Ed Kerr, for and on Behalf of Himself and All Other Members of Screen Extras Guild, Inc., a Labor Organization v. H. O'Neil Shanks

Kerr, a member of the Screen Extras Guild, Inc., a labor union, brought this action on behalf of all members of that union against certain officers of the union, alleging that defendants had breached their fiduciary obligations under 29 U.S.C. § 501 . Kerr appeals from the district court’s partial denial of the equitable relief sought and its refusal to award him litigation expenses, including attorney’s fees. We reverse.

BACKGROUND

The complaint charged that defendants breached their fiduciary duties by refusing to hold a special referendum of the membership as required 'by the Guild Constitution and By-Laws. That constitution provides that the Board of Directors must take a referendum vote of the membership within 20 days after the filing of a written referendum petition signed by 10% of the membership in good standing. Any action of the Board is subject to the referendum procedure and may be nullified or amended by vote of 51% of the membership voting. A valid petition was filed on June 3, 1968, demanding a referendum on the Board’s action in rehiring the National Executive Secretary, Shanks, for a minimum one-year period beginning May 2, 1968. The Board, including…