elected at large. All duly nominated
Vice Presidents shall stand for election conducted at local
unions on the same ballot and time as the election of
General President and General Secretary-Treasurer, as
provided herein;
At such an International convention, after the nomination of
International Union Vice Presidents and election of
Trustees, all delegates shall then vote for nominees for the
offices of IBT General President and General
Secretary-Treasurer;
To qualify for the ballot for the direct rank-and-file
voting for IBT General President, Secretary-Treasurer, and
Vice President, candidates must receive at least five (5)
percent of the delegate votes at the International
convention, for the at large position, or by conference for
regional positions, as the case may be;
No person on the ballot for the position of IBT General
President may appear on the ballot in the same election year
for the position of Secretary-Treasurer; and further no
member shall be a candidate for more than one (1) Vice
President position;
No less than four (4) months and no more than six (6) months
after the International convention at which candidates were
nominated, the IBT General President, General
Secretary-Treasurer and Vice Presidents shall be elected by
direct rank-and-file voting by secret ballot in unionwide,
one-member, one-vote elections for each at large position,
and conference wide, one-member one-vote elections for each
regional position;
All direct rank-and-file voting by secret ballot described
above shall be by in-person ballot box voting at local
unions or absentee ballot procedures where necessary, in
accordance with Department of Labor regulations; and
The current procedures under the IBT Constitution for
filling a vacancy between elections in the office of General
Secretary-Treasurer, International Trustee, and
International Vice President shall remain in effect.
The Election Officer shall supervise the
IBT election described above to be conducted in 1991 and any
special IBT elections that occur prior to the IBT elections
to be conducted in 1991. In advance of each election, the
Election Officer shall have the right to distribute
materials about the election to the IBT membership. The
Election Officer shall supervise the balloting process and
certify the election results for each of these elections as
promptly as possible after the balloting. Any disputes about
the conduct and/or results of elections shall be resolved
after hearing by the Administrator.
The union defendants consent to the
Election Officer, at Government expense, to supervise the
1996 IBT elections. The union defendants further consent to
the U.S. Department of Labor supervising any IBT elections
or special elections to be conducted after 1991 for the
office of the IBT General President, IBT General
Secretary-Treasurer, IBT Vice President, and IBT Trustee.
At the IBT 1991 International
Convention, the delegates shall be presented with these
aforesaid amendments for vote; provided further that nothing
herein shall be deemed or interpreted or applied to abridge
the Landrum-Griffin free speech right of any IBT officer,
delegate or member, including the parties hereto.
REPORTS TO MEMBERSHIP — The
Administrator shall have the authority to distribute
materials at reasonable times to the membership of the IBT
about the Administrator’s activities. The reasonable cost of
distribution of these materials shall be borne by the IBT.
Moreover, the Administrator shall have the authority to
publish a report in each issue of the International Teamster
concerning the activities of the Administrator,
Investigations Officer and Election Officer.
REPORTS TO THE COURT — The
Administrator shall report to the Court whenever the
Administrator sees fit but, in any event, shall file with
the Court a written report every three (3) months about the
activities of the Administrator, Investigations Officer and
Election Officer. A copy of all reports to the Court by the
Administrator shall be served on plaintiff United States of
America, the IBT’s General President and duly designated IBT
counsel.
HIRING AUTHORITY — The
Administrator, the Investigations Officer and the Election
Officer shall have the authority to employ accountants,
consultants, experts, investigators or any other personnel
necessary to assist in the proper discharge of their duties.
Moreover, they shall have the authority to designate persons
of their choosing to act on their behalf in performing any
of their duties, as outlined in subparagraphs above.
Whenever any of them wish to designate a person to act on
their behalf, they shall give prior written notice of the
designation to plaintiff United States of America, and the
IBT’s General President; and those parties shall then have
the right, within fourteen (14) days of receipt of notice,
to seek review by this Court of the designation, which shall
otherwise take effect fourteen (14) days after receipt of
notice.
COMPENSATION AND EXPENSES — The
compensation and expenses of the Administrator, the
Investigations Officer and the Election Officer (and any
designee or persons hired by them) shall be paid by the IBT.
Moreover, all costs associated with the activities of these
three officials (and any designee or persons hired by them)
shall be paid by the IBT. The Administrator, Investigations
Officer and Election Officer shall file with the Court (and
serve on plaintiff United States of America and the IBT’s
General President and designated IBT counsel) an
application, including an itemized bill, with supporting
material, for their services and expenses once every three
months. The IBT’s General President shall then have fourteen
(14) business days following receipt of the above in which
to contest the bill before this Court. If the IBT’s
President fails to contest such a bill within that 14-day
period, the IBT shall be obligated to pay the bill. In all
disputes concerning the reasonableness of the level or
amount of compensation or expense to be paid, the Court and
parties shall be guided by the level of payment as
authorized and approved by the IBT for the payment of
similar services and expenses.
