# Appendix — International Union of Operating Engineers, Local 406 v. Guidry

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1990
- **Citation:** 498 U.S. 1016

## Text

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JOSEPH F. SPANIOL, JR,
CLERK

$n the
Supreme Court of the United States

OCTOBER TERM 1990

INTERNATIONAL UNION OF
OPERATING ENGINEERS, LOCAL 406, WILLARD

CARLOCK, SR., PETER BABIN III, DON SCHIRO
AND C.J. LAIRD

Petitioners
VERSUS

ROBERT GUIDRY
Respondent

PETITION FOR A WRIT OF
CERTIORARI TO THE UNITED STATES
COURT OF APPEALS FOR THE FIFTH CIRCUIT

APPENDIX

Jerry L. Gardner, Jr.*
Robert H. Urann
William Lurye
GARDNER, ROBEIN

& URANN, P.L.C.
2540 Severn Avenue, Suite 400

Metairie, Louisiana 70002
(504) 885-9994

Counsel for Petitioners

*Counsel of Record
October 23, 1990

A B Letter Service, Inc., 327 Chartres St., New Orleans, La. (504) 581-5555

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TABLE OF CONTENTS

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APPENDIX A

IN THE UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT
FILED
JUL 25 1990

No. 87-4733

ROBERT GUIDRY,
Plaintiff-Appellee,

V.

INTERNATIONAL UNION OF OPERATING

ENGINEERS, LOCAL 406, ET AL..,
Defendants-Appellants,
Cross-Appellees.

On Remand From the Supreme Court of the United States

(July 25, 1990)

ON PETITION FOR REHEARING AND
SUGGESTION FOR REHEARING EN BANC

(Opinion May 22, 1990, 5th Cir., 1990 ___ F.2d ___)

Before RUBIN, GARZA and KING, Circuit Judges.

A-2
PER CURIAM:

In our opinion dated August 29, 1989, this court affirmed
a district court judgment in favor of plaintiff Robert
Guidry (Guidry) as to the liability of the International
Union of Operating Engineers, Local 406 and former and
current Union leaders (the defendants) for violations of the

Labor Management Relations Act (LMRA), 29 U.S.C. §
159(a), and the Labor-Management Reporting and
Disclosure Act (LUMRDA), 29 U.S.C. §§ 411(a)(1), (2), (5),
and 529. Guidry v. International Union of Operating
Engineers, Local 406, 882 F.2d 929 (5th Cir. 1989), vacated,
___ ~US. __, 110 S. Ct. 1465 (1990). We remanded,
however, for a reassessment of damages. Id. at 941-45. The
Supreme Court subsequently vacated our judgment and
remanded for further consideration in light of its decision
in Breininger v. Sheet Metal Workers International
Association Local Union No. 6, ___. U.S. ___, 110 S. Ct.
424 (1989), a case that addressed the issue of whether hir-
ing hall discrimination constituted ‘discipline’ within the
meaning of sections 101(a)(5) and 609 of the LMRDA, 29
U.S.C. §§ 411(a)(5), 529. We, in turn, remanded to the
district court for further proceedings in light of Breininger,
to the extent that Breininger affected our panel’s prior
opinion. Guidry, 902 F.2d 335 (1990). Of course, for the
reasons explained in our prior opinion, a remand to the
district court was necessary, in any event, to reassess
Guidry’s damages. See Guidry, 882 F.2d at 941-45 (holding
that actual and punitive damages based on Guidry’s
LMRDA claims should be reassessed under a one-year
limitations period).

Guidry now petitions this court for panel rehearing
and for rehearing en banc. Guidry argues that a remand on
the liability issue is required only as to those claims poten-
tially affected by the Breininger decision — i.e., those

|

A-3

claims based on sections 101(a)(5) and 609 of the LMRDA!
— and that our mandate erroneously instructs the district
court to make new determinations of liability on all of his
claims. He contends that Breininger in no way impacts the
district court’s finding of liability based on the defendants’
breach of the duty of fair representation under the LMRA,
29 U.S.C. § 159(a). He also argues that the district court’s
finding of liability under the LMRDA may be affirmed on
the alternative grounds of Guidry’s LMRDA equal rights
anad free speech claims, 29 U.S.C. 8§ 411(a)(1), (2) —
theories of recovery that were not addressed by the
Supreme Court in Breininger, and that are not affected by
the Court’s decision in that case.

Having considered Guidry’s motion for rehearing, we
conclude that his complaint is well taken, Although it was
not our intention to require the district court to reevaluate
the defendants’ liability for breach of the duty of fair
representation, 29 U.S.C. § 159(a), or for violation of
Guidry’s rights to equal union member rights and free
speech, 29 U.S.C. §§ 411(a)(5), 529, we admit that our man-
date is not completely clear on this point. We therefore
modify our prior order, 902 F.2d 335, by deleting the last
full paragraph and substituting in its place the following
four paragraphs:

The Supreme Court’s interpretation of the
phrase “otherwise discipline’ in determining
whether hiring hall discrimination gives rise to a
claim under sections 101(a)(5) and 609 of the

1 Guidry correctly notes that the Supreme Court’s holding reagarding
a plaintiff's burden of pleading and proof under the LMRDA looks only
to sections 101(a)(5) and 609 of the Act, 29 U.S.C. §§ 411(a)(5), 529, and
is based on its construction of the term “‘discipline’’ contained in those
sections.

A-4

LMRDA does not affect that portion of our panel
opinion affirming liability and damages based on
Guidry’s claim that the Union breached its duty
of fair representation under the Labor Manage-
ment Relations Act, 29 U.S.C. § 15%a). See
Guidry, 882 F.2d at 937 & n.5. Therefore, this por-
tion of our prior opinion is reinstated.

On the issue of LMRDA liability, we need
remand only with respect to those claims poten-
tially impacted by the Supreme Court’s decision
in Breininger, that is, Guidry’s unlawful
discipline claims based on sections 101(a)(5) and
609 of the Act.? Breininger does not alter the
district court’s judgment regarding the defen-
dants’ violations of Guidry’s equal rights under
section 101(a)(1) and right to free speech under
section 101(a)(2). A litigant may successfully seek
redress under section 102 for an infringement of
these LMRDA rights even if no unlawful
“‘discipline”’ is shown. Finnegan v. Leu, 456 U.S.
431, 439 (1982); Murphy v. International Union of
Operating Engineers, Local 18, 774 F.2d 114, 122
(6th cir. 1985), cert. denied, 475 U.S. 1017 (1986).

If Guidry wishes to pursue his unlawful
discipline claims on remand, the district court
must determine, in view of Breininger, whether
the Union as a collective entity was responsible
for hiring hall discrimination against him. the
court should make new findings, taking addi-
tional evidence if needed, and render its judgment
accordingly.

. Guidry’s expulsion and the district court’s reinstatement of Guidry to
the Union are not at issue as expulsion is explicitly set out in the
LMRDA as a form of discipline. See 29 U.S.C. §§ 41 1(a)5), 529.

A-5

In our previous opinion in this case, we
vacated the district court’s award of LMRDA
damages, holding that, due to an intervening
Supreme Court case, Reed v. United Transporta-
tion Union, 488 U.S. 319 (1989), the district court
erred in applying a six-month statute of limita-
tions to Guidry’s LMRDA claims. See Guidry,
882 F.2d at 941-42. We remended for a redeter-
mination of damages based on violations occurr-
ing within one year of filing suit, applying Loui-
siana’s one-year limitations period for delictual
actions. Id. at 941-45. this holding is unaffected
by Breininger, and we therefore remand for a
reassessment of damages consistent with the
discussion contained in our previous opinion. Jd.

A-6
APPENDIX B

IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

NO. 87-4733

ROBERT GUIDRY,
Plaintiff-Appellee
Cross-Appellant,

Vv.

INTERNATIONAL UNION OF OPERATING

ENGINEERS, LOCAL 406, ET AL.,
Defendants-Appellants
Cross-Appellees.

Appeal from the United States District Court for the
Western District of Louisiana

(May 22, 1990)

On Remand from the Supreme Court of the United
States

Before RUBIN, GARZA and King, Circuit Judges.

A-7
PER CURIAM:

On March 19, 1990, the Supreme Court vacated our
judgment in Guidry v. International Union of Operating
Engineers, 882 F.2d 929 (5th Cir. 1989), and remended for
further proceedings in light of Breininger v. Sheet Metal
Workers International Association, 110 S. Ct. 424 (1989).
We, in turn, remand to the district court.

In Breininger, the court held that the phrase ‘‘other-
wise discipline’ under sections 101(a)(5) and 609 of the
Labor Management Reporting and Disclosures Act of 1959
(LMRDA) denotes only that punishment ‘‘authorized by

the union as a collective entity to enforce its rules.’’ Jd. at
439. In other words, an action must be ‘‘undertaken under

color of the union’s right to control the member’s conduct
in order to protect the interests of the union or its member-
ship.”’ Id. (quoting Miller v. Holden, 535 F.2d 912, 915 (5th

Cir. 1976)). The union need not, however, invoke formal pro-
ceedings, and discipline can entail informal or summary
penalties as long as adverse action against a union member
is not purely “ad hoc retaliation by individual union of-
ficers.’’ Id. at 439 n.15. ‘“‘Discipline ‘must be done in the
name of or on behalf of the union as an organizational enti-
ty.’”’ Id. The petitioner in Breininger ‘‘alleged only that
[certain union officers] failed to refer him to employment
because he supported one of their political rivals.’ Jd. at
440. Thus, the petitioner failed to allege acts constituting
discipline by the union as a collective entity.

On remand, the district court must determine, in
view of Breininger, whether , and to what extent, the Union
as a collective entity was responsible for hiring hall

A-8

discrimination against Guidry.! In making that determina-
tion, the court may, in its discretion, take additional
evidence. Damages should be assessed only for those in-
juries caused Guidry by action authorized by the Union as
a collective entity. The Court should make new findings
and render its judgment accordingly.

REMANDED.

1 Guidry’s expulsion and the district court's reinstatement of Guidry to
the Union are not at issue as expulsion is explicitly set out in the
LMRDA as a form of discipline.

A-9
APPENDIX C

SUPREME COURT OF THE UNITED STATES
OFFICE OF THE CLERK
WASHINGTON, D.C. 20543

March 19, 1990

Mr. Jerry L. Gardner Jr.
Gardner, Robein & Urann
2540 Severn Avenue, Suite 400
Metairie, LA 70002

Re: International Union of Operating Enginers,
Local 406, et al.
v. Robert Guidry
No. 89-1297

Dear Mr. Gardner:

- The Court today entered the following order in the
above entitled case:

The petition for a writ of certiorari is granted. The
judgment is vacated and the case is remanded to the
United States Court of Appeals for the Fifth Circuit for fur-
ther consideration in light of Breininger v. Sheet Metal
Workers International Association Local Union No. 6, 493
U.S. ——— (1989).

Very truly yours,

/s/ Joseph F. Spaniol, Jr.
Joseph F. Spaniol, Jr., Clerk

A-10
APPENDIX D

Robert Guidry,
Plaintiff-Appellee,

Vv.

INTERNATIONAL UNION OF OPERATING
ENGINEERS, LOCAL 406, et al.
Defendants-Appellants,
Cross-Appellees.

No. 87-4733.

United States Court of Appeals,
Fifth Circuit.

Aug. 29, 1989.

Union members brought action against » . on and its
official for denial of rights guaranteed by Labur Manage-
ment Reporting and Disclosure Act and for breach of
union’s duty of fair representation. The United States
District Court for the Western District of Louisiana, Lake
Charles Division, Earl E. Veron, J., 669 F.Supp. 763,
entered judgment for plaintiffs, and defendants appealed
as to one union member. The Court of Appeals, King, Cir-
cuit Judge, held that: (1) district court’s finding that
manipulation of hiring hall procedure was for
discriminatory intent was not clearly erroneous; (2)
manipulation of hiring hall procdedure constituted
‘discipline’ within meaning of Labor Management Repor-
ting and Disclosure Act; and (3) remand for determination
of damages under correct statute of limitations was
required.

Affirmed in part, vacated in part and remanded.

a tnt

A-11

Appeals from the United States District Court for
the Western District of Louisiana.

Before RUBIN, GARZA and KING, Circuit Judges.
KING, Circuit Judge:

The plaintiff-appellee, Robert Guidry sued the
defendants-appellants, the International Union of
Operating Engineers, Local 406 and former and current
Union leaders alleging denial of rights guaranteed by 29
U.S.C. sec. 411(a) (1985), unlawful discipline in violation of
29 U.S.C. sec. 529 (1985), and breach of the duty of fair
representation. The United States District Court for the
Western District of Louisiana found in favor of the
plaintiff.1 The court awarded damages for lost wages, emo-
tional distress, punitive damages and attorney’s fees and
ordered that Guidry be reinstated to Union membership.
We affirm the judgment of liability, but we remand the
award of damages for further findings.

I. FACTS

The facts, as found by the district court, are sum-
marized as follows:

A. Background and Players
Plaintiff-appellee Robert Guidry (‘‘Guidry”) became

a member of the International Union of Operating
Engineers, Local 406 (the ‘Union‘‘) in 1949. The Union is a

| The district court held trial on five related cases simultaneously and
found for the plaintiff in each of the cases. Taliaferro v. Schiro, 669
F.Supp. 763 (W.D.La.1987). The defendants appeal the judgment in this
case only.

A-12

constituent division of the International Union of
Operating Engineers and is an unincorporated labor
organization with six districts in the state of Louisiana.
There is an office within each district, and the statewide
central office is in New Orleans.

