Nosaka v. Am. Fed'n of State, Cnty.

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ALTON K. NOSAKA; ERIC M. SAKAZAKI; GORDON K. LESLIE; RACHEL KRYGIER; RICHARD OKUDA, JR., individually and on behalf of all others similarly situated, Plaintiffs, v. AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO; ELIZABETH HO, in her official capacity as Administrator of Local 646, AFSCME, United Public Workers; DOE DEFENDANTS 1-19, Inclusive, Defendants.

Civ. No. 21-00497 HG-WRP

United States District Court, D. Hawaii

March 11, 2022

ORDER GRANTING, IN PART, AND DENYING, IN PART DEFENDANT AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO, AND ELIZABETH HO'S REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF DEFENDANTS' MOTION TO DISMISS (ECF NO. 28) AND GRANTING DEFENDANT AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO AND ELIZABETH HO'S MOTION TO DISMISS SECOND AMENDED COMPLAINT (ECF NO. 27)

HELEN GILMORE UNITED STATES JUDGE

Plaintiffs are members of the United Public Workers, American Federation of State, County and Municipal Employees, Local 646, American Federation of Labor - Congress of Industrial Organizations (“UPW Local 646 Union”).

UPW Local 646 is a subordinate local union member of the American Federation of State, County and Municipal Employees AFL-CIO (“Defendant AFSCME”).

The UPW Local 646 Union Member Plaintiffs have filed suit seeking Declaratory Judgment against Defendant AFSCME and Defendant Elizabeth Ho, in her official capacity as Administrator of UPW Local 646 (“Defendant Administrator Ho”).

Plaintiffs claim that in May 2020, Defendant AFSCME placed UPW Local 646 Union under an Administratorship and appointed Defendant Ho as the Administrator.

Plaintiffs have filed suit against the Defendants regarding their actions in overseeing the Administratorship of the UPW Local 646 Union. Plaintiffs' Second Amended Complaint challenges the Administratorship and Ho's conduct in administering a 2021 election for UPW Local 646 Union for the positions of State Director, State President, and State Treasurer and a 2022 run-off election for the positions.

The Union Member Plaintiffs' Second Amended Complaint contains four Counts:

COUNT I:Violation of Equal Right to Vote pursuant to Title I of the Labor-Management Reporting and Disclosure Act of 1959, 29 U.S.C. § 411(a)(1);

COUNT II:Violation of Right to be Informed pursuant to Title I of the Labor-Management Reporting and Disclosure Act of 1959, 29 U.S.C. § 415;

COUNT III: Breach of Contract pursuant to Section 301 of the Labor Management Relations Act, 29 U.S.C. § 185(a); and,

COUNT IV:Invalidity of the Administratorship pursuant to Title III of the Labor-Management Reporting and Disclosure Act of 1959, 29

U.S.C. § 464(c).

Defendants AFSCME and Administrator Ho filed a Motion to Dismiss Plaintiffs' Second Amended Complaint on the basis that Plaintiffs failed to exhaust their internal remedies with AFSCME before filing suit and otherwise failed to state a claim upon which relief may be granted.

Defendants also filed a Request for Judicial Notice in Support of their Motion to Dismiss.

Plaintiffs oppose Defendants' Motion and Request for Judicial Notice.

Defendants AFSCME and Elizabeth Ho's Request for Judicial Notice (ECF No. 28) is GRANTED, IN PART, and DENIED, IN PART.

Defendants AFSCME and Elizabeth Ho's Motion to Dismiss the Second Amended Complaint (ECF No. 27) is GRANTED.

PROCEDURAL HISTORY

On December 19, 2021, Plaintiffs filed a Complaint. (ECF No. 1).

On the same date, Plaintiffs filed the First Amended Complaint. (ECF No. 3).

On January 4, 2022, Plaintiffs filed a MOTION FOR PRELIMINARY INJUNCTION AND TEMPORARY RESTRAINING ORDER. (ECF No. 13).

On January 6, 2022, Defendants filed an Opposition to Plaintiffs' Motion for a Preliminary Injunction and Temporary Restraining Order. (ECF No. 14).

On January 7, 2022, the Court held a hearing on Plaintiffs' Motion. (ECF No. 19). The Court denied Plaintiffs' Motion for a Temporary Restraining Order. (Id.)

On January 10, 2022, Plaintiffs filed their SECOND AMENDED COMPLAINT. (ECF No. 16).

Also on January 10, 2022, Plaintiffs withdrew their request for a Preliminary Injunction. (ECF No. 18).

On January 19, 2022, Defendants filed a pleading entitled DEFENDANTS' MOTION TO DISMISS COMPLAINT (Dkt. #1). (ECF No. 24).

On January 20, 2022, the Court issued a Minute Order striking Defendants' Motion to Dismiss Complaint as it moved to dismiss the original complaint filed on December 19, 2021, which was no longer the operative complaint. (ECF No. 26).

On January 21, 2022, Defendants filed DEFENDANTS' MOTION TO DISMISS SECOND AMENDED COMPLAINT. (ECF No. 27).

On the same date, Defendants filed their REQUEST FOR JUDICIAL NOTICE IN SUPPORT OF MOTION TO DISMISS SECOND AMENDED COMPLAINT. (ECF No. 28).

