Appendix — Teamsters v. Daniel
Supreme Court brief1979
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APPENDIX
) MAY 18 1978
‘ 4
@ aoe : - «il
In THE
Supreme Court of the United States
OCTOBER TERM, 1977
No. 77-753
INTERNATIONAL BROTHERHOOD OF
TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN
AND HELPERS OF AMERICA,
Petitioner,
v.
JOHN DANIEL,
Respondent.
No. 77-754
LOCAL 705, INTERNATIONAL BROTHERHOOD OF
TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN
AND HELPERS OF AMERICA,
AND LOUIS F. PEICK,
Petitioners,
v.
JOHN DANIEL,
Respondent.
On Warr or CERTIORARI TO THE UnNtrep Srares
Court or APPEALs Fos THE SEVENTH Crmcurr
PETITIONS FOR CERTIORARI FILED NOVEMBER 25, 1977
CERTIORARI GRANTED FEBRUARY 21, 1978
TABLE OF CONTENTS
PAGE
ane SEO Re Nee eEEN STN aa
CIE oacccc ese scctsncsinsiseninninesttinenngemmninninceniatinpaianectnigianas 24a
Motion of Defendants Local 705, ete., and Louis F.
S°ecneck Leo UDassonntssss (ressnngobsagset .............2-....00.-cccecsesosseseneses 49a
Exhibit 1—Aflidavit of Louis F. Peick .-.............. d3a
Exhibit 1A—Local 705 Trust Agreement ............ 62a
Exhibit 1B—Amended Trust Agreement .............. 64a
Kexhibit 1C—Letter of April 22, 1955 -.00.... 66a
iExhibit 1D—1958 Local 705 Health & Welfare
and Pension Funds Booklet ............ 68a
Exhibit 1M—1969 Local 705 Health & Welfare
and Pension Funds Booklet ............ 70a
exhibit 1F—1973 Local 705 Pension Plan Book-
BR cceeresnnetenpinremarmnemeninianntinnmpiinatin 72a
Kxhibit 14—Letter of July 23, 1974 —...00... 74a
Exhibit 111—Letter of June 11, 1971 -~.....2.0...... 76a
Exhibit 11—Letters of March 18, 1974 and April
Oh WR acres access cates 78a
Answer to Complaint filed by Defendant-Interna-
tional Brotherhood of Teamsters (“IBT”) —...020.. 80a
Motion of Defendant 1BY.to Dismiss Counts land Ll 88a
Corrected Amendment to Complaint (Count V1) ....... 89a
Answer of Defendant LBT to Corrected Count V1... 94a
PAGE
Motion for Plaintiff Class Action Certification ............ 98a
Motion for Defendant Class Action Certification ...... 100a
Amendment to Plaintiff’s Motion for Defendant Class
I 102a
Second Amendment to the Complaint — 2000000000000... 103a
Minute Order, Memorandum Opinion and Order en-
GR SS RS ee eee ee 105a
Affidavit of Joseph EB, Deana .20002.2..............ccescssecsceceeessee 135a
Motion of Local 705, ete. to Vacate or Amend Order
of Marek isé ............... accnsessnsusensesssnsupseresneynstnenecenmnswerercees 144a
Motion of IBT to Reconsider and Vacate, or Amend
SE OE TN TN eaieenecicstinsaanidliinianindied: 147a
Transcript of Proceedings on April 13, 1976 ................ 149a
Minute Order of April 13, 1976 220... eccesesececeeeseeeee 159a
Minute Order of April 19, 1976 20 eee 16la
Order Entered April 19, 1976 ............... .... 162a
Motion of Additional Defendants to Dismiss ............ 164a
Opposition of Local 705 Defendants to Requested
es OL ae ee 167a
Exhibit 1—Affidavit of A.S. Hansen, Ine, ............ 169a
Affidavit of Joseph W. Ballew 00.00.00 ee ceccceecceeecoeeee 194a
PAGE
Order of U.S. Court of Appeals Granting Permission
BP III. sesisicnimveissengstituenceraniapennactinibnngattiviniiiaiinibitiaioans 199a
Affidavit of Cramer M. Gilmore ID .0000000000 ee. 201la
Exlibit A—Service Requirements for Retirement
Benefits of Certain Teamster Pen-
SE TED icicinsttacnopuinieitiendinidinsetia tebe 206a
Exhibit B—Register of Retirement Benefit Plans 208a
Opinion of United States Court of Appeals for the
NE NT
Order Granting Certiorari —........... iahtineatblenetadbdaelnilghiacunetn 263a
DATE
10—- 3-74
10- 3-74
10- 3-74
10— 3-74
10- 4-74
10-16-74
10-22-74
10-25-74
10-29-74
11-11-74
11-14-74
Docket Entries
PROCEEDINGS
Filed complaint and 3 copies.
Filed Designation.
Filed Affidavit under General Rule 39.
Filed Contingency Fee Agreement.
Issued summons and 3 copies with 3 copies as
to Teamsters local No. 705, Teamsters Inter-
national, D. C., and Louis Peick.
Filed Marshal’s return on summons returned
served as to International Brotherhood of Team-
sters, Chauffeurs, Warchousemen & Helpers of
America Local 705 and Louis Peick (2 Services).
Filed Marshal’s return on summons returned
served as to International Brotherhood of
Teamsters, Chauffeurs, Warehousemen & Help-
ers of America.
Filed stipulation to extend time.
Enter order dated 10-25-74:—Enter order to
extend time from October 29, 1974 through No-
vember 14, 1974 within which defendants Local
705 I. B. of T. and Louis E. Peick May plead
to the complaint per stipulation. Austin, J.
Mailed notices 10-29-74.
Enter order dated November 8, 1974; pursuant
to General Order entered December 20, 1966,
cause set for pretrial conference on January 31,
1975 at 9:30 a.m. in chambers, Room 2588.
Austin, J. Mailed notices 11-11-74.
Filed stipulation.
la
Date
11-14-74
11-22 74
11-25-74
11-29-74
11-29-74
11-29-74
11-29-74
12- 2-74
12- 6-74
Qa
Docket Entries
Enter order dated 11.14-74)-Bnter order on
stipulation of all parties to extend time from
November 14, 1974 through November 22, 1974
in which all defendants may anewer or other-
wise plead to the complaint, granted, Lynch, J.
Mailed notices 11-14-74,
Filed notice and motion of defendants to dis.
mise,
Enter order dated 11.22.74)—Motion of defen.
dants Local 705 LB. of T. and Louis F. Peick
to dismiss the complaint taken under advise.
ment. Leave to said defendants to file enpport.
ing brief in 10 days, Leave to plaintiff to fle
reaponsive brief in 10 daye thereafter and leave
to defendants to file reply in 5 daye thereafter,
Auatin, J. Mailed notices 11.25.74,
Filed appearance of defendant with that of
Rernard Weisberg as attorney.
Filed Affidavit under General Rule 99,
Filed stipulation of counsel,
Filed answer to complaint.
Enter order dated 11-29-74; Enter order that
the motion of defendant International Brother.
hood of Teamsters for leave to filo inatanter ite
anawer to the complaint, pursuant to etipula.
tion of the parties, is granted, Lynch, J. Mailed
notices 12-2-74,
Filed Brief in support of defendant's motion to
diamisa fled by Defendants Local 705 and Louis
F. Peick.
12-20-74
12-23-74
1-20-75
1-20-75
1-20-75
1-22-75
3a
Docket Eutrics
Filed defendants notice of motion with motion
for leave to file brief exceeding fifteen pages.
Enter order dated December 6, 1974: Motion
for leave to file Brief excecding fifteen pages
granted, Time of plaintiff? to file reeponsive
brief oxtonded an additional 20 days and leave
to defendants to reply in 5 days thereafter.
Austin, J. Mailed notices 129.74,
Filed plaintiff's Notice of Motion, Stipulation
and Motion to extend time for Ming memo.
randum,
Enter order dated 12-20-74) Motion and «tipu
lation to extend time for Ming memorandum
opposing motion to dismiae of Teametera Local
and for leave to file enlarged memorandum and
other relief to and including January 20, 1975.
Avetirx, J. Mailed Notices 12-23-74,
Filed Defendant's Notice.
Filed Motion of defendant International Bro-
— of Teamsters to Dismiss Counts T and
Filed Plaintiff's Notice of lotion and Motion
to extend time for Ming bevel.
Enter order dated January 20, 1975; Leave to
plaintiff? to file memorandum in opposition to
motion of Local 705 to diamisa on or before
January 31, 1975 and the time of Local 705 to
reply extended to February 6, 1975. Pre-stipu-
lation leave to defendant International Brother.
hood to file memorandum in support of motion
to dismiss in 14 days. Leave to defendant Inter.
1-22-75
1-30-75
1-30-75
1-30-75
1-30-75
1-20-75
1-30-75
2- 3-75
2- +75
4a
Docket Funtrice
national Brotherhood to file motion to dismiss
counts IT and II of complaint instanter, Cause
continued to February 24, 1975 for status report.
(Daart) Averiw, J, Mailed notices 1-22-75,
Enter order dated January 21, 1975; Pre-trial
conference acheduled for January 31, 1975 is
cancelled, Avert, J. Mailed notices 1-22-75.
Filed piaintiff's notice of motion,
Filed plaintiff's motion to file his amendment to
complaint by adding an additional count VI to
the complaint.
Filed stipulation.
Filed plaintiff's motion to extend time for plain.
tiff to file hie brief in opposition to defendant
Local 705 motion and memorandum to diemies
complaint.
Filed stipulation.
Filed amend[ment]) to complaint.
Enter order dated 1.30.75; Por stipulation leave
to plaintiff to file amendment to complaint in-
stanter, Per stipulation leave to file plaintiff's
brief in opposition to motion of defendant Local
705 to diemise on or before February 7, 1975;
Leave to plaintiff to Mle motion to dismiss de.
fondant International Teamatore Union without
prejudice and hearing thereon continued to
February 24, 1975.—Anatin, J. Mailed notices
1.31.75.
Filed Notice of motion for leave to file brief.
paTR
2 4-75
2 5-75
1-30-75
1-30-75
2. 7-75
2 7-75
2- 7-75
2- 7-75
2-10-75
5a
Docket Entries
Filed Memorandum of International Brother.
hood of Teamsters in support of ite motion to
diemies counts IT and Il of the complaint.
Knter order dated 2.4.75; Motion for leave to
defendant to file brief in excess of 15 pages
granted, Leave to plaintiff to file reeponsive
brief in 10 days and leave to defendant to reply
in 7 days thereafter, Cause removed from etatuea
call for February 24, 1975 and continued to
March 5, 1975 for a status report.—Averim, J,
Filed motion of plaintiff to voluntarily diemias
defendant International tenmatere from this ac.
tion without prejudice and enpporting brief.
Filed stipulation of the partion local 705 & de.
fendant Peick,
Filed plaintiffs notice of motion,
Filed plaintiffs motion to extend time to file his
brief in opposition to defendant Loeal 705 mo-
tion and memorandum to diamiss complaint and
for leave to file corrected amendment to com.
plaint.
Filed Stipulation re extension of time and
memorandum to file brief.
Filed plaintiffs corrected amendment to com.
plaint.
Enter order dated February 7, 1975: Puranant
to stipulation time of plaintiff to file meomo-
randum in opposition of motion to diemiee ex.
tended to February 10, 1975, and leave granted
to plaintiff to file brief in excess of 15 pages.
