Air Line Pilots Association, International v. Texas International Airlines, Inc., New York Air Lines, Inc., and Texas Air Corp.

656 F.2d 16
CourtCourt of Appeals for the Second Circuit
DecidedAugust 24, 1981
Docket850, Docket 80-9102
StatusPublished
Cited by63 cases

This text of 656 F.2d 16 (Air Line Pilots Association, International v. Texas International Airlines, Inc., New York Air Lines, Inc., and Texas Air Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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 Association, International v. Texas International Airlines, Inc., New York Air Lines, Inc., and Texas Air Corp., 656 F.2d 16 (2d Cir. 1981).

Opinion

MESKILL, Circuit Judge:

The plaintiff, Air Line Pilots Association, International (ALPA), appeals from a judgment dismissing its complaint for lack of subject matter jurisdiction. Air Line Pilots Association v. Texas International Airlines, 502 F.Supp. 423 (S.D.N.Y.1980) (Nickerson, J.). The complaint alleged various substantive violations of the Railway Labor Act (RLA), 45 U.S.C. §§ 151-188 (1976), 1 and sought damages and injunctive relief. Judge Nickerson found that since the complaint raised a “representation dispute” under section 2 Ninth of the RLA, 45 U.S.C. § 152 Ninth, the action was not justiciable. We affirm.

BACKGROUND

The allegations of the complaint, which must be regarded as true for the purposes of this appeal, reveal the following facts. ALPA, a widely recognized union among airline pilots, 2 is the collective bargaining representative for more than 400 pilots employed by Texas International Airlines, Inc. (TXI). Prior to February 1980, TXI was directly controlled by Jet Capital Corporation. In February 1980, a corporate restructuring took place in which a new corporation, New York Airlines, Inc. (New York Air) was formed to serve the New York-Washington, D.C. route. Under the restructuring, Jet Capital Corp. formed a holding company, Texas Air Corporation (Texas Air), of which both New York Air and TXI became wholly owned subsidiaries. New York Air then filed an application with the Civil Aeronautics Board (CAB) for a certificate of public convenience and necessity to operate air passenger service between, among other cities, New York and Washington. On December 11, 1980, the CAB approved New York Air’s application, New York Air Lines, Inc., CAB Order No. 80-12-57, and regular service began a week later. 3

Upon learning of New York Air’s application to the CAB, ALPA notified New York Air and TXI on September 10, 1980 of ALPA’s position that “the proposed new routes, whether operated through certificates issued to Texas International or New York Air, constituted flying which must be performed by the Texas International pilots under the pilot collective bargaining agreement.” (A. 9). New York Air, however, entered into individual employment contracts with the newly hired pilots and declined to recognize ALPA as their representative.

ALPA contends that the corporate restructuring which resulted in the creation of New York Air was part of a plan by TXI to defeat the existing collective bargaining relationship between ALPA and the TXI pilots. The complaint alleges that, in fact, TXI “has . .. directed and controlled New York Air through the officers, directors, management and resources of Texas International and Texas Air Corp.” (A. 8). Specifically, ALPA charges that TXI has transferred to New York Air valuable landing slots at airports in New York and Washington, leased TXI aircraft to New York Air, and provided New York Air “with extensive and comprehensive management, *18 employee, technical and financial resources, direction and control.” (A. 7-8). The purpose of this corporate maneuvering, ALPA alleges, is to deprive ALPA of its representative status, to deprive the TXI pilots of their collective bargaining rights, and to frustrate the rights of TXI pilots to organize and collectively bargain.

ALPA charges that the foregoing conduct violates TXI’s statutory duty (1) to “treat with” ALPA as the exclusive representative of TXI’s pilots, § 2 Ninth; (2) to maintain the collective bargaining agreement, § 2 First; (3) to allow representatives to be designated without interference, influence or coercion, § 2 Third; (4) to refrain from interference in the organization of the employees, § 2 Fourth; and (5) to refrain from attempting to unilaterally change rates of pay, rules, and working conditions, § 2 Seventh, § 6. The complaint requested an order requiring TXI to deal exclusively with ALPA, to cease hiring New York Air pilots except in accordance with the ALPA agreement, to cease operating New York Air except in accordance with the ALPA agreement, and to cease its efforts to nullify the collective bargaining relationship with ALPA.

In ruling on the defendants’ motion to dismiss, the district court acknowledged that in a proper case the courts may enforce a carrier's duty to bargain with a duly designated representative. Judge Nicker-son found, however, that in this case there were doubts as to who was the legitimate representative of the New York Air pilots and that under § 2 Ninth the exclusive forum for the resolution of those doubts was the National Mediation Board (NMB). 4 The court emphasized that there was no allegation that “the work of the Texas International pilots is to be terminated or curtailed,” 502 F.Supp. at 424, nor that the “Texas International activities are being abandoned,” id. at 425. Rather, the pervasive question identified by the district court was whether New York Air and TXI should, because of their special relationship, be treated as a single carrier, even though the two airlines were “separate corporations serving different areas and flying over different routes.” Id. While acknowledging that it was required to accept the truth of the allegations of the complaint, the district court pointed out that many of ALPA’s conclusory allegations assumed the very question which the district court refused to decide. Having found that a representation dispute appeared on the face of the complaint, the district court concluded that it lacked subject matter jurisdiction and therefore dismissed the action. ALPA now appeals.

DISCUSSION

This case is neither a pure representation dispute under § 2 Ninth nor a pure interference claim under § 2 Third and Fourth; rather, the problems raised here “fall[] between two stools.” Brotherhood of Locomotive Firemen & Enginemen v. National Mediation Board, 410 F.2d 1025, 1034 (D.C. Cir.), cert. denied, 396 U.S. 878, 90 S. *19 Ct. 149, 24 L.Ed.2d 136 (1969) (Burger, J., concurring). Decisionmaking at either end of the spectrum is considerably simpler than in the hazy zone in the middle. We do not doubt, for example, that TXI itself could not commence passenger service between New York and Washington without complying with its collective bargaining agreement with ALPA. See Virginian Railway v. System Federation No. 40, 300 U.S. 515, 57 S.Ct. 592, 81 L.Ed. 789 (1937) (requiring carrier to treat with the certified representative of a given craft or class of employees). Nor could TXI permissibly transfer existing business flown by ALPA pilots to a newly formed corporate alter ego for the purpose of displacing the work of ALPA pilots. Cf. Ruby v. TACA International, Airlines, S.A.,

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Bluebook (online)
656 F.2d 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/air-line-pilots-association-international-v-texas-international-airlines-ca2-1981.