July 19, 1996
VIA UPS OVERNIGHT
Lon Fields
July 19, 1996
Page 1
Lon E. Fields, Sr.
Teamsters Local Union 89
3813 Taylor Boulevard
Louisville, KY 40215
James P. Hoffa
2593 Hounds Chase
Troy, MI 48098
Robert Kavalec, Vice President
Cuyahoga Ambulance Company
P.O. Box 32189
Cleveland, OH 44132
Nathaniel Charny
Cohen, Weiss & Simon
330 W. 42nd Street
New York, NY 10036
Lon Fields
July 19, 1996
Page 1
Re: Election Office Case No. CONV-6-IBT-SCE
Gentlemen:
Lon E. Fields, Sr., a member of Local Union 89, filed a protest pursuant to
Article XIV, Section 2(b) of the Rules for the 1995-1996 IBT International Union Delegate and Officer Election (“Rules”) against James P. Hoffa, candidate for general president, and the Cuyahoga Ambulance Company. The protester alleges that the Cuyahoga Ambulance Company, an employer, made an improper contribution to the campaign of Mr. Hoffa by allowing the Hoffa campaign to use an ambulance registered to the ambulance company for campaign purposes.
New York City Protest Coordinator Barbara C. Deinhardt investigated the protest.
Mr. Hoffa referred the matter to the Ohio Campaign ‘96 for Les Singer (“Ohio Campaign” or “the Campaign”), which is the campaign organization supporting the candidacy of Les Singer for International vice president. The Ohio Campaign states that it purchased the used ambulance from the Cuyahoga Ambulance Company for a reasonable price and has used its own funds to improve and insure the vehicle.
Lon Fields
July 19, 1996
Page 1
In May 1996, the Ohio Campaign bought a used ambulance manufactured by the Ford Motor Company from the Cuyahoga Ambulance Company for $1,300. The ambulance is approximately 18 years old and has been driven over 100,000 miles. Subsequently, the Ohio Campaign spent approximately $4,500 to paint the vehicle, purchase new tires and to have mechanical work done on the ambulance. The Campaign has purchased insurance for the vehicle. However, it has not transferred the title to the ambulance because the Campaign is waiting for its application for incorporation to be approved by the state of Ohio. During the investigation, the Ohio Campaign has presented documentation of the sale and the insurance coverage.
The campaign for Mr. Hoffa has used the vehicle at the International Convention where it has appeared bearing campaign signs for Mr. Hoffa near the Convention and at campaign rallies.
Article XII of the Rules prohibits an employer from making any campaign contributions to the campaign of a candidate for delegate or International office. The Rules define “campaign contributions” to include “any direct or indirect contribution of money or other thing of value where the purpose, object or foreseeable effect of that contribution is to influence the election of a candidate.” Rules, Definitions, 5. As stated in the Election Officer’s Advisory on Campaign Contributions and Disclosure, such contributions can include any goods, compensated services or any material things of value. The Rules also define campaign contributions to include discounts in the price or cost of goods. Rules, Definitions, 5(c). The term “employer” is defined under the Rules to include “any individual, corporation, trust, organization or other entity that employs another, paying monetary or other compensation in exchange for that individual’s services.” Rules, Definitions, 17.
The purchase of goods or services from a vendor does not constitute a campaign contribution from the vendor if the terms of the purchase are commercially reasonable. See Halberg, P-019-LU174-PNW (December 14, 1995) (decision on remand); In Re: Gilmartin, 95 - Elec. App. - 45 (KC) (December 18, 1995); Gilberg, P-284-IBT, aff’d in pertinent part,
91 - Elec. App. - 194 (SA) (October 2, 1991). A sales representative for the Ford Motor Company has advised that the reasonable value of an 18-year old ambulance driven over 100,000 miles would be no more than approximately $900. Based on all of the circumstances, the sale of the 18-year old ambulance by the Cuyahoga Ambulance Company for $1,300 to the Ohio Campaign was commercially reasonable. The Cuyahoga Ambulance Company did not make an improper contribution to the campaign of Mr. Hoffa by selling the ambulance to the Campaign.
The protest is therefore DENIED.
Any interested party not satisfied with this determination may request a hearing before the Election Appeals Master within one day of receipt of this letter. The parties are reminded that, absent extraordinary circumstances, no party may rely upon evidence that was not presented to the Office of the Election Officer in any such appeal. Requests for a hearing shall be made in writing and shall be served on:
Lon Fields
July 19, 1996
Page 1
Kenneth Conboy, Esq.
Latham & Watkins
885 Third Avenue, Suite 1000
New York, NY 10022
Fax (212) 751-4864
Copies of the request for hearing must be served on the parties listed above as well as upon the Election Officer, 400 N. Capitol Street, Suite 855, Washington, DC 20001, Facsimile (202) 624-3525. A copy of the protest must accompany the request for a hearing.
Sincerely,
Barbara Zack Quindel
Election Officer
cc: Kenneth Conboy, Election Appeals Master
Barbara C. Deinhardt, New York City Protest Coordinator