Austin, J. Mailed notices 2/10/75,
parr
2-10.75
2-10-75
2-10-75
2-12-75
2-18-75
2-18-75
2-18-75
2-19-75
2.1875
2-18-74
218-75
Docket BRutrica
PROCHEDI Noe
inter order dated February 7, 1975) Motion to
exten! tine to file brief and to file corrected
amendment to complaint inetanter, granted,
Auatin, J, Mailed notices 2/10/75,
Filed affidavit of John Th. Daniel,
Filed Plaintiffa brief in opposition to defen-
dante motion to diamines.
Filed defendant Tnternational Brotherhood of
Teamaters’ notice of taking deposition of plain-
tiff.
Filed Plaintiff's memorandum in opposition to
defendant Titernational Brotherhood of Team
store’ memorandum in enpport of ite motion to
diamiee Counts T and TT of the complaint,
Filed reply brief of defendant Local 705 et al
in support of motion to dienes,
Filed defendants notice of motion with motion
to withdraw «tipulution to diemiee Tat rat
Nrotherhoo! Teameters ae party defendant,
Pinter order dated February 18, 1975: On the
courte own motion efatue report reecheduled
for February 24, 1975 ie eaneelled,
Filed plaintiffe notice of motion,
Filed plaintiffe motion to Ale inatanter brief
opnosition to defemlont Trternatl Brotherhood
of Teametor« meomorandim in enppert of motion
to diamies counts T awl TT of the complaint,
Filed plaintiffe motion to eet briefing echedule,
DaTR
2-18-75
2-19-75
2-19-75
2-27-75
2-28-75
2-27-75
7a
Docket Entries
Filed plaintiffs motion to defer deposition of
plaintiff John Daniel.
Enter order dated February 18, 1975; Leave to
plaintiff to file brief in opposition to Interna.
tional Teametere motion to diemiae on or before
February 19, 1975 and leave to file reply thereto
on or before February 26, 1975, Plaintiffs mo-
tion to aet briefing schedule for plaintiffe motion
to dismiss denied, Motion plaintiff to defer
deposition of John Daniel ie denied and anid
deposition is limited to jaene of clase action and
leave ia granted to all partion in thie netion to
participate in eald deposition, Awetin, 7, Mailed
notices 2/19/75,
Fnter order dated February 18, 1975; Motion
of defendants 705 and Louise FP, Peick to with.
draw atipnlation to diemiea International Broth.
erhood of Toamatore wranted without objection.
Anatin, J. Mailed notices 2/19/75,
Filed defendant's Notice,
Enter order dated February 27, 1975; Motion
of defendant International Brotherhood of
Teamators for leave to file inatanter Reply Briof
20 pages in length in enpport of ite pending
Motion to Diemiea Counte T and TT eranted.,
Statue report set for March 5, 1975 ie roset for
March 12, 1975, Auetin, J. Notice mailed
2/28/75,
Filed reply brief of defendant, Trternational
Brotherhood of Teameters, Chauffeurs, Ware.
housemen & Helpers of Amerien in enpport of
ite motion to diemiss counte IT and Il of the
complaint.
DaTR
3~ 575
a 5-75
B~ be 75
4~ 17h
9. 5-75
9- 5-75
a 7-75
Ae 7-75
f- 7-76
4-10-75
Docket Entries
PROCEEDI NOR
Filed Notice of Motion,
Filed plaintiff's Motion for leave to file.
Kiled Supplemental Memorandum of plaintiffs
in Opposition to defendant International Broth-
erhoml of Teameters motion to dismiss counts
T and I of the complaint,
Enter order dated 3.5.75. Motion of plaintiff
for leave to Mile inetonter a 4 page brief memo-
randam in reeponee to new of inappropriate
mattere raivod bw defendant, Teamsters Inter-
national in ite reply brief, granted, Austin, J.
Mailed Notices 3.6.75,
Filed Notice.
Filed Motion of defendant Teamsters Interna-
tional for motion on plaintiff to appear for his
deposition on Tuesday, Mareh 11, 1975.
Pinter order dated 4.5.75. Motion argued. Leave
aranted to withdraw motion..Avetin J. Mailed
Notices 3.7.75,
Filed defendanta notice of motion re leave to
file reply to plaintiffe additional memorandum
ote.
Filed stipulation for plaintiff te withdraw his
supplemental memoramtimn in opposition to de-
fendant INT motion to diemies,
Finter order dated Mareh 7. 1975: Motion of
defendant Tenametere Tnternational for leave to
file inetanter (1) ite anewer to plaintiffs cor-
rected amendment to the complaint and (2) its
reply to plaintiffe additional memorandum op-
posing the motion to diemias, granted. Austin, J.
Mailed notices 3/10/75.
DATE
3-10-75
3-10-75
3- 7-75
3-11-75
3-14-75
3-14-75
9a
Docket Entries
PROCEEDINGS
Enter order dated March 7, 1975. Motion pur-
suant to stipulation to permit plaintiff to with-
draw his supplemental memorandum filed March
5, 1975 and for the same to be stricken and dis-
regarded by the Court, granted. Austin, J,
Mailed notices 3/10/75.
Enter order dated March 7, 1975: On the courts
own motion, the status report set for March
12, 1975 is cancelled. Austin J. Mailed notices
3/10/75.
Filed answer of defendant International Broth-
erhood to corrected count VI of complaint.
Enter order dated March 4, 1975: Ir 1s Heresy
ORDERED that this cause is reassigned to the
calendar of Judge Flaum from the calendar of
Judge Austin in exchange for 74 C 570 and
74 C 1892-1902.
Enter order dated March 3, 1975: This matter
is transferred to the Executive Committee with
the recommendation that it be reassigned to
the calendar of Judge Flaum in return for
twelve related cases received from _ him.
Austin, J. Mailed notices 3/14/75.
Enter order dated March 5, 1975: The above
captioned case is presently pending on my
calendar. I recommend that the Executive Com-
mittee assign it to the calendar of Judge Flaum
for the reason indicated below. Anstin, JJ.
Enter order dated March 10, 1975: It is hereby
ordered that the above captioned case be and the
same is hereby reassigned to the calendar of
Judge Flaum for the reason indicated above.
Robson, J. for the executive committee. Mailed
notices 3/14/75.
10a
Docket Entries
DATE PROCEEDINUS
3-12--75 Filed Notice.
3-12-75 Filed defendant International Brotherhood of
Teamsters, Chauffeurs, Warehousemen &
Helpers of America’s Motion for simultaneous
consideration of class certification issues and
plaintiff’s motion to voluntarily dismiss Inter-
national Teamsters.
3-12-75 .Filed Memorandum in support of motion for
simultaneous ete.
3-12-75 Filed plaintiff’s motion to withdraw stipulation
to withdraw supplemental memorandum of
plaintiff's in opposition to defendant Teamsters’
International motion to dismiss counts T and IT
of the complaint.
3-18-75 Enter order dated 3-12-75: The above captioned
ease is presently pending on my calendar. I
recommend that the Executive Committee assign
it to the ealendar of .Jndge Austin for the reason
indicated below. Flaum, J. Enter order dated
3-17-75: Ir Is H[eneny Orperep that the above
captioned cause be and the same is hereby
reassigned to the calendar of Judge Austin for
the reason indicated above. Witt, J. Mailed
Notices 3-18-75.
4— 9-75 Enter order dated April 9, 1975. The motion
for class certification is taken under Local Rule
13 for briefing. Plaintiff is granted 10 days to
file a memorandum in support of class certifica-
tion, defendants are granted 10 days thereafter
to reply. The motion to voluntarily dismiss
International Teamsters is also taken under
Local Rule 13. Austin, J. Mailed notices 4-9-75.
DATE
4-22-75
4-22-75
4-22-75
4-23-75
4-28-75
lla
Docket Entries
PROCEEDINGS
Filed Plaintiffs notice of motion.
Filed Plaintiffs motion to defer the filing of a
memorandum and motion with respect to class
issues, ete.
Filed Memorandum in support of plaintiffs
motion to defer the filing of a memorandun and
motion with respect to class issues, ete.
Enter order dated April 22, 1975. Order leave
plaintiff to file first wave and class interrog-
atories within 14 days, said interrogatories are
limited to 20 questions. Plaintiffs memo with
respect to class issues to be filed within 60 days,
defendants’ answering memo and answering
memo re motion to dismiss to be filed within 20
days thereafter. Will, J. Mailed notices 4-23-75.
Enter order dated April 16, 1975. This matter
is transferred to the Executive Committee with
the recommendation that it be reassigned to the
calendar of Judge Marovitz in return for the
Bresler Ice Cream Co. Cases, 73 C 1397, 73 C
2777, and 74 C 1668. Austin, J. Mailed notices
4-28-75.
(a) Enter order dated April 18, 1975. Onperep
transfer of case to the exeentive committee
for reassignment for return for the Bresler
Ice Cream cases, 73 C 1397, 73 C 2777 and
74 C 1668, Austin, J.
(b) Enter order dated April 23, 1975: Onrnrrep
that this case be and the same is hereby
reassigned to the calendar of Judge Maro-
vitz, for the reason indicated in (a). For
The Executive Committee, Parsons, .J.
Mailed notices 4-28-75 (Reassianep To
JupGE MaroviTz).
DATE
5- 6-75
o- 7-75
l2a
Docket Entries
PROCEEDINGS
Filed plaintiff’s consolidated interrogatories to
defendants International Brotherhood of Team-
sters, Chauffeurs, Warehousemen and Telpers
of America, etc., et al. Set No. 1.
Filed plaintiff’s notice of motion with motion
for entry of order of this court allowing him to
file first wave of interrogatories as of May 6,
1975.
Enter order dated May 7, 1975. Enter order
granting motion of plaintiff for entry of an
order of this court allowing him to file first wave
of interrogatories as of May 6, 1975, the date
of actual filing, which date is 2 days later than
heretofore authorized by order of court. Time
to answer or object is extended to August 18,
1975. Leave is granted plaintiff to file reply
brief to defendants reply brief. Motions to
dismiss the complaint are set for disposition on
July 18, 1975 at 10:00 a.m.—Marovitz, J. Mailed
notices 5-8-75.
Filed notice.
Filed defendant, Teamsters International’s mo-
tion to correct minute order entered May 7, 1975
to show plaintiff's motion for leave to file inter-
rogatories withdrawn, not granted.
«
Enter order dated May 22, 1975. Enter order
granting motion of defendant Teamsters Inter-
national to correct minute order of May 7, 1975
to show motion of plaintiff for leave to file inter-
rogatories withdrawn, not granted. Marovitz, J.
Mailed notices 5-23-75,
DATE
6— 6-75
7-17-75
7-22-75
9-22-75
9-19-75
10- 9-75
10- 9-75
10-10-75
10- 9-75
10—- 9-75
13a
Docket Entries
PROCEEDINGS
Filed deposition of John B. Daniel.
Clerk’s file copy of transcript of proceedings had
before Honorable Hubert L. Will on April 22,
1975, filed by official court reporter.
Enter order dated July 18, 1975. Order cause is
continued for disposition of motions to dismiss
on November 21, 1975 at 11:00 a.m. Marovitz, J.
Mailed notices 7-22-75.
