United States v. International Brotherhood of Teamsters

In June 1988, the United States of America (Government) (plaintiff) sued the International Brotherhood of Teamsters, the General Executive Board, the board members, the Commission of La Cosa Nostra, and members of La Cosa Nostra (IBT) (defendants) in the United States District Court for the Southern District of New York under the Racketeer Influenced and Corrupt Organizations (RICO) statute. The case was settled by consent decree. Several Local 493 officers were brought up on disciplinary charges and accepted an agreement (Agreement) to settle. The Government filed contempt charges when the officers failed to abide by the Agreement. The officers entered the settlement (Settlement) at issue here on May 2, 1991. The officers’ attorneys told the court that they were authorized to accept the Settlement on the officers’ behalf. The officers performed two requirements under the Agreement before the officers’ attorney told the Government that the officers wanted to resign. The Government said it would accept the resignations under certain conditions, including the firing of the officers’ attorney. The Government told the officers that if those conditions were not acceptable, it would enforce the Agreement. The Government and the officers’ new attorney came to a new settlement, but the officers refused to sign. The Government asked for an order enforcing the original Settlement, which was granted in October 1992. The officers and their first attorney appealed to the United States Court of Appeals for the Second Circuit, claiming the attorney was not authorized to agree to the Settlement and the court’s failure to hear evidence on that issue was a denial of due process.