The Union elects a statewide Business Manager and

Financial Secretary who works out of the central New
Orleans Office. Defendant Peter Babin III (‘‘Babin’’) has
served in this position since 1976. The Business Manager
negotiates collective bargaining agreements in Louisiana,
serves on a committee that negotiates the National Pipe
Line Agreement, acts as a trustee of the Union’s Health
and Welfare Fund, and appoints and supervises assistant
business managers in the various districts who oversee the
day-to-day functioning of the Union. These assistant
business managers are also known as “business agents’”’
(“BAs”’) and they represent the Union at pre-job con-
ferences, administer the hiring hall procedures, and appoint
union stewards and master mechanics to act as represen-
tatives for the Union on the job.

_ Babin’s predecessor as Business Manager appointed
defendant Willard Carlock, Sr. (“‘Carlock’’) as BA for the
Union’s Lake Charles District. After he took office, Babin
retained Carlock as BA until Carlock and his administra-
tion of the district came under criminal investigation.
Babin fired Carlock on March 10, 1984. Taliaferro v. Schiro,
669 F.Supp. 763, 766 (W.D.La. 1987).

Babin appointed defendant Columbus J. Laird
(‘‘Laird’’) as BA for the Lake Charles District in 1978.

Laird technically had as much authority as Carlock, but he
considered Carlock his boss and followed Carlock’s instruc-

tions. Laird was in office until January 15, 1985 when he
resigned , after an indictment was brought against

A-13
him, Carlock, and others. Jd.

Babin appointed Don Schiro (‘Schiro’’) to be
statewide Pipe Line Business Agent in March 1980. Schiro
represented the Union in pipeline construction jobs con-
trolled by the National Pipe Line Agreement and was
responsible for attending pre-job conferences and appoin-
ting stewards and referring workers to pipeline jobs.
However, Schiro generally left these deatails to BAs such
as Carlock and Laird. Jd.

The district court found that Babin’s supervision of
the BAs was “totally inadequate.” 669 F.Supp. at 775-76.
Upon appointing a BA, Babin instructed him to run the hir-
ing hall on a non-discriminatory basis, but otherwise did
very little to supervise. He met with each BA semi-
annually to discuss local problems. He had no formal
evaluation procedure, but instead relied on his own re-
election as evidence that Union members were satisfied
with the performances of the BAs from their districts. Id.
at 765.

B. The Lake Charles District Hiring Hall

1) Generally

The Union, as the exclusive collective bargaining
agent for operating engineers in its jurisdiction, signed two
major collective bargaining agreements. The first agree-
ment is between the Union and the Lake Charles District,
Associated General Contractors of Louisiana, Inc. and
governs the building and construction industry (the
“Building Trades Agreement’’). The National Pipe Line
Agreement covers all transportation mainline pipeline and
underground cable work. Both agreements specify that the
Union will provide labor through an exclusive hiring hall.

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The method for registering applicants for referral is set out
in the agreements and involves placing individuals in four
groups according to their work experience. The Union has
always disregarded this ruie and it has, instead, grouped
workers together, keeping only a separate group for oilers.
The hiring hall maintains two separate lists for building
trades projects and pipeline projects, and, since March
1984, a worker can keep his or her name on only one list at
a time. Both lists contain names in the order in which the
applicant notifies the Union that he or she is available for
work.

2) Departures from the Hiring Hall Procedure

Both Agreements allow the contractor to hire some
of its employees on any given job outside the structure of
the hiring hall. The Building Trades Agreement allows the
contractor to hire key personnel directly and to recall any
worker who has been employed by that contractor for a
least six of the previous twelve months. The National Pipe
Line Agreement allows the contractor to hire half its
workforce from a group of ‘‘regular employees.”’ Regular
employees have either been employed by the contractor in
the prior six months or are customarily employed by that
contractor whenever it has work. Jd. at 767.

Additionally, the Union has developed informal -
departures from the regular hiring hall procedure of offer-

ing a referral to the first applicant on the list. The first of
these exceptions is based on the fact that the Union can, ac-

cording to the agreements, name stewards to pipeline pro-
jects and master mechanics to building trades jobs to act
“*as Union representatives. The procedure for such appoint-

ment under the agreements is to name an individual from
among the Union members already referred to the job.
Carlock, Laird, and Schiro departed from this rule by nam-

EE EEE EEE

A-15

ing stewards and master mechanics to jobs, regardless of
their positions on the list. Schiro sometimes appointed in-
dividuals who were not yet even on the list to steward posi-
tions when the job they were working on at the time was
nearing completion. Jd.at 768.

Short-term jobs, which are expected to last one to
three days, also were treated as exceptions to the hiring
hall procedure. Referrals for these jobs were simply given
to those applicants who were present at the Union hall at
the time the referral was received, irrespective of the ap-
plicants’ places on the list. Union leadership made a similar
exception for temporary replacements of workers who were
incapacitated or could not otherwise perform their jobs. Jd.
at 768.

Finally, the Union’s collective bargaining agreement
with Dolphin Construction Company required that the
Union refer residents of Allen Parish to its construction
project there. Allen parish residents, therefore, received
referrals to those jobs before non-residents whose names
were higher on the list.

3) Manipulation of the Hiring Hall Procedures and
the Exceptions

The district court found that Carlock ‘‘exploited{ed]
and, at times, disregard{ed] entirely the hiring hall pro-
cedures to enrich his confederates to the detriment of the
plaintiff and others.’’ Jd. at 769. The district court went on
to explain specifically the various ways in which Carlock
accomplished this: (1) appointing his confederates as
stewards or master mechanics irrespective of their skills or
their places on the list; (2) abusing the short-term referral
exception to designate some jobs as short-term that he
knew to be substantially longer than three days; (3) allow-

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ing contractors to employ as ‘‘regular employees’”’ workers
who did not meet the requirements of that group as outlin-
ed in the National Pipe Line Agreement; (4) designating a
referral as a recall under the Building Trades Agreement
regardless of the individual’s eligibility for recall. Jd. at
769.

The district court found that Carlock quelled opposi-
tion by means of ‘‘intimidation and threats of retaliation in
the form of economic discrimination and physical injury.”’
Id. Also, the court found that Union members feared
voting against Carlock because the balloting was not secret
and they feared retaliation. Jd. Finally, the court noted that
Carlock made it difficult for disgruntled or suspicious
workers to check their positions on the out-of-work list by
keeping possession of, or control over, that list. Jd. at
769-70.

II. PROCEDURAL BACKGROUND

After a bench trial, the district court held in favor of
the plaintiffs. The court awarded Guidry—who is the only
plaintiff against whom this appeal is brought—lost wages
totaling $5,310.50, $20,000 for emotional distress, $10,000
in punitive damages. The court also awarded attorneys’
fees in an amount to be agreed to by the parties, or in
default of that, to be set by the court. All of the above
awarded damages were to be paid by the Union. The court
also ordered the reinstatement of Guidry as a Union
member. Additionally, the court awarded Guidry $1000 in
punitive damages to be paid by Babin. The defendants
timely appealed the judgment of the district court, asser-
ting that Guidry failed to prove liability and that the
damage awards are improper or excessive. Guidry cross-
appeals the amount of damages awarded for emotional
distress, lost wages, and punitive damages—arguing that

—— — ——e

A-17
they are inadequate.

III. THE QUESTIONS OF LIABILITY

The Union, Carlock, Babin, Schiro, and Laird (collec-
tively the “defendants’’) argue on appeal that the district
court erred in holding them liable under the Labor-
Management Reporting and Disclosure Act, 29 U.S.C.
secs. 401-531 (1985 and Supp.1986) (“LMRDA”). The
defendants also challenge the district court’s conclusion
that Union hiring hall procedures violated the duty of fair
representation under the Labor Management Relations
Act sec. 9(a), 29 U.S.C. sec. 159(a) (1973) (“LMRA”). Fur-

ther, the defendants argue that Guidry failed to exhaust
his internal union remedies, and therefore, his case should
have been dismissed.

A. The LMRDA Claim

Guidry argued below, and the district court found,
that his rights under sections 101(a)(1), (2) of the
LMRDA had been abridged, 29 U.S.C. secs. 411(a)(1), (2)
and that he had been wrongfully disciplined under
sections 101(a)(5) and 609, 29 U.S.C. secs. 411(a)(5)?

2 Sections 411(a)(1), (2), and (5) read as follows:

(1) Equal Rights

Every member of a labor organization shall have equal rights and
privileges within such an organization to nominate candidates, to vote
in elections or referendums of the labor organization, to attend member-
ship meetings and to participate in the deliberations and voting upon
the business of such meetings, subject to reasonable rules and regula-
tions in such organizations’ constitution and bylaws.

(2) Freedom of Speech and Assembly
Every member of any labor organization shall have the right to meet
and assemble freely with other members; and to express any views,

A-18

and 529.3 The court concluded that the defendants’
manipulation of the hiring hall procedures to the detriment
of Guidry and the other plaintiffs constituted violations of
these provisions. It also concluded that Guidry’s expulsion
from the Union was violative of the LMRDA. The defen-
dants assert that the evidence presented at trial does not
support this portion of the verdict and that, therefore, the
district court’s factfinding is clearly erroneous for two
reasons: (1) that there was no evidence to support the con-
clusion that Guidry exercised rights guaranteed him by the
LMRDA and (2) that there was no evidence to support the
conclusion that the Union acted to retaliate against Guidry

Footnote 2 continued.
arguments, or opinions; and to express at meetings of the labor
organization his views, upon candidates in an election of the labor
organization or upon any business properly before the meeting, subject
to the organization's established and reasonable rules pertaining to the
conduct of meetings: Provided, That nothing herein shall be construed
to impair the right of a labor organization to adopt and enforce
reasonable rules as to the responsibility of every member toward the
organization as an institution and to his refraining from conduct that
would interfere with its performance of its legal or contractual
obligations.

(5) Safeguards Against Improper Disciplinary Action

No member of any labor organization may be fined, suspended, expell-
ed, or otherwise disciplined except for nonpayment of dues by such
organizataion or by any officer thereof unless such member has been (A)
served with written specific charges; (B) given a reasonable time to
prepare his defense; (C) afforded a full and fair hearing.
Section 101, 29 U.S.C. Sec. 411, is often referred to as the union
members’ “Bill of Rights.’ i

3 Section 529 (“Prohibition on certain discipline by labor organization’’)
reads as follows:

It shall be unlawful for any labor organization or any officer, agent,
shop steward, or other representative of a labor organization, or any
employee thereof to fine, suspend, expel, or otherwise discipline any of
its members for exercising any right to which he is entitled under the

provisions of this chapter. The provisions of section 412 of this title shall
be applicable in the enforcement of this section.

A-19

for having exercised those rights. Additionally, the defen-
dants argue that even if the evidence supports the district
court’s underlying fact findings, its legal conclusion that
the manipulation of hiring hall procedures constitutes
“discipline” within the meaning of the statutes is er-
roneous. We address these arguments in order.

1) Did Guidry Oppose Union Leadership?

The district court found that ‘“‘Guidry [had] a long
history of opposing incumbent Union officers.” 669
F.Supp. at 772. The defendants challenge this finding as
clearly erroneous and unsupported by the evidence and
assert that Guidry failed to show either that he actually op-
posed Union leadership or that his opposition of that
leadership was known. They characterize the evidence as
demonstrating that Guidry opposed the Union leadership
only until 1972,4 and as failing to show—aside from
Guidry’s own testimony that he had opposed every ad-
ministration since 1956—that his opposition continued
beyond 1972. The defendants cite Chapa v. Local 18, 737
F.2d 929, 932 (11th Cir.1984), for the proposition that a
plaintiff's ‘‘bald assertion’ that he opposed union leader-
ship and that the union retaliated is insufficient to support
a verdict for the plaintiff on an LMRDA wrongful
discipline claim.

We begin by noting that the defendants are urging
us to review the district court’s factfinding. Our review is
limited by Federal Rule of Civil Procedure 52(a), which pro-
vides that we may not set aside such findings unless ‘‘clear-
ly erroneous.” This standard of review has been interpreted

4 It is clear from the evidence that the last time Guidry ran for Union
office was in 1972.

A-20
to mean:

[that] [iJf the district court’s account of the
evidence is plausible in light of the record viewed
in its—entirety, the court of appeals may not
reverse it even though convinced that had it been
sitting as the trier of fact, it would have weighed
the evidence differently. Where there are two per-
missible views of the evidence, the factfinder’s
choice between them cannot be clearly erroneous.

_ Anderson v. Bessemer City, 470 U.S. 564, 573-74, 105 S.Ct.
1504, 1511, 84 L.Ed.2d 518 (1985). Applying this standard,
we conclude that the district court’s factfinding is not
clearly erroneous. The defendants’ characterization of the
record is incomplete. Far from simply containing Guidry’s
conclusory assertions that he generally opposed Union
management, the record contains Guidry’s specific
testimony of particular instances of his opposition to the

Union.

Guidry described in detail the circumstances of his
decision in 1979 to go to the Federal Bureau of Investiga-
tion (‘‘FBI’’) with evidence of Union corruption. Guidry
made that decision after discussing his position with fellow
Union members. Guidry testified that when Carlock and
Laird discovered that he had gone to the FBI, they came
on the job site at which Guidry was employed as master
mechanic and sought to force his employer to discharge
him. Guidry ultimately filed charges against Carlock and
the Union’s executive board. Although these events occur-
red outside the one-year prescriptive period applicable to
Guidry’s LMRDA claim, see infra at section IV.A, they are
not too remote in time to have been found by the district
court to have triggered Union retaliation.