Enter order dated September 22, 1975. On
court’s own motion, order cause set for status
report on October 10, 1975 at 10:00 a.m. McGarr,
J. Mailed notices 9-22-75.
Order cause reassigned to Jupcze McGarr
(DRAFT)—The Executive Committee. _
Filed motion for plaintiff class action certifica-
tion.
Filed motion for defendant class action certifi-
cation.
Enter order dated October 9, 1975. Motion for
plaintiff class action certification and motion
for defendant class action certification are en-
tered and continued generally. Status report
set for October 10, 1975 is vacated. McGarr, J.
Mailed notices 10-10-75.
Filed defendants’ notice.
Filed defendants’ supplemental memorandum of
defendant International Brotherhood of Team-
sters in support of its motion to dismiss Counts
I and II of the complaint.
DATE
10-10-75
10-10-75
*.
10-15-75
10-20-75
10-21-74
10-30-75
l4a
Docket Entries
PROCFEDINGS
Enter order dated October 9, 1975. Enter order:
motion of defendant Teamster International for
leave to file instanter supplemental memo-
randum in support of its pending motion to dis-
miss Counts I and IT is granted. MeGarr, J.
Mailed notices 10-10-75.
(A) Enter order dated October 8, 1975: OrperEn
transfer of case to the Exeeutive Committee for
reassignment for reasons indicated on letter at-
tavhed, to this order. MeGarr, J. (B) Enter
order dated October 8, 1975: Orperen that this
cause be reassigned to Judge Austin for the
reason indicated on letter attached to order.
Enter for the Executive Committee—Parson,
C.J. Mailed notices 10-10-75. (Rrassianep To
Jupaz Austin)
Order cause reassigned to Kirkuanp. (Drarr)—
The Executive Committee.
Filed plaintilfs notice of motion with motion to
vacate order allowing defendant Teamsters Tn-
ternational io file supplemental memorandum
and to enter order continuing such matter gen-
erally.
Enter order dated October 20, 1975: Plaintiffs
motion to vaente order allowing defendant
Teamsters International to file supplemental
memorandunt entered and continued before the
Judge to whom this case will be reassigned.
Will, J. Mailed notiees 10-21-75,
Filed defendants notice.
DATE
10-31-75
12- 1-75
12- 3-75
12-18-75
12-18-75
12-18-75
12-18-75
12-19-75
l5a
Docket Entries
PROCEEDINGS
Enter order dated October 30, 1975. Ordered
that cause is continued to December 2, 1975 for
a report on status.—Kirkland, J. Mailed notices
10-31-75.
Filed plaintiff's consolidated interrogatories to
defendants’ Set No. 1.
Enter order dated 12-2-75, Cause is continued to
December 18, 1975 for a further status report.
Krexianp, J. Mailed notices 12-3-75.
Filed defendant’s notice.
Filed defendants Local 705 and Peick’s notice
or motion; Motion of defendants that the court
reject the plaintiffs first set of consolidated
interrogatories or that their responses be stayed.
Filed Plaintiff’s reply memorandum in opposi-
tion to defendant International Brotherhood of
the Teamsters’ motion to dismiss Counts I and
II of the complaint.
Filed defendant Teamsters International to
strike plaintiff's first set of interrogatories.
Enter order dated 12-18-75; Defendants’ motion
to strike plaintiff's interrogatories is to be
briefed on a simultaneous schedule to plaintiffs
motion to certify class. The movants in each
motion are to file first brief January 17, 1976,
respective answer briefs are due 20 days there-
after and reply briefs 10 days iater. Cause is
continued to May 4, 1976 for report on status.—
Krexianp, J. Mailed notices 12-19-75.
DaTR
12-19-75
12-175
1<27~-71i
1-28-76
1-27-74
1-27-74
1-28-7143
16a
Docket Entries
PROCKRDINGOS
Enter order dated 12-18-75; Filed Memorandum
A ( er en order of procedure in the
above-ontitled cnuse—Kinktayo, J. Mal :
inoo enna nailed no
Filed Memorandum of Court.
Kiled plaintifts notice of motion with motion
to allow jiling instanter plaintiff's addition te
the defendant Class motion heretofore fled.
Enter order dated 1.27.76; Motion to allow filing
instanter plaintiff's addition to the defendant
class motion heretofore Aled js granted, Previ.
ously set status date of May 4, 1976 remaine in
effect. The memorandum in support of plain.
tiffs motion for plaintiff and defendant class
action certification and determination pursuant
to Rule 23 of the FRCP is given a briefing
yy es . 0 _ ve defendants response and
ye for plaintiffs reply.-K
Mailed notivos 1.28.76 att wramlee
Filed plaintif's amendment to plaintiff. mo.
tion for defendant class certification.
pian? aarp of defendant Teamsters In
ernational in support of motion t ’
in tae 1 to etrike plain.
Enter order dated 1-27-76; Motion of defendant
International Brotherhood of Teamsters for
leave to Mle inatantor ite memorandum in «up.
port of ite motion to strike plaintiffs htennens
torios ix granted, Muaintife are to file anewerin
brief by February 16, 1976 and defendants er
Febraary 26, 1970 "reviously set status date
of May 4, wya renwine in off t
Mailed notlews 1.28.76. eet,” Kinktanp, J.
1-28-76
8 2-76
3 9-76
2-26-76
%- 3-76
17a
Docket Entries
Filed plaintiffs notice of motion with motion
for leave to file second amendment to complaint.
Filed plaintiff's second amendment to the com.
plaint.
Filed Memorandum in support of plaintiff's
motion for plaintiff and defendant class action
vertification and determination pursuant to Rule
23 of the FRCP.
Enter order dated 1-27-76; Plaintiffs motion for
leave to file second amendment to complaint in-
stanter is granted, Briefing schedule re-filing
of second amendment to complaint ie set at 20
days for a reaponse and 10 daye for a reply.
Previously sect statue date of May 4, 1976 re.
maine in effect. Krextann, J, Mailed notices
1.28.76.
Ieeved summons and nine copies with nine
copies of complaint to as to all defendants per
amended complaint.
Enter order dated 3.1.76; Buter Memorandum
opinion and order (Dnart) Defendants’ motions
to diamias the complaint are denied in their
entirety —Kmtann, J. Mailed notices 3-2-76,
Filed defendant Local 705 and Peick’s notice of
motion; Motion to extend time within which to
file their briefs with respect to the class action
and other issues.
Enter order dated 3-2-76; All parties are al-
lowed 20 days to file briefs or briefs in support
of motions already on file, Discovery matters
will be referred to a Magistrate. Kimxtano, J.
Mailed notices 3-3-76.
DATE
3- 3-76
3 9-76
3-15-76
3-15-76
3-16-76
18a
Docket Entries
PROCEEDINGS
Enter order dated 3-2-76; Defendant Teamsters
International are allowed an extension of time
of 20 days within which to file brief opposing
plaintiffs motion to certify a class, Kinxtann, J,
Mailed notices 3.3.76,
Enter order dated 3.3.76; Pursuant to Rule and
Rule 1.01 ©, this case is being referred to the
Executive Committee for referral to a Magis-
trate for the resolution of all pending and future
discovery matters, (b) It is hereby ordered that
the above captioned case be referred by lot to
& Magistrate of thie Court according to the
rules, Renssigned to Maotwrnare Sveaman,
Parsons, Chief Judge for Executive Committee.
Mailed notices 3.8.76,
Enter order dated 8.8.76; This mattor je eet for
status on Tuesday, April 27, 1976 at 9:90 a.m—
Svesmaw, M. Mailed noticos 3.0.76.
Enter order cated 9-15-76; Tt is hereby ordered
that the above captioned case be referred by lot
to a Magistrate of thie Court according to the
Rules, Pansows, J. Referred to Maotwrnate
Batoo, Mailed notivos 3-15-76,
Enter order dated 9.11.76. Tt appearing that
this cause was previously referred to a Mag.
istrate, it is hereby ordered that the order of
March 5, 1976 referring this cause to a magis.
trate according to the rules is vacated, Panao
J. Mailed notices 9.15.76, ——
Filed Plaintiff. Memorandum in opposition to
defendants’ motion and memorandum to «trike
plaintiff's interrogatories.
DATE
3-23-76
4-15-76
4-13-76
4-13-76
4-13-76
4-13-76
4-13-76
19a
Docket Entrics
PROCEEDINGS
Filed summons returned served on Local 705
Intern’) Bro’hood of Teoamatera, ote, Frank
Kraty, Bruno Fillipini, Peter Janopolous, Frank
Bridge, W. Bugene MeCarron, Ralph Nicders,
Sr. and M. W. Siewart, Jr.
Filed aMdavit of Joseph B. Dean,
Filed affidavit of Cramer M. Gilmore UT with
Exhibit A & B.
Filed defendant, Local 705 International Broth.
erhood of Teamatera, Chauffeurs, Warehouse
men, and Helpers of America’s brief in «npport
of their motion to vacate the court's March 1,
1976 order as it relates to Counte I and IL,
Filed defendants Local 705 International Broth.
erhood of Teamsters, ete, and Louie F. Peick's
yotice of motion with motion to vacate the
March 1, 1976 order and diemise Counts T & TI
of the complaint, or to amend the order to cer.
tify purenant to 28 USC Section 1292(1).
Filed defendant, International Brotherhood of
Teamsters ete, notice of Ming motion to recon.
sider the order of March 1, 1976,
Filed defendant, International Brotherhood of
Teamaters ote, motion (1) to reconsider the
Court's order of March 1, 1976, Re: Counts I
and TT, to vacate that order and enter an order
dismissing «aid counts; (TT) or, alternatively,
to amend anid order to provide for certification
pursnant to 28 U.S.C, Section 1292(b).
DaT®
4-14-76
4-19.76
4-21-76
4-21-76
20a
Docket Entries
Enter order dated April 13, 1976; Motions of
defendants’ for a review and reconsideration of
Court's order entered on or about March 1, 1976
are denied, Defendant International Brother.
hood of Teametera denied leave to file ite brief
to review and reconsider, Defendants have until
April 22, 1971) to file anewer brief re; clase cor.
tifeation, Reply brief due 30 daye thereafter,
Cause continued to April 16, 1976 for aubii«
sion of certain agreed order, Kirkland, J, Matled
notices 4-14.76,
Enter order dated April 19, 1976; Motions of
defendants for reconsideration of Court's order
of March 1, 1976 are denied, The alternative mo.
tions of defendants for amendment of Court's
order of March 1, 1976 are allowed, Motion of
defendant International Brotherhood of Team
sters that proceedings herein be ataved pending
interlocutory appeal i« denied, Kirkland, J.
(DRAFT) Mailed noticos 4.19.76,
Filed defendants’ notice of Mling appearance for
the additional defendants, those defendants’ Mo.
tion to Diemix«, all local defendante’ opposition
to the plaintiff's requested clase certifications.
and brief in support thereof.
Filed appearance of defendante W. Fngone Me.
Carron, Brano Fillippini, Prank Bridge, M. 7.
Siewert, Jr, Veter Janopolous, and Ralph Nic
dert, as Trustecs of the Local 705 International
Brotherhood of Tenwatera Pension Fund, and
Frank Kratky, and that of their attorney Sher.
man Carmell,
DATE
4-21-76
+ 21-76
+-21-76
4-22-76
4-22-76
4-22-76
4-28-76
6- &-76
2la
Docket Entries
Filed motion of additional defendants to dis.
mise the second amended complaint.