On February 8, 2022, Plaintiffs filed their Opposition to Defendants' Motion to Dismiss Second Amended Complaint. (ECF No. 32).

On the same date, Plaintiffs filed their Opposition to Defendants' Request for Judicial Notice. (ECF No. 33).

On February 22, 2022, Defendants filed their Reply to Plaintiffs' Opposition to their Motion to Dismiss. (ECF No. 34).

Also on February 22, 2022, Defendants filed a Reply in support of their Request for Judicial Notice. (ECF No. 35).

On March 8, 2022, the Court held a hearing on Defendants' Motion to Dismiss Second Amended Complaint and Request for Judicial Notice. (ECF No. 38).

BACKGROUND

According to the Second Amended Complaint:

Defendant American Federation of State, County and Municipal Employees (“Defendant AFSCME”) is a labor organization that represents workers in the public service and health care sectors that is an affiliate of the American Federation of Labor -Congress of Industrial Organizations (“AFL-CIO”). (Second Amended Complaint (“SAC”) at ¶ 12, ECF No. 16). Defendant AFSCME is headquartered in Washington, D.C. (Id. at ¶ 1).

United Public Workers, Local 646, AFL-CIO, (“UPW Local 646 Union”) is a labor organization founded in Hilo, Hawaii, that represents more than 13, 000 members residing and working in the State of Hawaii. (SAC at ¶¶ 29-30, ECF No. 16).

UPW Local 646 Union is a chartered and subordinate local union member of Defendant AFSCME. (Id. at ¶ 32).

The Second Amended Complaint alleges that Plaintiffs Alton K. Nosaka, Eric M. Sakazaki, Gordon K. Leslie, Rachel Krygier, and Richard Okuda, Jr. are UPW Local 646 Union Members in good standing. (Id. at ¶¶ 51, 54, 56, 59, 62).

MAY 2020 ADMINISTRATORSHIP

The Second Amended Complaint asserts that on May 1, 2020, Defendant AFSCME placed UPW Local 646 Union under an administratorship pursuant to Article IX, Section 37 of the AFSCME International Constitution. (SAC at ¶¶ 16, 22, ECF No. 16).

Plaintiffs assert that Defendant AFSCME placed UPW Local 646 Union under an administratorship following the publication of the AFSCME Judicial Panel and International Executive Board decision in Case No. 20-23, Nosaka v. Nakanelua, Wataru, Aqui, Uwaine, Kamakeeaina and Endo, dated April 30, 2021 [sic]. (SAC at ¶ 22, ECF No. 16). Plaintiffs claim that Defendant AFSCME ordered the administratorship because the AFSCME Judicial Panel decision found that former UPW Local 646 Union State Director Dayton Nakanelua and its Administrator of Fiscal and Member Services Jeanne Endo were adjudicated guilty of misappropriation, embezzlement, or improper use of union funds and ordered terminated from employment with UPW Local 646 Union. (Id.)

According to the Second Amended Complaint, Section 45 of the AFSCME International Constitution authorizes Defendant AFSCME to take charge of the affairs and business of a subordinate body, such as UPW Local 646 Union, and to place the subordinate under an administratorship and to appoint an administrator under such circumstances. (SAC at ¶ 23, ECF No. 16).

Plaintiffs claim that on or about May 1, 2020, Defendant AFSCME's President Lee Saunders appointed Defendant Elizabeth Ho as the Administrator to lead Defendant AFSCME's Administratorship over UPW Local 646 Union. (Id. at ¶¶ 2, 24).

Plaintiffs' Second Amended Complaint asserts that the Administratorship remains in place with Defendant Ho as Administrator. (Id. at ¶¶ 2, 28).

2021 UPW LOCAL 646 UNION ELECTION

According to the Second Amended Complaint, on July 28, 2021, Defendant AFSCME's President Saunders informed Defendant Administrator Ho that UPW Local 646 Union's Constitution “was infirm” because it did not provide for a one member-one vote direct election of the Union's statewide officers as required by AFSCME's International Constitution and by federal law. (SAC at ¶ 37, ECF No. 16).

The Second Amended Complaint alleges that previous State Directors of UPW Local 646 Union had been elected by delegate and not by direct member voting. (Id. at ¶ 38).

Plaintiffs claim that on September 15, 2021, Defendants AFSCME and Administrator Ho mailed a “Notice of Nominations and Election” to UPW Local 646 Union Members for the positions of State Director, President, and Secretary-Treasurer. (Id. at ¶¶ 37-39). Plaintiffs also claim that a Notice was published in the Union's September/October 2021 issue of its newsletter. (Id. at ¶ 40).

According to Plaintiffs, the election took place on November 7, 2021. (Id. at ¶ 43).

Plaintiffs claim that Defendants deemed that 10, 855 UPW Local 646 Union Members were eligible to vote for the three positions but only approximately 770 members voted. (Id. at ¶¶ 44-45). Plaintiffs allege that nearly 23% of the membership was deemed ineligible to vote. (Id. at ¶ 44).

2022 UPW LOCAL 646 UNION RUN-OFF ELECTION

According to the Second Amended Complaint, Defendants AFSCME and Administrator Ho announced a run-off election would take place for the three State positions and that voting packets would...