A-21

Guidry’s testimony is replete with examples of
challenges he levelled against the Union leadership's opera-
tion of the hiring hall. These include a challenge to the hir-
ing methods on a job for which he was asked to steward—
Guidry openly complained that men who had never worked
for the company before were hired as ‘‘regular employees.’’
Guidry also challenged the hiring hall when he discovered
that his name had been left off the out-of-work list as a
result of a new rule that required him to choose be-

tween the building trades and the pipeline lists.

According to Guidry’s testimony, as well as that of

Union members, Guidry’s opposition to the Union leader-
ship was hardly a secret. Charles Lovett, a member of the

Union who was called to testify for the plaintiffs, noted
that Guidry had been ‘‘bucking the system” at the Union
for twenty-five years and had gained nothing.

[1] The Union challenges this testimony as inade-
quate because it fails to show that Guidry either sought a
Union office after 1972 or openly campaigned against the
Union leadership in an election after 1972. The defendants
argue that all of Guidry’s political activity in the Union is
too remote in time to support a claim of retaliation occurr-
ing in 1980-83. The flaw in the defendants’ argument is
their assumption that in order to assert a violation of sec-
tion 101(a)(2) of the LMRDA, a plaintiff must show that he

or she spoke out in opposition to Union leadership in the
context of an election. We read the statute to contain a

much broader protection of speech.

The statute itself speaks of the right of every union
member to “express any views, arguments or opinions,’’ 29
U.S.C. sec. 411(a)(2), supra n. 2, and does not limit such ex-
pression to one occurring in the context of a union election.
In fact, the statute refers separately to a union member's

A-22

right to express his views upon candidates running for
union office. Id.

The Supreme Court has characterized the LMRDA
as ‘‘the product of congressional concern with widespread
abuses of power by union leadership.” Finnegan v. Leu, 456
U.S. 431, 435, 102 S.Ct. 1867, 1870, 72 L.Ed.2d 239 (1982).
The “Bill of Rights” portion of that legislation was ‘‘aimed
at enlarged protection for members of unions paralleling
certain rights guaranteed by the Federal Constitution.”’ Jd.
at 435, 102 S.Ct. at 1870. Congress ‘‘recognized that
democracy would be assured only if union members are free
to discuss union policies and criticize the leadership
without fear of reprisal.” Sheet Metal Workers’ Intern.
Ass’n v. Lynn, ____ U.S. , , 109 S.Ct. 639, 645, 102
L.Ed.2d 700 (1989) (quoting United Steelworkers of Am. v.
Sadlowski, 457 U.S. 102, 112, 102 S.Ct. 2339, 2346, 72
L.Ed.2d 707 (1982).

[2] The defendants do not cite, nor have we found,
any cases that limit the free speech rights protected by the
LMRDA’s Biil of Rights to speech relating directly to an
election within the union. While we agree with the defen-
dants’ position that the evidence adduced at trial does not
support the conclusion that Guidry formally opposed
Union leadership after 1972 in the context of a Union elec-
tion, we conclude that the district court was not clearly er-
roneous in its finding that Guidry openly opposed Union
leadership at least up to the time that he filed this suit.

2) Did the Union Act to Retaliate Against Guidry for
exercising Free Speech Rights?

[3] The district court found generally that hiring hall
procedures were abused and threats of retaliation in the
form of economic and physical injury were used to control

A-23

Union members and to enrich those members who sup-
ported the leadership. 669 F.Supp. at 769. The court also
enumerated the instances of such reprisals that specifically
related to Guidry. In addition to discrimination in the hir-
ing hall, the district court found that the Union retaliated
against Guidry for his opposition to leadership by denying
him a gold Union membership card recognizing his thirty
years of service. Also, the district court found that Union
economic pressure forced Guidry to violate Union rules and
cross a picket line. The court found that when Guidry faced
charges for having crossed the picket line, Laird telephoned
supporters of the leadership to ensure that they would at-
tend the meeting at which the membership was to vote on
Guidry’s fate—thus, making his expulsion almost certain.

The defendants challenge these factfindings as clear-
ly erroneous. They argue that even if Guidry did show that
he had been discriminated against in hiring hall referrals,
he failed to show that such discrimination was connected to
his exercise of rights protected under the LMRDA. They
argue that the other union acts found by the district court
to have been discriminatory were justified by long-
standing Union rules.

The record contains abundant evidence, both in the
form of testimony and documentation, of the procedures
followed by Union leadership in referring applicants to jobs
through the hiring hall. The court found twenty-one
specific instances in which Union leadership manipulated
the hiring hall procedure by employing one of the means
outlined above. This resulted in direct harm to Guidry. See
Taliaferro, 669 F.Supp. at 781-86 (Appendix). The district
court concluded that each improper referral had been used
to penalize Guidry (and the other plaintiffs) for their

A-24

refusal to support the defendants. Id. at 776.5 We do not
find clear error in this conclusion.

The defendants argue that Guidry failed to show in
each case of hiring hall discrimination that the intent of
Union leadership was discriminatory. We disagree. Guidry
(and the other plaintiffs) provided substantial evidence,
particularly in the testimony of Laird, of the attitude of

Carlock toward those members who had “voted wrong”’ in
prior elections, and of the control Carlock exercised over

the out-of-work list. This evidence, coupled with the clear
evidence of Guidry’s dissent from Union leadership, is suf-
ficient to support a conclusion that the discrimination was
intentional. Even though the evidence is largely cir-
cumstantial, it is sufficient to support the verdict. See
Vandeventer v. Local 513 of Int’! Union of Op. Eng., 579
F.2d 1373, 1380 (8th Cir.) (holding that primarily cir-
cumstantial evidence was sufficient to support verdict that

union had taken retaliatory action.), cert. denied, 439 U.S.
984, 99 S.Ct. 576, 58 L.Ed.2d 656 (1978).

Additionally, the plaintiffs introduced testimony
and exhibits regarding the specifics of each wrongful refer-
ral found by the district court. After reviewing the
evidence supporting each of the twenty-one wrongful refer-
rals, which involved jumping over Guidry’s name on the

5 The district court also concluded that each improper refusal con-
stituted a breach of the duty of fair representation under 29 U.S.C. sec.
159(a). 669 F.Supp. at 775-76. The defendants dispute this conclusion,
solely on the gound that the evidence is insufficient to support the fact-
finding that intentional discrimination in hiring hall referrals had occur-
red. We therefore conflate their arguments under the LMRDA and the

duty of fair to the extent concern the sufficiency of
the evidence. is, we address only once the issue of whether the find-

ing that the operation of the hiring hall was intentionally discriminatory
was clearly erroneous.

A-25

out-of-work list, this court is convinced that the district
court’s factfinding is correct and supported by substantial
evidence. We, therefore, do not disturb the district court’s
conclusion that discrimination in the hiring hall referrals
took place and was used in retaliation for Guidry’s failure
to support Union leadership.

3) Does the Manipulation of Hiring Hall Procedures
Constitute Discipline within the Meaning of sec-
tions 101(aX5) and 609 of the LMRDA?

[4] The defendants challenge the district court’s
holding that the wrongful hiring hall referrals constitute
“discipline” within the meaning of sections 101(a)(5) and
609 of the LMRDA, 29 U.S.C. sees. 411(a)(5) and 529. they
argue that according to Finnegan v. Leu, supra, the term
“discipline” in section 609 refers to actions taken by the
union that diminish the membership rights of a union
member. Hiring hall discrimination does not qualify, accor-
ding to the defendants, because hiring hall referrrals must
be made available to non-union members. United Ass’n of
Journeymen, Local 198 v. NLRA, 747 F.2d 326 (5th
Cir.1984); National Labor Relations Act, sec. 8(b\(1)(A),
(b\(2), 29 U.S.C. sec. 158(b)(1)(A), (b)(2).

The issue presented here—whether proof that a
union has retaliated against one of its members for his exer-
cise of a right protected under section 101 of the LMRDA
constitutes ‘‘discipline‘‘ within the meaning of section 609
of that act—has been addressed by a number of courts with
apparently contradictory results. We conclude, however,
that the cases can be harmonized, and we hold that under
the facts presented here, Guidry has made out a proper
claim for wrongful discipline in violation of the LMRDA.

A-26
In Miller v. Holden, we held:

Union action which adversely affects a member is
“discipline” only when (1) it is undertaken under
color of the union’s right to control the member’s
conduct in order to protect the interests of the
union or its membership, and (2) it directly
penalizes him in a way which separates him from
comparable members in good standing.

535 F.2d 912, 915 (5th Cir.1976). We decided that the claim
brought in Miller—that the plaintiff’s discharge from his
employment by a trust established by, but separate from,
his union—did not state a cause of action under the
LMRDA because the discharge did not constitute
“discipline” under the statute. In determining the meaning
of discipline we loo’ ed first to the statute and its
legislative history, id. at 914 n. 5 (citing 1 Legislative
History of LMRDA of 1959), 338, 516, 619, 687, 858
(NLRB ed. 1959)), but concluded that neither was
enlightening on the issue. We, therefore, applied the prin-
cipal of statutory construction of ejusdem generis and con-
strued the general term discipline to conform to the essen-
tial character of the three specific types of discipline listed
in the statute: fine, expulsion, and suspension. Id. at
914-15. Our result required, as quoted above, that the
union action separate the plaintiff from other union mem-
bers in good standing to constitute discipline.

We followed the holding in Miller to find that
manipulation of hiring hall referrals to the detriment of the
plaintiff constituted discipline within the meaning of
LMRDA in Keene v. International Union of Op. Eng. Local
624, 569 F.2d 1375 (5th Cir. 1978). In that case, the plaintiff
had unsuccessfully run for union office. He showed that
after his loss in the election he received virtually no refer-
rals through the union’s hiring hall and that over two hun-

A-27

dred people with less priority on the out-of-work list receiv-
ed referrals in preference to him. We held that a jury could
reasonably conclude that such aiscrimination is referrals
constituted discipline for exercising rights protected under
the LMRDA.

The question, however, is not so easily resolved. The
Supreme Court addressed the issue of what constitutes
“discipline” under section 609 of the LMRDA in a different
but related, context in Finnegan v. Leu, supra. In that case,
the plaintiffs sued under the LMRDA after they were
discharged from their employment as union business
agents following the election of Leu as president of the
union. The plaintiffs had openly supported Leu’s rival, the
incumbent president, in the campaign. At trial, Leu ex-
plained that he had discharged the plaintiffs because he felt
that they were loyal to the incumbent and would be unable
to implement his policies. The Court held that the term
discipline in section 609 ‘‘refers only to retaliatory actions
that affect a union member’s rights or status as a member
of the union.” 456 U.S. at 437, 102 S.Ct. at 1871 (emphasis
added). It concluded that the discharge of the plaintiffs
from their appointive union positions was not within the
scope of “other discipline’ contemplated by section 609.
Id. at 439, 102 S.Ct. at 1872.6 The Court reasoned that the

6 The Court went on to address the question of whether section 102 of
the LMRDA, 29 U.S.C. sec. 412, provided independent authority for the
suit. Section 102 provides that:

Any person whose rights secured by the provisions of
this subchapter have been infringed by any violation of
this subchapter may bring a civil action in a district
court of the United States for such relief (including in-
junctions) as may be appropriate.

A-28

the LMRDA was intended to protect rank-and-file union
members, rather than union officers or employees.
Therefore, while the plaintiffs’ right to campaign against a
candidate for union president was protected, such cam-
paigning did not immunize them from discharge at the
pleasure of the new president from their jobs as union
employees.

In cases not involving the loss of employment within
the union itself, an apparent conflict in interpreting Fin-
negan has arisen in the cases. In Hackenburg v. Interna-
tional Bhd. of Boilermakers, Local 101, 694 F.2d 1237 (10th
Cir. 1982), the court followed Finnegan to hold that union
members who were ‘‘benched’’—that is they received no
referrals—following a wildcat strike had not been ‘“‘other-
wise disciplined” within the meaning of the LMRDA.

Footnote 6 continued.

The Court noted that the intended relationship between this provision
and section 609 was ‘‘not entirely clear,’’ 456 U.S. at 439, 102 S.Ct. at
1872, but indicated that a litigant could maintain an action under sec-
tion 102 without necessarily stating a violation of section 609. However,
it concluded that in the circumstances before it no “rights secured’’ by
the subchapter had been infringed, holding that whatever limits the sub-
chapter placed on the union’s authority to use dismissal to suppress dis-
sent, it did not restrict union leaders from choosing a staff with views
compatible with their own. Jd. at 440-41, 102 S.Ct. at 1872-73. In Sheet
Metal Workers’ Inter. Ass’n v. Lynn, ____ U.S. ___, 109 S.Ct. 639, 102
L.Ed.2d 700 (1989), the Court recently limited this portion of the holding
in Finnegan to cases in which the union employment was appointive,
rather than elective. The Court reasoned in Lynn that when an elective
official is removed from his post, the union members are denied their
chosen representative, and the chilling effect on free speech is more
widespread. Id. 109 S.Ct. at 645.

Because we find that a violation of section 609 has occurred here, it
is clear that this suit could also be maintained under section 102. That
does not, however, affect the result here.

A-29

In Hackenburg, the union, following the terms of its
collective bargaining agreement with an employer, depriv-
ed the plaintiffs of any job assignments for ninety days as
a result of their involvement in a wildcat strike. The plain-
tiffs sued, arguing that they had been ‘otherwise disciplin-
ed” within section 101(a)(5), without the procedural protec-
tions afforded by that section. The court determined that
the “sanctions imposed were employment related rather
than internal union related,’’ 694 F.2d at 1240, and, relying
on Finnegan, held that the procedural safeguards of section
101(a)(5) were not available because the punishment was
not related to the union members’ rights or status as
members. Id. at 1239.

