Hibernia Bank v. International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers

MEMORANDUM OF OPINION AND ORDER

In this case plaintiff Hibernia Bank (“Bank”) has brought suit to recover damages for losses it allegedly suffered as a result of alleged misfeasances in the composition and administration of cer tain union trust funds. Defendants include the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (“Teamsters Union”), one of its local unions, two of its joint councils, numerous trustees of the union trust funds, and the trustees of the Teamsters Security Fund of Northern California, Inc. (“TSF”). In each of the five claims asserted, the Bank puts forward a separate theory of recovery for a loss in excess of $700,000 which it allegedly incurred when TSF failed to repay overdrafts of that amount in its commercial account with the Bank. TSF has subsequently entered into bankruptcy proceedings under Chapter XI of the Bankruptcy Act, 11 U.S.C. § 701 et seq., and is not presently a party to this action. The Bank also seeks punitive damages in the amount of $1,000,000 and injunctive and declaratory relief against defendants.

Two of the claims asserted by the Bank are based on alleged violations of federal statutes. The…