Court Opinion

ID: 9466500
Source: CourtListenerOpinion
Date Created: 2023-08-05 01:18:02.009635+00
Date Added: 2024-06-11T17:39:46.615723
License: Public Domain

LARSON, Senior District Judge
(concurring):
With a degree of reluctance I join with the majority in finding that the defendant was prejudiced by the variance between the indictment and the jury instructions. My hesitance stems from doubts that the defendant has suffered any real prejudice, and from a belief that defendant contributed to this problem. His attorney submitted requested jury instructions which were largely adopted by the trial court. Despite these misgivings, I find the majority opinion persuasive.
What may be equally important here is for the Court to clearly establish the elements of this crime to prevent future confusion, Careful review of the legislative history1 of § 501(c) convinces me that neither lack of authorization nor lack of union benefit are necessary elements of this crime.- Congress was merely transmuting common law theft crimes involving union funds and committed by union officers or employees into Federal crimes. The purpose in doing this was to provide an additional forum for prosecution of these crimes.
*873I am not certain why courts began to add new elements to § 501(c) crimes. There is some suggestion that this stemmed from the language of § 501(a), which places fiduciary duties on union officers, and requires that they hold union funds solely for union benefit and expend those funds only as authorized by the union. The legislative history clearly shows that no linkage was intended between the § 501(a) fiduciary duties and the § 501(c) crimes. In fact, the two provisions were added to the bill at different times. My understanding is that Congress’ intent was to create a crime with the same elements as common law crimes. The courts should not add new elements not desired by Congress.
One of the elements of any of the theft crimes enumerated in § 501(c) will be criminal intent. The government must, prove beyond a reasonable doubt that the defendant possessed the requisite intent. Lack of authorization or lack of union benefit could be relevant evidence on this issue, but the government should not be forced to prove them as elements of the crime. Similarly, the presence or absence of good faith on the part of the defendant is merely another factor in determining intent. A defendant could not simultaneously possess both criminal intent and a good faith belief that he was properly spending the union’s money. A judge could properly instruct a jury that all these factors may be considered in deciding whether the government has established criminal intent beyond a reasonable doubt, but the prosecution should not bear the burden of establishing each factor as an element of the crime.
This view of the elements of a § 501(c) crime is supported not only by the legislative history, but also by sound policy. The whole purpose of this reform legislation was to correct abuse of position and power by union officials. The statute was intended to be applied broadly to provide maximum protection for union members and the general public. Union officials should not be allowed to escape conviction by arranging for authorization of their misuse of funds. Nor should the fact that a wrongful expenditure of funds incidentally benefits the union excuse an official’s wrongful acts. The possibility for abuse is so great that only a very broad criminal statute can provide an effective deterrent and mechanism for punishment.

. See Hearings on Bills Pertaining to Labor-Management Reform Before Subcomm. on Labor of Senate Comm, on Labor & Public Welfare, 86th Cong., 1st Sess. (1959); Hearings on H.R. 3540, 3302, 4473, 4474 Before Joint Subcomm. of the House Comm. on Education & Labor, Pts. 1-5, 86th Cong., 1st Sess. (1959); S.Rep.No. 187, 86th Cong., 1st Sess. (1959); H.Rep.No. 741, 86th Cong., 1st Sess. (1959); Conference Report on S. 1555 (Sen.Doc. No. 51), 86th Cong., 1st Sess. (1959); Senate Debate, 105 Cong.Rec. 5974, 6088, 6228, 6280, 6389, 6461, 6515, 6638, 6715 (1959); House Debate, 105 Cong.Rec. 15512, 15660, 15824, 15882 (1959).