Continental Airlines, Inc. v. Air Line Pilots Ass'n, International

555 F.3d 399, 185 L.R.R.M. (BNA) 2769, 2009 U.S. App. LEXIS 576, 2009 WL 73871
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 13, 2009
Docket07-20835
StatusPublished
Cited by15 cases

This text of 555 F.3d 399 (Continental Airlines, Inc. v. Air Line Pilots Ass'n, International) 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
Continental Airlines, Inc. v. Air Line Pilots Ass'n, International, 555 F.3d 399, 185 L.R.R.M. (BNA) 2769, 2009 U.S. App. LEXIS 576, 2009 WL 73871 (5th Cir. 2009).

Opinion

WIENER, Circuit Judge:

Captain Ronald McWhirter, represented by the Air Line Pilots Association (“ALPA”), appeals an order by the district court reversing the reinstatement order of the System Board of Adjustment (“SBA”), a creature of the Collective Bargaining Agreement (“CBA”) between his employer, Continental Airlines, Inc. (“Continental”) and ALPA. He claims that the district court failed to give the proper deference owed to the decision of the SBA and that the SBA decision does not contravene public policy. Concluding that the district court was without a statutory basis for its reversal and that its order cannot be sustained on grounds of public policy, we reverse the district court’s reversal of the SBA and remand with instructions to va *404 cate a portion of the SBA order and remand the matter to the SBA.

I. FACTS AND PROCEEDINGS

McWhirter was hired by Continental as a pilot in 1984. He was discharged on February 23, 2005 for refusing to take a no-notice alcohol test. At the time of his discharge he was on long-term disability status and was not qualified to fly.

McWfliirter’s trouble with alcoholism first came to Continental’s attention in 1999 when he sought voluntary assistance from Continental’s Peer Pilot Program. After fits and starts toward sobriety, he tested positive during a no-notice alcohol test on September 21, 2000, a day on which he was scheduled to fly. Pursuant to the CBA between Continental and ALPA, 1 he entered into a Last Chance Agreement (“LCA”) on October 18, 2000. In addition to other requirements, such as submitting to evaluation and rehabilitation treatment by Continental’s Employee Assistance Program (“EAP”), the LCA required McWhirter to agree to submit to no-notice testing as often as Continental directed for five years after he completed formal rehabilitation. He was reinstated to flight status in June or July of 2001, but was placed on long-term disability status in late March or early April of 2004 for hypertension.

On February 10, 2005, while still subject to the LCA’s no-notice testing provisions, McWhirter refused a no-notice alcohol test. After Continental discharged him, ALPA filed a grievance on his behalf and the case wound its way though the CBA’s review process. Ultimately, his grievance — that he was discharged without just cause — was heard by the SBA.

At a two day hearing in January 2006, at which both parties presented evidence to the SBA, McWhirter claimed that he refused the February 10, 2005 test because, inter alia, he was upset that Continental had not told him the results of a no-notice test from January 2005. That test had been ordered after Continental received an allegation that McWhorter had been drinking with a fellow pilot. At the meeting after which the January no-notice test was ordered, McWhirter was threatened with termination if the test came back positive. He testified that he had become extremely frustrated not to have been promptly informed of the results. The test results were supposed to be available in a week; at the time of McWhirter’s refusal to be retested, almost a month had passed. As it turns out, Continental had received a negative result on the alcohol test a week before his refusal to be retested but had not so informed him.

After considering the other explanations offered by McWfliirter, for example, that he did not believe that he was subject to no-notice testing based on his leave status, the SBA concluded that McWhirter knowingly refused to take the no-notice test. The SBA also concluded that under the mitigation provisions of the CBA (in particular, Section 15, 2 Part 5, Sub-part 8(B)), McWThirter’s refusal was an understandable, if not entirely rational, response to *405 Continental “dropping the ball” on the January 2005 test results. The SBA ordered McWhirter’s reinstatement, conditioned on his participation in Continental’s EAP and Peer Pilot Program for two years. Continental was ordered to reinstate him to the status he held prior to discharge, viz., non-flying under either long-term disability leave or the Family Medical Leave Act.

Continental commenced suit in district court to vacate the SBA’s order. After the parties cross-moved for summary judgment, the district court granted Continental’s motion and reversed the SBA’s reinstatement order. This timely appeal by ALPA on McWhirter’s behalf followed.

II. ANALYSIS

McWhirter contends that the district court failed to defer to the SBA decision as required by the Railway Labor Act (the “RLA”) 3 and that no judicially enforceable public policy precludes his reinstatement. We address each contention in turn.

A. The RLA

1. Standard of Review

We review a district court’s grant of summary judgment de novo 4 Summary judgment is appropriate when the

record indicates no genuine issue of material fact, and that the moving party is entitled to judgment as a matter of law. In considering summary judgment, we must view the evidence in the light most favorable to the nonmoving party. Yet, the nonmoving party must set forth specific facts showing the existence of a genuine issue concerning every essential component of its case. 5
2. Applicable Law

This is a dispute over a grievance that involves the interpretation and application of the Continental-ALPA CBA and of the LCA entered into by McWhirter and Continental. As such, it is classified as a “minor dispute” under the RLA. 6 Minor disputes must be resolved through compulsory and binding arbitration before the SBA. 7 “Judicial review of [SBA] decisions arising from the terms of a[CBA] is narrowly limited, and courts should afford great deference to arbitration awards.” 8 The standard for this review is “among the narrowest known to the law” 9 and flows from the RLA’s “preference for the settlement of disputes in accordance with contractually agreed-upon arbitration procedures.” 10 We will defer to an SBA deci *406 sion based on any reasonable ground presented by the parties, even if not relied on by the SBA in its decision. 11

We may decline to defer to a decision of the SBA only if (1) the SBA failed to comply with the RLA, (2) there is evidence of fraud or corruption in the SBA, or (3) the order by the SBA did not “confine itself to matters within the scope of [the SBA’s] jurisdiction.” 12

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555 F.3d 399, 185 L.R.R.M. (BNA) 2769, 2009 U.S. App. LEXIS 576, 2009 WL 73871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-airlines-inc-v-air-line-pilots-assn-international-ca5-2009.