Olms interpretative Manual

EXCULPATORYPROVISIONS

514.001LMRDA, SECTION501(a)

A general exculpatory provision in the constitution and bylaws of such a labororganization or a general exculpatory resolution of a governing body purporting to relieve anysuch person of liability for breach of the duties declared by this section shall be void as againstpublicpolicy.

514.005GENERALEXCULPATORYRESOLUTION

Whereamajority ofmembers presentata meetingof thelocaladopted aresolution

authorizing the union to bear legal costs of defending the local’s officers in certain criminal andcivilsuits the U.S. DistrictCourt forthe EasternDistrictof Pennsylvaniafoundthat suchan
authorizationfellwithintheproscriptionsofsection501,butitdidnotconstitutea“general
exculpatory resolution” as that phrase is used in the last sentence of section 501(a).The courtsaid:
Unfortunately the Act does not define the phrase “general exculpatoryresolution”Wemustdistinguishbetweenaresolutionwhichpurportstoauthorizeactionwhichis beyond the power of the union to do and for that reason in violation of section 501(a) whendone by an officerand a resolution which purports to relieve an officer of liability for breach ofthe duties declared in section 501(a).At times this distinction may be a fine one.Very often theresultwillbethesame.Nevertheless wefeelthat sucha distinctionshouldbemade hereunless
the“exculpatory”provisionistobereadasamere“catchall”phrase.

Thereisa distinctionbetweenthe meritofa resolutionanditslegality.Thelatterquestionis peculiarly within the competence of a court to pass upon and can not be abandoned finally tothe organization.Maloneyv. United Mine Workers, infra; Gordonv. Tomei, 144 Pa. Super. 449(Super. Pa. 1941).When a serious question arises as to whether a particular act is within thelegitimate aims and purposes of a labor union as expressed by its constitution and bylaws, theCourt must ultimately resolve the matter so as to preserve on the one hand the rights of the unionand on the other hand those of the individual members of that union. Maloneyv. United MineWorkers, 308 Pa. 251 (Sup. Pa. 1932).

It is true that from the general objectives and purposes of a particular trade union, certainancillary powers reasonably necessary for their attainment may be implied.In determiningwhether a particular act falls within this admittedly broad latitude of action, the Court must takeinto consideration all of the factors surrounding it, i.e., the stated purpose of the action, itsimmediate effect, its possible future benefit to the union, etc.This is necessary in order todetermine whether the union in light of the authority derived from its constitution has a sufficientinterest in the action to empower it to so act.If it has, a court of law will not interfere regardlessof the wisdom or propriety of the act.If it has not, a court of law must intervene at the behest of asingleunion member.

Highway Truck Drivers and Helpers Local 107, International Brotherhood of Teamstersv. Cohen,182F.Supp. 608,45 LRRM 3050(E.D. Pa. 1960),aff'd, 284 F.2d162 (3dCir.1960),cert.denied,
365U.S. 833 (1961).

(TechnicalRevisions:Dec. 2016)