December 1, 1998
VIA FIRST CLASS MAIL
Ken Mee
December 1, 1998
Page 1
Ken Mee
42356 Greenbrier Park Drive
Fremont, CA 94538
Bradley T. Raymond, Esq.
Finkel, Whitefield, Selik,
Raymond, Ferrara & Feldman
32300 Northwestern Highway
Suite 200
Farmington Hills, MI 48334
James P. Hoffa
2593 Hounds Chase
Troy, MI 48098
Jane Slaughter
Metrotimes
733 St. Antoine Street
Detroit, MI 48226
Ken Mee
December 1, 1998
Page 1
Re: Election Office Case No. PR-298-LU287-EOH
Gentlemen:
Ken Mee, a member of Local Union 287 and candidate for Western Region vice-president on the Tom Leedham “Rank and File Power” Slate, 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 Hoffa, a candidate for general president. The protester contends that an article entitled, “Hoffa’s big backers,” which appeared in the Detroit, Michigan publication Metrotimes on September 16, 1998, reveals numerous violations of the Rules by Mr. Hoffa and his campaign. Based on the article, the protester alleges that Mr. Hoffa has solicited and accepted hundreds of thousands of dollars in contributions from law firms that are statutory employers who regularly represent employers against unions and union members; that lawyers retained by the Hoffa Campaign lobby Congress extensively; and, that Mr. Hoffa has reported $650,000 in cash in his legal and accounting fund, however, the law firm of Finkel Whitefield has been unable to receive compensation for an overdue bill of $40,796 as of July 1998. The protester also questions whether Mr. Hoffa’s attorneys may properly donate such legal services to Mr. Hoffa’s legal and accounting fund.
The protester asserts that the reporter Jane Slaughter uncovered information that
Ken Mee
December 1, 1998
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Mr. Hoffa has promised Richard Leebove a position with the IBT when Mr. Hoffa is elected, even though the Election Officer and Judge Edelstein have prohibited Mr. Leebove from providing any services or assistance to Mr. Hoffa and his campaign for the International Officer Rerun Election. The protester notes that the article indicates that various companies are contributing heavily to Mr. Hoffa’s legal and accounting fund in exchange for consideration for future business with the IBT after Mr. Hoffa is elected general president. The protester contends that contributions to Mr. Hoffa’s legal and accounting fund from companies seeking to curry favor with Mr. Hoffa for future business is contrary to the intended purpose of the fund to enable candidates and their campaign to procure free legal and accounting services. The protester requests the Election Officer to conduct a through investigation of Mr. Hoffa’s legal and accounting fund on the basis of this article.
Mr. Hoffa maintains that the article in question contains a number of misstatements and distortions. Mr. Hoffa asserts that Ms. Slaughter did not interview anyone associated with his campaign or any his attorneys, namely, Robert Baptiste, Patrick Szymanski and Bradley Raymond. Mr. Hoffa notes that Ken Paff and Steve Trossman are the only persons cited in the article as having provided information to the reporter, and Messrs. Paff and Trossman are directly associated with the protester’s slate. Mr. Hoffa notes that there have been a number of challenges to his legal and accounting fund that have been found to be without merit. Mr. Hoffa maintains that the protester does not specify what information should be investigated by the Election Officer and that the claims made in this article do not justify any further inquiry.
The protest was investigated by Election Office Staff Attorney Kathryn A. Naylor.
The article primarily focuses on contributors to Mr. Hoffa’s legal and accounting fund. The article reads in pertinent part:
[A] slew of attorneys, apparently eager to curry favor with the front-runner, have kicked in half a million dollars in cash and credit to Hoffa’s bulging war chest, according to documents filed with the federal government.
Hoffa’s legal and accounting fund has taken in almost $650,000 in cash and services. To work through all that, Hoffa has used lawyers extensively to lobby Congress; and to file hundreds of protests with the government against his opponent, Tom Leedham, and the reform caucus that supports him, Teamsters for a Democratic Union (TDU)
The Farmington Hills firm of Finkel, Whitefield (which had failed to collect $40,796 worth of Hoffa’s bills as of July) this month officially protested a long-standing TDU raffle. Finkel, Whitefield represents many employers against the union.
Ken Mee
December 1, 1998
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One of the fund’s largest contributors is the firm of Robert Baptiste, a Washington attorney and former general counsel of the Teamsters. According to reports filed by Hoffa’s campaign, Baptiste has donated $149,327 in unpaid services.