Turner v. Local Lodge #455 of the Int’l Bhd. of
Boilermakers, 755 F.2d 866 (11th Cir.1985), involves cir-
cumstances very similar to those in Hackenburg. The plain-
tiffs in Turner also suffered a ninety-day benching pur-
suant to the terms of a collective bargaining agreement as
a result of their refusal to cross an illegal picket line. The
court first noted that the plaintiffs’ contention that the
benching had actually occurred in retaliation for their exer-
cise of rights protected by section 101(a)(1) and (2) of the
LMRDA had been properly taken away from the jury
because of the lack of evidentiary support. It then address-
ed the plaintiffs’ contention—which was identical to that in
Hackenburg—that the benching had violated section
101(a)(5) because proper procedures had not been followed
before the union imposed the sanction.

The court considered the broad language in section
101(a)(5) and stated that “the sweeping language . . . can-
not be read out of context, but must be taken as backing
and support for union members exercising their ‘Bill of
Rights’ and that any union disciplinary measure unrelated
to the ‘Bill of Rights’ is not covered.” Turner, 755 F.2d at

A-30

869. Thorefore, the absence of any claim of retaliation by
the union was fatal to the plaintiffs’ LMRDA claim. The
court then went on to state that under the interpretation of
“discipline” found in Finnegan, the benching in the case
before it did not constitute discipline, because it did not af-
fect the plaintiffs’ rights as members of the union in as
much as union membership is not a requirement in order
for one to be carried on the out-of-work list and receive
employment referrals. Jd. In concluding, however, the
court noted that ‘‘the case might be different”’ if there had
been evidence of, for example, ‘retaliation for exercise of a
protected right.” Id. at 870.

Such a different result was reached by the Sixth Cir-
cuit in Murphy v. International Union of Op. Eng. Local 18,
774 F.2d 114 (6th Cir.1985), cert. denied,475 U.S. 1017, 106
S.Ct. 1201, 89 L.Ed.2d 315 (1986), in which the cour’, found
that a denial of work assignments through a hirirg hall to
a union member in retaliation for his oppositioa of union
leadership could be considered ‘discipline’ within the
meaning of section 101(a)(5). Murphy, 774 F.2d. at 122. The
court went on to uphold the district court’s conclusion that
although the union’s actions were not ‘discipline,’ they
were nevertheless actionable as violative of sections
101(a)(1) and (2). The court distinguished Finnegan on the
ground that the Finnegan court had been concerned with
union employees and the right of a union leader to choose
people to help him run the union. Jd. at 123. The court
stated: ‘‘Plainly, the Supreme Court in Finnegan did not in-
tend to rule out [29 U.S.C.] section 411 as a protection
against manipulative discrimination on behalf of an or-
dinary union member seeking to exercise his right of ex-
pression at union meetings.” Jd. The court also distinguish-
ed Turner and Hackenburg simply by noting that the
unions involved in both had acted pursuant to collective
bargaining agreements. Murphy, 774 F.2d at 122 n. 5. The

A-31

court did not address the question of whether the language
in Turner, which states that a refusal to refer a member to
employment does not affect his right as a member, 755
F.2d at 869, precluded a determination that such a refusal
could constitute discipline in any circumstances.

In Moore v. Local 569 of the Int'l Bhd. of Elec.
Workers, 653 F.Supp. 767 (S.D.Cal.1987), the court directly
addressed the problem avoided in Murphy—that Turner
appears to preclude a holding that discriminatory referral
procedures affect union members’ rights as a member of
the union. The court began by analyzing the reasoning in
the problematic dicta from Turner that because non-
members could take advantage of a union hiring hall,
membership rights are not affected by a discriminatory hir-
ing hall. Moore, 653 F.Supp. at 770. The Moore court decid-
ed that this language did not preclude a determination that
membership rights were ever affected by such discrimina-
tion for two reasons. First, the court inferred that in
Turner, the plaintiffs no longer had a right to be referred to
work because of their involvement in wildcat strikes pro-
hibited under the collective bargaining agreement. Id. Se-
cond, and more importantly, the court reasoned that one of
the rights of a union member was to receive non-
discriminatory referrals from the union hiring hall. The
court concluded that the ability of non-members to place
their names on the out-of-work lists did not diminish and,
in fact, had no relationship to that right. The court,
therefore, rejected the union’s contention in the case before
it that the dicta in Turner regarding the issue of whether
benching could constitute discipline should control. It
found instead that the plaintiffs’ allegations stated a cause
of action under section 609 of the LMRDA. Id. at 770-71.

We agree with the Moore court’s rejection of this

A-32

dicta from Turner in circumstances such as those before us.
It is apparent from the evidence that Guidry’s name was
repeatedly skipped over on the out-of-work lists in retalia-
tion for his out-spoken opposition to Union leadership.
Here, as in Murphy, and as distinguished from Turner and
Hackenburg, there was evidence of a reprisal for exercise of
rights protected under the LMRDA. The Turner court
itself noted that if there is evidence of union retaliation the
case might be different. We also point out that here, as
distinguished from Finnegan, the question involves the
right to fair treatment of a union member by his union. In
Finnegan, the plaintiffs were seeking to retain their
employment by the union, not something to which every
union member is entitled. Here, on the other hand, the
plaintiff simply seeks not to be singled out for unfair treat-
ment by his union. We simply cannot agree with the defen-
dants’ contention that discriminatory administration of
the hiring hall does not represent the kind of discipline
covered by the LMRDA.

B. Exhaustion of Union Remedies.

The defendants challenge the district court’s ruling
on the ground that Guidry failed to exhaust his internal
union remedies, and, as a result, they argue that his suit
should have been dismissed. In his complaint, as well as on
brief to this court, Guidry asserts that pursuit of his inter-
nal union remedies would have been futile, and therefore,
he is not required to exhaust that avenue before filing this
suit. The district court did not directly address this ques-
tion, although it clearly did not find that Guidry’s failure
to exhaust internal union remedies precluded this suit.

Section 101(a\4) of the LMRDA, 29 U.S.C. sec.
| 411(a)(4), allows courts in their discretion to require that a
union member exhaust his internal remedies before filing

A-33

suit. See 29 U.S.C. sec. 411(a)(4); Hammons v. Adams, 783
F.2d 597, 603 (5th Cir.1986); Chadwick v. International
Bhd. of Elec. Workers, Local 175, 674 F.2d 939
(D.C.Cir.1982).

[5,6] Before a union member may bring suit against
his union for breach of the duty of fair representation under
section 301 of the LMRA, 29 U.S.C. sec 185, the member
must either exhaust union remedies or show an adequate
reason for not doing so. Clayton v. International Union,
451 U.S. 679, 101 S.Ct. 2088, 68 L.Ed.2d 538 (1981). Here
too, courts have discretion to decide whether to require
such exhaustion. Jd. at 689, 101 S.Ct. at 2095. Factors rele-
vant to the inquiry of whether to require exhaustion are: (1)
whether union officials are so hostile to the member that he
cannot hope to obtain a fair hearing; (2) whether the union
proceedures are adequate; and (3) whether requiring ex-
haustion would unreasonabaly delay the member in pursu-
ing his rights. Id. Guidry asserts that the first of these ex-
ceptions is applicable here.

[7,8] The Union Constitution and By-laws, admitted
into evidence in the court below, provide simply that the
local union’s determination of any grievance shall be final
and binding. Neither provides specific grievance pro-
cedures for the type of complaint Guidry asserts. In such
absence of procedural requirements, an employee may pro-
ceed to file suit after pursuing his contractual remedies.
Hammons, 783 F.2d at 602. Additionally, where it is clear,
as here, that because the complaint is directed at those of-
ficials who would hear Guidry’s complaint, the member
should be excused for his failure to exhaust internal
remedies. Hayes v. Brotherhood of Ry. and Airline
Clerks/Allied Servs. Div. 734 F.2d 219 (5th Cir.), cert.
denied, 469 U.S. 935, 105 S.Ct. 336, 83 L.Ed.2d 272 (1984).

A-34
IV. THE DAMAGE AWARDS

A. The Statute of Limitations

[9] The district court, following Local 1397, United
Steelworkers of Am. v. United Steelworkers of Am., 748
F.2d 180 (3d Cir.1984), applied a six-month statute of
limitations to the plaintiffs’ LMRDA claims. It therefore

looked back six months prior to the date of filing of the suit
to determine the amount of damages. After the district
court rendered its decision, and after oral argument on this
case, the Supreme Court overruled Local 1397. Reed v.
United Transp. Union, ___. U.S. ___., 109 S.Ct. 621, 102
L.Ed.2d 665 (1989). The Court held in Reed that, unlike
claims brought under section 301 of the LMRA, see
DelCostello v. International Bhd. of Teamsters, 462 U.S.
151, 103 S.Ct. 2281, 76 L.Ed.2d 476 (1983), claims brought
under section 101(a)(2) of the LMRDA are more akin to
civil rights claims than to unfair labor practice charges.
Therefore, the court reasoned under the rule established in
Wilson v. Garcia, 471 U.S. 261, 105 S.Ct. 1938, 85 L.Ed.2d
254 (1985), the state general or residual personal injury
statute of limitation should apply to actions brought under
section 101(a)(2). Therefore, we look to Louisiana state law
to determine the appropriate statute of limitations for the
LMRDA claims. The claims under section 301 of the
LMRA are, however, still subject to the six-month
limitation. |

[10] Article 3492 of the Louisiana Civil Code provides
a one-year limitations period for delictual actions, which in-
clude personal injury actions. La.Civ.Code Ann. art. 3492
(West supp.1989). Therefore, the limitations period that
should be applied to Guidry’s claims under the LMRDA is

A-35

one year.’ Because the damages amount must be based in
part on facts not found by the district court, we must re-
mand the damages portion of this cause for a redetermina-
tion of the amount of damages to be awarded. However, we
can and will address the legal issues raised by the parties

regarding the types of damages awarded.

7 A subsidiary issue is whether Reed should be afforded retroactive ef.
fect in this case. We believe that it should.

The general rule is that federal cases should be decided according to
the law existing at the time of the decision. Goodman v. Lukens Steel
Co., 482 U.S. 656, 107 S.Ct. 2617, 96 L.Ed.2d 577 (1987). In Chevron Oil
Co. v. Huson, 404 U.S. 97, 106-09, 92 S.Ct. 349, 30 L.Ed.2d 296 (1971),
however, the Supreme Court declined to apply retroactively a limita-
tions period that would have time barred a litigant’s lawsuit. The Court
refined a three-part nonretroactivity test: (1) the supervening decision
must establish an unforeseen and unforeshadowed principle of law, as
where the Court has overruled clear circuit precedent on which the

. ts may have relied; (2) the purposes of the substantive law upon
h the limitations period operates would not be served by retroactivi-

ws and (3) retroactive application would produce inequitable results. /d.
at 106-07, 92 S.Ct. at 365-56. These factors provide no basis for refusing
retroactive application of Reed to this case.

Prior to ering bars established precedent in the Fifth Circuit

fa appropriate state statue of limitations in sec-
101(a cusoe Seucd TOaL Grand Lodge of Int'l Ass'n of Machinists
& Aerospace Workers, 445 F.2d 546, 548-60 (5th Cir.1971), cert. denied,
404 U.S. 1024, 92 S.Ct. 674, 30 L.Ed.2d 674 (1972) (applying a one-year
Alabama statute of limitations for tort actions). No post-DelCostello
Fifth Circuit decision definitively altered this rule until the district court
below adopted the Third Circuit's Local 1397 interpretation of a six-
month limitations period. Thus, Chevron’s first factor clearly is not
satisfied: Fifth Circuit precedent was not overruled by, but in fact sup-
ported, the Reed decision; at most, the limitations issue was unsettled
after DelCostello. Likewise, the remaining two Chevron factors, cannot
be met. Applying Louisiana’s one-year limitations period to determine
damages in this case would further the remedial goals of section
101(a\(2) of the LMRDA without substantially frustrating any federal
policy of repose, and would not be inequitable, as litigants in this Circuit
could not have justifiably relied on a six month limitations period prior
to Reed. See Goodman, 482 U.S. at 662-64, 107 S.Ct. at 2621-22.

A-36
1) Punitive Damages

ant “

The district court awarded punitive damages to be
paid both by the Union and Babin, relying on International
Bhd. of Boilermakers v. Braswell, 388 F.2d 193, 199 (5th
Cir.), cert. denied, 391 U.S. 935, 88 S.Ct. 1848, 20 L.Ed.2d
854 (1968), and Parker v. Local Union No. 1466, United
Steelworkers of Am. 642 F.2d 104, 106 (5th Cir.1981), for
the proposition that punitive damages may be awarded
under the LMRDA where the union acted with “actual
malice or reckless or wanton indifference to the rights of
the plaintiff.”” Braswell, 388 F.2d at 199.

On appeal, the defendants urge us to overrule this
Circuit’s precedent and rule that punitive damages are
unavailable in LMRDA cases. Alternatively, they argue
that the evidence does not support the finding of malice on
which the punitive damage award depends. We find neither
argument convincing.

