Bernard v. Alaska Airlines, Inc.

367 P.3d 1156, 2016 Alas. LEXIS 18, 205 L.R.R.M. (BNA) 3540, 2016 WL 555484
Alaska Supreme Court·Decided February 12, 2016·No. 7082 S-15592·Published·Cited by 8 cases

Opinion

OPINION

MAASSEN, Justice.

T. - INTRODUCTION

A former airline employee sued his former employer for wrongful termination without first attempting to arbitrate his claims under the provisions of .a collective bargaining agreement subject to the federal Railway *1158 Labor Act. The superior court dismissed the employee's complaint for failure to exhaust his contractual remedies. It also denied him leave to amend his complaint a second time-to.add a claim against his union for breaching its duty of fair representation-on the ground that the six-month limitations period for such claims had expired. We hold that the employee's right to bring his claims in state court was not clearly and unmistakably waived under the collective bargaining agreement and he therefore should have been allowed to pursue them. We agree with the superior court, however, that the employee's claim that the union breached its duty of fair representation was time-barred. 'We therefore affirm in part and reverse in part the judgment of the superior court.

IL FACTS AND PROCEEDINGS

In June 2011 Alaska Airlines charged that Pierre Bernard, one of its baggage handlers, had taken part in drafting and sending a threatening text message to'a co-worker and had then deleted a recorded conversation relevant to the ensuing investigation. The company terminated Bernard's employment.

The employment's terms and conditions were governed by a collective ba1ga1n1ng agreement (sometimes abbreviated "CBA") negotiated by Bernard's union, the International Association of Machinists and Aerospace Workers, pursuant to the federal Railway Labor Act (RLA). 1 The collective bargaining agreement provided a three-stage process for grieving termination decisions: The first two stages corsisted of an "initial hearirig" and a "secondary hearing," each presided over by a representative of Alaska Airlines, with a union representative in attendance to represent the employee. The result of a secondary hearing could be appealed to the System Board of Adjust, ment, a three-member arbitration panel consisting of "a Company member, a Union member{,] and a neutral referee." 2

Bernard initiated the grievance process through his union, and over the next two months Alaska Airlines held two hearings, each time in the presence of a union representative. The presiding company officers issued written decisions after both hearings upholding Bernard's termination-though the second decision, in August, offered him " the- opportunity to resign in lieu of termination," an offer he did not accept.

A few weeks after the August 'decision a union representative wrote to Bernard informing him that "[ilf the Union brings your case to an arbitration, there is paperwork you must fill out," and advising him that he "may acquire a lawyer at any time." The union's written notice to Bernard that it had decided not to appeal is dated November 14, 2011, nearly two months after the 80-day appeal deadline had expired. The union informed Bernard that it had thoroughly reviewed his case, concluded. that "we could not sustain our position before the System Board of Adjustment," and closed its file.

In August 2013, two years after the unap-pealed decision of the secondary hearing, Bernard filed a complaint against Alaska Airlines in the superior court, He alleged a background to his termination: that in 2009 he had filed a sexual harassment complaint against a supervisor and was ostracized as a result; that he was later unfairly disciplined after a. co-worker imposed upon him with inappropriate personal demands; and that the allegedly threatening text message for which he was discharged in 2011 had actually been "sent in jest" in response to "a hostile and threatening text from another employee." He alleged that his termination was in retaliation for his reports of sexual harassment and therefore violated the covenant of good faith and fair dealing,

Alaska Airlines filed a motion to dismiss under Alaska Civil Rule 12(b)(1), 3 arguing *1159 that (1) the RLA preempted Bernard's claim; and (2) even if not preempted, his claim was precluded because he had failed to exhaust available remedies under the collectlve bargaining agreement.

Bernard opposed the motion and filed an amended complaint, adding allegations that Alaska Airlines had violated a state employment discrimination statute 4 and public policy. Alaska Airlines renewed its motion to dismiss on the exhgustion-of-remedies theory, arguing that because the collective bargaining agreement incorporated the company's anti-discrimination policies, Bernard was required to seek relief through contractual remedies even for statutory claims; which he had not done.

Bernard moved for leave to file a second amended complaint, this time to add a claim that the union had breached its duty of fair representation by failing to notify him of its decision not to pursue arbitration with the System Board of Adjustment until after the appeal deadline. The superior court denied Bernard leave to add this claim, concluding that it was barred by the six-month statute of limitations for "hybrid claims." 5

The superior court also dismissed Bernard's state law claims under Rule 12(b)(1) for lack of subject matter jurisdiction. < It first decided that his state law claims were "not pre-empted to the extent that they plead an independent state law claim for retaliatory discharge" but were preempted "Itlo the extent they rest on contractual rights that Mr. Bernard enjoyed under the CBA." The court went on to conclude that to the extent not preempted, Bernard's state law claims were nonetheless subject to the mandatory arbitration provisions of the collective bargaining agreement because he had clearly and unmistakably waived his right to pursue judicial remedies instead. The court held that he had "a personal right to submit his claim to the National Railroad Adjust, ment Board (NRAB)" but had not done so, and that his alleged ignorance of this avenue was not an excuse.

Bernard appeals.

IIH. STANDARDS OF REVIEW

The superior court dismissed Bernard's action for lack of subject matter jurisdiction pursuant to Rule. 12(b)(1). "We review de novo a superior court's decision to dismiss a complaint for lack of subject matter jurisdiction." 6 "In exercising our independent judgment, we will adopt the rule of law that is most persuasive in light of precedent reason, afid policy." " tor 7

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Bernard v. Alaska Airlines, Inc., 367 P.3d 1156, 2016 Alas. LEXIS 18, 205 L.R.R.M. (BNA) 3540, 2016 WL 555484 (Ala. 2016).

367 P.3d 1156 (Bernard v. Alaska Airlines, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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