Legal Postings: Declaratory Judgment in the State of North Carolina

On April 10, 2015, USAPA filed a Motion to Consolidate (Doc. 40) the two actions pending in the United States District Court for the Western District of North Carolina: the Declaratory Judgment Action filed by USAPA on September 16, 2014; and Bollmeier, et al. v. Hummel (the Bollmeier action). The Motion to Consolidate is unopposed.

As previously posted, USAPA filed the Declaratory Judgment action in North Carolina State Court seeking declarations from the court that the actions taken by the National Officers to defer dissolution and distribution of assets were right and proper in light of the constitutional provision that the National Officers were empowered to continue the organization post-decertification for the purposes of, among other things, seniority list integration proceedings. That case was removed by defendants to federal court. On March 27, 2015, the Bollmeier action was filed by three USAPA members alleging that the National Officers and certain members of the BPR (“the Bollmeier defendants”) violated their fiduciary duties under the federal Labor Management Reporting and Disclosure Act (“LMRDA”) by deferring distribution and spending money from the USAPA treasury since September 16, 2014, including expenditure of funds in connection with the Preliminary Arbitration and substantive SLI proceedings. Not all of the Bollmeier defendants have been served to date and those that have been served have yet to file a responsive pleading. The Bollmeier defendants are confident that the actions complained of were in full compliance with the letter and spirit of the USAPA Constitution and other governing documents. The consolidation of the cases is important because it gives the Court a fuller picture of the reasons underlying the decisions to defer dissolution and distribution of assets.

The Motion to Consolidate, and the Brief in Support of Motion to Consolidate (Doc. 41), are available in the Legal Library.

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