As to the first argument, we simply point out that as
a panel of this court, we are not free to overrule the prece-
dent of prior Fifth Circuit cases. Only the en banc court has
the necessary power to do so. National Bank of Commerce
of Dallas v. All American Assurance Co., 583 F.2d 1295,
1301 (5th Cir.1978). As to the defendants’ second argu-
ment, we point to our discussion supra at parts III A. 1 and
| 2 of the sufficiency of the evidence. We conclude that the
evidence adduced at trial supports the district court’s fin-
ding of malice, and therefore we uphold the court’s decision
to award punitive damages, although, for the reason noted
below, we vacate the amount of the award.

On cross-appeal, Guidry argues that the amount of
punitive damages awarded was insufficient and he seeks
enhancement of the amount to $250,000. The only argu-

A-37

ment Guidry advances for this position asserts essentially
that because the Union can afford more, this award is not
sufficiently punitive. Because we remand this case for a
redetermination of the damage award, we decline to ad-
dress this issue. Because the district court may have been
influenced in its decision on punitive darnages by the
amount of actual damages, we vacate the punitive damage
award and leave it to the district court, in its discretion, to
fix once again the amount of punitive damages when the
amount of actual damages has been recomputed.

2) Emotional Distress

[11] The defendants also contest the award of
damages for emotional distress, arguing that because the
plaintiffs failed to present evidence of any physical
manifestations of that distress, such an award is
unavailable under the LMRDA. We agree that emotional
distress ‘‘standing alone does not constitute a sufficieat
basis for the awarding of damages under the [LMRDAj|.”’
Bise v. International Bhd. of Elec. Workers, Local 1969,
618F.2d 1299 (9th Cir.1979) (quoting International Bhd. of
Boilermakers v. Rafferty, 348 F.2d 307, 315 (9th Cir.1965)),
cert. denied, 449 U.S. 904, 101 S.Ct. 279, 66 L.Ed.2d 136
(1980). In order to protect against spurious claims for e1:0-
tional distress that might drain union coffers and thereby
deprive other members of effective representation, some
courts have required LMRDA claimants who seek
damages for emotional distress also to adduce some
evidence of actual injury. See id. Other courts do not im-
pose an actual injury requirement. Compare Bise, supra
with Bradford v. Textile Workers of Am., 563 F.2d 1138,
1144 (4th Cir.1977). Whether to impose an actual injury re-
quirement, as well as what such a requirement entails, are
issues of first impression for this Circuit.

A-38

We conclude, as the district court did, that LMRDA
claimants who seek damages for emotional distress must
adduce some evidence of actual injury. The environment in
which LMRDA claims arise—discipline and termination by
both unions and employers—is emotionally charged at the
outset and, thus, one in which claims for emotional distress
are likely to be the rule rather than the exception.
Moreover, the subjective nature of these claims makes it
particularly difficult to dismiss meritless actions at early
stages in the litigation—before the union has gone to con-
siderable expense in defending the action. Hence, we agree
with the Ninth Circuit that an actual injury requirement

should be imposed in order to protect unions in their
representative capacities from malice from within.

[12] A further issue to be resolved, however, is what
type of evidence will suffice to establish ‘‘actual injury.”
Despite professed agreement, the two circuit courts that
have addressed this prob e “actual injury” in
different ways. In Rodonich™). House Wrecker’s Union
Local 95, 817 F.2d 967 (2d Cir.1987), the Second Circuit
upheld the following jury instruction: “{yjou must find
such mental or emotional distress based upon the par-
ticular plaintiff’s physical condition or medical evidence.”’
Id. The Second Circuit then declared that ‘‘[tjhe qualifica-
tion that claims of emotional distress be supported by a
physical manifestation of injuiry is an appropriate
safeguard against the award of excessive and speculative
damages.” Id.; see also Petramale v. Local 17, Laborers’
Int’l Union of North Am., 847 F.2d 1009, 1012 (2d
Cir.1988). The Ninth Circuit, however, construes “‘actual
injury” more broadly. In Bise and its progeny,® lost
wages, as well as physical manifestations of emotional

8 See, e.g., Bloom v. International Bhd. of Teamsters, 752 F.2d 1312,
1315 (9th Cir. 1984).

A-39
distress, served as sufficient indication of actual injury. In
the case before us, the distxict court awarded damages for

emotional distress to those plaintiffs who could
demonstrate actual injury through lost wages.

We adopt the Ninth Circuit’s approach. We fail to see
why physical manifestations of injury should be the sole
guarantor of genuineness; financial distress may well be
the most reliable and frequent cause of mental distress.
Moreover, whatever the indicia of actual injury used, plain-
tiffs who seek damages for emotional distress must present
credible evidence of that distress. District courts should
not be hidebound to antiquated notions about the nature of
mental injury and suffering in order to determine whether
an LMRDA claim is genuine. We therefore affirm the
district court’s interpretation of the actual injury require-
ment. We vacate the award, however, for reconsideration

along with the other components of damages to be
awarded.

3) Attorneys’ Fees

[13] The district court awarded to Guidry and the
other plaintiffs ‘reasonable’ attorneys’ fees. The court
looked to Hall v. Cole, 412 U.S. 1, 4-5, 93 S.Ct. 1943,
1945-46, 36 L.Ed.2d 702 (1973) to determine the standards
for an award of reasonable attorneys’ fees. Hall allows an
award of attorneys’ fees to a successful party even in the
absence of statutory or contractual authority when his op-
ponent has acted in bad faith or when his success in the
litigation confers a benefit on members of an ascertainable
class, and where the court’s award of attorneys’ fees will
make it possible to spread the cost of litigation over the
class of beneficiaries of the suit. The court below held that,
in this case, attorneys’ fees were available under both
theories.

A-40

On appeal, the defendants argue that the district
court’s application of these two theories was an error of
law. We agree.

The bad faith exception to the general rule—that ab-
sent contractual or statutory authority, attorneys’ fees are
not recoverable—is set out in detail in Shimman v. Interna-
tional Union of Op. Eng., Local 18,744 F.2d 1226, 1228-34
(6th Cir.1984) (en banc), cert. denied, 469 U.S. 1215, 105
S.Ct. 1191, 84 L.Ed.2d 337 (1985). Shimman makes clear
that the focus of the bad faith inquiry is not the actions
that precipitated the law suit, but rather the manner in
which the litigation itself is carried out. That is, the rule is
intended to penalize the litigant who brings to court a
frivolous suit or defense, or abuses the process so as to
create an inquiry separate from the underlying claim. Jd. at
1231. This court has adopted the same reasoning. See, e.z.,
Batson v. Neal Spelce Assoc., 805 F.2d 546, 550 (5th
Cir.1986).

There is no evidence that the defendants in this case
have either brought a frivolous defense or pursued the
litigation in a vexatious manner. For that reason, we
disagree with the district court’s holding that the bad faith
exception is applicable here.

[14] The common benefit theory is also unavailable to
Guidry. The Shimman court discussed this theory as well.
In Shimman, as in the instant case, the underlying litiga-
tion resulted in a damage award benefitting only the plain-
tiffs personally. The plaintiffs contended in Shimman, as
they do here, that although the money awards do not
benefit the union membership as a whole, an incidental
benefit of the awards—dispelling the chill on free speech
created by union leadership—does inure to the benefit of all
union members.

A-41

The court in Shimman explicitly rejected this theory.
744 F.2d at 1235. The court reasoned that the idea of the
common benefit theory is to shift the costs of litigation to
those who would have had to pay if they had brought the
suit. Id. In Shimman, as here, other members of the union
could not have brought suit to redress the injuries of an in-
dividual union member. Further, an award of attorneys’
fees here would not spread the costs of litigation propor-
tionate to the common benefit. Guidry would have to pay
no more for the cost of litigation than any fellow union
member, but he would receive substantially greater
benefits in the form of cash awards.

We therefore hold that on remand, the di ictfourt
should not include an award of attorneys’ fees in its
damages award.

4) Lost Wages

Guidry argues in his cross-appeal that the amount of
losts wages awarded was inadequate to compensate him.
Once again, we are not in a position to review the district
court’s damage determination because we are remanding
that portion of the holding. We note, however, that the
district court’s method of determining the lost wages
due—comparing Guidry’s actual wages to the average
amount earned by union members during the limitations
period—is a sound and fair method of making that
determination.

¥,

For all the foregoing reasons, we AFFIRM the judg-
ment as to the defendants’ liability, and we VACATE the

award of damages and REMAND for redetermination of
the proper amount. Costs shall be borne by the defendants.

ET eT Re ee ee
eee ay :

A-42
APPENDIX E
Howard TALIAFERRO
v.

Don SCHIRO, et al.
John CREEL, et al.
v.

INTERNATIONAL UNION OF
OPERATING ENGINEERS,
LOCAL 406, et al.

Robert GUIDRY
v.

INTERNATIONAL UNION OF
OPERATING ENGINEERS,
LOCAL 406, et al.

Jess W. ROWSEY

Vv.

INTERNATIONAL UNION OF
OPERATING ENGINEERS,
LOCAL 406, et al.

Vincent REED, et al.

Vv.

INTERNATIONAL UNION OF
OPERATING ENGINEERS,

LOCAL 406, et al.

INTERNATIONAL UNION OF
OPERATING ENGINEERS,
LOCAL 406, et al.

Civ.A. Nos. 83-0388-LC, 83-1042-LC,
83-1141-LC, 84-0650-LC, 84-0777-LC
and 84-1005-LC.

United States District Court,
W.D. Louisiana,
Lake Charles Division.

Sept. 9, 1987.

Union members brought action against union and its
officers for denial of rights guaranteed by Labor-
Managements Reporting and Disclosure Act and for
breach of union’s duty of fair representation. The District
Court, Vernon, J., held that: (1) union officers’ manipula-
tion of hiring hall procedures constituted violations of
Labor-Management Reporting and Disclosure Act, as well
as breach of union’s duty of fair representation; (2) six-
month statute of limitations was applicable to both causes
of action; and (3) unlawfully discriminated against union
members were entitled to lost wages, damages for mental
suffering, punitive damages, and attorney fees.

Judgment for plaintiffs.

ee ee ee ee ea eS eh a, ——. ee Pe ee

A-44

Maurice Tynes, Levingston, Tynes & Liles, Lake
Charles, La., for all plaintiffs, except Creel, Hatch and
Johnson.

H. Alva Brumfield, III and William P. Brumfield,
Brumfield & Brumfield, Baton Rouge, La. for plaintiffs
Creel, Hatch and Johnson.

Floyd J. Falcon, Jr. and Daniel L. Avant, Avant &
Falcon, Baton Rouge, La., for defendants Don Schiro and
Peter Babin, III.

Jerry L. Gardner, Jr., Gardner, Robein & Healey,

Metairie, La. for Int’l. Union of Operating Engineers, Local
406.

Columbus J. Laird, Oakdale, La., for Columbus J.
Laird.

Willard S. Carlock, Sr., Seagoville, Tex., for Willard
S. Carlock, Sr.

OPINION
VERON, District Judge.

The plaintiffs in these related civil actions are ali
members or former members of the International Union of
Operating Engineers, Local 406 (“the Union‘), seeking
recovery from the Union and its officers for denial of rights
guaranteed by 29 U.S.C.A. § 411(a)(1985) and for breach of
the Union’s duty of fair representation. In Civil Action
Nos. 83-0388 and 83-1141 the plaintiffs also included a
claim for unlawful discipline for exercising those rights in
violation of 29 U.S.C.A. § 529 (1985). Trial was held in the
related cases simultaneously. Having considered the

A-45

evidence presented at trial and the applicable law, as well
as the oral and written arguments of counsel, the court
finds for the plaintiffs and against the defendants for the
reasons assigned below.

FINDINGS OF FACT

A. The Defendants

The Union, a constituent division of the Interna-
tional Union of Operating Engineers, is an unincorporated
statewide labor organization which exists to establish and
maintain collective bargaining agreements with various
contractors in an effort to secure favorable wages, hours,
and working conditions for workers within its jurisdiction.
The Union had almost 6000 members at its peak, but cur-
rently has only about 3200 members. It has six districts
statewide and maintains offices in each district with cen-
tral administrative offices in New Orleans. The Lake
Charles District includes the Parishes of Calcasieu,
Cameron, Jefferson Davis, Beauregard, Allen and part of
Vernon.

Peter Babin, III currently serves as the Business
Manager and Financial Secretary of the Union, having
been first elected to those offices in mid-1976. As Financial
Secretary Babin has the responsibility of collecting union
dues and paying union bills. As Business Manager he
negotiates collective bargaining agreements with contrac-
tors within the state, serves on the committee negotiating
the National Pipeline Agreement, serves as a trustee of the
Union’s Health and Welfare Fund, and acts as a delegate
to various conventions, including the AFL-CIO conven-
tion. Babin also appoints assistant business managers (also
known as “business agents’’ or ‘““BA’s’’) who operate the
Union on a day-to-day basis in each of the districts.

A-46

Business agents appointed by Babin are authorized
to represent the Union at pre-job conferences with contrac-
tors and in disputes between contractors and the Union or
its members. Business agents have authority to appoint
union stewards and master mechanics who act as union
representatives on the job. Finally, business agents ad-
minister the exclusive job referral system through the hir-
ing hall.

After appointing business agents, Babin testified
that he instructed them to distribute job referrals on a non-
discriminatory basis and to avoid ownership of construc-
tion equipment. After several incidents of labor violence,
Babin circulated to all business agents for their signature
a memorandum informing them the Union would not be
liable for unauthorized activity by business agents or union
members.

Babin did very little to supervise his business
agents, allowing them to run their respective district of-
fices as they saw fit. Babin met with each business agent
twice a year just before Executive Board meetings to
discuss local problems. He had no formal procedure for
evaluating a business agent's performance, relying instead
upon the voting results of his bids for re-election. If the
members of a particular district voted to re-elect Babin, he
assumed his business agent for that district performed his
duties satisfactorily. The court finds Babin’s supervision

totally inadequate.

