no evidence that any corrective action has been taken by the Union.
If this Motion had been brought before the court in February 1967, it is most probable that the order of December 23, 1967, would have been vacated, but the filing of this Motion (Document 8) with the Clerk was never brought to the attention of the undersigned until June or July 1967. In July 1967, counsel were notified of an August argument date, but this was continued until October 20 at the request of counsel.
It would be a futile act to vacate the December 1966 order now and require plaintiffs to file another motion to authorize the filing of a complaint because the committee had not acted to correct the alleged grievances of plaintiffs within a reasonable time. It is now approximately a year since the Union was asked to remedy the alleged breaches of fiduciary duty and to sue Mr. Hoffmann by the letter of November 7, 1966. No showing of any remedial action or of a suit by the Union appears in this record.
II. Contention that plaintiffs failed to give the Union a reasonable opportunity to investigate or take remedial action
As stated under I, the Union has had approximately a year to take remedial action and to bring suit, but no such action has been shown.
III. Contention that exhaustion of internal remedies is a prerequisite to securing leave to file a suit under 29 U.S.C. § 501
On this record, no exhaustion of internal remedies is required for leave to file this suit. See Horner v. Ferron, 362 F.2d 224, 231 (9th Cir. 1966), and cases cited at pages 12-13 of plaintiff's brief (Document 23).
IV. Contention that "good cause" to file this action, as provided in 29 U.S.C. § 501(b), has not been shown
The allegations and exhibits of the verified Complaint set forth breaches of fiduciary duties by Union representatives. The Union has not placed on the record even sworn affidavits, denying each allegation relevant to the claims under 29 U.S.C. § 501 as stated, and has filed none of the testimony taken at the February and September hearings before the Union committee mentioned above. It is "inappropriate to consider, at such a hearing (on the issue of good cause under 29 U.S.C. § 501(b)), defenses which require the resolution of complex questions of law going to the substance of the case. Defenses of this kind should be appraised only on motion for summary judgment or after a trial. Defenses which necessitate the determination of a genuine issue of material fact, being beyond the scope of summary judgment procedure, are a fortiori, beyond the scope of a proceeding to determine whether a section 501(b) complaint may be filed. Defenses involving disputed questions of fact should be appraised only after a trial at which the parties and the court can have the benefit of a complete inquiry, assisted by such pre-trial discovery as may be undertaken." Horner v. Ferron, supra at 229.
This record does not establish that the suit constitutes "harassing and vexatious litigation brought without merit or good faith."
Horner v. Ferron, supra at 228, and cases there cited, including Highway Truck Drivers and Helpers Local 107 v. Cohen, 182 F. Supp. 608, 622 (fn. 10) (E.D.Pa.1960), aff'd 284 F.2d 162 (3rd Cir. 1960).
Contention that employer members of the Board of Governors of the U.I.U. NATIONAL PENSION TRUST are not proper defendants under Section 501 (pp. 9-10 of attached Brief of Movants)