May 7, 1997
VIA UPS OVERNIGHT
Rick Middleton
May 7, 1997
Page 1
Rick Middleton, President
Teamsters Local Union 848
9960 Baldwin Place
El Monte, CA 91731
Jim Santangelo, Secretary-Treasurer
Teamsters Local Union 848
9960 Baldwin Place
El Monte, CA 91731
Bruce D. Blake
1101 West Road
La Habra Heights, CA 90631
Ron Carey, General President
International Brotherhood of Teamsters
25 Louisiana Avenue, N.W.
Washington, DC 20001
John Sullivan, Associate General Counsel
International Brotherhood of Teamsters
25 Louisiana Avenue, N.W.
Washington, DC 20001
Ron Carey Campaign
c/o Susan Davis
Cohen, Weiss & Simon
330 W. 42nd Street
New York, NY 10036
Bradley T. Raymond
Finkel, Whitefield, Selik, Raymond,
Ferrara & Feldman
32300 Northwestern Highway, Suite 200
Farmington Hills, MI 48334
Rick Middleton
May 7, 1997
Page 1
Re: Election Office Case No. P-1326-LU848-CLA
Decision on Remand
Gentlemen:
A pre-election protest was filed pursuant to Article XIV, Section 2(b) of the Rules for the 1995-1996 IBT International Union Delegate and Officer Election (“Rules”) by Rick Middleton, president of Local Union 848. Mr. Middleton alleged that the IBT improperly used “monies to pay the costs for individuals assisting the Carey Campaign” at the IBT Convention, held in July of 1996.
Rick Middleton
May 7, 1997
Page 1
On January 21, 1997, the Election Officer issued a decision granting the protest, but as to only one individual. The protest was denied in all other respects.
The Election Officer granted Mr. Middleton’s protest on the basis of evidence establishing that union funds in the amount of $1,086.50 were advanced by the IBT for the Convention-related lodging expenses of Bruce Blake, also a member of Local Union 848. The investigation disclosed that Mr. Blake attended the Convention solely to perform partisan election-related activities on behalf of Ron Carey, then an incumbent candidate for the office of general president. Mr. Middleton was alerted to the advancement of these expenses when Local Union 848 received a bill from the IBT seeking reimbursement of the amounts paid on Mr. Blake’s behalf.
During the investigation of the protest, the IBT and the Carey campaign acknowledged Mr. Blake’s status as a campaign functionary and recognized that the advancement of his lodging expenses was improper under Article VIII, Section 11(c) and Article XII, Section 1(b)(1) of the Rules. The Election Officer found as a fact that Mr. Blake was mistakenly included by the IBT in a group of delegates, alternates and guests whose accommodations were transferred, on short notice, from the Four Seasons Hotel in Philadelphia to the Bellevue.[1] Upon discovering its error, the IBT withdrew the invoice it had sent to Local Union 848 and sought recovery of the amounts paid directly from Mr. Blake.
The Election Officer ruled, in pertinent part, as follows:
The evidence indicates that union funds were advanced by the IBT on behalf of Mr. Blake, whose purpose in attending the Convention was campaign-related. Even if the payment was made in error, this does not excuse the IBT from the restrictions contained within the Rules. McClam, P-940-LU701-PNJ (October 11, 1996). Here, the IBT admits that union funds were expended for a campaign-related purpose. The Carey campaign has agreed to reimburse the IBT in the amount originally billed to Local Union 848. There is no evidence to show that the IBT improperly paid the expenses of any other person in connection with the Convention.
Rick Middleton
May 7, 1997
Page 1
The Election Officer further determined that the Carey Campaign and Mr. Blake were jointly responsible for the amounts expended and directed the IBT to cease and desist from utilizing union resources, funds or other things of value to promote the candidacy of any individual. The Carey campaign reimbursed the IBT directly for the improper payment by check dated February 4, 1997.
The Election Appeals Master considered the matter on appeal in In Re: Middleton, 97-Elec. App. - 317 (KC) (February 25, 1997). At the conclusion of the hearing, the Election Appeals Master requested the submission of supplemental information from parties. IBT Assistant General Counsel John Sullivan submitted a letter indicating that up to 50 persons may have been involved in the transfer from the Four Seasons to the Bellevue. Thereafter, the Election Appeals Master remanded the case, directing the Election Officer to:
. . . identify the 50 persons who stayed at the Bellevue, determine which (if any) of these persons were there solely on behalf of the Carey campaign, determine whether the IBT paid their hotel bills (at least initially) and to determine who ultimately paid their hotel bills and confirm when these payments were made.