Babin's predecessor, Jack Fisk, appointed defendant
Willard Carlock, Sr. Business Agent for the Lake Charles
District. When Babin became Business Manager, he retain-
ed Carlock, Sr. In the midst of criminal investigations into
Carlock, Sr.’s administration of the Union’s Lake Charles
District, Babin fired Carlock, Sr. on March 10,
1984.

A-47

Babin appointed defendant Columbus J. (‘‘C.J.”’)
Laird Business Agent for the Lake Charles District in
1978. Although technically he had as much authority as
Carlock, Sr., Laird considered Carlock, Sr. to be his boss
and followed all of Carlock, Sr.’s directions. Laird remained
in office until January 15, 1985, when he resigned after the
government brought an indictment against him, Carlock,
Sr. and others.

In March, 1980 Babiz named Don Schiro statewide
Pipe Line Business Agent. Schiro represented the Union in
matters involving pipe line construction projects controll-
ed by the National Pipe Line Agreement. As part of his
duties, Schiro attended pre-job conferences with contrac-
tors on pipe line projects. Although he had ultimate respon-
sibility for appointing stewards and referring operating
engineers to pipe line jobs, Schiro generally left these
details to district business agents like Carlock, Sr. and
Laird.

In 1980 the Union membership elected Schiro as
their President. As President Schiro receives no additional
compensation from the Union (other than his salary as a
business agent). The President’s only duty is to preside

over membership meetings held periodically in the various
districts statewide.

B. Labor Climate in Southwest Louisiana

It is impossible to fully understand this case without
some background knowledge of the environment within
which Carlock, Sr. operated the Lake Charles District of
the Union. Accordingly, upon the plaintiff's request pur-
suant to Fed.R.Evid. 201, the court takes judicial notice of
the following facts generally known within this court's ter-
ritorial jurisdiction.

A-48

Orgainized labor traditionally has had considerable
political and economic power in Southwest Louisiana. Dur-
ing the OPEC nations’ oil embargo of the 1970's, Loui-
siana’s petroleum industry began to experience rapid
growth which spilled over into other industries and created
a high demand for labor. Local labor leaders used their con-
trol of the labor market to gain power over contractors and
union employees. As labor shortages and the period’s infla-
tionary trends caused ever-increasing wages, union
members perceived their local business agents as even
more powerful. Political candidates recognized the con-
siderable influence of business agents and depended upon
their support for success.

Business agents continued to exercise their power
virtually unheeded, creating an environment of labor
unrest characterized by violence and corruption. Confron-
tations between the unions and contractors employing non-
union labor climaxed with the ‘‘Ellender Bridge’ incident
of May 20, 1975 and the “Jupiter Chemical” incident of
January 15, 1976. These incidents ‘contributed
significantly to an atmosphere of violence and fear for
union contractors and employees.’’ United States v.
Carlock, 806 F.2d 535, 539 (5th cir.1986) cert. denied ___
U.S. ___, 107 S.Ct. 1611, 94 L.Ed.2d 796 (1987) and ___
U.S. ___, 107 8.Ct. 1613, 94 L.Ed.2d 798 (1987). Carlock,
Sr. and others were indicted, tried, and acquitted in state
court for their alleged roles in the Ellender Bridge incident.

Allegations of corruption within the Union con-
tinued. Eventually a United States Senate Subcommittee
and the Federal Burreau of Investigation (“‘FB1’’) launched
investigations which led to the grand jury indictment, triai,
and convictions of Carlock, Sr., Laird, and others of
violating and conspiring to violate the Racketeer Influenc-
ed and Corrupt Organization Act, 28 US.C.A. §
1962(d\ 1984).

|

A-49

Carlock, Sr. was also convicted of extortion in violation of
the Hobbs Act, 18 U.S.C.A. § 1961 (1984), and of demand-
ing and receiving illegal payments from employers in viola-
tion of the Taft-Hartley Act, 29 U.S.C.A. § 186 (1978). Ad-
ditionally, Laird was convicted of one count of obstruction
of justice. 7

During Carlock, Sr.’s term as business agent Babin
occasionally received complaints from the union members
concerning improprieties committed by Carlock, Sr. Babin
testified that hie investigations into such matters con-
sisted of gathering all relevant facts from the person lodg-
ing the complaint, confronting Carlock, Sr. with the allega-
tions, and receiving Carlock, Sr.'s explanation. Satisfied
with the explanation, Babin would relay it to the complain-
ant. Babin’s ‘“‘investigation’’ of a complaint meant only
communicating with the subject and cause of the com-
plaint. The court finds this totally inadequate.

C. Hiring Hall Procedure

The Union, as the exclusive collective bargaining
agent for operating engineers seeking employment within
its jurisdiction, entered into several collective bargaining
agreements which goven the procedures to be used in

employing operating engineers. An agreement between the
Union and the Lake Charles District, Associated General

Contractors of Louisiana, Inc. governs the building and
construction trades industry (hereinafter referred to as the
‘Building Trades Agreement’’). A second major agree-
ment, the National Pipe Line Agreement, covers all
transportation mainline pipe line and underground cable
work.

Both agreements allow signatory contractors to hire
directly qualified employees in certain circumstances.

A-50

The National Pipe Line Agreement permits contractors to
fill up to approximately half the positions on a project with
“regular employees.”’ “Regular employees’ are those
regularly and customarily employed by the individual con-
tractor whenever he has work or who have been employed
by him sometime during the previous six months, and who,
because of their special knowledge and experience in
pipeline construction work, are considered ‘‘key men.’’
These key men work on the ‘company half.”’

The Building Trades Agreement allows signatory
contractors to recall for employment any operating
engineer that contractor has employed for at least half the
previous twelve months. Contractors signatory to this
agreement may also hire directly key personnel, generally
limited to foremen.

Laird, Schiro, and Sonny Maon, the current business
agent in the Lake Charles District, never verified that in-
dividuals hired directly by contractors met the contractual
requirements for direct employment, even though an
operating engineer referred through the Union’s hiring hall
would replace any prospective employee disqualified from
direct employment.

The Union furnishes all other operating engineers to
pipe line and building trades contractors through an ex-
clusive hiring hall. Both agreements establish a method for
registering and ranking applicants for referral through the
hiring hall. Applicants must be placed into four groups,
each containing operating engineers of roughly equivalent
work experience; however, the Union has always disregard-
ed this rule, organizing the applicants into one group of
journeyman operating engineers (while maintaining a
separate group for oilers). Each district office maintains
out-of-work lists containing names of all applicants in the

A-d1

order each notifies the Union he is available for work. The
Union maintains separate lists for building trades projects
and pipe line projects. Since March, 1984, applicants could
only have their names on one of the lists at a time.

When a contractor notifies the Union that it requires
an operating engineer for a specific job, the business agent
must contact qualified applicants for the job until the job
is filled, starting with the first name on the proper out-of-
work list. When contacted an applicant may either accept
or decline a referral. An applicant who accepts a referral
receives a referral slip signed by the business agent and
identifying the contractor, job site, job type, wage rate,
and date and time the applicant is to report. Once the appli-
cant works forty hours, the business agent removes his
name from the out-of-work list.! The applicant bears the
responsibility of notifying the Union that he has worked
over forty hours.

An applicant may decline a referral without penalty
if he feels he is not qualified for the job offered. Under the
provisions of the collective bargaining agreements, the
business agent should move to the bottom of the out-of-
work list the name of any applicant who arbitrarily refuses
to accept a referral; however, Carlock, Sr. and Laird
routinely aliowed applicants to turn down shorter job refer-
rals to hold out for longer, more lucrative ones.

The Union established by custom several exceptions
to the general rule that job referrals are offered to ap-
plicants in the order their names appear on the out-of-work
list. These exceptions are in addition to the contracjors’
right to hire employees directly under the circumstances
discussed above.

: For pipe line projects, an operating engineer’s name was removed from
the pipe line out-of-work list after he had worked fifty hours.

A-52

One exception involved referral of stewards to
pipeline projects and master mechanics to building trades
' projects. Stewards and master mechanics act as union
representatives at the job site. Frequently they are the peo-
ple actually contacting the union hall for the contractor to
request additional operating engineers, providing descrip-
tions of the type of work to be performed and the expected
duration of the job. On large projects, they must be ver-
satile operators, capable of running several types of equip-
ment, and able to fill in on a temporary basis for any
operator who becomes incapacitated. They must be able to
read and write so they can keep records and must have the
even temperament required to work with management and
resolve disputes which may arise..

Under the collective bargaining agreements, the
Union has the right to designate a steward or master
mechanic from the union members already referred to the
project; however, Carlock, Sr., Laird and Schiro appointed
stewards and master mechanics from individuals named on
the out-of-work list, regardless of their position on the list.
Schiro would sometimes appoint as a pipe line steward an
individual who had a job on another project when the other
project was nearing completion. To appoint as a steward an
individual who is not even available for work when others
are registered on the out-of-work lists clearly violates the

Union’s hiring hall procedure.

A second exception involved the referral of short-
term jobs, i.e., those expected to last one to three days, bas-
ed upon information provided by the contractor (or, fre-
quently, the steward or master mechanic) requesting an
operating engineer. By custom Carlock, Sr. and Laird hand-
ed these referrals to applicants present at the hall without
regard to the applicants’ positions on the out-of-work list.
Carlock, Sr. and Laird never consulted the out-of-work lists

A-53

when making these referrals, unless two or more applicants
desired the same referral.

Another exception allowed Carlock, Sr. and Laird to
refer without reference to the out-of-work list a temporary
replacement for any operating engineer who became in-
capacitated or otherwise unable to perform his job.

A final “exception” resulted from a collective
bargaining agreement between the Union and Dolphin Con-
struction Co. which required the Union to refer residents of
Allen Parish to Dolphin’s construction project there. Con-
sequently, Allen Parish residents received referrals to that
contractor ahead of otherwise equally qualified applicants
living outside that parish whose names were higher on the
out-of-work list.

D. Carlock, Sr’s Abuse of the Hiring Hall Procedure

During the trial, Laird admitted several times that
tnese exceptions gave Carlock, Sr. the power to enrich his
allies and to starve his enemies within the Union by con-
trolling their ability to obtain referrals for employment.
After carefully considering the testimony of the witnesses,
together with the pension fund records, out-of-work lists,
and referral slips admitted into evidence, this Court is con-
vinced Carlock, Sr. did in fact exploit and, at times,
disregard entirely the hiring hall procedures to enrich his
confederates to the detriment of the plaintiffs and others.

The court finds that Carlock, Sr. used several means
to provide his confederates with regular employment in
return for their support during a period when jobs were in
high demand and short supply. The following is a brief
discussion of some of these methods Carlock, Sr. used to
by-pass the out-of-work list, i.e., to circumvent the general

A-54

rule that applicants for employment receive referrals in the
order their names appear on the out-of-work list.

First, Carlock, Sr. repeatedly appointed his con-
federates stewards and master mechanics although many
of these appointed lacked the skills necesary to properly
perform the tasks of the position and although other equal-
ly or more qualified applicants had higher positions on the
out-of-work list. Laird admitted that Michael Greer,
Monroe Brabham, Pete Dartez, and Linda Young could not
qualify as master mechanics but received referrals as such
anyway. Carlock, Sr. forced contractors to accept un-
qualified individuals as master mechanics by threatening
work slowdowns, work stoppages, and sabotage. The court
notes that one contractor, Mar-Len Construction Co. tried
to send back a master mechanic (Scimemi) for nine or ten
months and finally succeeded only after halting construc-
tion on its project.

Second, Carlock, Sr. bypassed the out-of-work list to
favor his confederates by exploiting the exception for refer-
ral of jobs lasting one to three days. The court recognizes
that as a business agent Carlock, Sr. was familiar with the
labor requirements of area construction projects. Carlock,
Sr. personally visited the sites, talked with contractors’
representatives, and received frequent reports from his
stewards and master mechanics. The court concludes that
Carlock, Sr. knew certain jobs would last substantially
more than three days; nevertheless, he would refer his con-
federates to the jobs out of turn by designating the refer-
rals as being for short-term jobs.”

2 The court notes with interest that plaintiff Jerry Hatch received some
eighty-seven referrals between January 29, 1980 and April 26, 1983.
Defendant’s Exhibit 59. The vast majority of these were short-term
jobs. An examination of these referrals and Hatch’s pension fund
records reveals that only one of the eighty-seven referrals contained an
inaccurate estimate of job duration.

()
\y

A-55

Next, according to Laird, one of easiest ways to
bypass the out-of-work list was to obtain employment on
eee Laird pointed out
that this required the business agent’s cooperation
(because only persons qualified as ‘“‘regular employees”’ of
the contractor were eligible for employment on the com-
pany half). The court finds Carlock, Sr., Laird, Schiro and
even Mason gave the requisite cooperation by not confirm-
ing the eligibility of operators employed on the company
half. ‘

Finally, Carlock Sr. referred his confederates to con-

tractors out of turn by designating the referral as a recall
regardless of the individual’s eligibility for recall.

Carlock, Sr. kept control over union members
through intimidation and threats of retaliation in the form
of economic discrimination and physical injury. The court
notes testimony of an incident occurring during a union
meeting. A union member demanded Carlock, Sr. take ac-
tion as business agent to ensure that the wage rate the
member was earning be increased to union scale. A fight
developed and ended when Carlock, Sr. rammed the
member’s head into a wall.