Filed opposition of defendant truatecs of the
Lovnal 705 pension fund and certain oMvers of
Local 705 to the plaintiffs requested lace cor.
tifleations.
Filed Local defendants’ brief in opposition to
the plaintiff's requested class certifications,
Filed aMdavit of Joseph W. Ballew.
Filed defendant International Brotherhood of
Teamsters’ motion for oral argument on clase
isenes pursuant to Local Rule 13(d),
Filed defendant International Brotherhood of
Teamsters’ memorandum in opposition to plain-
tiffs motion for certification of plaintiff and
defendant classes and with respect to plaintiff.
motion for voluntary diemiseal as to defendant
International Brotherhood of Teamsters,
Enter order dated April 27, 1976. Statue con.
ference held, Matter continued for further etatus
on Tuesday, June 15, 1976 at 9:00 am, Sues.
man, M. Mailed notices 428-76,
Filed plaintiff's notice of motion with motion
for extension of time to file memorandum in
response to defendants’ memorandum in oppo-
sition to plaintiff's motion for plaintiff's and de.
fendante’ clase action certification,
DATE
6- 9-76
6-18-76
6 24-76
22a
Docket Entries
PROCEEDINGS
Enter order dated June 8, 1976; Motion for ex-
tension of time to file plaintiff's memorandum in
response to defendants’ memorandum in opposi-
tion to plaintiffs motion for plaintiff's and de-
fendante’ clase action certification to July 31,
1976 ie @ranted, Ruling on motions to be ren-
dered by mail, Canee ie given a future status
report date of October 21, 1976. Kirkland, J.
Mailed notices 60-76,
Enter order dated 6.17 76, Order defendants to
make appropriate reaponees to interrogatories,
ete, Set for etatue on September 30, 1976 at
9:00 a.m, DRAVT, Sveataw, M, Mailed notices
6.18-76,
Filed certified copy of order from U.S.C.A. This
matter comes before the Court on the “Petition
for permission to appeal under 28 USC Sec.
1202(b): filed herein on May 3, 1976 by counsel
for the defendante-petitioners, The plaintiff-
respondent wae today «ranted permission to file
inetanter hie memorandum in response to the
aforeanid petition, Aleo as of this date, the
National Coordinating Committee for Multi-
employer Plane wae granted permission to file
an amiens curiae brief in support of the defen-
dant-petitioners’ petition for permission to
appeal, It is ordered that the defendants’ peti-
tioners’ petition for permission to appeal from
the interlocutory orders of March 1, 1976 and
April 19, 1976 ia hereby eranted, ($5.00 paid).
Tranemitted cowy of docket to U.S.C.A.—7th
Cirevit, and Mailed copy of certified copy of
order from U.S.C.A, to Lawrence Walner &
Asaoe., Peter J, Barack, Sherman Carmell, and
Sidney Dickstein.
DATB
6-25-76
7— 2-76
7-12-76
7-14-76
7-14-76
7-21-16
8- 4-76
8 4-76
8 6-76
8 4-76
8-27-76
23a
Docket Entries
PROCEEDINGS
Filed bond on appeal. ($250.00).
Filed defendant IBT description of transcript
ordered.
Filed motion of defendant I.B.T. for extension
of time for transmission of record on inter-
locutory appeal.
Enter order dated 7-12-76. Motion of Teamsters
International pursuant to Rule 11 (d) of Federal
Rules of Appellate procedure for two-week
extension to August 10, 1976 of time to transmit
record on appeal granted.—Grapy, J. Mailed
notices 7-14-76.
Filed answer of defendant IBT to plaintiff's
first set of interrogatories.
Filed Designation for full record on appeal.
Filed Notice.
Filed Motion to extend time to transmit record.
Enter order dated 8-4-76: Motion of defendant
LB.T. for extension of time until August 31,
1976 to transmit record on appeal, granted.
Motion of plaintiff for an extension of time
until October 1, 1976 to file reply brief is
granted. Cause is continued to December 2,
1976 at 10:00 AM for further status report.—
Krmxuanp, J. Mailed Notices 8-6-76.
Filed withdrawal of plaintiff's motion to dis-
miss voluntarily defendant Teamsters’ Inter-
national.
Clerks filed copy of transcripts of proceedings
had before Judge Kirkland on April 13, 1976
filed by official Court reporter.
24a
Complaint
In THE
Untrep States District Court
For tHe NortHern District or Intrwom
Eastern Drvision
Case No. 74 C 2865
" Joun Danret, for himself and
on behalf of all others similarly situated,
Plaintiff,
—VY,—
INTERNATIONAL BroTHERHOOD oF TEAMSTERS, CHAUFFEURS,
WarkEHOUSEMEN, and Hevpers or America, a labor union
organization; and Looat 705 InrernatTionaL BrorHeEr-
HOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN, and
Hetrers or America, a labor union organization, by
themselves and as representatives of the class of all
local Teamster affiliate unions similarly situated; and
Lovis Prick, by himself and as representative of all
Trustees of all Teamster pension funds and as repre-
sentative of all Officers of all Teamster unions similarly
situated,
Defendants.
Now comes the Plaintiff, John Daniel, by his attorneys,
Peter J. Barack and Lawrence Walner, and complaining of
the Defendants, International Brotherhood of Teamsters,
Chauffeurs, Warehousemen, and Helpers of America, a
labor union organization, and Local 705 International
25a
Complaint
Brotherhood of Teamsters, Chauffeurs, Warehousemen,
and Helpers of America, a labor union organization, by
themselves and as representatives of the class of all local
Teamster affiliate unions similarly situated; and Louis
Peick, by himself and as representative of all Trustees of
all Teamster pension funds and as representative of all
Officers of all Teamster unions similarly situated, brings
this civil action for himself and on behalf of all other
members of all Teamster unions as a class pursuant to
Rule 23 of the Federal Rules of Civil Procedure, and for
cause of complaint alleges:
Count I
JURISDICTION
1. The jurisdiction of this Court to hear Counts I-II
of this Complaint is based on Section 27 of the Securities
Exchange Act of 1934, 15 U.S.C. Section 78a-78}j (herein-
after referred to as “Exchange Act”), and on Section 22(a)
of the Securities Act of 1933, 15 U.S.C. Section 77a-77aa
(hereinafter referred to as the “Securities Act”), and as
hereinafter set forth, this action involves violations of Sec-
tion 10(b) of the Exchange Act and Rule 10b-5 thereunder
as set forth in 17 CFR. 240.10(b)-5 and Section 17(a) of
the Securities Act. The jurisdiction of this Court to hear
Count ITI of this Complaint is based on the original juris-
diction of the Court to hear “any civil action or proceeding
arising under any Act of Congress regulating commerce or
protecting trade and commerce against restraints and
monopolies,” 28 U.S.C., Section 1337, and on Section 301(a)
of the National Labor Relations Act, 29 U.S.C. Section
185(a) (hereinafter referred to as “NLRA”), and as here-
inafter set forth, this action involves violations of Section
9(a) of the NLRA, 29 U.S.C. Section 159(a). This Court
has pendant jurisdiction to hear Counts IV-V of this Com-
plaint and, as hereinafter set forth more fully, Counts
26a
Complaint
IV-V of this Complaint involve claims, based on fraud and
breach of fiduciary duty, which arise out of a nucleus of
operative fact common to Counts I-III of this Complaint.
2. This action is not a collusive one to confer jurisdic-
tion upon a Court of the United States which it would not
otherwise have.
VENUE
3. The Defendants named in this Complaint are in-
habitants of, are found in, or transact business within the
Northern District of Illinois. (Section 22(a) of the Secu-
rities Act and Section 27 of the Exchange Act). The sales
of securities involved herein took place, in part, in the
Northerr District of Illinois. (Section 22(a) of the Secu-
rities Act.) The Defendant labor union organizations
named in this Complaint maintain their principal offices
within or have their duly authorized officers or agents
engaged in representing or otherwise acting for their mem-
bers within the Northern District of Illinois (Section 301(c)
of the NLRA).
PLAINTIFF
4. The Plaintiff, John Daniel, is a resident of the State
of Illinois.
5. The Plaintiff is proceeding here on behalf of him-
self and on behalf of all other members of the Inter-
national Brotherhood of Teamsters, Chauffeurs, Ware-
housemen, and Helpers of America (hereinafter referred
to as “Teamsters International”), Local 705 International
Brotherhood of Teamsters, Chauffeurs, Warehousemen, and
Helpers of America (hereinafter referred to as “Local
705”) and all other affiliate locals of the Teamsters Inter-
national as a class, who have purchased and acquired an
interest in a Teamsters pension fund.
27a
Complaint
6. The Plaintiff, by his attorneys, brings this action on
his own behalf and, pursuant to Rule 23 of the Federal
Rules of Civil Procedure, as representative of the class
of all other members of Teamsters International, Local
705, and all other affiliate locals of Teamsters International
in the United States as described above. Said members of
the class are similarly situated and are so numerous that
joinder of all members is impracticable. Except as to the
amount of damages each member of the class has by him-
self sustained, all other questions of law and fact are com-
mon to the class. The rights of the members of the class
involve such common questions of law and fact which pre-
dominate over any questions affecting the Plaintiff named
herein. This class action is superior to other methods for
the fair and efficient adjudication of the controversy herein
described. The claims of the Plaintiff are typical of those
to be asserted for the class. Plaintiff will fairly and ade-
quately protect the interests of the class.
DEFENDANTS
7. Defendant International Brotherhood of Teamsters,
Chauffeurs, Warehousemen, and Helpers of America is a
national labor union organization consisting principally of
a voluntary association of drivers of various vehicles and
other workers. Teamsters International is named herein
as a Defendant by itself and as a representative of the class
of all local Teamster affiliate unions. By means of its con-
stitution and the constitution of its various local affiliates;
the allocation of dues and other monies, and various other
ways, Teamsters International is contractually related to
and otherwise associated and affiliated with its local Team-
ster union organizations throughout the United States.
Moreover, on information and belief, Teamsters Inter-
national also assists Local 705 and all other local affiliates
of Teamsters Internationa] in the investment and man-
eee es
28a
Complaint
agement of monies held in Trust by the pension plans of
all such local Teamster affiliates.
8. Defendant Local 705 International Brotherhood of
Teamsters, Chauffeurs, Warehousemen, and Helpers of
America is a labor union organization and local affiliate
of Teamsters International, and is named herein as a
Defendant by itself and as a representative of the class of
all local affiliates of Teamsters International similarly
situated. ,
9. Defendant Louis Peick is a Trustee of the pension
trust fund of Local 705, and is named herein as a De-
fendant by himself and as a representative of all Trustees
of all Teamster pension trust funds. Defendant Peick is
also an Officer of Local 705 and is also named herein as
a Defendant as a representative of all Officers of Team-
sters International and of all local affiliates of Teamsters
International.
10. At all times hereinafter mentioned, the Defendants,
jointly and/or individually, individually or as a servant,
agent, trustee, or representative for each of the other De-
fendants, and each of them, acted for, ratified, and ap-
proved all of the acts alleged herein by each of the other
Defendants; and the Defendants, at all times hereinafter
mentioned, jointly and/or individually, individually or as
servant, agent, trustee, or representative for each of the
other Defendants, and each of them acted in concert with
each of the other Defendants and aided and abetted each
of the other Defendants in and with respect to all of the
acts alleged herein.