During the course of the supplemental Election Office investigation, the Bellevue room billing records for this group of Convention attendees were reviewed. This document, together with several internal IBT communications, the agreement between the IBT and the Bellevue, and the IBT’s canceled check to the Bellevue, confirmed that a block of 50 rooms had in fact been reserved by the IBT for the purpose of relocating these attendees. The IBT’s agreement with the Bellevue Hotel required the IBT to pay $42,375 by July 12, 1996 in order to guarantee that a block of 50 rooms would be held for the period July 14 - 19, 1996. In accordance with its agreement with the Bellevue Hotel, by check dated July 11, 1996, the IBT paid $42,375 for these rooms. All 50 rooms were paid for on a guaranteed basis. That is, if any of the rooms were not used or occupied for any reason during the specified time period, the IBT was nevertheless financially responsible for all 50 rooms, and would not receive any sort of refund or credit. The Bellevue’s records indicate that reservations were made for 45 individuals, including Mr. Blake, during the period July 14-19, 1996.
Based on the 45 names in the Bellevue records, the IBT submitted a list of forty-five persons with the affiliated local unions that had been billed by the IBT and their status at the Convention, i.e., elected delegate/alternate delegate, guest, sergeant-at-arms or IBT contractor. This list was cross-referenced with the Bellevue’s billing records. The IBT also submitted all invoices sent to the respective local unions from which the IBT sought reimbursement for room charges initially covered by the IBT. The Election Office also reviewed copies of checks from the respective local unions sent to the IBT as reimbursements for the Bellevue accommodations.
Rick Middleton
May 7, 1997
Page 1
The status of each of the 45 persons on the list was determined by examining evidence submitted by the IBT as well as by contacts with various local unions and in certain cases by individual member telephone contacts.
The Election Office also sent to the protester the list provided by the IBT of the 45 individuals who had reservations at the Bellevue as a result of the strike at the Four Seasons. The protester was given the opportunity to submit any additional information regarding whether these individuals were at the Convention solely on behalf of the Carey campaign.
In reviewing the evidence on remand, the Election Officer determined whether an improper contribution was made by any union entity, through initial IBT payments or payments to the IBT by local unions.[2] The Election Office investigation established that none of the listed individuals attended the Convention solely on behalf of the Carey campaign or any other candidate.
1. Guests
The supplemental investigation revealed that 32 of these union members were authorized guests of Local Unions 237 and 952. The protester asserts that the majority of the guests of Local Unions 237 and 952 were like Mr. Blake since they were observed by the protester marching, cheering and shouting Carey campaign slogans during Convention proceedings. The Election Officer notes that both delegates and guests had a right to show support for the candidates of their choice during the course of the IBT Convention. The issue at hand is not whether any of these individuals exercised their right to engage in such campaign activity, but rather whether any of these individuals were campaign operatives who attended the Convention solely to perform election-related activity on behalf of the Carey campaign. Unlike Mr. Blake, these members (some of whom were retired) had been invited to attend the Convention, pursuant to the IBT Convention “Guest Policy,” by Local Unions 237 and 952.[3]
Rick Middleton
May 7, 1997
Page 1
The investigation revealed that the IBT initially paid for rooms at the Bellevue for the following 16 guests of Local Union 237:
1. Don Arnold
2. Barbara Baker
3. Gloria Baskin
4. Phil Cioffi
5. Fred Dunn
6. Ruth Eaddy
7. Leroy Fleming
8. Gregory Floyd
9. Richard Hendershot
10. Moronke Oshin
11. Abby Pabon
12. Patrick Passaretti
13. Sal Pinzone
14. Donna Ristorrucci
15. Joel Sosinsky
16. Nancy True
The IBT billed Local Union 237, by invoice dated November 20, 1996, for reimbursement of $16,856.25, which represented room charges for all of the above named guests.[4] Local Union 237 reimbursed the IBT in the amount of $16,856.25, by check dated November 25, 1996.
Rick Middleton
May 7, 1997
Page 1
During the course of the Election Office’s supplemental investigation, Nick Mancuso was confirmed as a guest of Local Union 237 who stayed at the Bellevue. On April 2, 1997, the IBT billed Local Union 237 for reimbursement of $847.50 for Mr. Mancuso’s room charges. By check dated April 11, 1997, Local Union 237 has reimbursed the IBT for this amount.
