Ballew v. Continental Airlines, Inc.

668 F.3d 777, 52 Employee Benefits Cas. (BNA) 1321, 2012 WL 265847, 192 L.R.R.M. (BNA) 2879, 2012 U.S. App. LEXIS 1788
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 31, 2012
Docket11-20279
StatusPublished
Cited by119 cases

This text of 668 F.3d 777 (Ballew v. Continental Airlines, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ballew v. Continental Airlines, Inc., 668 F.3d 777, 52 Employee Benefits Cas. (BNA) 1321, 2012 WL 265847, 192 L.R.R.M. (BNA) 2879, 2012 U.S. App. LEXIS 1788 (5th Cir. 2012).

Opinion

HAYNES, Circuit Judge:

This appeal arises from the district court’s order dismissing Plaintiffs-Appellants’ (“Retirees”) claim for lack of subject matter jurisdiction due to the Railway Labor Act’s (“RLA”) exclusive and mandatory dispute resolution process that applies to Retirees’ claims. Retirees argue on appeal that the RLA does not apply to them because they are no longer “employees” as contemplated by the RLA, 45 U.S.C. §§ 151, 181. Alternatively, Retirees argue that even if the RLA applies to them as former employees, they complied with the terms of their Collective Bargaining Agreement (“CBA”), which allowed them to bring an action in federal district court pursuant to Section 502(a)(1)(B) of the Employee Retirement Income Security Act (“ERISA”). For the reasons set forth below, we AFFIRM.

I. Facts & Procedural History

Retirees are all former Continental Airlines pilots who filed a proposed class action against Continental Airlines, Inc. and the Continental Pilots Retirement Plan (“Continental”) in the United States Dis *780 trict Court for the Southern District of Texas in May 2010. Retirees sued under ERISA § 502(a)(1)(B), alleging Continental breached the terms of Retirees’ pension plan. On March 21, 2011, the district court dismissed Retirees’ claims for lack of jurisdiction, holding that the RLA applied to Retirees and that the RLA gives exclusive jurisdiction over their contract interpretation claim to the administrative resolution process. Retirees timely appealed the district court’s order on April 18, 2011.

In their complaint, Retirees allege that Continental misinterpreted the terms of their pension benefits as memorialized in the Retirement Plan — a pension plan generally subject to ERISA. Specifically, Retirees contend that the pilots’ retirement pensions should be calculated according to the most recent sixty consecutive months’ salaries before leaving Continental. Retirees argue that Continental inappropriately considered any utilized “sick leave” as an interruption of a pilot’s consecutive sixty months and thus calculated the continuous sixty month period from an earlier period in the pilot’s career. Retirees aver that this computation method accounts for lower pension calculations because pilots earn less earlier in their careers.

The CBA provided that employees like Retirees must seek review of adverse benefit determinations through the Retirement Board, a properly established “System Board” under the RLA, 45 U.S.C. § 184. The Retirement Board is composed of four people, two appointed by Continental and two appointed by the Air Line Pilots Association (“ALPA”). 1 Section 21 of the CBA outlines the jurisdiction of the Board, vesting it with the authority to hear grievances stemming from the “interpretation or application of any of the terms of the Agreement.” The CBA specifically exempts “changes in hours of employment, rates of compensation, or working conditions covered by existing agreements between the parties,” from the Board’s jurisdiction. Moreover, section 21 dictates that “all cases properly referred to [the Board] will be final and binding upon the parties.” If the Board deadlocks on a particular dispute, parties are allowed to seek further arbitration, so long as the claimants waive their right to further litigation and the arbitrator is selected from a mutually agreed list of ERISA arbitrators. If the Board does not deadlock the CBA contemplates employees’ ability to sue under ERISA.

Section 28 of the CBA expressly incorporates Continental’s retirement plans into the CBA — including the Retirement Plan at issue here. Section 9.21(c) of the Retirement Plan provides standard notification procedures for a claimant’s adverse benefit determination by a Benefits Administrator. That provision requires the Administrator to “includ[e] a statement of the Claimant’s right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review.” Section 9.21(d) of the Retirement Plan provides that a Plan participant has a right to have an adverse benefit determination reviewed by the Retirement Board. That section also provides a claimant with “the opportunity to submit written comments, documents, records, and other information relating to the claim for Plan benefits to the Retirement Board” and establishes that a “decision on review by the Retirement Board will be binding and con- *781 elusive upon all persons and the Claimant shall neither be required nor permitted to pursue further appeals to the Retirement Board.” The following section, 9.21(e), does, however, contemplate a claimant’s “right to bring an action under section 502(a) of ERISA” following an adverse determination by the Retirement Board. Like the CBA, the Retirement Plan, section 9.21(f), allows a claimant to pursue binding arbitration before an ERISA arbitrator in the event of a Retirement Board deadlock.

Acting for Retirees, Captain Edward Ballew sought review of Continental’s initial adverse benefit determination on August 6, 2009 and made oral arguments to the Retirement Board on August 10, 2009. The Retirement Board issued a unanimous decision rejecting Ballew’s interpretation of the Plan in October 2009. In its decision, the Retirement Board provided that “Captain Ballew also has the right to bring suit under section 502(a) of ERISA.” Retirees thus commenced this action in May 2010.

II. Standard of Review

This Court has jurisdiction over the final judgment of the district court under 28 U.S.C. § 1291. We review a district court’s dismissal for lack of subject matter jurisdiction under Rule 12(b)(1) de novo. Ramming v. United States, 281 F.3d 158, 161 (5th Cir.2001); see also St. Paul Fire & Marine Ins. Co. v. Labuzan, 579 F.3d 533, 538 (5th Cir.2009) (stating that this Court reviews a district court’s rulings on questions of statutory interpretation de novo). We may also affirm on any ground supported by the record, including one not reached by the district court. Moncrief Oil Int’l Inc. v. OAO Gazprom, 481 F.3d 309, 311 (5th Cir.2007).

The party asserting jurisdiction bears the burden of proof for a 12(b)(1) motion to dismiss. Ramming, 281 F.3d at 161 (citations omitted). The plaintiff must prove by a preponderance of the evidence that the court has jurisdiction based on the complaint and evidence. Paterson v. Weinberger, 644 F.2d 521, 523 (5th Cir. 1981). A court can find that subject matter jurisdiction is lacking based on “(1) the complaint alone; (2) the complaint supplemented by undisputed facts evidenced in the record; or (3) the complaint supplemented by undisputed facts plus the court’s resolution of disputed facts.” Ramming, 281 F.3d at 161 (citing Barrera-Montenegro v. United States,

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668 F.3d 777, 52 Employee Benefits Cas. (BNA) 1321, 2012 WL 265847, 192 L.R.R.M. (BNA) 2879, 2012 U.S. App. LEXIS 1788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ballew-v-continental-airlines-inc-ca5-2012.