Air Line Pilots Ass'n, International v. US Airways Group, Inc.

609 F.3d 338, 188 L.R.R.M. (BNA) 2918, 2010 U.S. App. LEXIS 12910, 2010 WL 2510661
CourtCourt of Appeals for the Fourth Circuit
DecidedJune 23, 2010
Docket09-2083
StatusPublished
Cited by11 cases

This text of 609 F.3d 338 (Air Line Pilots Ass'n, International v. US Airways Group, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Air Line Pilots Ass'n, International v. US Airways Group, Inc., 609 F.3d 338, 188 L.R.R.M. (BNA) 2918, 2010 U.S. App. LEXIS 12910, 2010 WL 2510661 (4th Cir. 2010).

Opinion

Affirmed by published opinion. Judge WILKINSON wrote the opinion, in which Judge KING and Senior Judge HAMILTON joined.

OPINION

WILKINSON, Circuit Judge:

This case involves an effort by a union of airline pilots to use the Railway Labor Act (“RLA”), 45 U.S.C. §§ 151 et seq., to compel several airlines, the airlines’ holding company, and another union to establish and arbitrate before a multi-employer, multi-union board of adjustment. We hold, however, that plaintiffs claim is foreclosed by the plain language of Section 204 of the RLA, id. § 184, which permits but does not require such a board of adjustment, and that plaintiffs alternative state law claim is meritless. Accordingly, we affirm the district court’s dismissal of the complaint.

I.

The plaintiff, the Air Line Pilots Association (“ALPA”), is a labor organization that represents various pilots in collective bargaining. The defendants in this case *340 are the holding company U.S. Airways Group, Inc. (“Group”) and three of Group’s wholly owned air carrier subsidiaries: U.S. Airways, Inc. (“Airways”), Piedmont Airlines, Inc. (“Piedmont”), and PSA Airlines, Inc. (“PSA”). The plaintiff represents the pilots of Piedmont and PSA. It previously represented the pilots of Airways as well, but on April 18, 2008, another union, the U.S. Airline Pilots Association (“USAPA”), replaced it as their representative.

Starting about 1997 and ending around 2004, the plaintiff, on behalf of Airways, Piedmont, and PSA pilots, negotiated a number- of collective bargaining agreements that form the basis of the instant dispute. No agreement was ever signed by all parties. The plaintiff nonetheless characterizes the set of contracts as complex and interlocking, such that their net effect is to somehow involve all the defendants in a scheme entitling PSA and Piedmont pilots to preferential rights to job vacancies at Airways. These rights are referred to as “flow-through” rights.

In 2007, a dispute erupted over the alleged flow-through rights, which plaintiff claims the defendants violated. Several rounds of discussions failed to resolve the matter, and the parties were unable to agree on the proper format for arbitration. Consequently, in early 2009, the plaintiff brought suit in the Eastern District of Virginia.

Both parties agree that the plaintiff is not seeking a determination on the merits of the flow-through dispute. It instead is seeking injunctive and declaratory relief to compel resolution of the dispute through arbitration. The plaintiff contends further that effective resolution of the dispute requires arbitration before a multi-carrier, multi-union adjustment board — i.e., one with jurisdiction over the plaintiff, the defendants, and USAPA. The defendants, on the other hand, contend that they have fulfilled their statutory duty by establishing single-carrier adjustment boards and that the plaintiff must present its grievance to those boards.

The complaint alleges two counts. First, plaintiff argues that two provisions of the Railway Labor Act (“RLA”) — Section 204, codified at 45 U.S.C. § 184, and Section 2 — First, codified at 45 U.S.C. § 152-First-independently require the defendants to create and participate in a multi-carrier, multi-union board. The second count is directed only at Group and alleges that Group is obligated to arbitrate under state contract law.

The defendants moved to dismiss the lawsuit, see Fed.R.Civ.P. 12(b)(6), and the district court granted the motion, dismissing the plaintiffs complaint in its entirety. See Air Line Pilots Ass’n v. U.S. Airways Group, Inc., 2009 WL 2708009 (E.D.Va.Aug.25, 2009). As to count one, the court held that neither Section 204 nor Section 2-First of the RLA provided a basis for relief. Under Section 204, the court concluded that multi-carrier, multi-union adjustment boards were purely voluntary in the airline industry. The district court further determined that Section 2-First’s general duty requiring “reasonable effort[s]” to resolve disputes could not take the place of the more specific language of Section 204, allowing but not mandating multi-party arbitration. As to count two of the complaint, the court held that Group did not have any contractual obligations under state law to arbitrate.

II.

The plaintiffs aim in this case is to compel arbitration before a multi-employer, multi-union board of adjustment. It is undisputed that in the airline industry, the RLA makes “minor” disputes, which are disputes over the interpretation of collec *341 tive bargaining agreements, subject to final and binding arbitration before a “board of adjustment.” See Consol. Rail Corp. v. Ry. Labor Executives’ Ass’n, 491 U.S. 299, 304 & n. 4,109 S.Ct. 2477, 105 L.Ed.2d 250 (1989) (“Conrail ”). The parties dispute, however, whether this requirement is satisfied by a “system” (i.e., single-carrier) adjustment board, as is typical in the airline industry, or whether, at least in this particular case, it necessitates a “group” (i.e., multi-carrier, multi-union) adjustment board. See 45 U.S.C. § 184. In arguing in favor of a group adjustment board, the plaintiff relies primarily on Section 204 of the RLA, id,., offering several distinct arguments based on that section.

A.

Plaintiff contends that construing Section 204 to leave group boards to the election of the parties would frustrate two of Congress’s goals in enacting the RLA. First, according to the plaintiff, it would undermine the longstanding federal policy that “favors arbitration of labor disputes.” Lynchburg Foundry Co. v. Patternmakers League, 597 F.2d 384, 386 (4th Cir.1979). This policy has special importance in the rail and air industries, where failure to resolve labor disputes in a “prompt and orderly” manner may “interrupt[ ] ... commerce” and thus adversely affect the public interest in traveling and shipping. 45 U.S.C. § 151a; see Union Pac. R.R. Co. v. Sheehan, 439 U.S. 89, 94, 99 S.Ct. 399, 58 L.Ed.2d 354 (1978) (per curiam).

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609 F.3d 338, 188 L.R.R.M. (BNA) 2918, 2010 U.S. App. LEXIS 12910, 2010 WL 2510661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/air-line-pilots-assn-international-v-us-airways-group-inc-ca4-2010.