offending officer and restoration of the Union to the control of its members, with a resulting re-establishment of the Union as a reputable representative of its members.
What, then, is the dollar value of this accomplishment to the members of the Union, expressed in terms of compensation, for the professional services of the attorneys who planned and executed the legal aspects of this rehabilitation?
As Judge Danaher suggests in his opinion of June 11, 1964, 'compensation at the rates provided in the retainer agreement with the class plaintiffs may be considered as some evidence of the value which the appellee (Ratner) initially placed upon his own services.' Judge Danaher goes further, however, in pointing out that certain complications which ultimately developed could not have been foreseen at the time the contract for attorneys' services was consummated.
The Bakery and Confectionery Workers International Union of America is a substantial union. Its approximate membership in 1960 was 71,394. In 1961, the approximate membership had dropped to 66,454, but in 1962 the membership had again risen to a figure of 71,181 members. In 1963, membership was reported to be 66,326, which figure is the most recent one available to the Court. The Court has reviewed miscellaneous figures furnished to the Court showing the gross assets of the Union. The Court believes that the Welfare Fund of the Union and the Pension Fund and the Officers Pension Plan do not properly constitute assets of the Union itself when considering the Union's financial status. The net worth of the International Union, excluding the funds enumerated in the previous sentence, varied from a low of.$ 3,150,421 in 1962 to a high of $ 4,834,767 in 1959. Members of the Union pay dues to the International of $ 1.25 per month, or a total of $ 15.00 per year.
Considering the question of the value of the services of Mr. Ratner to the International Union members from another approach, this Court observes that the monthly dues paid by Union members to the International has averaged $ 86,048.75 per month for the last several years and that these dues represent an average income to the International of $ 1,032,585 a year. A measure of the value of the Union to its own members is certainly found in the amount of money which the members pay into the International in order to remain members of that Union.
The average net worth of the Union, as shown with reference only to Union funds (excluding Welfare Fund, Pension Fund, etc.), is $ 3,641,851.20. The Court believes, however, that this figure is not as accurate an index of the value of membership in the Union as is the amount actually periodically paid into the Union as members' dues. The Court, in discussing the value of union membership, refers, of course, to membership in an honestly and efficiently administered union operated through leadership selected by democratic process. In this context, the Court considers the value of union membership in this International Union upon a comparative basis of conditions existing before the initiation of the present legal action and conditions existing at the time of the filing of the present action for final fee by Mr. Ratner.
The intangible benefits accruing to the Union members by this action are difficult to evaluate in terms of dollar value. The tangible benefits, referred to heretofore in general terms, blend into and merge with the intangibles in such measure as to make distinction most difficult. For example, the exposure and elimination of substantial misuse of Union funds not only resulted in protection of the Union funds from further misuse but also restored the confidence of the members, and even of the public, in the Union's subsequent operation. The ultimate value of such action to the Union members is obvious.
Directing its attention specifically to the amount of money a Union member pays for membership in the International, the Court concludes that this is the most accurate measure of the value of membership in a responsible union. As heretofore indicated, the members of the International Union pay into their Union an annual average of $ 1,032,585 in dues. Certainly some reasonable percentage of this figure is a valid measure of the value of professional services rendered in evicting a dishonest administration and restoring the Union to the control of its members. After reviewing all of the financial data available, the Court concludes that 12 1/2% Of the International's average annual income from dues is a fair, reasonable and realistic measure of the value of the services rendered by Mr. Ratner and his associates throughout their entire participation in this case on a quantum meruit basis. This figure totals $ 129,073.13. This figure is within 8% Of the fee established in the employment agreement under which the named plaintiffs originally retained Mr. Ratner and his associates. The record discloses, however, that $ 70,000 has already been paid to Mr. Ratner and his associates for professional services rendered in this case. The Court deducts this amount from its total figure of $ 129,073.13 and concludes that there is owing to Mr. Ratner and his associates on this same quantum meruit basis a balance of $ 59,073.13 in legal fees, plus the necessary and proper costs heretofore included in earlier itemized statements of account.
As provided in the Court's order of November 6, 1962, the named plaintiffs are obligated under this judgment in the amount of $ 54,884.91 for legal fees and expenses, and the entire membership of the Bakery and Confectionery Workers International Union of America and the defendant Bakery and Confectionery Workers International Union of America, jointly and severally, are liable in the amount of $ 59,073.13, plus those expense items included in the final statement of account rendered by Mr. Ratner on February 7, 1962.
The judgment of $ 54,884.91 enumerated above as being an obligation of the named plaintiffs is, of course, included in the total figure of $ 59,073.13 assessed against the Union members.
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