Office Tenant Lawsuit Attacks Union Hammerlock On Buildout Contracting

Wacker Drive Executive Suites LLC overcame a motion by Jones Lang LaSalle to dismiss its class action lawsuit on behalf of office tenants against the huge building manager’s “hot cargo” refusal to let non-union contractors into the high rises JLL manages for construction of tenant improvements. An order entered May 28 by Magistrate Judge Harjani in federal court in Chicago holds that Wacker Drive Executive Suites has sufficiently alleged racketeering by JLL through violations of the Hobbs Act and the Taft-Hartley Act by conspiring with the Teamsters Union and the Operating Engineers Union to exclude all non-union construction and furniture moving workers from JLL buildings. The result, according to the lawsuit, causes a 20% increase in buildout and move in costs to tenants.