Salzhandler v. Caputo

Solomon Salzhandler (plaintiff) was a member and financial secretary of a painters’ union (the union) (defendant). While serving as the financial secretary, Salzhandler noticed that the union president, Isadore Webman, had drawn and endorsed two checks (for $800 and $375) that were supposed to cover the convention expenses of Webman and an individual named Max Schneider. However, none of the funds appeared to have been paid to Schneider. Salzhandler circulated a leaflet to union members, accusing Webman of (1) mishandling union funds, (2) calling members disparaging names (“thieves, scabs, robbers”), and (3) being a “petty robber” based on two other small checks that Salzhandler believed had been misdirected by Webman. Under a union grievance procedure, Webman filed charges against Salzhandler alleging him of libel and slander based on the leaflet. The union adjudicatory body (trial board) found Salzhandler’s libelous statements violated the union’s constitution and prohibited him from participating or voting in the union for five years. Salzhandler filed a complaint against the union in district court to invalidate the trial board’s decision under the Labor-Management Reporting and Disclosure Act (LMRDA). The district court dismissed the complaint, finding that the trial board’s decision was supported by sufficient evidence and that the LMRDA did not protect union members who libel or slander union officers. The matter was appealed to the Second Circuit.