Carpenters v. Building Trades

This case concerns the "Push-Back-Carpenters Campaign," a campaign of intense economic pressure orchestrated by the Building Trades to force the Carpenters into paying what is called "monthly bloated per capita payments in perpetuity," that is, into reaffiliating with the Building Trades and paying dues. Carpenters filed suit alleging claims under the Racketeer Influenced and Corrupt Organizations Act's (RICO), 18 U.S.C. 1964(c), private cause of action and under the Labor Management Reporting and Disclosure Act (LMRDA), 29 U.S.C. 411(a)(5), as well as state law. The district court dismissed all of the Carpenters' federal claims under Rule 12(b)(6). The court concluded that the Carpenters' complaint does not allege a violation of the Hobbs Act, 18 U.S.C. 1951, through the use of economic fear merely because the Building Trades might have committed some tort or breached some contract as part of the Campaign. The complaint does not plausibly allege that any defendant used threats of violence to obtain the Carpenters' property; the Carpenters' formulaic and conclusory allegations of conspiracy and agency do not suggest plausibly that the Building Trades or any named defendant attempted to acquire the Carpenters' property through violence or threats; and the district court correctly rejected the Carpenters' arguments under state extortion law. The court affirmed the judgment because the complaint failed to state a claim under civil RICO or the LMRDA by orchestrating the termination of an affiliation agreement against the Building Trades, and the district court did not abuse its discretion in denying leave to amend. View "Carpenters v. Building Trades" on Justia Law