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Parties are in a ‘High-stakes' Game


Rick Grimaldi was quoted in the Philadelphia Business Journal on May 15, 2015. The article “Parties are in a ‘High-stakes’ Game” discussed how a federal civil complaint filed by the Pennsylvania Convention Center Authority under the Racketeering Influenced and Corrupt Organization (RICO) Act against the Carpenters union, is a move that has some saying the two organizations have now entered a protracted war.

Rick was quoted on the steps the PA Convention Center Authority has taken (and can still prospectively take) in its current dispute with the Carpenters union.

“They’re already engaged in one,” said Rick, “and the Convention Center sent a very strong message.”

Rick said the Authority is looking at this as an opportunity to seize on this sentiment and push back on those “thug-like tactics by the Carpenters.”

The Authority is taking an “aggressive” approach. In effect, it’s going on the offense. “We are now witnessing a very high-stakes chess game,” Rick said. “The filing of the complaint was a move in a bitter chess game and the next move is the Carpenters’.” The Carpenters now have no choice but to respond to the allegations.

“It’s going to force the Carpenters to defend a claim,” Rick said. “A RICO allegation is tantamount to saying you’re engaged in criminal activity. It could invite scrutiny from the government.”

A “full-blown” litigation could take place as a result of this complaint, he said.

A few moves the Carpenters could make in this game include filing a motion to dismiss the claims or to file a frivolously brought lawsuit, Rick said.

“It’s a little early to determine that,” he said. “On it’s face, I don’t think it’s frivolous.” In federal court, a case like this moves relatively quickly, Rick said, but it depends on the judge assigned to the case. This could take six months or up to a year, depending on what the judge decides.

Regardless of what the Carpenters do, they will incur legal fees in order to defend the claim, which happens the “minute you’re sued,” he said.

“The one thing we do know they can’t do is ignore it,” Rick said.

To read the full article, please visit the Philadelphia Business Journal.


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