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October 24, 1973


Charles R. Richey, District Judge.

The opinion of the court was delivered by: RICHEY

CHARLES R. RICHEY, District Judge.

 This legal action is brought by the International Union of the United Automobile Workers of America and nine other Unions to correct an imbalance in labor-management relations resulting from the alleged interference by "interested employers" in judicial disputes between Unions and their members. The case concerns the application of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA), 29 U.S.C. § 401 et seq., to a private foundation's solicitation and use of management contributions to support legal actions brought by workers against their labor organizations challenging a variety of labor organization contracts, rules and actions. Plaintiffs are ten unions seeking declaratory and injunctive relief and damages against defendants National Right to Work Committee and National Right to Work Legal Defense and Education Foundation to restrain defendants from financing and supporting legal actions brought by workers against plaintiff unions as long as defendants receive contributions and support from "interested employers." Plaintiffs allege that the Foundation is a conduit for "interested employers" that enables them to illegally finance numerous suits against unions referred to in the Amended Complaint. Section 101(a)(4) of the Act, 29 U.S.C. § 411(a)(4), prohibits "interested employers" from financing employee suits against unions arising under Title I of the LMRDA.

 Plaintiffs in addition seek declaratory and injunctive relief requiring the Committee and the Foundation to file with the Secretary of Labor, pursuant to subsection 203(b)(1), 29 U.S.C. § 433(b)(1), reports containing detailed statements of any agreements or arrangements with contributing employers for the purpose of fomenting or supporting any litigation or other activities intended to persuade workers to exercise or not to exercise, or to persuade workers as to the manner of exercising, the right to organize and bargain collectively through representatives of their own choosing.

 The case is before the Court on defendants' motion to dismiss each of plaintiffs' claims for relief primarily on the grounds that the two sections of the LMRDA which plaintiffs seek to enforce do not create any right of action such as plaintiffs assert and consequently this Court lacks jurisdiction over the subject matter of plaintiffs' two causes of action. The Court disagrees. The Court finds the statute clear and unambiguous in conferring substantive rights upon plaintiffs which they have standing to vindicate in one proceeding before this Court. Section 102 LMRDA, 29 U.S.C. § 412; 28 U.S.C. §§ 1331, 1337; 28 U.S.C. §§ 2201, 2202. Accordingly, the Court will deny defendants' motion to dismiss.


 1. Whether the second proviso to subsection 101(a)(4) of the LMRDA creates in plaintiffs a right of action to restrain defendants financing participation in worker lawsuits arising under Title I of the LMRDA as long as defendants receive financial contributions from "interested employers"?

 2. Whether Plaintiffs may enforce the reporting requirements of subsection 203(b)(1) of the LMRDA with respect to defendants' relationship with employers, in a civil proceeding before this Court?

 Title I of the Act creates a bill of rights for members of labor organizations and protects their right to sue their union to redress grievances arising under Title I provisions. In providing workers with immunity from union reprisal for bringing a Title I legal action, Congress was not unmindful of the potential for management interference in judicial disputes between worker and union. Congress therefore added a second proviso to the pertinent provision, subsection 101(a)(4), supra, concerning employee suits against labor organizations. The proviso reads as follows:

"That no interested employer or employer association shall directly or indirectly finance, encourage, or participate in, except as a party, any such action, proceeding, appearance or petition." 29 U.S.C. § 411(a)(4).

 Under this proviso, interested employers are barred from financing or otherwise supporting Title I lawsuits brought by employees against their unions.

 The statutory right of labor organizations to be free from worker suits financed directly or indirectly by interested employers is therefore clear and unambiguous. Where congressional intent is clear in the language of the statute, there is no need to resort to general rules of statutory construction or legislative history in order to construe the provision in issue. Sea-Land Service, Inc. v. Federal Maritime Commission, 131 U.S.App.D.C. 246, 404 F.2d 824; District of Columbia Nat. Bank v. District of Columbia, 121 U.S.App.D.C. 196, 348 F.2d 808. As a functional matter, the proviso serves to protect unions from harassing litigation and illegal management interference with their internal disputes with dissident workers. Title I as enacted serves that purpose while achieving the overriding objective of guaranteeing fundamental rights to members of labor organizations. The teeth of Title I are rooted in the civil enforcement provision, section 102 LMRDA, 29 U.S.C. § 412, WHICH AFFORDS "PERSONS" WHOSE RIGHTS ARE SECURED BY Title I the opportunity to vindicate those rights in this Court. The Court finds that the rights referred to in section 102 of the Act include express assurance to labor organizations that they shall be immune from "interested employer" intrusion in their judicial disputes with workers.

 The definition section of the Act, 29 U.S.C. § 402, provides that the term "person" includes labor organizations. Thus, in light of the "rights secured" for unions by the second proviso to subsection 101(a)(4) of the Act, plaintiffs have "standing" to bring ...

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