Document: 412 U.S. 1 93 S.Ct. 1943 36 L.Ed.2d 702 Paul HALL, etc., et al., Petitioners,v.John COLE. No. 72—630. Argued March 21, 1973. Decided May Syllabus Respondent, expelled from his union for deliberate and malicious vilification of management following resolutions unsuccessfully condemning that management's alleged undemocratic actions shortsighted policies, regained membership in a suit under § 102 the Labor-Management Reporting Disclosure Act (LMRDA) was awarded $5,500 legal fees. The Court Appeals affirmed. Held: 1. Respondent's LMRDA vindicated not only own rights free speech guaranteed by statute but furthered interests its members as well. As result, award to respondent attorneys' fees these circumstances comported with trial court's inherent equitable power making such an whenever 'overriding considerations indicate need recovery.' Mills v. Electric Auto-Lite Co., 396 375, 391—392, 90 616, 625, 24 593. Pp. 4—9. 2. allowance counsel successful plaintiff brought is precluded statutory provision and, indeed, supported legislative history LMRDA. 9—14. 3. Under all facts case, District did abuse discretion awarding respondent. 14—15. 462 F.2d 777, Howard Schulman, New York City, petitioners. Burton H. Hall, Mr. Justice BRENNAN delivered opinion Court. This case requires us consider propriety 1959, 73 Stat. 523, 29 U.S.C. 412.1 On August 6, 1962, at regular meeting petitioner Seafarers International Union North America—Atlantic, Gulf, Lakes Inland Waters District, introduced set alleging various instances policies on part officers. were defeated November 26, ground presentation violated rule proscribing 'deliberate or regard execution duties any office job.' After exhausting intra-union remedies, filed this LMRDA, claiming expulsion right secured 101(a)(2) Act, 411(a)(2).2 2 27, 1964, United States Eastern issued temporary injunction restoring respondent's union, Second Circuit 339 881 (1965). Some five years later, came Court, finding violation 101(a)(2), ordered him permanently reinstated although denying damages claims,3 granted sum against union. affirmed respects, 777 (1972). We certiorari limited questions whether (1) permissible (2) if so, constituted Court's discretion. 409 1074, 687, 34 662. affirm. 3 * Although traditional American4 ordinarily disfavors absence statutory5 contractual authorization,6 federal courts, exercise their powers, may when justice so require. Indeed, 'is original authority chancellor do equity particular situation,' Sprague Ticonic National Bank, 307 161, 166, 59 780, 83 L.Ed. 1184 (1939), courts hesitate 593 (1970); see Fleischmann Distilling Corp. Maier Brewing 386 714, 718, 87 1404, 1407, 18 475 (1967). 4 Thus, it unquestioned court party opponent has acted 'in bad faith, vexatiously, wantonly, oppressive reasons.' 6 J. Moore, Federal Practice 54.77(2), p. 1709 (2d ed. 1972); see, e.g., Newman piggie Park Enterprises, Inc., 390 400, 402 n. 4, 88 964, 966, 19 1263 (1968); Vaughan Atkinson, 369 527, 82 997, 8 (1962); Bell School Bd. Powhatan County, 321 494 (CA4 1963); Rolax Atlantic Coast Line R. 186 473 1951). In class cases, underlying rationale 'fee shifting' is, course, punitive, essential element triggering therefore existence 'bad faith' unsuccessful litigant. 5 Another established exception involves cases which plaintiff's litigation confers 'a substantial benefit ascertainable class, where jurisdiction over subject matter makes possible will operate spread costs proportionately among them.' Auto-Lite, supra, U.S., 393—394, S.Ct., 626.7 'Fee justified because defendant but, rather, '(t)o allow others obtain full efforts without contributing equally expenses would be enrich unjustly expense.' Id., 392, 625; also supmra, 719, 1407; Trustees Greenough, 105 532, 26 1157 (1882). we approved shareholder plaintiffs aside corporate merger accomplished through use misleading proxy statement 14(a) Securities Exchange 1934, 48 895, 15 78n(a). reaching reasoned that, since dissemination solicitations jeopardized important both corporation "the stockholders group,"8 enforcement policy necessarily 'rendered service shareholders.' 396, 627. circumstances, reimbursement plaintiffs' out treasury simply shifted 'the benefited them have had pay suit.' 397, 628. instant clearly governed aspect Mills. 