Culinary Union to sue Del Papa

Thursday, March 21, 1996 | 11:59 a.m.

The Culinary Union is filing suit today against Attorney General Frankie Sue Del Papa, alleging she's trying to restrict its free speech right to attack a local bank linked to state Sen. Sue Lowden, R-Las Vegas.

In a copy of the federal suit obtained by the SUN, Culinary attorney Richard McCracken says Del Papa wrote Local 226 a letter March 14 threatening criminal action if the union continued to distribute leaflets critical of Commercial Bank of Nevada at 2820 W. Charleston Blvd.

Lowden, locked in a bitter labor war with the Culinary Union at the Santa Fe hotel-casino she and her husband own, is listed as one of the bank's board members.

Several politically connected Las Vegas businessmen and professionals also are on the board. So is Robyne Brooks-Townsend, the wife of state Sen. Randolph Townsend, R-Reno.

The suit indicates the 40,000-member Culinary Union, the largest labor group in the state, has been circulating the leaflet as part of its ongoing organizing battle at the Santa Fe.

The leaflet alleges Commercial Bank has suffered quarterly losses since it opened in October 1994. Union members have been distributing the attack piece outside the bank since November.

"Your business works hard for its money," the flier states. "Don't you want a bank that knows how to make a profit?"

In her letter, Del Papa says NRS 668.105 makes it a gross misdemeanor for anyone who "willfully and maliciously" circulates derogatory information about the financial condition of a Nevada bank.

"Such statements have the potential for causing panic among customers and consequent losses to the bank and its customers," Del Papa writes.

"Please be advised that in our opinion, the circulation of this flier in an attempt to adversely affect the financial condition of Commercial Bank of Nevada constitutes a violation of this statute."

Del Papa warned that if the union continued to pass out the leaflet after receiving her letter, she would inform "local criminal authorities."

The union, which received the letter Tuesday, does not plan to stop distributing the flier.

In its lawsuit, the union charges that Del Papa's threat is unconstitutional and is having a "chilling effect" on its freedom of speech.

"Local 226 and its members desire to exercise fully their First Amendment right to criticize, publicize and otherwise speak freely about any and all businesses, including banks, in the state of Nevada and elsewhere," the suit says.

"Local 226's free speech about all such businesses, including Commercial Bank of Nevada, has been, is and will be at all times truthful and peaceful."

Much of the information contained in the flier, the suit says, has been taken from Federal Deposit Insurance Corp. reports on Commercial Bank.

The suit seeks a court order declaring NRS 668.105 unconstitutional and an injunction restraining Del Papa from carrying out her threat of prosecution.

Del Papa could not be reached for comment today.