Air Transport Ass'n of America, Inc. v. National Mediation Board

719 F. Supp. 2d 26, 188 L.R.R.M. (BNA) 3053, 2010 U.S. Dist. LEXIS 64408, 2010 WL 2572685
CourtDistrict Court, District of Columbia
DecidedJune 28, 2010
DocketCivil Action 10-0804(PLF)
StatusPublished
Cited by20 cases

This text of 719 F. Supp. 2d 26 (Air Transport Ass'n of America, Inc. v. National Mediation Board) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Air Transport Ass'n of America, Inc. v. National Mediation Board, 719 F. Supp. 2d 26, 188 L.R.R.M. (BNA) 3053, 2010 U.S. Dist. LEXIS 64408, 2010 WL 2572685 (D.D.C. 2010).

Opinion

OPINION

PAUL L. FRIEDMAN, District Judge.

This matter is before the Court on the parties’ cross-motions for summary judgment. The Court heard oral argument on the motions on June 21, 2010. After careful consideration of the parties’ papers and attached exhibits, the Final Rule and portions of the administrative record, the oral argument made by counsel in open court, and the relevant case law and statutes, the Court granted the defendants’ motions, denied the plaintiffs’ motions, and entered judgment for the defendants on June 25, 2010. This Opinion explains the reasoning underlying the Court’s June 25 Order.

I. BACKGROUND

The National Mediation Board (the “Board”), the federal agency that oversees labor-management relations involving railroads and airlines, is required by the Railway Labor Act (“RLA”) to investigate representation disputes “among a carrier’s employees as to who are the representatives of such employees ... and to certify to both parties, in writing ... the name or names of the individuals or organizations that have been designated and authorized to represent the employees involved in the dispute, and to certify the same to the carrier.” 45 U.S.C. § 152, Ninth. The Board may hold an election by secret ballot or use “any other appropriate method” to determine what representative, if any, the employees have selected. Id. The carrier is obligated to “treat” with the certified organization as the employee’s bargaining representative. Id.

The Board’s traditional policy in conducting elections, which had been in place for 75 years, required that a majority of all eligible voters in the craft or class must cast valid ballots in favor of representation (the “Original Rule”) before the Board would certify the election. See Representation Election Procedure, 75 Fed.Reg. 26,062, 26,062 (May 11, 2010) (to be codified at 29 C.F.R. pts. 1202, 1206). This policy was based on the Board’s construction of Section 2, Fourth of the RLA. Id.

On May 11, 2010, after an informal rule-making process involving notice and comment, the Board issued a Final Rule which changed this policy (the “New Rule”). See 75 Fed. Reg. at 26,062. The New Rule amends the Board’s rules to provide that, in representation disputes, a majority of the valid ballots that are actually cast will determine the craft or class representative. See id. at 26,062. It does not require that a majority of the craft or class participate in the election.

On May 17, 2010, plaintiff Air Transport Association of America, Inc. (“ATA”) filed this lawsuit, asserting that the New Rule violates the RLA, 45 U.S.C. § 152, Fourth, and that it is arbitrary, capricious, and not in accordance with law under the Administrative Procedure Act (“APA”), 5 U.S.C. §§ 551 et seq. Two days later, ATA moved for a preliminary injunction to enjoin the New Rule from going into effect as scheduled on June 10, 2010. At an *30 initial status conference, the government agreed to stay the effective date of the New Rule until June 30, 2010, to permit the litigation before the Court to proceed at a more measured pace. In the time since ATA’s complaint was filed, numerous parties have intervened on both sides of the case: the Chamber of Commerce and five individual Delta employees as plaintiffs, and the International Brotherhood of Teamsters, the Aircraft Mechanics Fraternal Association, and the United States Airline Pilots Association as defendants.

In connection with the motion for a preliminary injunction, ATA also filed a motion to take expedited discovery to support its contention that two members of the Board acted with unalterably closed minds regarding the New Rule and predetermined the outcome of the rulemaking process in violation of the APA. After hearing oral argument, the Court denied the motion. See Opinion and Order, Dkt. No. 44 (June 4, 2010). Thereafter, because the entire case would be resolved based on the administrative record, which was filed on June 14, 2010, the parties agreed to convert the briefing on ATA’s motion for a preliminary injunction into cross-motions for summary judgment.

II. LEGAL FRAMEWORK

The National Mediation Board’s rulemaking is subject to review under Section 706 of the Administrative Procedure Act. See, e.g., U.S. Airways, Inc. v. National Mediation Board, 177 F.3d 985, 989 & n. 2 (D.C.Cir.1999); Ry. Labor Executives’ Ass’n v. National Mediation Board, 29 F.3d 655, 672-73 (D.C.Cir.1994) (Randolph, J., concurring). The standard of review under Section 706 of the APA “is a highly deferential one. It presumes agency action to be valid.” Humane Soc’y of the United States v. Kempthorne, 579 F.Supp.2d 7, 12 (D.D.C.2008) (quoting Ethyl Corp. v. EPA, 541 F.2d 1, 34 (D.C.Cir.1976)). Nevertheless, a reviewing court must reject agency action if it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A). Agency action is arbitrary and capricious if the agency

relied on factors which Congress has not intended it to consider, entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise.

Motor Vehicle Mfrs. Ass’n v. State Farm, Mut. Auto. Ins. Co., 463 U.S. 29, 43, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983). If the agency has “considered the relevant factors and articulated a rational connection between the facts found and the choices made,” its decision cannot be considered arbitrary and capricious. Balt. Gas & Elec. Co. v. Natural Resources Defense Council, Inc., 462 U.S. 87, 105, 103 S.Ct. 2246, 76 L.Ed.2d 437 (1983); see also City of Portland v. EPA, 507 F.3d 706, 713 (D.C.Cir.2007).

As explained in more detail below, one of the plaintiffs’ principal arguments calls into question the Board’s interpretation of the RLA. When the action under review involves an agency’s interpretation of a statute that thé agency is charged with administering, the Court applies the familiar analytical framework set forth in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 104 S.Ct.

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719 F. Supp. 2d 26, 188 L.R.R.M. (BNA) 3053, 2010 U.S. Dist. LEXIS 64408, 2010 WL 2572685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/air-transport-assn-of-america-inc-v-national-mediation-board-dcd-2010.