Facts
11. Teamsters International, Local 705, and all other
local affiliates of Teamsters International negotiate labor
29a
Complaint
contracts with companies across the United States for the
benefit of their members who are employees of such com-
panies. Pursuant to the various terms and conditions of
such contracts, the union members of Teamsters Interna-
tional, Local 705, and all other local affiliates of Teamsters
International customarily agree to provide their labor ser-
vices to and to work as employees of such companies in
return for the payment of wages and the receipt of various
other forms of consideration.
12. At least since 1955, or earlier, all or most of the
labor contracts negotiated by Teamsters International,
Local 705, and all other local affiliates of Teamsters Inter-
national have provided for the establishment of pension
plans for their union members. Pursuant to the terms of
such labor contracts, companies who employ Teamster
union members agree to make certain set payments into
local Teamster affiliate or Teamsters International pension
funds for such Teamster union members and as part con-
sideration for the labor services provided by such union
members. Such monies contributed into local Teamster
affiliate or Teamsters International pension funds are cus-
tomarily held in trust and invested by pension trust fund
Trustees. Teamster union member employees thus con-
tribute their labor services in return for, in part, their
participating interest in such local Teamster affiliate or
Teamsters International pension trust fund.
13. The pension plans established by the Teamsters In-
ternational, Local 705, and all other local affiliates of Team-
sters International do not differ in any material respect
for the purposes of this litigation. All such pension plans
have very long and arbitrary vesting periods. Under the
length requirement of the vesting period provisions of the
Teamster pension plans, no pension benefit of any kind is
available to a Teamster union member who does not meet
en eee
30a
Complaint
the requisite vesting period. As a result, all contribution
paid into any such pension fund by an employer for a
Teamater union member employee would, if the length re-
quirement were not met, be forfeited, and the value of the
member's interest in the pension fund would be worthless.
Although the length requirement of the vesting period may
vary in some insignificant amount between the pension
plans established by the Teamsters International, Local
705, and all other local affiliates of Teamsters Interna.
tional, the, provisions requiring forfeiture and the denial
of any pension benefit are the same.
14. All or most of the pension plans established by the
Teamsters International, Local 705, and all other local af.
filiates of Teamsters International require not only a
lengthy and arbitrary vesting period but also continuity
of employment with an employer, or employers, who have
entered into a labor contract with a Teamsters union over
the full length of the vesting period. Under the continuity
requirement or break in service rule of the Teamater pen-
sion plans, no pension benefit of any kind is available to a
Teameter union member who has been employed with a
covered employer, or employers, for the full length require.
ment of the vesting period but whose employment career
is not continuous and uninterrupted, As a result, all con-
tributions paid into any such pension fund by an employer
for a Teamster union member employee would in this situa-
tion be forfeited, and the value of the member's interest
in the pension fund would be worthless.
15. All monies contributed into a local Teamster affiliate
or Teamsters International pension fund are invested by
pension trust fund Trustees, and such trust funds would
over the long run be reasonably expected to grow through
the accumulation of dividends, interest and other earnings.
A Teamster union member who does not meet the length
Sla
Complaint
or continuity requirement of the vesting provision of his
Teamater union pension plan will also forfeit his
pating interest in any accumulated earnings on all om-
ployer contributions made on his behalf.
16, Plaintiff John Daniel has been a member of Local
705 since 1951, Plaintiff has paid or has had employer
payments made on his behalf into the Local 705 pension
fund for a period of about twenty-two and one-half years
(224), including past service contributions, The vesting
provision of the Local 705 pension plan requires a union
member to have worked for a covered employer, or om-
ployers, for twenty (20) consecutive yoars of uninterrupted
service, Because Plaintiff John Daniel's twenty-two and
one-half years (224%) of service with a covered employer,
or employers, were interrupted by a four, or seven, month
break from December, 1960 to July, 1961, he has been de-
nied all benefits under the Local 705 pension plan. All
employer contributions made on his behalf into the Local
705 pension fund have, accordingly, been forfeited, even
though such break in service was occasioned by an invol-
untary lay off. All accumulated earnings on all employer
contributions made on his behalf into the Local 705 pen-
sion fund have likewise been forfeited.
17. Beginning at least as early as 1965, and continuing
until the present time, labor union defendants Teamsters
International Local 705, and all other local affiliates of
Teamsters International, and the individual Trustees of
all Teamster pension funds, and the individual Officers
of all Teamster unions, have, through the use of the mails
and other instrumentalities of interstate commerce, know
ingly misrepresented certain material facts and omi
to state other material facts relating to the value
Teamster union member's participating interest in his
Teamater affiliate or Teamsters International pension
>:
BE
32a
Complamt
Such misrepresentations of certain material facta made
by the Defendants and the omission to state other material
facts include, but are not limited to:
A. Misrepresentations:
(1) Misleading statements as to the length require-
(2)
ment of the vesting provision for the payment of
a benefit from a local Teameter affiliate or Team.
sters International pension fund to a Teameter
nnion member; and
Misleading statements as to the continuity re-
quirement of the vesting provision for the pay-
ment of a benefit from a local Teamster affiliate
or Teamsters International pension fund to a
Teamater union member.
B,. Omissions of Material Fact:
(1)
(2)
(3)
Omitting to state that a Teamater union member
would receive no pension benefit from a local
Teamster aMfiliate or Teamsters International
pension fund if he did not meet the length re-
quirement of the vesting provision of such fund;
Omitting to state that a Teamater union member
would receive no pension benefit from a loca)
Teamster affiliate or Teamsters International
pension fund if he did not meet the continuity
requirement of the vesting provision of such
fund;
Omitting to state that all employer contributions
made on behalf of a Teamster union member into
a local Teamster affiliate or Teamsters Interna-
tional pension fund would be forfeited if the
Teamster union member did not meet the length
and continuity requirements of the vesting pro-
vision of such fund;
33a
Complaint
(4) Omitting to state that all accumulated earnings
on all employer contributions made on behalf of
a Teamater union member into a local Teameter
affiliate or Teamsters International pension fund
would be forfeited if the Teamater union member
did not meet the length and continuity require.
ments of the vesting provision of such fund;
(5) Omitting to state the actuarial basis on which
any local Teamater afiliate or Teamsters Inter.
national pension fund has been constructed and
the actuarial likelihood that a Teamster union
member will receive back as a pension benefit any
or all of any employer contributions made on his
behalf into a local Teamster affiliate or Toamaters
International pension fund;
(6) Omitting to state that the actuarial basis on
which any local Teamster affiliate or Teamaters
International pension fund has been constructed
is arbitrary and without any reasonable basis in
fact; and
(7) Omitting to state that funds held in trust for
local Teamster affiliate or Teamsters Interna.
tional pension funds have been diverted from
their lawful purposes and have been used by the
Defendants to their own benefit or to the benefit
of others or to enhance Defendants’ own position,
status, or prestige, or to enhance the position,
status or prestige of others.
18. As a result of such misrepresentations by Defen-
dante of certain material facts and the omission by Defen-
dante to state other material facts and the failure of
Defendants to make full and complete disclosure as to the
value of a Teamsters union member's participating interest
34a
Complaint
in his local Teamater affiliate or Teamsters International
pension fund, Plaintiff and all other members of the class
he represents have purchased and acquired an interest in
a local Teamater affiliate or Teamsters International pen-
sion fand by agreeing to provide their labor services to
employers who have labor contracts with any such local
Teamster affiliate or Toameters International.
Viotations ALLacED
19. The misrepresentations of certain material facts and
the omission to state other material facts relating to the
value of a Teamster union member's participating interest
in his local Teamater affiliate or Teamsters International
pension fund by Defendants International Brotherhood of
Teamsters, Chauffeurs, Warehousemen, and Helpers of
America, 4 labor union organization, and Loca) 705 Inter-
national Brotherhood of Teamsters, Chauffeurs, Ware-
housemen, and Helpers of America, a labor union organiza.
tion, by themselves and as representatives of the class of
all local Teamster affiliate unions similarly situated, and
Louis Peick, by himself and as representative of all
Trustees of all Teamster pension funds and as representa-
tive of all Officers of all Teamster unions similarly situated,
constitute a violation of Section 10(b) of the Exchange
Act and Rule 10b-5 thereunder in that Defendants have, in
connection with the sale to Plaintiff, and all other members
of the class he represents, of a security:
a) used means and instrumentalities of commerce and
the mails; and have
b) employed a device, scheme, or artifice to defraud;
and
c) made antrue statements of material fact or omitted
to state a material fact necessary in order to make
35a
Complaint
the statements made, in light of the circumstances
under which they were made, not misleading; and
d) engaged in acts, practices, and a course of business
which operated as a fraud or deceit upon Plaintiff
and all other members of the clase he represents.
20, As a direct and proximate result of Defendants’
violation of Section 10(b) of the Exchange Act and Rule
10b-5 thereunder, Plaintiff and all other members of the
class he represents have sustained substantial loss and
injury.
Praven von Rewer
Wruenerons, Plaintiff prays that thie Court:
a) Make a determination that the named Plaintiff
represents all other Teamster union members in
the United States as a class as heretofore alleged ;
b) Find that Defendants International Brotherhood
of Teamsters, Chauffeurs, Warehousemen, and
Helpers of America, a labor union organization, and
Local 705 International Brotherhood of Teamaters,
Chauffeurs, Warehousemen, and Helpers of
America, a labor union organization, by themselves
and as representatives of the class of all local
Teamster affiliate unions similarly situated; and
Louis Peick, by himself and as representative of
all Trustees of all Teamster pension funds and as
representative of all Officers of all Teameter unions
similarly situated, have violated Section 10(b) of
the Exchange Act and Rule 10b-5 thereunder ;
¢) Order that all pension fund agreements of the
Teamsters International and all local Teamster
affiliate unions be reformed by deleting therefrom
all arbitrary length and continuity requirements of
36a
Complaint
all vesting provisions in such pension fund agree-
mente;
d) Enter judgment against the Defendants in an
amount equal to all pension benefits unlawfully
denied Plaintiff and all other members of the class
he represents, with interest thereon;
6) Enter judgment against the Defendants in an
amount equal to all those funds held in trust for
locg] Teamster affiliate or Teameters International
pension funds which have been unlawfully diverted
from their proper purposes; and
f) Grant such other and further relief as this Court
deems to be fair and equitable under the circum-
stances,
Cour? I
1-18, Plaintiff heroin realleges the allegations of Para-
graphs 1 through 18 of Count I,
Viotations ALLacrp
19. The misrepresentations of certain material facts
and the omission to state other material facts relating to
the value of a Teamster union member's participating in-
terest in his local Teameter affiliate or Teamsters Inter-
national pension fund by Defendants International Brother-
hood of Teamsters, Chauffeurs, Warehousemen, and
Helpers of America, a labor union organization, and Local
705 International Brotherhood of Teamsters, Chauffeurs,
Warehousemen, and Helpers of America, a labor union
organization, by themselves and as representatives of the
clase of all local Teamster affiliate anions similarly sit-
uated; and Louis Peick, by himself and as representative
of all Trustees of «ll Teamster pension funds and as repre-
sentative of all Officers of all Teameter unions similarly
37a
Complaint
situated, constitute a violation of Section 17(a) of the
Securities Act in that Defendants have, in the offer or sale
to Plaintiff, and all other members of the class he repre-
sents, of a security:
a) used means or instruments of transportation or
communication in interstate commerce, or the mails;
and have
b) employed a device, scheme, or artifice to defraud;
and
c) obtained money or property by means of an untrue
statement of material fact or an omission to state
a material fact necessary in order to make the
statements made, in light of the circumstances un-
der which they were made, not misleading; and
d) engaged in transactions, practices and a course of
business which operated as a fraud or deceit upon
Plaintiff and all other members of the class he
represents.
