How have the courts dealt with the issue of legal costs arising from a unionized union action under Section 501 of the Labor-Management Reporting and Disclosure Act?

MultiRegion, United States of America

The following excerpt is from Kerr v. Shanks, 466 F.2d 1271 (9th Cir. 1972):

Defendants were charged with willfully disobeying the Guild Constitution by denying union members their guaranteed right to vote in a properly petitioned-for-referendum. The defendants admittedly utilized union counsel and union funds for their defense. The purpose of Title V of the Labor-Management Reporting and Disclosure Act is to insure that members who think that union officers have violated their fiduciary duties shall be able to hold those individual officers responsible in a court of law. The real beneficiaries of a successful 501 action are the union and its entire membership. "How can the salutary effect of the Act be attained by this court if payment of defendants' legal costs are paid by the union in any case where officers are charged with acts inimical to the union?" Highway Truck Drivers and Helpers Local 107 v. Cohen, E.D.Pa., 1963, 215 F.Supp. 938, 941, affirmed, 3 Cir., 1964, 334 F.2d 378, cert. denied, 379 U.S. 921, 85 S.Ct. 277, 13 L.Ed.2d 335.

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