The opinion of the court was delivered by: SIRICA
This matter is before the Court on plaintiff's action for a temporary restraining order, preliminary and permanent injunction, and damages. Plaintiff alleges, basically, that defendants have interfered with the internal affairs of the plaintiff union and with the free exercise of its members' rights. The Court heard and granted plaintiff's request for a temporary restraining order on September 18, 1970. On October 2, 1970, the Court heard argument and testimony on plaintiff's prayer for a preliminary injunction. Further argument and testimony were heard on November 13 and 14, 1970, and the parties agreed that the Court should consider the plaintiff's prayer for a permanent injunction. The question of damages, if any, was deferred for later consideration, if necessary TR Vol. 2, pp. 136-137.
Upon consideration of all of the above, including the memoranda submitted by counsel for plaintiff and defendants, as to the plaintiff's prayer for a permanent injunction, the Court makes the following Findings of Fact and Conclusions of Law.
1. Plaintiff, Local Union 13410, United Mine Workers of America, and defendant, International Union, United Mine Workers of America, are both labor organizations and maintain their principal place of business in Washington, D.C. They will hereinafter be referred to as "Local Union" and "International Union." Defendant Edward L. Carey is general counsel for the International Union.
2. Defendant United Mine Workers of America Welfare and Retirement Fund is a Trust, created pursuant to Section 302 (c)(5), Labor Management Relations Act, 1947 (commonly known as the Taft Hartley Act), 29 U.S.C. § 186(c)(5), and will hereinafter be referred to as "Fund." One Trustee is appointed by the International Union, one Trustee by the bituminous coal operators signatory to the National Bituminous Coal Wage Agreement of 1950, the amendments thereto, and the National Bituminous Coal Wage Agreement of 1968, and a third and neutral Trustee, appointed by the other two Trustees. The three Trustees now administering the Fund are W.A. Boyle, appointed by the International Union, C.W. Davis, appointed by the signatory bituminous coal operators, and Josephine Roche, the neutral Trustee, selected by the other two Trustees. The Fund is concerned with paying benefits, pursuant to resolutions and regulations, to beneficiaries in the coal industry.
3. The defendant National Bank of Washington hereinafter the "Bank" is a banking and financial institution in the District of Columbia.
4. The defendant Hamilton Leasing Corporation t/a Manager Hamilton Hotel hereinafter the "Hotel" is engaged in furnishing public accommodations and lodgings in the District of Columbia.
5. The plaintiff Local Union represents the employees of the defendant Fund in Washington, D.C. and in the ten area medical offices of the Fund located substantially away from Washington, D.C. TR Vol. 1, p. 60. In addition, there are members of the Local Union who are employees of the Appalachian Regional Hospital and the Dr. Thomas Walker Memorial Health Foundation, Inc., located in West Virginia TR Vol. 1, p. 61; TR Vol. 2, pp. 5, 6, 91; Defendant Int. Union Exhibit 7.
6. The plaintiff Local Union disaffiliated from District 50 TR Vol. 2, p. 11 and affiliated with the International Union in 1968 TR Vol. 2, pp. 147-148.
7. The Constitution of the International Union, Plaintiff's Exhibit 2 Article II, provides:
First. To unite in one organization, regardless of creed, color or nationality, all workers eligible for membership, employed in and around coal mines, coal washeries, coal processing plants, coke ovens, and in such other industries as may be designated and approved by the International Executive Board, on the American Continent.
Article XIV, Section 1 of the Constitution of the International Union provides:
Local Unions shall be composed of ten or more workers, skilled and unskilled, working in or around coal mines, coal processing plants, coke ovens, or in other industries designated and approved by the International Executive Board, but seven members shall be a quorum for a Local Union.
Article III, Section 2 of the Constitution provides:
All Districts, Sub-Districts and Local Unions must be chartered by, and shall be under the jurisdiction of and subject to the laws of the International Union and rulings of the International Executive Board . . . .
8. The International Union gave a charter to the Local Union as an affiliate in 1968 TR Vol. 2, pp. 147-148 and on January 20, 1970, the International Executive Board enacted a resolution approving and ratifying the issuance of charters to certain local unions, including specifically the plaintiff Local Union Defendant International Union's Exhibit 12.
9. On August 4, 1970, a National Labor Relations Board Trial Examiner issued a decision in case number 27-CA-2607, finding that the employer Fund was interfering in the exercise of its employees' rights and in the administration of the Local Union in violation of Sections 7 and 8(a)(1) and (2) of the Labor Management Relations Act, 1947, 29 U.S.C. §§ 157 and 158(a)(1) and (2). Specifically, the Trial Examiner found that by the conduct of some of the Fund's supervisors in holding the position of and carrying out the duties of corresponding secretary of the Local Union, by voting in union elections, by calling, by soliciting and procuring union membership and union dues checkoff authorizations, the Fund was interfering in Local Union matters. The Examiner also found that the Local Union, by reason of its relationship to the International Union and to the Fund, was incompetent to represent the employees of the Fund because of a conflict of interest inherent in that relationship which prevented the Local Union from exercising the single-minded purpose of protecting and advancing the interests of the employees it represents.
The Trial Examiner issued a recommended order, which is subject to appeal and the final order of the National Labor Relations Board, that the employer Fund cease participating in Local Union business and withdraw all recognition from the Local Union as the representative of its employees and stop deducting money from its employees' wages for payment to the Local Union. The employer Fund was ordered to put up a notice in its Washington office to the effect that the employer was withdrawing recognition of the Local Union as the collective bargaining agent of its ...