November 12, 1996
VIA UPS OVERNIGHT
Jim Merritt & Paul Houck
November 12, 1996
Page 1
Jim Merritt
4369 Richmond Street
Philadelphia, PA 19137
Vincent J. Fumo
1208 Tasker Street
Philadelphia, PA 19148
James P. Hoffa
2593 Hounds Chase
Troy, MI 48098
Nathaniel K. Charny
Cohen, Weiss & Simon
330 W. 42nd Street
New York, NY 10036
Bradley T. Raymond
Finkel, Whitefield, Selik, Raymond,
Ferrara & Feldman, P.C.
32300 Northwestern Highway, Suite 200
Farmington Hills, MI 48334
Jim Merritt & Paul Houck
November 12, 1996
Page 1
Re: Election Office Case Nos. P-1162-IBT-PNJ
P-1202-IBT-PNJ
Gentlemen:
Pre-election protests were filed pursuant to Article XIV, Section 2(b) of the Rules
for the 1995-1996 IBT International Union Delegate and Officer Election (“Rules”) by James Merritt, secretary-treasurer of Local Union 623, and Paul Houck, a member of Local Union 326, against Pennsylvania State Senator Vincent J. Fumo, James P. Hoffa, a candidate for general president, and the Hoffa campaign. The protesters allege that Senator Fumo allowed the Hoffa campaign to use his reelection office to conduct a phone bank operation, representing an improper employer campaign contribution, in violation of the Rules.
The Hoffa campaign responds that it has written agreements with Senator Fumo’s campaign, and with the owner of the building in which the Senator’s reelection office is located, which provide for the Hoffa campaign to have limited use of the office during the months of October and November 1996 for a set fee. The campaign asserts that Senator Fumo does not support or endorse Mr. Hoffa’s candidacy.
Jim Merritt & Paul Houck
November 12, 1996
Page 1
Regional Coordinator Peter V. Marks, Sr. investigated the protests. As these protests involve identical legal and factual issues, the Election Officer has consolidated them for decision.
In P-1162-IBT-PNJ, Mr. Merritt states that he received a telephone call at his home during the week of October 28, 1996, which his “Caller I.D.” device identified as originating at the office of Fumo for Senate. The caller asked Mr. Merritt if he was aware of the International officer election, what candidate he supported for general president, and what issues were important to him.[1] Mr. Merritt asserts that Senator Fumo and his reelection campaign “have made unlawful and prohibited contributions to the Hoffa campaign in an effort to affect the IBT International Officer Elections.”
In P-1202-IBT-PNJ, Mr. Houck alleges that he received a telephone call at his home on November 7, 1996, which he realized originated from Senator Fumo’s office due to his “Caller I.D.” device. Mr. Houck states that the telephone call “was made on behalf of the Hoffa 96 campaign soliciting my vote for the Hoffa Slate.” Like Mr. Merritt, Mr. Houck claims that the call he received represents an improper employer contribution to the Hoffa campaign.
Article XII, Section 1(b)(1) of the Rules states:
No employer may contribute, or shall be permitted to contribute, directly or indirectly, anything of value, where the purpose, object or foreseeable effect of the contribution is to influence, positively or negatively, the election of a candidate. No candidate may accept or use any such contribution.
The purchase of goods or services by a member does not constitute a campaign contribution by the vendor if the terms are commercially reasonable. See Cook, P-337-LU705-CHI, et seq. (May 8, 1996), aff’d, 96 - Elec. App. -191 (KC) (May 17, 1996) (use
of AFSCME phone bank does not constitute prohibited contribution at market value); Carter, P-457-LU550-NYC (1991).
Here, the Hoffa campaign agreed to pay the actual costs of the telephone usage within 10 days of receipt of these costs from Mr. Fumo’s campaign and is paying $50 per month at the end of November for the rental of the space. The investigation revealed that the telephone lines equal approximately 15 percent of the total floor space used by the Fumo campaign, which rents the total space for $400 per month.
Jim Merritt & Paul Houck
November 12, 1996
Page 1
In the instant protests, the evidence indicates that the Hoffa campaign is paying fair market value for the use of the telephone bank at Senator Fumo’s office. Therefore, this use does not constitute a campaign contribution, under the Rules.
Accordingly, the protests are 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:
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
Peter V. Marks, Sr., Regional Coordinator
[1]Two other members of Local Union 623, Ed Stefany and Charles Newmiller, told the Regional Coordinator that they received similar telephone calls, but could not identify the source of the call.