APPEAL COURT REVERSES DEMURRER IN UNION EXTORTION MATTER!
APPEAL COURT REVERSES DEMURRER IN UNION EXTORTION MATTER!
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APPEAL COURT REVERSES DEMURRER IN UNION EXTORTION MATTER!

| May 7, 2020 | Firm News

Galeotti, a former Union Local 3 employee, filed a complaint against Local 3 and three of individual union leaders, alleging that the individual defendants required union employees to pay them money to keep their jobs, lied about the reason for collecting the money, and caused Local 3 to terminate Galeotti’s employment when he failed to pay the full amount demanded.

The trial court dismissed his second amended complaint without leave to amend.

The California Court of Appeal reversed in part, reasoning that a threat to terminate employment can provide a basis for an extortion claim and that the allegations of the second amended complaint stated a cause of action for wrongful termination in violation of the public policy underlying the extortion statutes. The complaint stated a cause of action for violations of the Racketeer Influenced and Corrupt Organizations Act (RICO; 18 U.S.C. 1961), based on the predicate acts of extortion, but did not state a cause of action for interference with prospective economic advantage.

See Galeotti v. International Union of Operating Engineers.

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