Capitol Airways, Inc. v. Airline Pilots Ass'n International

237 F. Supp. 373, 54 L.R.R.M. (BNA) 2326, 1963 U.S. Dist. LEXIS 7687
CourtDistrict Court, M.D. Tennessee
DecidedOctober 18, 1963
DocketCiv. A. No. 3493
StatusPublished
Cited by3 cases

This text of 237 F. Supp. 373 (Capitol Airways, Inc. v. Airline Pilots Ass'n International) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capitol Airways, Inc. v. Airline Pilots Ass'n International, 237 F. Supp. 373, 54 L.R.R.M. (BNA) 2326, 1963 U.S. Dist. LEXIS 7687 (M.D. Tenn. 1963).

Opinion

WILLIAM E. MILLER, Chief Judge.

This is an action for Declaratory Judgment brought under Title 28, Section 2201, U.S.C. The Capitol Airways System Board of Adjustment (herein referred to as Board), established in compliance with Section 204, Title II of the-Railway Labor Act as amended (Title 45, Section 151 et seq., U.S.C.), has made the awards here involved in favor of the grievants, Riley, Hull, Gerhard, and Carlin, and against the plaintiff airline. The plaintiff seeks an adjudication that the four awards are invalid. Defendant counterclaims for enforcement of the four awards. Both parties have moved for summary judgment. The four-awards present three different issues. which will be considered separately.

RILEY AWARD

This award presents the question: of whether or not the Board could order payment of four months’ pay (or not. less than $4800) without reinstatement, under these circumstances: Riley, among-others, had worked for Aaxico. WhenAaxico lost its government “Logair” contract to Capitol, Capitol agreed to hire the Aaxico pilots. An agreement was entered into which on its face purports to employ this group of pilots without reservation. However, according to an affidavit of Mr. Mack Rowe, a company official, it had been distinctly understood that Capitol would not continue to employ these pilots after the expiration of the then current government contract unless it was awarded a new Logair contract then being negotiated.1

[375]*375Capitol did not get the contract and the Aaxico pilots were furloughed. However, Aaxico did get the contract and rather than rehire its old pilots, contracted with IASCO (a company organized to provide airline crews under contract) to fill its requirements for pilots. Riley and the other Aaxico pilots filed suit on August 24, 1961 in the Federal District Court at San Antonio, Texas asking for injunctive relief against Aaxico based on Aaxico’s refusal to rehire them. In this suit the pilots were successful. These facts are admitted by the defendant.

On October 13, 1961, while Riley was flying for Riddle Airlines in Oklahoma, Capitol sent the following form letter to him:

“Dear Mr. Riley: Please advise immediately if you will accept recall as co-pilot at San Antonio or Tinker. Duration is unknown at present and we will not grant leave of absence in lieu of recall.”

Following receipt of this letter Riley left Riddle Airlines and returned to San Antonio. Mr. Rowe states that this was a form letter sent out to ascertain availability of pilots, and that it was sent to many more pilots than would have ultimately been needed. This is also not denied.

There are three “contracts” involved here: the Aaxico contract, the Capitol contract with the Aaxico pilots, and the letter of October 13, 1961, to Riley. It was apparently neither the theory of the defendant, Airline Pilots Association, (herein referred to as ALPA), nor Riley, nor the view of the Board, that this grievance was a result of the general employment contract between Capitol and the Aaxico group.2 Based upon the evidence presented in the affidavit of Mr. Rowe, which is not denied by the defendant, the Court finds that Riley was not covered by the collective bargaining agreement after expiration of Capitol’s Logair contract and its resumption by Aaxico.

The Board found in effect that the letter of October 13, 1961, was an offer of employment, that Riley accepted the offer, and that the acceptance constituted a contract which Capitol breached and for which damages were awarded. Since Riley was not then covered by the collective bargaining agreement, the question arises whether the Board had authority to determine the effect and validity of an alleged contract of employment — an individual contract between the employee and the company, and one outside the collective bargaining agreement. The answer must be in the negative.

The agreement to arbitrate states in paragraph (b):

“[Tjhere is hereby established a System Board of Adjustment for the purpose of adjusting and deciding disputes which may arise under the terms of the Pilots’ Agreement.”

and in paragraph (e):

“The Board shall have jurisdiction over disputes between any employee covered by the Pilots’ Agreement and the Company, growing out of grievances or out of interpretation or application of any of the terms of the Pilots’ Agreement.”

The rule which limits the authority of the Board is found in a case cited by defendant — one of the “triumvirate” of Supreme Court opinions, to use defendant’s term:

“[A]n arbitrator is confined to interpretation and application of the collective bargaining agreement; he does not sit to dispense his own brand of industrial justice. He may of course look for guidance from many sources, yet his award is legitimate only so long as it draws its essence from the collective bargaining agreement. When the arbitrators’ words manifest an infidelity to this obligation, courts have no choice but [376]*376to refuse enforcement of the award.” United Steelworkers of America v. Enterprise Wheel and Car Corp., 363 U.S. 593, 597, 80 S.Ct. 1358, 1361, 4 L.Ed.2d 1424 (1960).

Clearly the dispute as to whether the company offered employment to Riley in its letter of October 13, 1961, is outside the scope of the collective bargaining agreement. As such it is an issue or dispute which the company did not agree to submit to arbitration and for that reason the award is invalid

HULL AND GERHARD AWARDS

In these two awards the Board found the employees guilty of the charges which resulted in their dismissal. Nevertheless, it ordered reinstatement without back pay on the basis that dismissal was too severe a punishment and not warranted under the circumstances. The question presented is whether or not in ordering reinstatement the Board, having found the employees guilty of the charges, exceeded its authority under the collective bargaining agreement and under the agreement establishing it and defining its powers and procedures.

The record presents more fully the facts underlying the Hull award.3 In that case Hull was senior pilot on an overseas flight for Capitol from Frankfort, Germany to Philadelphia. Hull had purchased two musical instruments in Germany and on arrival in Philadelphia had persuaded a stewardess to declare them on her customs form. The Board found on the basis of the surrounding facts that Hull had been attempting to smuggle the instruments into the country and avoid paying the customs duty on them. The company dismissed Hull as a result of its investigation of the matter.4 On appeal to the Board Hull was ordered reinstated with full seniority, but without back pay.

The company contends that the Board was without authority to order reinstatement without a finding that the charge of attempted smuggling was unfounded and thereby exonerating Hull. As the basis for its contention the company directs attention to Sections 26(e) (4) and (5) of the collective bargaining agreement:

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237 F. Supp. 373, 54 L.R.R.M. (BNA) 2326, 1963 U.S. Dist. LEXIS 7687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capitol-airways-inc-v-airline-pilots-assn-international-tnmd-1963.