20. As a direct and proximate result of Defendants’ vio-
lation of Section 17 of the Securities Act, Plaintiff and all
other members of the class he represents have sustained
substantial loss and injury.
Prayer For Retr
Wuererorg, Plaintiff prays that this Court:
a) Make a determination that the named Plaintiff
represents all other Teamster union members in
the United States as a class as heretofore alleged;
b) Find that Defendants International Brotherhood
of Teamsters, Chauffeurs, Warehousemen, and
Helpers of America, a labor union organization, and
Local 705 International Brotherhood of Teamsters,
OE a EE ES RES. a Ca RR
38a
Complaint
Chauffeurs, Warehousemen, and Helpers of Amer-
ica, a labor union organization, by themselves and
as representatives of the class of all local Team-
ster affiliate unions similarly situated; and Louis
Peick, by himself and as representative of all Trus-
tees of ali Teamster pension funds and as repre-
sentative of all Officers of all Teamster unions
similarly situated, have violated Section 17 of the
Securities Act;
c) Order that all pension fund agreements of the
Teamsters International and all local Teamster
affiliate unions be reformed by deleting therefrom
all arbitrary length and continuity requirements
of all vesting provisions in such pension fund
agreements ;
d) Enter judgment against the Defendants in an
amount equal to all pension benefits unlawfully
denied Plaintiff and all other members of the class
he represents, with interest thereon;
e) Enter judgment against the Defendants in an
amount equal to all those funds held in trust for
local Teamster affiliate or Teamsters International
pension funds which have been unlawfully diverted
from their proper purposes; and
f) Grant such other and further relief as this Court
deems to be fair and equitable under the circum-
stances.
Count ITI
1.-18. Plaintiff herein realleges the allegations of Para-
graphs 1 through 18 of Count I.
19. Defendant labor union organizations Teamsters
International, Local 705, and ail other local affiliates of
39a
Complaint
Teamsters International owe a statutory duty of fair repre-
sentation to Plaintiff, and all other members of the class
he represents, as union members, pursuant to Section 9(a)
of the NLRA, 29 U.S.C. Section 159(a).
20. By themselves and by means of the acts of their
officers and other agents, Defendant labor union organiza-
tions Teamsters International, Local 705, and all other local
affiliates of Teamsters International have breached their
statutory duty of fair representation through the misrepre-
sentation of certain material facts and the omission to
state other material facts relating to the value of a Team-
ster union member’s participating interest in his local
Teamster affiliate or Teamsters International pension
fund, which conduct by the Defendant Jabor union organiza-
tions toward the Plaintiff, and all other members of the
class he represents, is unreasonable, arbitrary, discrimina-
tory, and/or in bad faith.
21. By themselves and by means of the acts of their offi-
cers and other agents, Defendant labor union organizations
Teamsters International, Local 705, and all other local af-
filiates of Teamsters International have breached their
statutory duty of fair representation through the estab-
lishment and use of:
a) Arbitrary and unreasonable actuarial bases for the
determination of benefits to a Teamster union mem-
ber from a local Teamster affiliate or Teamsters
International pension fund;
b) Arbitrary and unreasonable length requirements
as part of the vesting provisions of local Teamster
affiliate or Teamsters International pension plans;
and
(c) Arbitrary and unreasonable continuity require-
ments as part of the vesting provisions of local
BOs Oe 6 eee. BE ae Oh ee owe
40a
Complaint
Teamster affiliate or Teamsters International pen-
sion plans,
which conduct by the Defendant labor union organizations
toward the Plaintiff, and all other members of the class he
represents, is unreasonable, arbitrary, discriminatory
and/or in bad faith.
22. By themselves and by means of the acts of their
officers and other agents, Defendant labor union organiza-
tions Teamsters International, Local 705, and all other
local affiliates of Teamsters International have breached
their statutory duty of fair representation through their
diversion of, or their acquiescence in the diversion by
others of, funds held in trust for local Teamster affiliate
or Teamsters International pension funds from their law-
ful purposes and to the benefit of Defendants or to the
benefit of others, or to enhance Defendants’ position, status,
or prestige, or to enhance the position, status or prestige
of others, which conduct toward the Plaintiff, and all other
members of the class he represents is unreasonable, arbi-
trary, discriminatory and/or in bad faith.
23. As a direct and proximate result of Defendant labor
union organizations’ Teamsters International, Local 705,
and all other local affiliates of Teamsters International,
breach of their statutory duty of fair representation, Plain-
tiff and all other members of the class he represents have
sustained substantial loss and injury.
Prayer ror Rewer
Wuenerorg, Plaintiff prays that this Court:
a) Make a determination that the named Plaintiff
represents all other Teamster union members in
the United States as a class as heretofore alleged;
b)
d)
e)
4la
Complaint
Find that Defendants International Brotherhood
of Teamsters, Chauffeurs, Warehousemen, and
Helpers of America, a labor union organization,
and Local 705 International Brotherhood of Team-
sters, Chauffeurs, Warehousemen, and Helpers of
America, a labor union organization, by themselves
and as representatives of the class of ail local
Teamster affiliate unions similarly situated, have
breached their statutory duty of fair representa-
tion to Plaintiff and have thereby violated Section
9(a) of the National Labor Relations Act, 29
U. S. C. Section 159 (a).
Order that all pension fund agreements of the
Teamsters International and all local Teamster
affiliate unions be reformed by deleting therefrom
all arbitrary length and continuity requirements of
all vesting provisions in such pension fund agree-
ments;
Enter judgment against the Defendants Inter-
national Brotherhood of Teamsters, Chauffeurs,
Warehousemen, and Helpers of America, a labor
union organization and Local 705 International
Brotherhood of Teamsters, Chauffeurs, Ware-
housemen, and Helpers of America, a labor union
organization, by themselves and as representatives
of the class of all local Teamster affiliate unions
similarly situated, in an amount equal to all pension
benefits unlawfully denied Plaintiff and all other
members of the class he represents, with interest
thereon;
Enter judgment against the Defendants Inter-
national Brotherhood of Teamsters, Chauffeurs,
Warehousemen, and Helpers of America, a labor
union organization, and Local 705 International
42a
Complaint
Brotherhood of Teamsters, Chauffeurs, Ware-
housemen, and Helpers of America, a labor union
organization, by themselves, and as representatives
of the class of all local Teamster affiliate unions
similarly situated, in an amount equal to all those
funds held in trust for local Teamster affiliate or
Teamsters International pension funds which have
been unlawfully diverted from their proper pur-
poses; and
f) Grant such other and further relief as this Court
deems to be fair and equitable under the circum-
stances.
Count IV
1-18. Plaintiff herein realleges the allegations of Para-
graphs 1 through 18 of Count I.
19. The misrepresentations of certain material facts and
the omission to state other material facts relating to the
value of a Teamster union member’s participating interest
in his local Teamster affiliate or Teamsters International
pension fund by Defendants International Brotherhood of
Teamsters, Chauffeurs, Warehousemen, and Helpers of
America, a labor union organization, and Local 705 Inter-
national Brotherhood of Teamsters, Chauffeurs, Ware-
housemen, and Helpers of America, a labor union organiza-
tion, by themselves and as representatives of the class of
all local Teamster affiliate unions similarly situated; and
Louis Peick, by himself and as representative of all
Trustees of all Teamsters pension funds and as representa-
tive of all Officers of al! Teamsters unions similarly situated,
constitute fraud and deceit and, as a direct and proximate
result thereof, Plaintiff and all other members of the class
he represents have sustained substantial loss and injury.
432
Complaint
Prayer ror RE.ier
Wuenrerorg, Plaintiff prays that this Court:
a) Make a determination that the named Plaintiff
represents all other Teamster union members in
the United States as a class as heretofore alleged;
b) Order that all pension fund agreements of the
Teamsters International and all local Teamster
affiliate unions be reformed by deleting therefrom
all arbitrary length and continuity requirements of
all vesting provisions in such pension fund agree-
ments;
c) Enter judgment against the Defendants in an
amount equal to all pension benefits unlawfully
denied Plaintiff and all other members of the class
he represents, with interest thereon, and
d) Enter judgment against the Defendants in an
amount equal to all those funds held in trust for
local Teamster affiliate or Teamsters International
pension funds which have been unlawfully diverted
from their proper purposes; and
e) Grant such other and further relief as this Court
deems to be fair and equitable under the circum-
stances.
Count V
1.-18. Plaintiff herein realleges the allegations of Para-
graphs 1 through 18 of Count 1.
19. Defendant labor union organizations Teamsters
International, Local 705, and all other local affiliates of
Teamsters International are the exclusive representatives
of Plaintiff, and all other members of the class he repre-
sents, for the purposes of collective bargaining with each
of. the various employers of Plaintiff and ail other mem-
tta
Complaint
bers of the class he represents. Accordingly, Plaintiff and
all other members of the class he represents have placed
their trust and confidence in the Defendant labor union
organizations to establish and construct in their collective
bargaining negotiations with the various employers of
Plaintiff, and all other members of the class he represents,
fair and reasonable pension fund plans. As the exclusive
representatives of Plaintiff and all other members of the
class he represents, Defendant labor union organizations
Teamsters International, Local 705, and all other local
affiliates of Teamsters International, thus owe a fiduciary
duty to Plaintiff and all other members of the class he
represents.
20. Defendant Peick and all other Trustees of all Team-
ster pension funds administer such pension funds under
trust agreements and pursuant to statutory requirements,
including the requirement that such pension trusts be for
the sole and exclusive benefit of the employees. Section
305(5) of the NLRA, 29 U.S.C. Section 186(5). As trus-
tees for Plaintiff and all other members of the class he
represents (which members are the employees and bene-
ficiaries of such pension trusts), Defendant Peick and all
other Trustees of all Teamster pension funds owe a fidu-
ciary duty to Plaintiff and all other members of the class
he represents.
21. Defendant labor union organizations Teamsters
International, Local 705, and all other local affiliates of
Teamsters International and Defendant Peick and all other
Trustees of all Teamster pension funds have breached the
fiduciary duty which they owe to Plaintiff and all other
members of the class he represents through the establish-
ment and use of:
a) Arbitrary and unreasonable actuarial bases for the
determination of benefits to a Teamster union mem-
45a
Complaint
ber from a local Teamster affiliate or Teamsters
International pension fund;
b) Arbitrary and unreasonable length requirements
as part of the vesting provisions of local Teamster
affiliate or Teamsters International pension plans;
and
c) Arbitrary and unreasonable continuity require-
ments as part of the vesting provisions of local
Teamster affiliate or Teamsters International pen-
sion plans,
which conduct by the Defendant labor union organizations
and the Defendant Trustees toward the Plaintiff, and all
other members of the class he represents, is unreasonable,
arbitrary, discriminatory, and/or in bad faith.
