EastCheats said:
JOE STEIN
PETE DUGSTAD
GARY HUMMEL
STEPHEN BRADFORD
ROB STREBLE
STEVE SMYSER
ROBERT FREAR
JAY MILKEY
COURTNEY BORMAN
STEPHEN NATHAN
JANE DOE BORMAN
RONALD NELSON
PAUL DIORIO
PAUL MUSIC
Jane Doe Borman..
I wonder if that's Cleary?
The Cactus18 should go after him and get some New Hampshire real estate. Teach him a lesson that there is a price to pay for false RICO charges.
I'd support the action.
It certainly looks like Marty has backed them in a corner. Do think East pilots will collect donations for their defense? I doubt it.
Defendants authorized the use of, used, and continue to use USAPA
funds for purposes that do not constitute collective legal action on behalf of the pilot
group. Specifically, between September 16, 2014, and January 9, 2015, Defendants
expended USAPA funds to advance USAPAs position before the PAB that the West
Pilots should be denied separate representation in the seniority integration process
occasioned by the merger with American Airlines. USAPAs position before the PAB
advanced only the interests of the East Pilots (which includes Defendants here) at the
expense of the interests of the West Pilots. Accordingly, expenditures in furtherance of
this position were not collective in nature nor on behalf of the pilot group as a whole.
34. Since September 16, 2014, and continuing to the present, Defendants have
authorized the use of, used, and continue to use USAPA funds for the purpose of
advancing the seniority interests of only the East Pilots (including Defendants) at the
expense of the interests of the West Pilots (including Plaintiffs) in the Substantive SLI
Case 3:15-cv-00111-MOC-DCK Document 1 Filed 02/23/15 Page 12 of 19
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Process. More specifically, on information and belief, Defendants have authorized the
use of, used, and continue to use USAPA funds to, inter alia, pay the fees of lawyers and
experts and to pay flight pay loss and expenses of East Pilots who are members of the
East Pilots Merger Committee, all of whom who will advance the East Pilots interest in
the Substantive SLI Process.
35. In correspondence dated December 4, December 23, December 31, January 9, and
January 20, attached to the Complaint as Exhibits 610, counsel for the West Pilots,
Marty Harper, further advised USAPA General Counsel Brian ODwyer of the National
Officers fiduciary duties to account for the funds in USAPAs treasury, to disburse those
funds to USAPAs membership, and to cease using USAPA funds in furtherance of
matters adverse to the West Pilots interests. Mr. Harper re-asserted Plaintiffs demands
for, inter alia, a full accounting of USAPAs treasury, a detailed list of what collective
legal actions Defendants relied upon in determining to defer dissolution, an immediate
distribution of USAPA funds that are in excess of those contemplated legal actions, a
specific accounting of what funds are needed to wind down USAPAs affairs, and an
immediate stop to the use of USAPA funds to support litigation and other legal action
adverse to the West Pilots interests. See id.
36. On February 13, 2015, Plaintiffs wrote Defendants reiterating the demands
previously made by Mr. Velez and Mr. Harper. (attached to Complaint as Exhibit 11.)
37. Despite being fully advised of Defendants fiduciary duties, Defendants failed to
accede to any of Plaintiffs and the West Pilots legitimate and reasonable demands.
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Consequently, Defendants have violated, and continue to violate, their fiduciary duties to
USAPAs members, including Plaintiffs.
FIRST CLAIM FOR RELIEF
(Breach of Fiduciary Duty Claim against USAPA National Officers Gary
Hummel, Stephen Bradford, Rob Streble, and Steve Smyser, and BPR Members
Robert Frear, Courtney Borman, Ronald Nelson, Paul DiOrio, Paul Music, John
Taylor, Joe Stein, Pete Dugstad, Jay Milkey, and Stephen Nathan.)
38. Plaintiffs reallege and incorporate herein by reference the foregoing paragraphs 1
through 37.
39. As the National Officers of USAPA, Defendants Hummel, Bradford, Streble, and
Smyser as well as Defendant BPR members Frear, Borman, Nelson, DiOrio, Music,
Taylor, Stein, Dugstad, Milkey, and Nathan, are USAPA fiduciaries, obliged by section
501(a) of the LMRDA, to hold [USAPAs] money and property solely for the benefit of
[USAPA] and its members and expend the same in accordance with [USAPAs]
constitution and bylaws . . . . 29 U.S.C. § 501(a).
40. By expending USAPA funds after the decertification of USAPA as the exclusive
bargaining representative of US Airways pilots and after the appointment of a West Pilots
Merger Committee to represent the interest of the West Pilots in the Substantive SLI
Process in a manner that does not advance collective legal action on behalf of the pilot
group, Defendants violated their section 501(a) duties to hold USAPAs money solely
for the benefit of its members and to expend such monies only in accordance with
USAPAs constitution and bylaws.
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PRAYER FOR RELIEF
WHEREFORE, Plaintiff respectfully requests that this Court:
(1) Order an accounting of USAPAs treasury from September 16, 2014, to the
present, including a full itemization of the value of the treasury as of September 16, 2014
(including any special assessment funds); monies paid in furtherance of any USAPA
legal action since September 16, 2014; USAPAs indebtedness as of September 16, 2014
(and any subsequently accrued debts); and an itemization of any funds reasonably
necessary to wind down the affairs of USAPA as a labor organization.
(2) Order the Defendants to pay restitution of the funds wrongfully expended.
(3) Preliminarily and permanently enjoin Defendants from further expending
any USAPA monies in furtherance of the Substantive SLI Process.
(4) Order Defendants to disburse immediately to USAPA members in
accordance with Article I, section III of its Constitution all funds remaining in its treasury
as of its decertification as an exclusive bargaining representative on September 16, 2014,
except such funds reasonably necessary for the collective action on behalf of the pilot
group and ordinary expenses of winding down.
(5) Award Plaintiffs their attorneys fees and costs for bringing this lawsuit
pursuant to 29 U.S.C. § 501(b.
(6) Award Plaintiffs such other relief as the Court deems just.
Case 3:15-cv-00111-MOC-DCK Document 1