1959 based, part, congressional 'from recent investigations labor fields, there been number breach trust, corruption, disregard individual employees, other failures observe high standards responsibility ethical conduct . ..' 401(b). effort eliminate abuses, Congress recognized imperative least 'minimum democratic process. .'9 Title I10 LMRDA—the 'Bill Rights Members Labor Organizations'—was specifically designed promote 'full active participation rank file affairs union,'11 noted, enumerated I12 deemed 'vital independence effective fair operation representative membership.' F.2d, 780. See Fulton Lodge Assn. Machinists Aerospace Workers, A.F.L.—C.I.O. Nix, 415 212 (CA5 1969); Salzhandler Caputo, 316 445 (CA2 1963). 7 Viewed context, can no doubt vindicating I rendered institution members. When member disciplined protected I, are threatened. And, right, litigant dispels 'chill' cast upon others. extent lawsuits contribute preservation democracy, they frequently prove beneficial 'not immediate impact results achieved implications future union's affairs.' Yablonski Mine Workers America, 150 U.S.App.D.C. 253, 260, 466 424, 431 Mills, treasury13 shifts supra; Robins Schonfeld, 326 F.Supp. 525 (SDNY 1971); Cefalo 50 311 946 (D.c 1970); Sands Abelli, 290 677 1968). must conclude feel action falls squarely within 625. II does end our inquiry, however, even 'fee-shifting' appropriate equity, circumscribe relief. example, held 35 Lanham 60 439, 1117, separate recovery infringement trademark. 'meticulously detailed remedies available who proves valid trademark infringed,' intended express remedial provisions 'to mark boundaries monetary relief arising Act.' 721, 1408, 1409. petitioners contend reasoning dictates similar conclusion respect agree. Unlike 'provided injunctive relief, compensatory measured profits accrued virtue infringement, action, trebled,'14 broadly authorizes grant 'such (including injunctions) appropriate.' 412. meticulously detail plaintiff,' cannot fairly infer language intent deny 'appropriate' situations. 9 Petitioners argue further, expressly authorized §§ 201(c) 501(b) 431(c), 501(b), indicates preclude suits section. Sections deal narrowly defined problems authorize examination books records accounting.15 By contrast, premised fact demands 'be tailored fit admitting almost infinite variety,'16 broad mandate fashion attempt spell create 'danger those (remedies) listed might proscribed result fettered 'grant according necessities case." Gartner Soloner, 384 348, 353 (CA3 1967). supra. Confronted virtually identical situation explained inclusion certain sections 1934 'should read make 390—391, That persuasive today.17 10 Finally, call attention two isolated comments I—one Senator Goldwater testimony before House Committee18 contained dissenting Committee Report19—expressing fear specific fees, unavailable 102. statements plainly feeling some desirable prudent unmistakably attorney's fees,' 'hardly amount definitive absolute setting Congressional face giving incidental compatible sound principles.' U.S.App.D.C., 258, 429. 352. favored litigation, suggestion anywhere single opposed desired words appropriate' restrict historic powers courts. contrary, numerous expressions sponsors supporters indicating afford wide latitude case,'20 give (the court) deems circumstances.'21 11 Moreover, consonant Congress' desire adopt 'legislation necessary protection employees public generally recognized: 12 'Not tantamount repealing itself frustrating basic purpose. It difficult unions stand up fight charge. latter command paid beck while own. An could carry heavy financial burden. Without gesture few avail themselves it.' 780 781. 13 'untenable assert establishing bill diminished unescapable aggrieved unable finance 355. 259, 456 430; F.Supp., 531; 686; cf. Piggie 402, 966. hold consistent justice. III 14 maintain Specifically, 'were, motivated (his), political ambitions office' represents rejected 'logic' contention, protect member's seek higher union,22 hardly accept proposition faith.' 259—260, 430—431. improper claim punitive damages, found defendants, good believed charge discipline (respondent) actions.' clear, found, led lawsuit, litigation. marked dilatory officers .' presence 'punishment' rationale, neither nor sense dispositive 'common benefit' operative today. theory, granted, benefits beneficiaries. situation, one many best addressed Court.23 say abused 16 judgment 17 Affirmed. MARSHALL took consideration decision case. WHITE, whom REHNQUIST joins, dissenting. 