22. Defendant labor union organizations Teamsters In-
ternational, Local 705, and all other local affiliates of Team-
sters International and Defendant Peick and all other
Trustees of all Teamster pension funds have breached the
fiduciary duty which they owe to Plaintiff, and all other
members of the class he represents, through their diver-
sion of, or their acquiescense in the diversion by others
of, funds held in trust for local Teamster affiliate or Team-
sters International pension funds from their lawful pur-
pose and to the benefit of Defendants or to the benefit of
others or to enhance Defendants’ own position, status, or
prestige, or to enhance the position, status or prestige of
others.
23. As a direct and proximate result of Defendant labor
union organizations Teamsters International, Local 705,
and all other local affiliates of Teamsters International and
Defendant Peick and all other Trustees of all Teamster
pension funds, breach of their fiduciary duty, Plaintiff and
46a
Complaint
all other members of the class he represents have sustained
substantial loss and injury.
Prayer Fork RELIEF
Wuererorg, Plaintiff prays that this Court:
a)
b)
c)
d)
Make a determination that the named Plaintiff rep-
resents all other Teamster union members in the
United States as a class as heretofore alleged;
Find that Defendants International Brotherhood
of Teamsters, Chauffeurs, Warehousemen, and
Helpers of America, a labor union organization,
and Local 705 International Brotherhood of Team-
sters, Chauffeurs, Warehousemen, and Helpers of
America, a labor union organization, by themselves
and as representatives of the class of all local
Teamster affiliate unions similarly situated, and
Defendant Louis Peick, by himself and as repre-
sentative of all Trustees of all Teamster pension
funds, have breached their fiduciary duty which
they owe to Plaintiff, and all other members of
the class he represents;
Order that all pension fund agreements of the
Teamsters International and all local Teamster af-
filiate unions be reformed by deleting therefrom all
arbitrary length and continuity requirements of all
vesting provisions in such pension fund agree-
ments ;
Enter judgment against the Defendants Interna-
tional Brotherhood of Teamsters, Chauffeurs,
Warehousemen, and Helpers of America, a labor
union organization, and Local 705 International
Brotherhood of Teamsters, Chauffeurs, Warehouse-
men, and Helpers of America, a labor union organi-
f)
47a
Complaint
zation, by themselves and as representatives of the
class of all local Teamster affiliate unions similarly
situated, and Defendant Peick, by himself and as
representative of all Trustzes of all Teamster pen-
sion funds, in an amount equal to all pension bene-
fits unlawfully denied Plaintiff and all other mem-
bers of the class he represents, with interest there-
on;
Enter judgment against the Defendants Interna-
tional Brotherhood of Teamsters, Chauffeurs,
Warehousemen, and Helpers of America, a labor
union organization, and Local 705 International
Brotherhood of Teamsters, Chauffeurs, Warehouse-
men, and Helpers of America, a labor union organi-
zation, by themselves and as representatives of the
class of all local Teamster affiliate unions similarly
situated, and Defendant Peick, by himself and as
representative of all Trustees of all Teamster pen-
sion funds, in an amount equal to all those funds
held in trust for local Teamster affiliate or Team-
sters International pension funds which have been
er diverted from their proper purposes;
an
Grant such other and further relief as this Court
deems to be fair and equitable under the circum-
stances.
Respectfully submitted,
/s/ Perer J. Barack
Perez J. Barack
Lawkence WaLnzee
48a
Complaint
Lawrence Wauner & Associates, Lp.
221 North LaSalle Street
Chicago, Illinois 60601
(312) 332-6576
Or CouNSEL:
Perer J. Barack, Eso.
357 East Chicago Avenue
Chicago, Illinois 60611
(312) 649-8372
Piaintirr Heresy Demanps TriaL BY JURY.
LAWRENCE WALNER
10/4/74
AY
49a
Motion of Defendants Local 705, etc., and
Louis F. Peick to Dismiss Complaint
IN THE
Untrep States District Covrr
For raHe NortHern Disraict or Iurois
Easvern Division
Case No. 74 () 2865
Joun Daniet,
Plaintiff,
—Y,—
Locat 705, InrerNationaL BrorHerHoop or TEAMSTERS,
CHAvUrFEuRS, WAREHOUSEMEN AND HELPERS OF AMERICA,
and Louis F. Pzicx, individually,
Defendants.
Motion or ])erenDants Loca 705,
INTERNATIONAL BROTHER!100D OF TEAMSTERS, (HAUFFEURS,
WARFHOUSEMEN ANpr FIELPi ks OF AMERICA AND
Lovis F. Petox vo Dismiss THE ComPLAINT
Come now defendants Local 705, International Brother-
hood of Teamsters, Chauffeurs, Warchousemen and Help-
ers of America (“Local 705”) and Louis F. Peick, indi-
vidually, by Sherman Carmell, one of their attorneys, and
pursuant to Rule 12(b) FRCP state:
1. With respect to the allegations contained in Counts
I-ITI, inclusive, of the complaint:
(a) This court does not have subject matter jurisdiction,
and the complaint does not state a claim upon which relief
50a
Motion of Defendants Local 705, etc., and
Louis F. Peick to Dismiss Complaint
can be granted, under either §17(a) of the Securities Act
of 1933, 15 USC §77q, or §10(b) of the Securities Exchange
Act of 1934, 15 USC 78j(b), as more fully appears from
the complaint, the affidavit of Louis F. Peick and the ex-
hibits attached and incorporated for all paragraphs here-
in as Exhibit 1 and 1A-I.
(b) The action is barred by the limitations provision of
the Securities Act of 1933 and the Illinois Statute of Limi-
tations.
(ec) The complaint challenges alleged misrepresentations
concerning an eligibility rule for pension benefits made and
enforced by the Local 705 International Brotherhood of
Teamsters Pension Fund (“I.ocal 705 Pension Fund”) ;
Board of Trustees of the Local 705 Pension Fund (‘Local
705 Trustees”) are indispensable parties; and Louis F.
Peick is not representative of the Local 705 Trustees.
(d) International Brotherhood of Teamsters, Chauf-
feurs, Warehousemen and Helpers of America (the “In-
ternational Union”), I.ocal 705, and other local unions
affiliated with the International Union, or any pension
fund other than the Local 705 Pension Fund, are not proper
parties defendant; and the defendants are not representa-
tive of any other person or defendant within the meaning
of Rule 23.2.
(e) The plaintiff has not established the prerequisites
for a class or representative action under Rules 23 and 23.2
FRCP.
2. In addition to the reasons stated in paragraph 1 of
this motion, with respect to the allegations contained in
Count III of the complaint concerning the breach of the
duty of fair representation, the court lacks subject matter
5la
Motion of Defendants Local 705, etc., and
Louis F. Peick to Dismiss Complaint
jurisdiction and the complaint does not state a claim upon
which relief can be granted because:
(a) The plaintiff is a member only of Local 705; there-
fore, the claimed duty e:n run only from Local 705 to the
plaintiff.
(b) The eligibility rule and alleged misrepresentations
which the plaintiff challenges did not arise out of the rela-
tionship betveen a union and its member under §9(a) of
the National Labor Relations Act, 29 USC §159(a).
(c) The plaintiff has failed to allege that he has ex-
hausted his intra-union remedies.
(d) This court does not have subject matter jurisdiction
under §301(a) of the National Labor Relations Act, 29
USC §185(:).
3. In addition to the reasons stated in paragraph 1 of
this motion, with respect to the allegations in Count V of
the complaint concerniny violation of the “sole and exelu-
sive benefit’ of employves provision of §302(c)(5) of the
National Labor Relations Act, 29 USC §186(c) (5).
(a) This court does not have in personam or subject
matter jurisdiction because the I.ocal 705 Pension Fund,
which promulgated and enforced the challenged eligibility
rule, is the only proper party defendant, and the trustees
are indispensable partics.
(b) The plaintiff's action is barred by the Illinois Statute
of Limitations.
(c) The plaintiff is estopped from benefiting from a
challenge to the service rule or the alleged representations
where he made no attenipt for 13 years to request that the
Local 705 Trustees waive or cure the break in service and
contributions or to challenge the representations.
52a
Motion Nefendants Local 705, etc., and
Louis &. Peick to Dismiss Complaint
(d) The Internal Revenue Service has exclusive subject
matter jurisdiction over the matters alleged in the com-
plaint; has ruled contrary to the plaintiffs allegations;
and the plaintiff has not exhausted his administrative
remedies.
(e) This court does not have subject matter jurisdiction
and the complaint does not state a claim upon which relief
can be granted under §302(¢)(5) The relief sought exceeds
that permitted by §302(«), 29 USC §186(e).
4. Count IV ‘does not state a claim upon which relief
can be granted and the court does not have subject matter.
Wuenrerore, these defendants pray that the complaint
be dismissed and for their costs.
/s/ Suerman CaRMELL
Sherman Carmell,
one of the defendants’ attorneys
CarmMeELL & CHarone, Lr.
29 So. LaSalle Street
Chicago, Illinois 60603
236-8033
Dated :
FILep
Nov. 22, 1974
Sruarr CUNNINGHAM
CLERK
53a
Exhibit 1
State or Initwors,
County or Cook, ss.: ae
Arripavit oF Louis F. Percr
Lovr i
im rid sen gs Ra duly sworn, says that if
ss, I could competently testify as f
ee ’ yv as follows:
Hii. Ae me and citizen of the State of Illinois. T
ry-Treasurer of Loeal 705 ies
_ socal 705, International
ee ne of Teameters, Chauffeurs, Warehousemen and
; rch Se Aya ‘Local 705”). T am the Administrator
ustee, ant Secretary-Treasurer of the Local 705 T ;
4 t ter-
oa Brotherhood of Teamsters Pension Fund ( “Local
jo a Fund”), a trust, with its principal office in
- a. i¢ facts contained in this affidavit are based
plies, prey or the books and records of
y * the Local 705 Pension Fund intai i
, ; nd maintained
pe bt eres course of business under my supervision al
me “od es no Office in any local union affiliated with
wakes — ional Brotherhood of Teamsters, Chauffeurs
Union} emen and Helpers of America (“International
except Local 705. I hold no position as trustee or
otherwise with an i
Pension Pend. y pension fund except the Local 705
Locat 705 Penston Funp
dias re ga set Py is a trust fund with its
as of Janua: : 1 19: Loval 705 Pension Fund was created
bargaining =v oh “- through the process of collective
and Local 705 as ee. . employer bargnining associations
of certain empl e collective bargaining representative
tions. The ttt sr sla e of the associa-
(nee Poein Feed feos Spee
o4a
Affidavit of Louis F. Peick
“Commencing with January 1, 1955, the Employer
shall pay the sum of 5 cents for each hour of employ-
ment by each employee into a trust fund for the yee.
pose of providing pension benefits to ea dr
covered by this agreement. A Board of Trustees, n
consultation with actuaries and/or pension specialists
shall administer such fund and shall decide upon the
type and nature of pension plan (including eligibility,
benefits, etc.) to be instituted.”
3. As provided in that collective bargaining agreement,
I.ocal 705 and the employers’ representatives signed an
Agreement And Declaration Of Trust ( the “trust pa
ment”), a copy of which is attached and incorporates fs
Exhibit 1A. Local 705 appointed the original three em-
ployee trustees, The trust agreement was later amended
(the “amended trust agreement”), a copy of which a
attached as Exhibit 1B. The preamble to, and Article :
Section 2 of, the amended trust agreement were amende
to increase the Board of Trustees (“Local 705 Trustees
to the present eight members by adding an additional union
trustee and employer trustee. At all times the —
trustees were appointed by Local 705 as provided in Article
2, Section 2 of the trust agreement and the amended trust
agreement.