APPLICATION TO THE COURT – The
Administrator may make an application to the Court that the
Administrator deems warranted. Upon making any application
to the Court, the Administrator shall give prior notice to
plaintiff United States of America, the IBT’s General
President and designated IBT counsel and shall serve any
submissions filed with the Court on plaintiff United States
of America, the IBT’s General President and designated IBT
counsel. Nothing herein shall be construed as authorizing
the parties or the Court-appointed officers to modify,
change or amend the terms of this Order.
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INDEPENDENT REVIEW BOARD
Following the certification of the 1991 election
results, there shall be established and Independent Review Board,
(hereinafter, referred to as the “Review Board”). Said Board shall consist
of three members, one chosen by the Attorney General of the United States,
one chosen by the IBT and a third person chosen by the Attorney General’s
designee and the IBT’s designee. In the event of a vacancy, the replacement
shall be selected in the same manner as the person who is being replaced was
selected.
The Independent Review Board shall be authorized to hire
a sufficient staff of investigators and attorneys to investigate adequately
(1) any allegations of corruption, including bribery, embezzlement,
extortion, loan sharking, violation of 29 U.S.C. ß530 of the Landrum Griffin
Act, Taft-Hartley Criminal violations of Hobbs Act violations, or (2) any
allegations of domination or control or influence of any IBT affiliated,
member or representative by La Cosa Nostra or any other organized crime
entity or group, or (3) any failure to cooperate fully with the Independent
Review Board in any investigation of the foregoing.
The Independent Review Board shall exercise such
investigative authority as the General President and General
Secretary-Treasurer are presently authorized and empowered to exercise
pursuant to the IBT Constitution, as well as any and all applicable
provisions of law.
All officers, members, employees and representatives of
the IBT and its affiliated bodies shall cooperate fully with the Independent
Review Board in the course of any investigation or proceeding undertaken by
it. Unreasonable failure to cooperate with the Independent Review Board
shall be deemed to be conduct which brings reproach upon the IBT and which
is thereby within the Independent Review Board’s investigatory and
decisional authority.
Upon completion of an investigation, the Independent
Review Board shall issue a written report detailing its findings, charges,
and recommendations concerning the discipline of union officers, members,
employees, and representatives and concerning the placing in trusteeship of
any IBT subordinate body. Such written reports shall be available during
business hours for public inspection at the IBT office in Washington, D.C.
Any findings, charges, or recommendations of the
Independent Review Board regarding discipline or trusteeship matters shall
be submitted in writing to an appropriate IBT entity (including designating
a matter as an original jurisdiction case for General Executive Board
review), with a copy sent to the General President and General Executive
Board. The IBT entity to which a matter is referred shall thereupon promptly
take whatever action is appropriate under the circumstances, as provided by
the IBT Constitution and applicable law. Within 90 days of the referral,
that IBT entity must make written findings setting forth the specific action
taken and the reasons for that action.
The Independent Review Board shall monitor all matters
which it has referred for action if, in its sole judgment, a matter has not
been pursued and decided by the IBT entity to which the matter has been
referred in a lawful, responsible, or timely matter, or that the resolution
proposed by the relevant IBT entity is inadequate under the circumstances,
the Independent Review Board shall notify the IBT affiliate involved of its
view, and the reasons therefore. A copy of said notice shall be sent by the
Independent Review Board, to the General President and the General Executive
Board.
Within 10 days of the notice described in paragraph (f)
above, the IBT entity involved shall set forth in writing any and all
additional actions it has taken and/or will take to correct the defects set
forth in said notice and a deadline by which said action may be completed.
Immediately thereafter, the Independent Review Board shall issue a written
determination concerning the adequacy of the additional action taken and/or
proposed by the IBT entity involved. If the Independent Review Board
concludes that the IBT entity involved has failed to take or propose
satisfactory action to remedy the defects specified by the Independent
Review Board’s notice, the Independent Review Board shall promptly convene a
hearing, after notice to all affected parties. All parties shall be
permitted to present any facts, evidence, or testimony which is relevant to
the issue before the Independent Review Board. Any such hearing shall be
conducted under the rules and procedures generally applicable to labor
arbitration hearings.
After a fair hearing has been conducted, the Independent
Review Board shall issue a written decision which shall be sent to the
General President, each member of the General Executive Board, and all
affected parties.
The decision of the Independent Review Board shall be
final and binding, and the General Executive Board shall take all action
which is necessary to implement said decision, consistent with the IBT
Constitution and applicable Federal laws.
The Independent Review Board shall have the right to
examine and review the General Executive Board’s implementation of the
Independent Review Board’s decisions; in the event the Independent Review
Board is dissatisfied with the General Executive Board’s implementation of
any of its decisions, the Independent Review Board shall have the authority
to take whatever steps are appropriate to insure proper implementation of
any such decision.
The Independent Review Board shall be apprised of and
have the authority to review any disciplinary or trusteeship decision of the
General Executive Board, and shall have the right to affirm, modify, or
reverse any such decision. The Independent Review Board’s affirmance,
modification, or reversal of any such General Executive Board decision shall
be in writing and final and binding.
The IBT shall pay all costs and expenses of the
Independent Review Board and its staff (including all salaries of Review
Board members and staff). Invoices for all such costs and expense shall be
directed to the General President for payment.
