Chapter 22, Problem 1CT

Summary Introduction

Case summary:The people who work in public services, health care, and property services constitute SEIU which has 2.2 million members. UHW which is a union of 150,000 health care workers from California is affiliated with SEIU. SEIU has the authority to realign the various local unions and place them into trusteeship. A proposal of moving 150,000 long term care workers into a new union is charted by SEIU. The move was opposed by UHW as 65,000 members of the union were effected by the act of moving them to a new union. UHW was placed into trusteeship by SEIU. UHW restricted the entry of trustees in the building, removed the property of UHW from the building. The official of UHW created and promoted a new union namely NUHW. SEIU filed a suit in the court against UHW for breach of fiduciary duty.

To find: The liability of UHW if they only expressed opinion on creating a new union and imposition of trusteeship.