Following an order to merge two local unions into a larger local, the former locals attempted to amend their trust and building corporation documents to distribute assets pro rata to their members rather than transferring them to the merged local.
The court found these actions were taken without authorization, violated the union's constitution, and constituted a breach of fiduciary duty by the trustees and directors.
The court declared the amendments null and void, imposed a constructive trust, and ordered the assets transferred to the merged local.