20 far clearer signal than here permit member-union often private feuding having general significance. occasionally meritorious worth invite foster. Section 412, provides pertinent part: 'Any person whose subchapter infringed bring civil district 411(a)(2), provides: 'Every organization shall meet assemble freely members; views, arguments, opinions; meetings candidates election business properly meeting, organization's reasonable rules pertaining meetings: Provided, nothing herein construed impair enforce every toward refraining interfere performance obligations.' unreported opinion, 'suffered loss wages union.' And 'was deprived attend meetings, run during period expulsion, concluded '(t)he record barren proof determination value (these rights).' denied expel malice faith. American rule, more restrictive prevails most nations. See, Ehrenzweig, Reimbursement Counsel Fees Great Society, 54 Calif.L.Rev. 792, 793 (1966). Many commentators argued 'liberalization' rule. Stoebuck, Included Costs: A Logical Development, 38 U.Colo.L.Rev. 202 (1966); Kuenzel, Attorney's Fee: Why Not Cost Litigation?, 49 Iowa L.Rev. 75 (1963); McCormick, Other Expenses Litigation Element Damages, Minn.L.Rev. 619 (1931); Comment, Allocation U.Chi.L.Rev. (1971); Note, Fees: Where Shall Ultimate Burden Lie?, Vand.L.Rev. 1216 Clayton 731, 15; Communications 206, 1072, 47 206; Interstate Commerce 16, 590, 16(2); 9(e), 18(a), 890, 897, 78i(e), 78r(a). 717, 1406, (1967); Hauenstein Lynham, 100 483, 25 628 (1880); Day Woodworth, How. 363, 181 (1852). origins fund' traditionally creates traces fund,' economic shared class. Central Railroad & Banking Co. Pettus, 113 116, 387, 28 915 (1885); extended who, suing her behalf rather nevertheless recover assets same stare decisis. beneficiaries made order reimbursing defendant's eventually recover. (1970), logically extend, others, "which corrects prevents prejudicial interests" 627, quoting Bosch Meeker Cooperative Light Power Assn., 257 Minn. 362, 366—367, 101 N.W.2d 423, 427 (1960). Citing decisions (1968), contends successfully prosecuting "private attorney general', considered highest priority.' Knight Auciello, 453 852 (CA1 Lee Southern Home Sites Corp., 444 143 1971). light occasion question. I. Case Borak, 377 426, 432, 84 1555, 1559, 423 (1964). Cong.Rec. 6471 (1959) (Sen. McClellan). 411—415. Federation Musicians Wittstein, 379 171, 182—183, 85 300, 307, 214 addition Tit. guarantee freedom assembly involved 2, guarantees equal 'political' members, 411(a) (1); stability fairness assessment dues, initiation assessments, 411(a)(3); sue participate 411(a)(4); procedural process, 411(a)(5). payment deplete funds ability collective-bargaining agent endanger stability. undoubtedly one, relevant, generally, case-by-case basis. 23, infra. 1408. access books, records, accounts verify annual statements. 431(c). official accounting violating duties. 501(b). particularly Professor Cox 'because much written floor Senate Representatives contain calculated ambiguities compromises ., well advised placing great emphasis close construction words,' Cox, Internal Affairs Unions Reform 58 Mich.L.Rev. 819, Education Labor, after passage version stated member), suit, costs. thus forces assume entire burden For ordinary rankand-file wage worker, becomes impossible burden.' 10095 (1959). opposing reporting Elliott bill, H.R. 8342, 86th Cong., 1st Sess. (1959), U.S.Code Cong. Admin.News 1958, 2318, House, nine protested '(u)nder shoulder himself.' H.R.Rep.No. 741, Sess., 95 At criticisms dissenters '(f)or reasons outlined above, intend support he so-called Landrum-Griffin (H.R. 8400 8401).' 98. identical, apparently latter, enacted, allowed 15548 (Rep.Elliott). 21 6717 Kuchel). id., 15864 seq. (Rep. O'Hara); 413, 523(a). 22 describing 'offenses' then-existing constitutions, McClellan pointed 'offense' 'applying position another man office.' He observed, evident sarcasm, that: 'A better that. squatters' rights. offer competition. They election. aspire presidency secretaryship, disciplined.' 6478 23 effectively. 13, Here, not, indeed cannot, jeopardize

Category: 5