Carlock, Sr. further discouraged open opposition by
requiring members to vote at meetings by standing. The
plaintiffs testified they feared voting against Carlock, Sr.
publicly because they feared Carlock, Sr.’s retaliation.

Finally, Carlock, Sr. himself kept possession or c\ -
trol over the out-of-work lists,? which made it difficult for

3 Often Carlock, Sr. ’s secretaries had possession of the out-of-work lists,
pina — tyes. 20 heen gy ’s presence before allowing a member to
personally examine the lists

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union members to discover improper referrals. Checking
one’s position on the list to challenge a referral meant con-
fronting Carlock, Sr. directly.

E. Plaintiffs’ Testimony
1. Howard Taliaferro

Howard Taliaferro joined the Union July 28, 1967
and remained a member until March 31, 1983, when he was
suspended for non-payment of dues. On July 21, 1983 he
was expelled. As an operating engineer, Taliaferro operated
bulldozers, sidebooms, and other equipment but could not
operate ‘“‘claws’’ or cranes. Taliaferro also possessed the
skills required of a steward—he could read and write, could
operate several types of equipment, and knew the terms of
the collective bargaining agreement sufficiently to enforce
them.

Taliaferro did not support Carlock, Sr. throughout
the latter’s career as business agent. During the 197/’s
Taliaferro filed several complaints over the manner in
which Carlock, Sr. administered the hiring hall procedures,
objecting to Carlock, Sr.’s deviations from the terms of the
collective bargaining agreement. In 1977 Taliaferro refus-
ed to contribute to Babin’s re-election compaign when
Carlock, Sr. solicited support. Taliaferro also declined to at-
tend a barbecue fund raiser.

Taliaferro cooperated with the FBI during its
criminal investigation of Carlock, Sr. in 1983. As a result,
Taliaferro received threats warning him not to talk to the
FBI or anyone else.

From late 1981 Taliaferro found little employment as
an operating engineer. He signed the out-of-work list

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December 4, 1981 and remained registered as available for
work until March 15, 1982, when Laird removed
Taliaferro’s name after Taliaferro was working in Texas. In
fact Taliaferro had found employment in the Dallas, Texas
area, but his name should have remained on the list until
April, 1982 when he first earned in excess of 50 hours work-
ing for Avery-Mayes Construction Co.

Taliaferro continued to work steadily in Texas until Oc-
tober of 1982. When he contacted the Union on October 12,
1982 to register as available for work, Laird incorrectly
placed Taliaferro’s name on only the pipe line out-of-work
list rather than on both lists.

From October 12, 1982 until June, 1984 Taliaferro’s
name remained on the out-of-work list. During this period
he applied for jobs with many union and non-union contrac-
tors and other businesses. In November of 1982 he received

referrals from Local 714 in Texas for jobs lasting a total of
26.5 hours. In early 1983 he found short jobs with non-
union employers, Golightly and Woodson Construction
Company. The job for Woodscn lasted around ten days, for
which Taliaferro earned $1241. Taliaferro also declined
referrals for a couple of jobs because he could not operate
the equipment involved or because FBI Agent Steven Ek
had advised him to do so.

While unemployed Taliaferro experienced serious
financial hardships. In January, 1983 he made his last dues
payment to the Union. Later that month his car was

repossessed, limiting his capability to search for work.

Finally, In June, 1984 Laird referred Taliaferro to
Sanders Hydrotesting Co., where he worked for 304 hours.
He has not worked at the trade since, though he remains on
the out-of-work list and would accept a referral if offered

are ee ee

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one for a job for which he was qualified. Taliaferro has been
receiving early retirement benefits since early 1985.

2. John C. Creel

John C. Creel joined the Union as a transfer from
Local 675 in Florida in 1974. Creel operates various types
of equipment, but primarily cranes. Finding little work,
Creel withdrew from the Union in March, 1976 to practice
as an electrician. At a chance meeting with Carlock, Sr. on
a construction site in 1979, Creel learned that crane
operators were in high demand, so he again sought admis-
sion to the Union.

Creel worked steadily from December 27, 1979 to
March 9, 1982, working nearly 2000 hours in both 1980 and
1981. After March 9, 1982 Creel’s fortunes changed
drastically. Over the next twelve months he received eleven
referrals to short jobs lasting an average of 21 hours and
totaling 235 hours. Throughout this period Creel remained
available for work, visiting the union hall four times a week
to seek referrals.

Beginning in March of 1982 Creel complained to
Carlock, Sr. and others about discrimination in the referral

procedure and on one occasion presented Carlock, Sr. with
a written complaint for filing with the grievance commit-
tee. Carlock, Sr. responded by tearing up the complaint and
stating that he was the grievance committee. Creel also
received several threats of personal injury to his family,
and damage to his shrimp boat.

In 1983 Creel got one job with Roy B. Paui Construc-
tion Co. and worked for 445.5 hours, earning $6865. On
September 20 of that year he and another plaintiff, Truman
Johnson, were injured in an automobile accident and re

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mained unable to work until May, 1984. Since that time
Creel has received one referral and worked 56 hours at the
trade in May of 1986.

While searching for employment as an operating
engineer Creel supplemented his net income from shrimp-
ing during 1984 at $7000. At present Creel practices as a
real estate agent in Florida.

3. Jerry Hatch

Jerry Hatch, a man of fifty years and little or no for-
mal education first became a member of the Union in 1964.
Operating heavy equipment has been the only trade he has
ever known. He testified that ever since Babin and Carlock,
Sr. first took office, he has opposed them because of prob-
lems they caused within the Union. Hatch refused to pay
$25.00 per week as demanded by Carlock, Sr.’s con-
federates for a legal defense fund to pay legal fees
generated tin Carlock, Sr.’s defense against state court
criminal charges. Hatch also testified that he begged Babin
to take some action to bring a solution to the internal pro-
blems in the Lake Charles District. In return for his opposi-
tion Hatch received threats by phone that his family would
be killed. On one occasion Hatch received a call from his
daughter, who tearfully reported a threat she had just
received that she and her daughter would be killed. The
stress on Hatch and his family contributed to a separation
and divorce from his wife this past year.

From October, 1982 to October 4, 1984 Hatch has
had only one long-term job. Hatch worked for R.B.
Potashnik for 438 hours from January to March, 1983.
Besides the Potashnik job, Hatch did work 122.5 hours on

several short jobs, the longest lasting 22.5 hours. At all
other times during this period Hatch remained availabie

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for work. Hatch went to the hall five days per week seeking
referrals. He declined only those referrals involving equip-
ment he could not operate or involving jobs in the Oakdale,
Louisiana area, Carlock, Sr.’s hometown.

On October 4, 1984 Hatch suffered a job-related in-
jury and has been disabled ever since. He has been receiv-
ing disability and social security benefits, but hopes some
day to have recovered sufficiently to resume working.

4. Truman Johnson

Truman Johnson, born February 6, 1950, had been a
union member since August 12, 1973 and could operate all
types of heavy equipment except large cranes. After Oc-
tober, 1982 Johnson’s only employment was for R.B.
Potashnik Construction Company, for whom he worked
709 hours between December 10, 1982 and March 23, 1983.

Johnson became disabled September 20, 1983 in an
automobile accident. Except during the time he was
employed by Postashnik, he spent nearly every day at the
union hall seeking referrals. After the Potashnik job
Johnson begged Babin to take some action to solve the pro-
blems in the Lake Charles District. Babin refused, explain-
ing that Carlock was in charge.

Truman Johnson died on October 10, 1986. Charles
Johnson, as administrator of the property of Truman
Johnson’s daughter, has been substituted as the proper

party plaintiff.
5 Robert Guidry

Robert Guidry entered the Union in 1949. He
operates almost all types of heavy equipment including

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draglines, cherrypickers, large cranes, bulldozers and
sidebooms, but does not operate any hydraulic equipment.
He has worked as a steward on several jobs, all before 1969.

Guidry has a long history of opposing incumbent
Union officers. In 1979 Guidry ex pected to receive his gold
union membership card in recognition of thirty years
membership in the Union. As a gold card holder Guidry
would have been exempt from paying dues. Instead Guidry
learned he had been suspended for non-payment of dues for
eight months beginning July 31, 1955, the same time he
had opposed the then-current business agent’s re-election.
Injured on the job, Guidry could not work at the time. Dur-
ing the 1950’s business agents customarily collected con-
tributions from the union membership to pay the dues of ill
or injured members, but no contributions were collected for
Guidry.

From September, 1979 to February, 1981 Guidry
worked as the steward for Parsons—Gilbane Construction

Company. After learning that a union member was paying
Carlock, Sr. to keep his job, Guidry accompanied the

member to report this to the FBI. Soon afterwards Carlock, ~—

Sr. tried unsuccessfully to have Guidry fired from the job.
Guidry received threats, both by phone at night and in per-
son at the job site. Three union members, confederates of
Carlock, Sr., threatened Guidry’s life during a conversation
with him on the job site and subsequently were arrested by
the FBI.

Guidry appealed to Babin in New Orleans and filed
a complaint against Carlock, Sr. Guidry presented his case
to the Executive Board at a hearing corlducted in a Baton
Rouge motel room near the Baton Rouge district office of
the Union. The commitiee, headed by Babin, dismissed
Guidry’s charges. -

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After the Parsons job ended in February, 1981,
Guidry found employment with various contractors until
October, 1982. From October, 1982 to August, 1983
Guidry received a referral to Ford, Bacon & Davis Con-
struction Company and made 253.50 hours.

Tetra Enterprises, Inc., a non-union employer gave
Guidry his next job in August, 1983. Guidry had been
receiving extended benefits under the federal unemploy-
ment compensation plan, having exhausted his state
benefits. Two days later the union began picketing this job,
creating a dilemma for Guidry. If he honored the picket
line, he would again be unemployed and would lose his
eligibility for extended benefits because he had refused
available employment. On the. other hand, by crossing the
picket line Guidry risked losing his union membership.
Economic pressure resulting from the discrimination
within the hiring hall forced Guidry to cross the picket line
and continue working. |

In October, 1983 the Union filed charges against
Guidry for crossing the picket line. At a union meeting in
Lafayette the membership present voted to revoke
Guidry’s membership in the Union. Before the meeting
Laird telephoned Carlock, Sr.’s supporters in the Union to
assure their attendance and vote against Guidry.

Guidry had only one other job during 1983. On this
job Guidry earned $1594.23 working for Harmony Corpora-
tion. In 1984 Guidry entered the trucking business
transporting drilling tools and supplies to oil well locations.
From this venture he earned $11,615.61 in 1984, $8776.06
in 1985 and $9342.11 in 1986.

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6. Jess Rowsey

Jess Rowsey, born March 17, 1923, has operated
heavy equipment since World War II. He joined the Union
November 2, 1967 and has remained a member ever since.
He can operate most types of equipment used on jobs in the
Lake Charles area, and is at least as qualified to be a master
mechanic as Linda Young and Willard Carlock, Jr., two of
Carlock, Sr.’s confederates frequently appointed as master
mechanics.

While Carlock, Sr. was business agent in Lake
Charles, Rowsey never openly opposed him. In May 1979,
Nathan Courville stewarded a job on which Rowsey work-
ed. When Courville announced he was collecting $100 from
each union member on the job for Carlock, Sr.’s legal
defense fund, Rowsey paid almost immediately out of fear
that otherwise he would be laid off. Later, Carlock, Sr. per-
sonally visited the job and warned Rowsey to keep quiet
about the payment. Again to keep his job, Rowsey did as
“requested.”

At a union meeting in 1980 or 1981 Rowsey witness-
ed the explosiveness of Carlock, Sr.’s temper. Babin,
Schiro, Carlock, Sr. and Larid all attended a meeting, sit-
ting on a dais at the front of the crowd. Just before the
meeting ended, J.D. Antley, a retired member of the Union,
approached Carlock, Sr. and requested that his son, then an
oiler, be issued an operator's book. When Carlock, Sr. refus-
ed, Antley responded that Carlock, Sr. had done the same
thing before for others. Carlock, Sr. exploded, cursing
Antley and physicellv accosting him. Union members from
the crowd had to separate the two physically. Meanwhile
Babin and Laird had taken no action and Schiro had only
banged his gavel demanding order. Rowsey testified that
the event left him shaken and fearful of Carlock, Sr.

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In June, 1981, Rowsey testified in Monroe on behalf
of Lamar Honey against the business agent from the
Monroe district, Charles ‘“‘Sub’’ Hayes. See International
Union of Operating Engineers, Local 406 v. N.L.R.B., 701
F.2d 504 (5th Cir. 1983). Since then Rowsey has experienc-
ed a great deal of trouble obtaining job referrals. In August
of 1981 Rowsey received referrals to Industrial Construc-
tion Co., working only two hours, and to Ford, Bacon &
Davis Construction Co., working 347.5 hours there.

During 1982 Rowsey did not receive a referral until
September and worked a total of 108 hours. The court
notes that Rowsey was not available for work during his
wife’s hospitalization from March to May of 1982. In 1983
his hours increased somewhat to 229 hours. Rowsey did not
work at all in 1984, 1985, or 1986 forcing him to apply for
his retirement benefits in December, 1984. He received his
first retirement check May, 1985.

7. Vincent Reed

Vincent Reed first began working out of the Union in
1959 as an oiler. In 1960 he was injured and subsequently
suspended from the Union. Near the end of 1978 Reed
returned to the Union to seek employment through the
hall. Carlock, Sr. exchanged a referral for $350 dollars in
cash, delivered personally to Carlock, Sr. alone. Reed work-
ed for Rimmer and Garrett Construction Company from
March 1979 to the end of the year. The defendants offered
no reasonable explanation for this payment; therefore, the
court concludes the payment was a bribe. Certainly, Reed
understood it to be such.