The Investigations Officer and the Administrator shall
continue to exercise the investigatory and disciplinary authority set forth
in paragraph 12 above for the limited period set forth in paragraph 3(3)
above, provided, however, that the Investigations Officer and the
Administrator may, instead, refer any such investigation or disciplinary
matter to the Independent Review Board.
The IBT Constitution shall be deemed and hereby is
amended to incorporate all of the terms relating to the Independent Review
Board set forth above in this paragraph. This amendment shall be presented
to the delegates to the 1991 Convention for voted.
INDEMNIFICATION
The IBT shall purchase a policy of insurance in an
appropriate amount to protect the Administrator, the Investigations Officer,
the Election Officer and persons acting on their behalf from personal
liability for any of their actions on behalf of the IBT, the Administrator,
the Investigations Officer or the Election Officer. If such insurance is not
available, or if the IBT so elects, the IBT shall indemnify the
Administrator, Investigations Officer, Election Officer and persons acting
on their behalf from any liability (or costs incurred to defend against the
imposition of liability) for conduct taken pursuant to this order. That
indemnification shall not apply to conduct not taken pursuant to this order.
In addition, the Administrator, the Investigations Officer, the Election
Officer and any persons designated or hired by them to act on their behalf
shall enjoy whatever exemptions from personal liability may exist under the
law for court officers.
IBT LEGAL COUNSEL
During the term of office of the court-appointed
officers, the IBT General President shall have the right to employ or retain
legal counsel to provide consultation and representation to the IBT with
respect to this litigation, to negotiate with the appropriate official and
to challenge the decisions of the court-appointed officers, and may use
union funds to pay for such legal consultation and representation. The
Administrator’s removal powers and authority over union expenditures shall
not apply to such legal consultation and representation.
NON-WAIVER
To the extent that such evidence would be otherwise
admissible under the Federal Rules of Evidence, nothing herein shall be
construed as a waiver by the United States of America or the United States
Department of Labor of its right to offer proof of any allegation contained
in the Complaint, Proposed Amended Complaint, declarations or memoranda
filed in this action, in any subsequent proceeding which may lawfully be
brought.
APPLICATION TO COURT
This Court shall retain jurisdiction to supervise the
activities of the Administrator and to entertain any future applications by
the Administrator or the parties. This Court shall have exclusive
jurisdiction to decide any and all issues relating to the Administrator’s
actions or authority pursuant to this order. In reviewing actions of the
Administrator, the Court shall apply the same standard of review applicable
to review of final federal agency action under the Administrative Procedure
Act.
FUTURE PRACTICES
The parties intend the provisions set forth herein to
govern future IBT practices in those areas. To the extent the IBT wishes to
make any changes, constitutional or otherwise, in those provisions, the IBT
shall give prior written notice to the plaintiff through the undersigned. If
the plaintiff then objects to the proposed changes as inconsistent with the
terms and objectives of this order, the change shall not occur; provided,
however, that the IBT shall then have the right to seek a determination from
this Court, or, after the entry of judgment dismissing this action, from
this Court or any other federal court of competent jurisdiction as to
whether the proposed change is consistent with the terms and objectives set
forth herein.
SCOPE OF ORDER
Except as provided by the terms of this order, nothing
else herein shall be construed or interpreted as affecting or modifying: (a)
the IBT Constitution; (b) the Bylaws and Constitution of any IBT affiliates;
(c) the conduct and operation of the affairs of the IBT or any
IBT-affiliated entity or any employee benefit fund as defined in ERISA or
trust fund as defined by Section 302(c) of the Labor Management Relations
Act, as amended; (d) the receipt of any compensation or benefits lawfully
due or vested to any officer, member or employee of the IBT or any of its
affiliates and affiliated benefit fund; or (e) the term of office of any
elected or appointed IBT officer or any of the officers of any
IBT-affiliated entities.
NON-ADMISSION CLAUSE
Nothing herein shall be construed as an admission by any
of the individual union defendants of any wrongdoing or breach of any legal
or fiduciary duty or obligation in the discharge of their duties as IBT
officers and members of the IBT General Executive Board.
FUTURE ACTIONS
Nothing herein shall preclude the United States of
America or the United States Department of Labor from taking any appropriate
action in regard to any of the union defendants in reliance on federal laws,
including an action or motion to require disgorgement of pension, severance
or any other retirement benefits of any individual union officer defendant
on whom discipline is imposed pursuant to paragraph 12 above.
LIMITS OF ORDER
Nothing herein shall create or confer or is intended to
create or confer, any enforceable right, claim or benefit on the part of any
person or entity other than to the parties hereto and the court-appointed
officers established herein. As to the undersigned defendants hereto, this
order supercedes the order of the Court entered on June 28, 1988, as
thereafter extended.
EXECUTION
Each of the undersigned individual defendants has read
this order and has had an opportunity to consult with counsel before signing
the order.
March 14, 1989
DAVID N. EDELSTEIN
United States District Judge
CONSENTED TO:
BENITO ROMANO
United States Attorney
Southern District of New York
One St. Andrew’s Plaza
New York, New York 10007
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