Laundry considers next move in court
By Frank Cho
Advertiser Staff Writer
The owner of Young Laundry and Dry Cleaning said he plans to appeal a federal court ruling earlier this week that overturned a million-dollar award against the Hawai'i Teamsters union.
Michael Drace, president and owner of Young Laundry, said he is almost certain to appeal Monday's decision by the 9th U.S. Circuit Court of Appeals in San Francisco. A three-member panel vacated a lower court's ruling that would have forced Teamsters Local 996 of Honolulu to pay Drace nearly $1 million for alleged defamatory statements its leader made against him during a 1998 labor dispute.
Hawai'i Teamsters leader Mel Kahele and the union were sued by Drace for defamation when Kahele allegedly told union members the company was "making money" and hiding profits when it refused to give workers pay raises.
Drace said yesterday that he believes the latest ruling to be "incorrect." He said: "It's not personal, but this was way over the line. We need to expect our leaders to tell the truth, whether in politics or labor or anything else. (Kahele) was not and he knew the truth."
The union said it intends to "vigorously" defend the decision by the appeals court panel.
Drace could ask the same three-member panel to reconsider its decision, seek a hearing with the full 9th U.S. Circuit Court of Appeals or appeal the ruling to the U.S. Supreme Court.
"That's his (Drace's) right, but I don't believe he will be able to get the U.S. Supreme Court or the full 9th Circuit Court to overturn a unanimous decision made by the three-member panel," Kahele said.
About 130 Young Laundry workers, who were Teamsters members, went on strike in 1998. The unsuccessful strike ended with Young Laundry eventually hiring replacement workers several months later.
Drace said his company is still recovering from the effects of the strike and the union boycott that followed.
"Obviously, there are a lot of considerations to be made regarding the health of the company in pursuing this, but it's the right thing to do," Drace said.
Reach Frank Cho at 525-8088, or at fcho@honoluluadvertiser.com.
