November 14, 1996
VIA UPS OVERNIGHT
Gary Tiboni
November 14, 1996
Page 1
Gary M. Tiboni, President
Teamsters Joint Council 1
6051 Carey Drive
Valley View, OH 44125
George Faulkner
Faulkner & Sackett
820 W. Superior #300
Cleveland, OH 44113
Nick Nardi, President
Teamsters Joint Council 41
3150 Chester Avenue
Cleveland, OH 44114
James P. Hoffa
2593 Hounds Chase
Troy, MI 48098
Ron Carey Campaign
c/o 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
Gary Tiboni
November 14, 1996
Page 1
Re: Election Office Case No. P-1155-JC41-CLE
Gentlemen:
Gary M. Tiboni, president of Joint Council 1, filed a pre-election 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, a candidate for general president, George H. Faulkner, an attorney who performs legal services for Joint Council 41, and Joint Council 41. The protester alleges that Mr. Faulkner improperly provided equipment, facilities and personnel to Mr. Hoffa for the purpose of operating a telephone bank for his campaign. He further alleges that Joint Council 41 organized and supported the effort. Mr. Faulkner and Joint Council 41 deny any violation of the Rules.
The protest was investigated by Regional Coordinator Joyce Goldstein.
Gary Tiboni
November 14, 1996
Page 1
The investigation discloses that since October 26, 1996, a phone bank supporting the candidacy of Mr. Hoffa has been operating at 820 W. Superior Avenue in Cleveland, Ohio, and continues to operate as of the date of this decision. The phone bank operation is housed on the 3rd and 4th floor conference rooms of the building, pursuant to a lease in which
Patrick J. Darrow is the lessee and Ohio Professional Centers, Inc. (“Ohio Professional”) is the lessor. Mr. Darrow is a member of Local Union 348. Ohio Professional is owned and operated by Mr. Faulkner and a partner. The law firm with which Mr. Faulkner is associated, Faulkner and Sackett, also leases space from Ohio Professional at the same location.
The rooms are leased pursuant to a written agreement, a copy of which has been forwarded to the Election Officer. According to that agreement, the lease is effective for the period beginning October 26, 1996 and ending November 20, 1996. The rent for the entire period is $200. In addition to the rent, Mr. Darrow is obligated to pay the costs of telephone line installation and for the use of all telephone lines. The lease further provides for Ohio Professional to invoice Mr. Darrow for the rental amount and the telephone costs. The equipment covered by the lease includes conference tables and existing telephones only. All other equipment and assistance is specifically excluded. The lease states that the invoice must be paid “within a commercially reasonable time.”
An invoice was issued to Mr. Darrow on November 1, 1996. It included not only the amount of stated rent, but also $486 for the installation of the additional phone lines. The invoice further contains the following note: “[C]ost of telephone usage will be billed upon receipt.” The investigation further reflects that the invoice was paid by Mr. Darrow by personal check on November 4, 1996.
The investigation additionally reveals that the amount of rent charged by Ohio Professional is consistent with an amount that was offered to Mr. Darrow for similar space
in the same building for rental by his law firm.
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, Mr. Darrow has agreed to pay the actual costs of the telephone line installation and usage within commercially reasonable time. The evidence further indicates that
Gary Tiboni
November 14, 1996
Page 1
Mr. Darrow is paying fair market value for the use of the rooms and listed equipment existing at 820 W. Superior Avenue. Therefore, this use does not constitute a campaign contribution, under 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:
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