Mixed-Motive Liability Theory Is Improper Under The LMRDA
SERAFINN v. LOCAL 722 (March 12, 2010)
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Mark Serafinn is a member of Local 722 of the International Brotherhood of Teamsters. In fact, he served three terms as its president. Serafinn is also a member of the Teamsters for a Democratic Union ("TDU"), a large and active dissident group opposed to the current international leadership. Serafinn alleges that the presidents of the union and the joint council, which is a group of leaders from locals in the same region, colluded to have internal disciplinary charges brought against him. The joint council suspended Serafinn and ordered restitution. Serafinn brought an action against both the local union and the joint council under the Labor Management Reporting and Disclosure Act. He alleged that the actions taken against him were taken without due process in retaliation for his exercise of free speech and assembly rights, all in violation of the Act. The district court granted summary judgment to the joint council. The claim against the local union proceeded to a jury trial, where Serafinn was awarded $50,000 in compensatory damages and $55,000 in punitive damages. After trial, the court denied a motion by Serafinn for relief from the summary judgment granted to the joint council on the grounds of newly discovered evidence. The court also awarded attorneys fees to Serafinn, but in a lesser amount than requested. The union local appeals. Serafinn cross appeals.
In their opinion, Judges Bauer, Evans, and Tinder affirmed. The Court first addressed the local's contention that the district court should have given a mixed-motive instruction. The district court had instructed the jury that Serafinn's exercise of free speech had to be a "but for" cause, not just a motivating factor. In that situation, the Court stated, a mixed-motive instruction would be inappropriate. The Court noted that some courts have approved of mixed-motive liability theories in cases under the Act but that the Supreme Court's decision in Gross overruled that approach. The Court then addressed the local's challenge to a limiting instruction with respect to a witness’ misdemeanor convictions. Although the convictions may be admissible for some purposes, Rule 609 prohibits their admission to attack general character for truthfulness. Here, the lower court properly allowed the convictions into evidence for some purposes but erred when it allowed the jury to consider them for improper impeachment purposes. Nevertheless, the Court found no prejudice from the error and declined to order a new trial. Addressing Serafinn's cross-appeal, the Court concluded that his "new evidence" was simply cumulative. Finally, the Court found no abuse of discretion in the district court's consideration and decision with respect to the award of attorney's fees.
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Local 150 represents over 22,000 union members in Illinois, Indiana and Iowa. Joseph Ward was its treasurer 1986 until 2007. In 1994, the president of the local asked Ward to purchase property adjacent to the local’s headquarters. Instead of purchasing the property for the union, however, Ward participated in the purchase of the property by an investment group. The group sold the parcel several years later at a substantial profit. Local 150 filed a complaint against Ward, alleging violations of § 501 of the Labor-Management and Reporting Disclosure Act of 1959 (the “Act”) and breaches of fiduciary duty. The district court dismissed the complaint, concluding that § 501 does not allow a labor union to bring a private cause of action. Local 150 appeals.