8072 – A Local Land Deal

Union members, beware.  Union suits can not only be brought against employers, they can also be brought against you.  This case got started when Joe, who was treasurer of the local union, was told the union was interested in purchasing a parcel of land right next door and he was asked to look into it.  Joe, however, allegedly told the property owner the union was no longer interested in the property and told the union president the land had been sold.  Several months later an investment group that included Joe purchased the parcel for $75,000.  It was later sold for $885,000 with Joe pocketing his share of the money.  The union sued Joe alleging violation of the Labor Management Reporting and Disclosure Act, which states that union officers occupy positions of trust and must refrain from self-dealing.  The Court that first heard the case dismissed it but the Court of Appeals held that the union can sue an unfaithful officer in federal court.  So to paraphrase, when it’s all for one and none for all, hell hath no fury like a union scorned.

THIS IS NEIL CHAYET LOOKING AT THE LAW™

Int’l Union of Operating Engineers Local 150 v. Ward, Seventh Circuit Court of Appeals, No. 08-1631, April 16, 2009, Kanne, J., U.S. Law Week, Vol. 77, No. 41, Pg. 1648, 4-28-09