Also, during the course of the supplemental investigation, Sam Hall and Patricia Stryker were confirmed as guests of Local Union 237. On April 15, 1997, the IBT billed Local Union 237 for reimbursement of these room charges. The supplemental investigation revealed that due to inadvertent billing errors, the IBT initially sent invoices to the wrong local unions seeking reimbursement of $2,034 for room charges at the Bellevue for Mr. Hall and Ms. Stryker.[5] Carroll Haynes, secretary-treasurer of Local Union 237, indicated to the investigator that he had approved payment of this invoice and the check would be sent to the IBT during the week of April 21, 1997.
The supplemental investigation revealed that the IBT initially paid for rooms at the Bellevue for the following 10 authorized guests of Local Union 952:
1. Billie Barnes
2. Gwen Keels
3. Victor Macias
4. Larry Mejia
5. Jim Newman
6. Mike Patton
7. Paul Roa
8. Joe Robinson
9. Frank Sevilla
10. Frank Sevillano
The IBT billed Local Union 952, by invoice dated November 20, 1996, for $9,391.52 for reimbursement for accommodations for all 10 of the above named guests. Although Ms. Barnes did not stay at the Bellevue, the IBT billed Local Union 952 for one night’s stay for the guaranteed reservation. By check dated March 20, 1997, Local Union 952 reimbursed the IBT in the amount of $9,391.52.[6]
Rick Middleton
May 7, 1997
Page 1
During the course of the supplemental investigation John Christenson, Rose Carlin and Jim King were identified and confirmed as guests of Local Union 952. By invoice dated April 7, 1997, the IBT billed Local Union 952 for $1,017 in room charges for John Christenson and $160.50 for a guaranteed reservation for Rose Carlin that was not used since Ms. Carlin did not check into the Bellevue.[7] The IBT sent an additional invoice to Local Union 952 on April 15, 1997 for reimbursement of Mr. King’s room charges in the amount of $1,017. The investigation revealed that due to a billing error, the IBT billed the wrong local union for reimbursement of Mr. King’s room charges at the Bellevue.[8] Ed Mireles, secretary-treasurer of Local Union 952, indicated to the investigator that the local union will reimburse the IBT for the hotel accommodations of its guests Messrs. Christenson and King.
2. Delegates
The investigation revealed that the IBT initially paid for the hotel accommodations at the Bellevue for Local Union 671's two delegates, David Lucas and David Randolph, and one alternate delegate, Bernard Bombardier. By invoice dated November 20, 1996, the IBT billed Local Union 671 for $2,542.50 for reimbursement of these hotel charges. By check dated November 26, 1996, Local Union 671 reimbursed the IBT for this amount.
The investigation further showed that the IBT initially paid for the hotel accommodations at the Bellevue for Local Union 575's delegate, Frank Carracino and alternate delegate, Albert Tutela. By invoice dated November 20, 1996, the IBT billed Local Union 575 for $2,034 for reimbursement of these hotel charges. By check dated November 26, 1996, Local Union 575 reimbursed the IBT for this amount.
A review of the Bellevue records indicate that a reservation was made for Ralph Sauls, the elected alternate delegate from Local Union 723, although Mr. Sauls ultimately stayed at a different hotel. By invoice dated November 20, 1996, the IBT sent an invoice to Local Union 723 for $160.50 representing one night’s stay for the guaranteed reservation. The evidence indicates that the IBT has canceled this invoice based on a letter dated November 25, 1996 from John Humphreys, secretary-treasurer of Local Union 723, which stated that on July 12, 1996, he called the Bellevue and canceled Mr. Sauls’ reservation and made other arrangements.
Rick Middleton
May 7, 1997
Page 1
3. Sergeant-At-Arms
The investigation revealed that Roy McClam, Assistant Trustee of Local Union 97 and Peter McGourty, a member of Local Union 11, served as sergeants-at-arms for the IBT at the convention and stayed at the Bellevue. Initially, the IBT sent an invoice dated November 20, 1996, to Local Union 97 for reimbursement of $847.50 for Mr. McClam’s accommodations at the Bellevue. Also, due to a billing error, the IBT sent an invoice to the Local Union 134 Pension Fund for reimbursement of $1,017 for Mr. McGourty’s hotel accommodations at the Bellevue. Both invoices to Local Union 97 and the Pension Fund for Local Union 134 have been voided and neither Local Union 97 nor the Pension Fund for Local Union 134 paid these invoices. In accordance with its policy of covering the hotel charges for sergeants-at-arms, the IBT assumed the room charges at the Bellevue for Messrs. McClam and McGourty.