Eventually Reed also sought membership in the
Union. Reed’s testimony concerning payments Carlock, Sr.

ais

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demanded in return for membership and employment is
somewhat confusing. It is apparent that Reed believed
Carlock, Sr. demanded a series of bribes in return for
membership; however, the court is satisfied that Reed’s
conclusions resulted from misunderstandings by both
Carlock, Sr. and Reed. The court is satisfied that the facts
are as follows:

In response to Reed’s request for membership,
Carlock, Sr. told Reed it would cost $1800. Apparently
Carlock, Sr. believed Reed had been a member of the Union
in 1960 and now wanted reinstatement. The $1800
represents back dues owed from 1960 to 1980. After Reed
complained to Babin about Carlock, Sr.’s demand, the fact
that Reed had never been a journeyman operator surfaced.
Carlock, Sr. then initiated Reed as a new member, issuing
him a permit until Reed paid five dollars per week for
seventy-eight weeks, plus an initation fee and a building
fund charge. Upon completion of these paymenis in April
of 1980, Reed received a membership book.

After September, 1980 Reed received only three
referrals. Through the first two referrals, both in 1982,
Reed obtained employment lasting 244.4 hours. Reed’s last
referral from the Union came in January of 1983. From
January to March, 1983 Reed worked 450 hours for R.B.
Potashnik Construction Company. After March 1983, Reed

only received offers to run equipment he couldn’t operate,
to work short jobs too far out-of-town to be financially at-

tractive, or to work jobs too short to merit leaving the top
of the out-of-work list.

8. Gene Romero

Gene Romero entered the Union on October 26, 1972.
He primarily operates rubber-tire equipment, bulldozers,

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and other dirt-moving equipment. Like the other plaintiffs,
Romero opposed Cariock, Sr. On one occasion in 1983, a
confederate of Carlock, Sr. requested that Romero con-
tibute to Carlock, Sr.’s legal defense fund. Romero refused.

From 1979 to 1981 he worked over 2000 hours each
year, but after that his hours fell sharply to 617.25 hours
in 1982, 170 hours in 1983, 260 hours in 1984, and only 16
hours in 1985. When not working, Romero went to the

union hall almost every day during the mornings to seek
referrals.

9. Alton Janise

Alton Janise, born January 7, 1928, joined the Union
in 1957. He has had several strokes, the first occurring in
1984. Since then he has been unable to work. His memory
is very poor and he can no longer read.

Janise’s pension fund records indicate that he work-
ed the following hours:

Hours
1980 1795
1981 2146.5
1982 733.5
1983 240
1984 0
1985 0

10. Craig Edwards

Craig Edwards entered the Union March 22, 1973.
He is qualified to operate almost all kinds of heavy equip-

ment except draglines. Since January 31, 1985 he has been
suspended from the Union for non-payment of dues, but he

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testified that he plans to pay the amount in arrears once he
is financially able. In 1981 and 1982 he worked around 1100

hours. Then in 1983 his hours fell to 590.80 and in 1984 to
73.50.

Craig Edwards testified that on one occasion when
he had become desperate for work, he sold Carlock, Sr. an

air conditioning unit worth several thousand dollars. In
return Craig Edwards received $200. and a job several days
later. Craig Edward’s testimony concerning this incident
was supported by Roderick Edwards, Craig’s brother who
testified that he helped Craig deliver the air conditioner to
Carlock, Sr.

In 1982 Craig Edwards received a referral to Nichols
Construction Co. The job lasted 668.8 hours and carried
over into April of 1983. Craig Edwards has not received
any referrals through the hall since then, but did find a job

with Industrial Construction Co. on his own operating a
cherrypicker for 73.5 hours. He has maintained his name on

the out-of-work list and has remained available for work.

11. Roderick Edwards

Roddy Edwards, Craig’s brother, joined the Union in
1964. He operates several types of heavy equipment, in-
cluding hydraulic equipment. Hostility between Roddy Ed-
wards and Carlock, Sr. began around late 1982 or early

1983 when Roddy Edwards stopped receiving referrals.
While he remained out of work, Carlock, Sr. provided his

wife Beverly with referrals. As Carlock, Sr.’s “‘girlfriend,”’
she sometimes had two jobs from the Union at the same
time.

From May to October, 1982 Roddy Edwards worked
for J.A. Jones Construction Co. He did not receive another

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referral from the Union from then until the time he began
serving a jail sentence iz: mid-1985.

12. Cary Vaughn

Cary Vaughn joined the Union as an oiler in 1968. As
noted above, the Union maintaines a separate out-of-work

list for oilers. In 1979 and 1980 Vaughn worked just over
1700 hours. In 1981 his hours fell to about 1000. Then in

1982 he worked only 395 hours, followed by 39 hours in
1983 and 181 in 1984.

Vaughn claims he was passed over on the out-of-
work list in August of 1982. Allan Wayne Willard, who had
registered as available for work on December 8, 1981,
received a referral in August ahead of Vaughn who had
registered November 23, 1981. But Vaughn testified that
he had surgery to remove kidney stones about that time,
and a notation indicating hospitalization follows his name
on the August, 1982 out-of-work list. The court concludes
Vaughn was not entitled to this referral because he was not
available for work in August, 1982.

Around November 1, 1983 Vaughn was passed over
on the out-of-work list for a referral to R.B. Potashnik Con-
struction Co. Vaughn had registered as available for work
October 31, 1982, but the referral went to Daniel Sonnier,
who had signed the list April 8, 1983, The court is satisfied
that Vaughn was available for work and would have ac-
cepted the referral had it been offered to him.

CONCLUSIONS OF LAW

The plaintiffs first claim the Union breached its
fiduciary duty to represent, them fairly because the Union
operated its hiring hall in a discriminatory fashion. The

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Labor Management Relations Act, 29 U.S.C.A. § 159(a)
(1973), recognizes unions as exclusive bargaining agents
for all persons within the bargaining unit and correlatively
imposes upon the unions the duty to represent fairly the in-
terests of each employee in the unit in dealings with the
employer, Smith v. Local No. 25, Sheet Metal Workers In-
ternational Association, 500 F.2d 741 (5th Cir.1974).

[1] In order to fulfill its duty of fair representation, a
union must enforce the provisions of a collective bargain-
ing agreement in a non-discriminatory manner and repre-
sent all segments of the bargaining unit fairly. “‘A breach
of the statutory duty of fair representation occurs only
when a union’s conduct towards a member of the collective
bargaining unit is arbitrary, discriminatory, or in bad
faith.”’ Vaca v. Sipes, 386 U.S. 171, 190, 87 S.Ct. 903, 916,
17 L.Ed.2d 842 (1967). In the context of distributing job
referrals, a breach occurs if the Union applies ‘‘arbitrary
and invidious criteria in referring employees to jobs.’’ In-
ternational Union of Operating Engineers, Local 406 v.
N.L.R.B., 701 F.2d 504, 508 (5th Cir. 1983).

[2] The evidence in this case demonstrates that the
defendants Schiro, Laird, and Carlock, Sr. manipulated the
referral system to deny the plaintiffs employment oppor-
tunities while favoring supporters of the Union’s officers
and business agents. Because these referrals (and denials)
were based on arbitrary and invidious considerations of
political support or opposition, each represents a breach of
the Union’s duty of fair representation.

The United States Supreme Court has held that a
six-month statute of limitations period applies to all duty

of fair representation actions. DelCostello v. International
Brotherhood of Teamsters, 462 U.S. 151, 108 S.Ct. 2281, 76
L.Ed.2d 476 (1983). Each improper referral constitutes a

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separate breach of the duty of fair representation and those
breaches occurring more than six months prior to the in-
stitution of the suit are time-barred. Sevako v. Anchor
Motor Freight, Inc., 792 F.2d 570, 575 (6th Cir.1986). As
this court has previously ruled, only those breaches of the
duty of fair representation occurring within six months of
the filing of suit are actionable.

[3] The plaintiffs introduced testimony concerning a
vast number of referrals which they claim demonstrate
discriminatory distribution of referrals through the hiring
hall. After studying the testimony of the witnesses and the
exhibits admitted into evidence, the court is satisfied that
all of the plaintiffs have proven repeated abuses of the hir-
ing hall procedure by the Union’s business agents. The
plaintiffs are entitled to recover loss of wages for all
breaches occurring after the date six months prior to the
date each plaintiff filed suit. The essential facts of each im-
proper referral have been compiled and placed in the
Appendix.

[4] The plaintiffs also have made claims under the

Labor-Management. Reporting and Disclosure Act
(“LMRDA’”’), 29 U.S.C.A. §§ 401 to 531 (1985). The “Bill of
Rights” section of this Act guarantees union members,
among other protections, equal rights to vote and other-
wise participate in union deliberations, 29 U.S.C.A. §
411(a)(1) (1985), as well as the rights of free speech and
assembly, 29 U.S.C.A. §411(a\(2) (1985). Section 411(a)(5)
protects union members from being disciplined without a
full and fair hearing and Section 529 prohibits unions and
their officers or agents from disciplining any union member
for exercising his rights guaranteed by the LMRDA.

These sections were designed “to protect the
rights of union members to discuss freely and criticize the

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management of their unions and conduct of their officers.
The purposes of these sections is to prevent union officials
from using their disciplinary powers to silence criticism
and punish those who dare to question and complain. Ar
chibald v. Local 57, International Union of Operating
Engineers, 276 F.Supp. 326, 329 (D.R.1.1967).

Manipulation of hiring hall procedures to suppress
participation in union activities and opposition to union
management and policies constitutes violations of
§ 411(a)(1) and (2). Murphy v. International Union of
Operating Engineers, Local 18, 774 F.2d 114, 123 (6th Cir.),
cert.denied ____ U.S. ___, 106 S.Ct. 1201, 89 L.Ed.2d 315
(1986). The court finds that the Union, Carlock, Sr., Laird,
and Schiro, manipulated the hiring hall procedure to sup-
press opposition from union members, particularly the
plaintiffs. The court finds further that Carlock, Sr.
employed threats and intimidation to curtail the plaintiff's
exercise of their rights to freedom of speech and assembly.

Sections 411(a)(5) and 529 protect union members
from unlawful discipline. A union subjects a member to
“discipline” under §§ 411 and 529 “‘when (1) it is under-
taken under color of the union’s right to control the
member’s conduct in order to protect the interests of the
union or its membership, and (2) it directly penalizes him in
a way which separates him from comparable members in
good standing.”’ Keene v. International Union of Operating
Engineers, Local 624, 569 F.2d 1375, 1379 (5th Cir.1978).

Discrimination in job referrals constitutes discipline
when used as a tool by union leaders to control union af-
fairs in violation of a worker’s membership rights. See
Vandeventer v. Local Union No. 513, International Union
of Operating Engineers, 579 F.2d 1373, 1378-79 (8th Cir.),

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cert. denied, 439 U.S. 984, 99 S.Ct. 576, 58 L.Ed.2d 656
(1978). This court has no trouble finding that the defen-
dants violated sections 411(a)(5) and 529 by limiting the
employment opportunities made available to the plaintiffs
to penalize them for refusing to support the defendants and
for openly opposing them.

[5] Suits brought under the LMRDA are subject to a
six-month limitations period. Local 1397, United
Steelworkers of America, 748 F.2d 180 (3rd Cir.1984). As
this court has already ruled, the plaintiffs may only recover
for those violations of the LMRDA occurring after the date
six months prior to when the plaintiffs filed suits.

[6] Having found that all of the plaintiffs but Vaughn
have proven breaches of the Union’s duty of fair represen-
tation and violations of the LMRDA, the court must next
address the remedies available to the plaintiffs. As
recovery for breach of the duty of fair representation, the
plaintiffs are entitled to recover their loss of wages. The
LMRDA, 29 U.S.C.A. §412(1985) permits a court to award
‘such relief . . . as may be appropriate.’’ As discussed below
the court holds that in these actions appropriate relief must
include, in addition to loss of wages, mental suffering,
punitive damages, and attorney’s fees. Additionally, the
court holds that Guidry is entitled to reinstatement of full
membership in the Union upon full payment of past dues.

Each of the plaintiffs is entitled to recover his lost
wages caused by the discriminatory operation of the hiring
hall. The plaintiffs need not prove these amounts with
mathematical certainty. Keene v. International Union of
Operating Engineers, Local 624, 569 F.2d 1375, 1382 (5th
Cir.1978). As reasonable compensation the court will award
the difference between the amount each plaintiff would

se CS

a ee ee ae

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have earned had the hiring hall been operated in a non-
discrinatory fashion less the amount each actually earned
from referrals through the Union. The court calculates the
former amount by multiplying the average number of
hours worked by operating engineers actively seeking
employment and their hourly rate of pay. The parties have
stipulated that the hourly rate to be used is $13.00.

The court accepts the testimony of the defendants’
expert concerning the average number of hours worked by
operating engineers actively seeking employment during
the years 1981-1983. In calculating the average hours
worked during 1984, the court has assumed that the yearly
averages continued to decrease in 1984 at the same rate as
in 1982 and 1983. Accordingly, the average number of
hours worked by operataing engineers actively seeking
employment during 1981-1984 is as follows:

Average Hours
1981 1500.
1982 879
1983 516
1984 302

Taliaferro has demonstrated that the hiring hall was
operated in a manner which discriminated against him as
early as January 5, 1982 (See Appendix) and continued un-
til at least March 10, 1984 when Carlock

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385020_3019%3A2. Public record. Not legal advice.
