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Judge tosses RICO suit accusing Loop high rise manager of conspiring to force tenants to hire union contractors

COOK COUNTY RECORD

Monday, December 16, 2024

Judge tosses RICO suit accusing Loop high rise manager of conspiring to force tenants to hire union contractors

Federal Court
230 w monroe chicago

230 W. Monroe, Chicago | Youtube screenshot

A judge has toppled a suit against the manager of a Loop building, which alleged the manager conspired with unions to force tenants to use union workers, saying there is scant evidence of such a conspiracy.

The Oct. 15 ruling was issued by Judge Virginia Kendall, of U.S. District Court for the Northern District of Illinois. 

Kendall's decision went against Civcon, an engineering firm, which rents space in a 29-floor building at 230 W. Monroe St. The property is managed by Accesso, which is headquartered in Hallandale Beach, Fla., and has several offices in the eastern half of the country, including Chicago. Accesso runs at least several properties in the Chicago area, according to published reports.

Civcon alleged that when it moved to a smaller suite over the course of a month in 2016, it had to use union workers to facilitate the move. However, Civcon said it wanted to use cheaper, non-union workers, but Accesso demanded union labor, because of Accesso's arrangements with unions.

The unions include Teamsters Local 705; International Union of Operating Engineers Local 399; and Service Employees International Union Local 1. The unions are not named as defendants in the lawsuit.

The alleged deals between the unions and Accesso, which allegedly barred independent, non-union contractors from the building, have been in place since at least 2014, according to court documents. Such alleged deals are known as "hot cargo agreements."

Civcon filed a class action suit March 16 for itself and on behalf of other tenants allegedly compelled to employ unions. Civcon cited the Racketeer-Influenced Corrupt Organizations Act, alleging Accesso and the unions conspired to coerce tenants.

Accesso argued the suit failed to satisfy RICO requirements. Judge Kendall agreed.

Kendall said conspiratorial acts have to transpire over a lengthy period, but despite Civcon's claim the period was four years, the alleged acts at issue took place over only one month when Civcon was moving — not long enough in Kendall's view.

Civcon also failed to show how Accesso's dealings with the unions "pose a specific threat of repetition" and "form part of Accesso's ongoing way of doing business." In addition, there were no signs the Accesso-union pacts were a "long-term association for criminal purposes," according to Kendall.

Civcon further failed to demonstrate Accesso's actions affected interstate commerce, as required by RICO, Kendall said.

Kendall tossed the case, but gave Civcon 21 days to amend its complaint.

Civcon has been represented by the firms of Stephan Zouras, LLP and  Foster, PC, both of Chicago, as well as by Walner Law Firm, of suburban Northbrook.

Accesso has been represented by the Chicago firm of Polsinelli.

Civcon's action against Accesso is similar to a suit against Loop commercial office building manager Jones Lang LaSalle. The suit was brought in 2018 by Wacker Drive Executive Suites, which rented space in a high rise at 125 S. Wacker Drive. Plaintiffs alleged Jones Lang LaSalle had a deal with the same union locals as Accesso, requiring tenants to use unions for cartage and renovation work. The litigation remains pending in federal court.

The same lawyers pressing Civcon's claims are representing Wacker Drive Executive Suites.

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