4. As provided in Article 7 of the trust agreement, je
Local 705 Trustees, at meetings held on February 14, 195!
and April 4, 1955, passed eligibility rules ge of .
normal retirement pension, ineluding the “20 pense o
service” rule (the “service rule”). On April 29, 1955 Toca
705 sent a letter to its members notifying them of oe
eligibility requirement, a copy of which is pret an
incorporated as Exhibit 1¢. In 1958 the Local 705 Pension
Fund prepared and mailed to participating employees a
55a
Affidavit of Louis F. Peick
booklet containing the pension plan rules and regulations,
including the service rule, a copy of which is attached and
incorporated as Exhibit 1D. Other booklets were prepared
and distributed in 1969 «nd 1973, copies of which are at-
tached and incorporated as Exhibits 1E and 1F, respec-
tively. Sinec the inception of the Local 705 Pension Fund,
the pension plan has contained a service rule for a normal]
retirement pension benefit identical to the present §2.01(b)
and (c) of the 1973 plan (Exhibit 1F).
5. On April 20, 1955 the Local 705 Pension Fund
received a letter from the United States Treasury Depart-
ment that its trust and plan met the requirements of
Sections 401(c) and 501 of the Internal Revenue Code.
Amendments to the pension plan have received similar
approval, the latest being a letter dated July 23, 1974
relating to the 1973 plan (Exhibit IF), a copy of which is
attached and incorporated as Exhibit 1G.
6. On May 19, 1971, the Local 705 Trustees, after con-
sultation with the actuary, enacted new pension benefits
including a vested pension benetit effective July 1, 1971,
as shown by the following portion of the minutes of that
meeting:
“4. Vesting (Effective 7/1/71)
An employee who has attained the years of service
for a normal pension but not the age, and who leaves
the cra!t, shall be vested with a monthly pension
benefit of $250.00 payable commencing the first month
after attaining age 65. Upon the death of the employee
before or after attaining 65, no Death benefits or
benefit for surviving spouse or dependent children
shall be payable.”
56a
Affidavit of Louis F. Peick
“The above changes are to be considered as the sub-
stantive intent of the board of trustees, and the board
reserves the right to formally draft the amendments
and to promulgate rules and regulations to implement
the amendments. The Board instructed Carmell &
Charone, together with the actuary, to prepare and
submit amendments to the Internal Revenue Service.”
On or about June 11, 1971, the Local 705 Pension Fund
notified the participating employees of the changes, in-
eluding the vested pension benefit, a copy of which is at-
tached and incorporated as Exhibit 1H. The amendments
were drafted and later codified in the 1973 plan booklet
which began with the following explanation (p. 2):
“Vested pension.
If von leave covered employment before age 94, but
after 20 vears of service, and do vot work in the craft
afterwards, you are entitled to a vested pension of :
$250 a month
when vou reach 65. To collect your pension, ask the
administrator for a pension eligibility notice when you
leave. Then, no sooner than six months before your
65th birthday, send in your application and your eligi-
bility notice. Monthly payments will start after age
65 and after the trustees have your application. Any-
one who fails to apply before age 70 loses his pension
rights. See official pension plan 2.03,
If you receive a vested pension, you do not qualify
for survivor protection or other loeal 705 post-retire-
ment benefits.”
The forinal plan amendment relating to the vested pen-
sion benefit was eodified in §§2.03 and 3.03 of the 1973
plan. The service rule remained the same, The 1973 plan
578
Affidavit of Louis F. Pvick
booklet was submitted to the Internal Revenue Service
together with an actuarial report and ~ubsequent amend-
ments, as more fully appears from a copy of the March 18
1974 letter from counsel attached and incerporated as Ex-
hibit 1I. As noted before, the 1973 plan, as amended, was
approved by the Internal Revenue Service on July 23, 1974.
7. The Local 705 Pension Fund has filed with the United
States Department of Labor Forms D-! and D1-A which
contained copies of the various jension plan booklets and
amendinents as required by the Welfare and Pension Plan
Disclosure Act, which were available for inspection and
copying.
Jormn Danten, Aree vrion vo THE
Loca, 705 Pension Fuyp
8. In 197%, John Daniel made an inquiry to the Loeal
705 Pension Fund concerning eligibility for either a nor-
mal retirement pension or a vested pension and was ad-
vised that he did not have the required years of service
He then requested a review. The reqnest was referred to
the Local 705 Trustees under Section 5.02 of the 1973 pen-
sion plan (Ixhibit 1F). On December 26, 1973 John Daniel
appeared before the Loeal 705 Trustees, who were and are:
Union Trustees Enriover Trustees
Frank Kratky W. Eugene MeCarron
(President- Local 705) ——Chairmian
Louis F. Peick Ralph A. Niedert
(Secretary-l'reasurer—
Frank Bridge
M. J. Siewert, Jr.
Local 705)
Bruno Fillipini
(Trustee—I ocal 705)
P. W. Janopoulos
(Bus. Rep.--Local 705)
SA Ne eS NO em
— se ane
58a
Affidavit of Louis F. Peick
The minutes of that meeting, as regards, John Daniel,
state:
John Daniel requested that the trustees cure a break
in service to make him eligible for pension benefits.
The fund records show that Mr. Daniel entered coy-
ered employment in April 1950 upon transfer from
Local 777. He had a break in service and contributions
between December 5, 1960 and July 5, 1961, and is now
age 63; therefore, he has 12 years and 5 months of
consecutive years of service and contributions since
July 5, 1961. In accordance with the plan, and upon
motion duly made and seconded, the request was de-
nied.
Mr. Daniel was notified personally and in writing of the
decision of the Local 705 Trustees. Thereafter, Mr. Daniel
requested an opportunity to again appear before the Local
705 Trustees to ask that they reconsider the December 26,
1973 decision. The request was granted and on Mareh 28,
1974, Mr. Daniel appeared before the same Local 705 Trus-
tees and again requested that he be granted a pension bene-
fit. As shown by the minutes of that meeting:
Mr. Daniel appeared before the board to request a re-
consideration of its December 26, 1973 denial to waive
a break in service and contributions between December
5, 1960 and July 5, 1961. Mr. Daniel said that the
break was only four months beeause he had returned
to work in December, 1960, worked four months, but
the employer's bookkeeper did not make the proper
payments, and that the company is ont of business
and there were no records available. Mr. Daniel ad-
mitted that he had at least four months break in ser-
viee and contributions. Although Mr. Daniel claimed
that he had returned to work earlier than July 5, 1961,
the reeords do not indicate th. t any contributions were
59a
Affidavit of Louis F. Peick
received on his behalf or that he returned his with-
drawal card to Local 705 as an indication that taped
not working for a contributing emplover. The chair-
man noted that there has been no new evidence pre
sented which had not been considered by the sae’
previously, and upon motion duly made and seconded
the board reaffirmed its denial of December 26, 1973,
Loca 705
9. Local 705 is a voluntary unineorporate
nization with its principal office in Chieago, ‘* Fee
Metropolitan area there are approximately 27 local et
chartered by and affiliated with the International Union
including Local 705, and T believe that throughout the
United States and Canada there are over 700-800 oth ;
such local unions. The Local 705 officers and pct abd
board members, individually and collectively, do rot ong
ticipate as officers, executive hoard members. sendiaied -
elected business representatives, or members. in the dire ;
tion and control of any of the local unions except Local 705.
JoHN DANIEL’s ComMpPLaInt
10. I have read the complai i
plaint filed by John Daniel i
the United States District Court for the Northern Satelet
of Illinois, Eastern Division, Case No. 74 ( 2865, and state:
(a) With respect to 97 of the complaint servi
complained of by John Daniel, which is the cag gp a
mal retirement pension and a vested pension, was quected
and applied only by the Local 705 Pension Fund. Local 705
does not provide a pension benefit and John Daniel has var
requested any be . : :
ie at iv benefit from it. The following allegation is
“Morcover, on information a i
, ( nd belief, Teas
INTERNATIONAL also axsist Locan 705... in the eset.
ment and management of monies held in Trust by the
pension plans of all such local Teamster affiliates.”
- i ee dT eee
60a
Affidavit of Lonis F. Peick
Loeal 705 does not hold or manage any of the employer
pension fund contributions made on behalf of participat-
ing employees. All such contributions are made to and
held by the Loeal 705 Pension fund in aceordance with the
trust agreements and the collective bargaining agreements.
The International Union has not and does not participate,
assist, directly or indirectly, in the investment or manage-
ment of any funds held by the Local 705 Pension Fund.
At the time John Daniel made his application to the Local
705 Pension Fund, and as of December 6, 1973 and March
98, 1974, the collective bargaining agreement between
John Daniel’s employer and Local 705 provided:
AnrTIcLE 17
Pension Trust Fund
Section 1. The Employer for each regular Employee
shall pay the sum of nineteen dollars ($19.00) per week
(plus the additional payments provided for in Section
3 hereof) to Local 705 International Brotherhood of
Teamsters Pension Trust Fund (Fund), an irrevocable
trust heretofore created by an Agreement and Deelara-
tion of Trust (Trust Agreement) pursuant to a Col-
lective Bargaining (Cartage) Agreement between cer-
tain Employers aud the Union. The Fund shall use
these payments for purposes permitted under the
Trust Agreement and to provide pension, death and
such other benefits as permitted by said Trust Agree-
ment, as amended, rom time to time, and by Section
302(¢) of the Labor-Management and Relations Act
of 1947. The Trustees of the Fund shall have the sole
power (a) to construe thie provisions of the Trust
Agreement and rules and regulations and all terms
used therein, and (b) to determine all disputes with
respect to eligibility, the right to participate in bene-
fits of the Fund, time, method of payment, payment
6la
Affidavit of Louis F. Peick
during periods of Employee illness or disability
methocs of enforcement of payment and related mat-
ters, and any construction adopted and any determina-
tion mide by the Trustees in good faith shall be final
and biiding upon all Employers, Employees, partici-
pants, legal representatives, dependents relatives and
all persons and parties.
11. The enactment and maintenance of the ice r
the denial « f John Daniel's application for Ao a
ment or ve: ted pension benefit, and all other actions involv-
ing the Local 705 Pension Fund, were performed and taken
only by th: Local 705 ‘'rustees, and not by the Interna-
tional Union, Local 705, any other local union affiliated
with the International Union, any other person, or ratified
by anyone else. Therefore, the statements contained in
710 of the complaint are not correct.
12. Joh: Daniel transferred into employme
by the Local 705 Pension Fund in April 1950. ees
contributiors to the Local 705 Pension Fund lee te
January 1:55 when the fund was created. However the
Local 705 [rustees granted past unfunded service credit
for years prior to January 1, 1955 for all employees, in-
eluding Jo in Daniel, who were emploved by an employer
under cont ‘act with Local 705. Therefore, contrary to the
statement n 16 of the complaint, no contributions were
received by the Local 705 Pension Fund on behalf of Joh
Daniel between April 1950 and January 1955. "
/s/ Louis F. Percr
Louis F. Pej
Subscribed and sworn to before me ”
this 22nd « ay of October, 1974.
/8/ Fiore» ce Unratu
Notar) Public
62a |
Exhibit 1A /
Local 705 Trust Agreement |
(See Opposite) &*
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