April 8, 1996
VIA UPS OVERNIGHT
John M. Masters
April 8, 1996
Page 1
John M. Masters
81 Valentine Farms Lane
Akron, OH 44333
Nick Anardi, President
Teamsters Joint Council 41
3150 Chester Avenue, 2nd Floor
Cleveland, OH 44114
Charles Cimino, Vice President
Teamsters Joint Council 41
3150 Chester Avenue, 2nd Floor
Cleveland, OH 44114
Debbie Cusic, Trustee
Teamsters Joint Council 41
3150 Chester Avenue, 2nd Floor
Cleveland, OH 44114
Dennis Vadini, Secretary-Treasurer
Teamsters Joint Council 41
3150 Chester Avenue, 2nd Floor
Cleveland, OH 44114
Roger Hunt, Trustee
Teamsters Joint Council 41
3150 Chester Avenue, 2nd Floor
Cleveland, OH 44114
Dennis Weinert, Recording Secretary
Teamsters Joint Council 41
3150 Chester Avenue, 2nd Floor
Cleveland, OH 44114
Dan F. Darrow
4565 S. Main Street
Akron, OH 44319
John M. Masters
April 8, 1996
Page 1
Re: Election Office Case No. P-529-JC41-CLE
Gentlepersons:
A pre-election protest was filed pursuant to Article XIV, Section 2(b) of the Rules for the 1995-1996 International Union Officer and Delegate Election (“Rules”) by John M. Masters, a member of Local Union 436. Mr. Masters makes his charges against Dan F. Darrow, former secretary-treasurer of Local Union 348 and the former president of Joint Council 41, Joint Council 41 and its current president, secretary-treasurer, vice president, recording secretary, and trustee. He asserts they violated the Rules by 1) improperly reimbursing legal fees that
Mr. Darrow originally expended in connection with a protest filed against Mr. Masters and
2) Joint Council 41’s improperly failing to approve Mr. Master’s request for reimbursement of the costs incurred by him in defense of the matter.
John M. Masters
April 8, 1996
Page 1
The protest was investigated by Regional Coordinator Joyce Goldstein.
On June 21, 1995, Mr. Darrow filed a pre-election protest alleging that Mr. Masters misappropriated and misused the Joint Council 41 delegate mailing list. The protest further accused Mr. Masters of improperly contributing to a campaign by writing and distributing a newsletter containing material supporting the campaign of current candidate and General President Ron Carey. This protest was docketed by the Election Officer as Darrow, P-096-LU748-CLE and a decision was issued on September 13, 1995. The Election Officer determined that Mr. Masters did not misappropriate or improperly use the delegate mailing list of Joint Council 41. However, it was determined that an article appearing in the newsletter, entitled “Fear and Loathing at Joint Council 41,” did violate the Rules at Article XII, Section 1(b)(1).
The matter was appealed to the Election Appeals Master both by Mr. Darrow and
Mr. Masters. At that proceeding, Mr. Darrow advanced the position that the Election Officer’s decision with respect to Mr. Master’s alleged use of the Joint Council 41 delegate mailing list was in error. Mr. Darrow further took the position that the Election Officer’s remedy was inappropriate. Mr. Masters argued that his article was addressed to matters of local concern and, as such, did not constitute campaign material under the Rules. The Election Officer’s determination was affirmed by the Election Appeals Master in all respects. In Re: Darrow, et al., 95 - Elec. App. - 26 (KC) (October 23, 1995).
Joint Council 41 held a special meeting of its executive board on October 27, 1995. At that meeting, George Faulkner, legal counsel to Joint Council 41, was called upon to report on the protest filed by Mr. Darrow. The minutes reflect that Mr. Faulkner gave an account of the events which gave rise to the protest, including information concerning the various activities in which Mr. Darrow engaged in during the protest process.
Mr. Darrow then advised the executive board that he had spent his personal funds to pursue the protest. Mr. Faulkner identified the issues initially raised by Mr. Darrow’s protest. According to the minutes of the meeting, Mr. Faulkner then rendered the opinion that union resources may be validly used to pursue election protests under certain circumstances. Specifically, Mr. Faulkner stated that Joint Council 41’s proprietary interest in preserving the security of its mailing list was institutional in nature and was therefore a proper subject for reimbursement.
A motion was then entertained to pay the legal fees incurred by Mr. Darrow attributable to the appeal made to the Election Appeals Master. The motion was expressly limited to those purposes previously described in the minutes. The proposed resolution did not constitute the adoption of a general policy to reimburse the legal fees of union members incurred in the filing and processing of election protest cases. The motion was discussed, seconded and passed.
On February 8, 1996, the protester sent a letter to the president of Joint Council 41. That letter provided, in pertinent part, as follows:
John M. Masters
April 8, 1996
Page 1
I learned on this date that in a Special Executive Board meeting dated October 27, 1995, Joint Council No. 41 adopted a policy to approve the payments of legal fees incurred by any union member in a pre-election protest or appeal. As an IBT member and the prevailing party on the misappropriation allegation before both the Election Officer and Election Appeals Master, I am hereby requesting that I be reimbursed for my legal fees pursuant to the policy adopted by Joint Council.
On February 20, 1996, through legal counsel, Joint Council 41 responded to Mr. Masters’ letter. That response denied that Joint Council 41 adopted a policy to approve reimbursement of legal fees incurred by any union member who files a protest. The letter further denied
Mr. Masters’ request for reimbursement.
Neither the filing nor the processing of a protest constitutes activity that violates the Rules so long as such activity is directed toward an institutionally appropriate purpose. The Rules do not bar a local union from participating in protests which concern issues relating to their proper implementation. An IBT subordinate entity is prohibited from sponsoring or engaging in protest activity only when such participation constitutes incontrovertible advocacy on behalf of a candidate or is otherwise clearly partisan. In Re: Jordan, 95 - Elec. App. - 84 (KC) (February 12, 1996). The nature of this participation extends to paying the time of officers or employees for handling such protests, hiring a lawyer or paying a consultant. In Re: McGinnis, 91 - Elec. App. - 150 (SA) (April 17, 1991). The local union or other subordinate entity may pay for such legal advice initially or reimburse at a later time. As long as the purpose of the expenditure is consistent with the Rules.
The protest filed by Mr. Darrow directly advanced Joint Council 41’s institutional interests to protect the integrity and security of its membership list. Reimbursing Mr. Darrow for the expenses incurred in that endeavor was not improper. Further, Joint Council 41 has no obligation to reimburse Mr. Masters for the expense he incurred in connection with Mr. Darrow’s protest. The resolution adopted by Joint Council 41 extended only to the protest filed by
Mr. Darrow and did not constitute a general policy to approve payments of legal fees in all protests. Moreover, the failure of a local union or other subordinate entity to reimburse a member for expenses incurred in processing or defending a protest does not state the violation of the Rules.
Accordingly, the protest is 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:
John M. Masters
April 8, 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
Joyce Goldstein, Regional Coordinator