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SERVICES EMPLOYEES v. UNION OF HEALTHCARE WORKERS

No. 10-16549.

711 F.3d 970 (2013)

SERVICES EMPLOYEES INTERNATIONAL UNION; David Regan; Eliseo Medina, as Trustees for SEIU United Healthcare Workers-West and fiduciaries of the SEIU United Healthcare Workers-West and Joint Employer Education Fund; SEIU United Healthcare Workers-West, an unincorporated association and fiduciary of the SEIU United Healthcare Workers-West and Joint Employer Education Fund; Rebecca Collins, as a participant in the SEIU United Healthcare Workers-West and Joint Employer Education Fund, Plaintiffs-Appellees, v. NATIONAL UNION OF HEALTHCARE WORKERS; John Borsos; Sal Rosselli; John Vellardita; Ralph Cornejo; Marti Garza; Glenn Goldstein; Jason Johnson; Mark Kipfer; Gabe Kristal; Jorge Rodriguez; Fred Seavey; Phyllis Willett, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Submitted and Filed March 26, 2013.

Attorney(s) appearing for the Case

Dan Siegel , Siegel & Yee, Oakland, CA, for Defendants-Appellants.

Jeffrey B. Demain & Jonathan Weissglass , Altshuler Berzon LLP, San Francisco, CA; Robert M. Weinberg , W. Gary Kohlmann , Leon Dayan , and Ramya Ravindran , Bredhoff & Kaiser, PLLC, Washington, D.C.; Glenn Rothner , Rothner, Segall & Greenstone, Pasadena, CA, for Plaintiffs-Appellees.

Before: RONALD M. GOULD, RICHARD C. TALLMAN, and CARLOS T. BEA, Circuit Judges.

OPINION

TALLMAN, Circuit Judge:

This appeal presents a classic union power struggle. We must resolve whether § 501 of the Labor Management Reporting and Disclosure Act creates a fiduciary duty to the union as an organization, not merely the union's rank-and-file members. We hold that it does.

The defendants, who by jury verdict1 were determined to be rogue local union officials who diverted union resources in an...

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