4. IBT Contractors
Reservations at the Bellevue were made by the IBT for Martin Davis and Hal Malchow, contractors working for the IBT at the convention from the November Group who were hired to manage daily printing functions, a Convention-related service rendered to the IBT. The Bellevue records indicate that Mr. Davis stayed for one night, and that Mr. Malchow ultimately did not check in or stay at the Bellevue. By invoices dated February 21 and March 14, 1997, the IBT billed the November Group a total of $339 in room charges for Mr. Davis’ accommodations for one night and for Mr. Malchow’s unused guaranteed reservation. The November Group reimbursed the IBT for this total amount by checks dated February 26 and March 31, 1997.
The Election Officer has reviewed the November Group invoices to the IBT for work done at the convention and received information regarding November Group work at the convention from Trish Hoppey, the IBT Convention Coordinator. Both Martin Davis and Sarah Becker from the November Group were at the convention, under agreement with the IBT, where they oversaw printing and design services and provided 24-hour coverage to troubleshoot these activities.
The Election Officer is aware that November Group also performed work for the Carey campaign before and after the convention.[9] Applying the standard set forth by the Election Appeals Master, the Election Officer concludes that the November Group contractors were not at the IBT Convention “solely on behalf of the Carey campaign.”
Rick Middleton
May 7, 1997
Page 1
Conclusion
The IBT violated the Rules when it paid for Mr. Blake’s hotel expenses because his only function at the Convention was to perform work for the Carey campaign. Mr. Blake was not invited by the IBT or one of its local affiliates, but attended solely at the request of Mr. Carey’s campaign organization.
The evidence discloses that, other than the amounts initially advanced on behalf of Mr. Blake, no other person in the Bellevue group attended the Convention solely on behalf of any campaign. The Election Officer therefore concludes that the IBT made no other improper payments in connection with the Bellevue attendees.
Accordingly, the protest is DENIED with respect to the payment of Convention-related expenses for persons staying at the Bellevue Hotel, other than Mr. Blake.
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
Dolly M. Gee, Regional Coordinator
[1] Just before the Convention began, employees of the Four Seasons Hotel engaged in a strike action. In deference to the striking employees and in order to avoid patronizing the establishment during the period of the strike, the IBT reserved rooms at the Bellevue Hotel at the last minute. As a result, the IBT was required to pre-pay the charges for the rooms at the Bellevue.
[2] If an individual was attending “solely on behalf of the Carey campaign,” neither the IBT nor a local union could pay this individual’s convention-related expenses. The following discussion includes references to local union reimbursement to the IBT in order to fully comply with the Election Appeals Master’s remand order.
[3] The IBT guest policy granted to any member who so desired, the privilege of observing the Convention proceedings and to be seated as a guest on a “first come-first served” basis. All members attending as guests were further permitted to utilize such services as the “Convention Housing Service” in arranging for hotel accommodations and the group bus transportation to and from the Convention site. Under the policy, union funds could be used to pay the expenses of a guest if attendance at the Convention was “reasonably related to the business of the Convention and the payment of such expenses are authorized by the Local Union’s or the affiliate’s Bylaws.”
[4] The investigation revealed that Remilde Ferguson and Robert Tull, two elected delegates from Local Union 237 had reservations at the Bellevue. Local Union 237's payment to the IBT on November 25, 1996 for $16,856.25 included reimbursement for Ms. Ferguson and Mr. Tull’s hotel charges. Although Mr. Tull ultimately did not stay at the Bellevue, the IBT billed Local Union 237 for one night’s stay for the guaranteed reservation.
[5] The IBT initially billed Local Union 743 for reimbursement for one of its delegates also named Sam Hall. Similarly, the IBT initially billed Local Union 1135 for reimbursement for the accommodations of its delegate who also had the last name of Stryker.
[6] Subsequently, based on a review of the Bellevue’s records, Local Union 952 is contending that it was over billed for Mr. Newman’s room charges.
[7] Local Union 952 is disputing the charges for Ms. Barnes and Ms. Carlin since neither stayed at the Bellevue.
[8] Initially, the IBT sent an invoice to Local Union 726 for reimbursement for one of its delegates also named Jim King.
[9] A review of November Group bills demonstrates that there were no bills sent to the Carey Campaign for any campaign work done during the IBT Convention period.