Hoffa has already shown that he understands tit for tat. He has publicly promised a job to one employer/donor, Richard Leebove, who the government monitor kicked out of the Hoffa campaign. Hoffa was fined $167,650 for accepting Leebove’s PR services for free. (Leebove now works for Geoffrey Fieger, and Fieger’s law firm has handled legal work for Hoffa.)
It’s not just lawyers who are donating and stand to reap Teamster business should Hoffa win the election. Various companies – from industrial health clinics to health management firms to a Birmingham “trinket sales” outfit – also have their eyes on future patronage.
Donations [to Leedham’s legal and accounting fund] have come from retired Teamsters, family members of Teamsters, and liberal professors, in amounts usually in the $25 to $100 range. Said Trossman, “We won’t accept donations of any kind from corporations or big business. Hoffa seems willing to take money from anybody who’s got a checkbook.
Candidates may solicit and accept unlimited financial support from non-members or disinterested employers[1] to pay fees for legal or accounting services performed in assuring compliance with applicable election laws, rules or other requirements, or in securing, defending, or clarifying legal rights of candidates subject to the requirements of Article XII, Section 1(b)(2) of the Rules. Similarly, all legal and accounting services that are donated by legal and accounting professionals for these purposes are considered permissible in-kind contributions to the candidate’s legal and accounting fund. Additionally, foundations, trusts or similar entities may also contribute to such a segregated fund for these purposes only. See United Steelworkers of America v. Sadlowski, 457 U.S. 102 (1982).
Ken Mee
December 1, 1998
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In accordance with the Rules, Mr. Hoffa may solicit and accept donations from employers as long as such employers are disinterested as defined above. The article does not reveal any evidence that Mr. Hoffa is accepting donations from interested employers in violation of the Rules. Furthermore, Mr. Hoffa’s attorneys may provide unlimited donations of their legal services to ensure compliance with election rules or otherwise to secure, defend, or clarify Mr. Hoffa’s legal rights as a candidate under the Rules. In this regard, the use of legal and accounting funds to pay for legal fees that were incurred as a result of Mr. Hoffa’s efforts to lobby Congress regarding an inquiry into various facets of the 1996 International Officer Election and the supervision and funding of the International Officer Rerun Election is not inconsistent with the Rules and Advisory on Campaign Contributions and Disclosure, (December 14, 1995, as revised November 1997).
In In re Carey Slate, PR-35-EOH (Post-47-EOH) (April 27, 1998), aff’d, 98 - Elec. App. - 348 (KC) (May 15, 1998), the Election Officer ordered Mr. Leebove and RL Communications not to perform any work for or against any candidate, bill or receive monies or incur a debt for election-related work for the duration of the International officer election. The article does not reveal any evidence that Mr. Leebove or Mr. Hoffa has violated the Election Officer’s order in this regard.
Based on the foregoing, the Election Officer does not find that an investigation of Mr. Hoffa’s legal and accounting fund is warranted on the basis of the statements made in the Metrotimes article. The Election Officer is currently auditing the Hoffa Campaign’s funds, including the legal and accounting fund. A report of the Election Officer audits will be issued after the election. Further, the protester has failed to produce any other evidence in support of his allegations.
The Election Officer has consistently denied protests when the protester offers no evidence to corroborate and support allegations. Hoffa, PR-081-IBT-NCE (May 13, 1998). The protester bears the burden of proof to present evidence that a violation has occurred. Rules, Article XIV, Section 1.
Accordingly, the protest is DENIED.
Any interested party not satisfied with this determination may request a hearing before the Election Appeals Master within one (1) 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
Ken Mee
December 1, 1998
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Copies of the request for hearing must be served on the parties listed above as well as upon the Election Officer, 444 North Capitol Street, NW, Suite 445, Washington, DC 20001, Facsimile (202) 624-3525. A copy of the protest must accompany the request for a hearing.
Sincerely,
Michael G. Cherkasky
Election Officer
cc: Kenneth Conboy, Election Appeals Master
[1]A disinterested employer is one that is not a party, or member of an association which is a party to a collective bargaining agreement with the Union and any employer, and which is not, or since January 1, 1992, has not been, the subject of an organizing campaign by the Union. Disinterested employer includes labor organizations besides the IBT or any subordinate body.