Cooper v. TWA AIRLINES, LLC

349 F. Supp. 2d 495, 2004 U.S. Dist. LEXIS 23790, 2004 WL 2725152
CourtDistrict Court, E.D. New York
DecidedNovember 23, 2004
Docket02-CV-3477 NGKAM
StatusPublished
Cited by7 cases

This text of 349 F. Supp. 2d 495 (Cooper v. TWA AIRLINES, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooper v. TWA AIRLINES, LLC, 349 F. Supp. 2d 495, 2004 U.S. Dist. LEXIS 23790, 2004 WL 2725152 (E.D.N.Y. 2004).

Opinion

OPINION & ORDER

GERSHON, District Judge.

.Plaintiffs, suing as a class, are former Trans World Airlines, Inc. (“TWA”) flight attendants who joined American Airlines, *498 Inc. (“American”) when American acquired TWA following TWA’s bankruptcy in early 2001. Defendants are American and its wholly owned subsidiary, TWA Airlines, LLC (“TWA-LLC”) (jointly “Company defendants”) and the Association of Professional Flight Attendants, John Ward as representative (“APFA”). Plaintiffs originally filed this action on June 14, 2002, and on March 3, 2003, they filed an Amended Complaint. Their claims deal with the events surrounding American’s acquisition of TWA in 2001 and the subsequent furlough of 1,018 TWA-LLC flight attendants in the aftermath of the September 11, 2001 terrorist attacks. On June 20, 2003, plaintiffs filed a Supplemental Complaint, dealing with events surrounding American’s reorganization in 2003 and an accompanying Restructuring Agreement between American and APFA (“Supplemental Complaint”). 1 Plaintiffs’ motion for a preliminary injunction enjoining American from implementing the Restructuring Agreement was denied by Judge Carol Bagley Amon of this court. See Cooper v. TWA Airlines LLC, 274 F.Supp.2d 231 (E.D.N.Y.2003). The case was reassigned to me on April 21, 2004.

Count One of the Amended Complaint alleges that American violated Sections 2 and 6 of the Railway Labor Act (“RLA”), 45 U.S.C. §§ 152, 156. Counts Two through Eight allege that American and APFA violated state common law in various ways, namely, (2) breach of contract; (3) fraud; (4) negligent misrepresentation; (5) fraudulent inducement; (6) breach of the implied covenant of good faith and fair dealing; (7) promissory estoppel; and (8) unjust enrichment. All defendants move to dismiss the Amended Complaint. The Company defendants argue that plaintiffs lack standing under the RLA to bring Count One and that all of the state law claims are preempted by the RLA. APFA argues that the state law claims against it are preempted by the RLA and also fail on the merits.

The claims in the Supplemental Complaint will be the subject of additional motions not yet made.

BACKGROUND

The allegations in the Amended Complaint, described below, are taken as true for the purposes of defendants’ motions to dismiss.

This case arises out of the integration of former TWA flight attendants into American Airlines’ workforce as part of American’s acquisition of TWA in 2001. In January 2001, TWA and American entered into an agreement whereby American agreed to purchase substantially all of TWA’s valuable assets in connection with TWA’s planned Chapter 11 bankruptcy (the “Purchase Agreement”). Immediately after the Purchase Agreement was executed, TWA filed for bankruptcy and sought court approval of its terms. Contemporaneously, American formed a wholly owned subsidiary, TWA-LLC, to own and operate TWA’s assets. TWA-LLC was formed as a transitory entity controlled by American that would cease to exist once the two airlines were fully integrated. Thus, TWA-LLC was American’s “alter ego” for purposes of merging the two airlines.

At the time the merger negotiations between American and TWA were pro *499 ceeding, the TWA flight attendants were represented by plaintiff International Association of Machinists and Aerospace Workers (“IAM”). Under IAM’s collective bargaining agreement (“CBA”) with TWA, in effect at the time bankruptcy protection was sought by TWA, the TWA flight attendants’ occupational seniority rights were protected by what are known as Allegheny-Mohawk Labor Protective Provisions. Occupational seniority determines, among other things, the order of layoffs and recalls and the bidding priorities among flight attendants for selecting their monthly flying schedules. The Allegheny-Mohawk provisions in the CBA required TWA to insist that American agree to integrate the TWA flight attendant seniority lists under the standard process for fair and equitable integration established by the Civil Aeronautics Board in the Allegheny-Mohawk Merger Case, 59 CAB 19 (1972). At all relevant times during the negotiations, IAM’s position was that TWA employees’ occupational seniority date must be based on the date they entered the job classification at TWA for purposes of a fair and equitable integration. In other words, IAM sought to preserve the occupational seniority rights of TWA flight attendants upon their integration into American. American knew that any representations it made to IAM concerning these benefits were material to IAM in its decision-making process.

American’s flight attendants were, and still are, represented by APFA. American’s CBA with APFA did not contain Allegheny-Mohawk Labor Protective Provisions and did not allow American to adopt such provisions vis-a-vis other flight attendants in the event of a merger. Thus, American made waiver of the Allegheny-Mohawk provisions, among other changes to the CBA, a pre-condition to its purchase of TWA. In order to facilitate the purchase of TWA, American agreed and represented to IAM and its members that, if IAM voluntarily agreed to waive the Allegheny-Mohawk Labor Protective Provisions, TWA-LLC would adopt mirror benefits or would provide benefits no less favorable than those applicable to similarly situated American employees.

IAM was concerned about the integration of IAM-represented employees into the American/TWA-LLC workforce and repeatedly expressed this to American, stressing that seniority integration was an essential issue that needed to be resolved before the acquisition closed. IAM also filed limited objections, in the bankruptcy court, to TWA’s agreement to amend the CBAs without finalizing job security and seniority integration issues with its unions.

On March 9, 2001, in response to IAM’s concerns, American and TWA-LLC sent a letter to IAM which stated in relevant part:

For its part, American Airlines, Inc. (“American”) agrees to use its reasonable best efforts with its labor organizations representing the mechanics and related and flight attendant crafts or classes (collectively, “mechanics and flight attendants”) to secure a fair and equitable process for the integration of seniority. In that regard, American will engage a facilitator to organize meetings with the labor organizations representing the mechanics and flight attendants and American and TWA-LLC. American agrees to adopt the procedures that result from this process for seniority integration of the mechanics and flight attendants.

This letter also included a recognition provision, under which TWA-LLC agreed to recognize IAM as the bargaining representative of the same employees it represent *500 ed at TWA as of the date of closing of the purchase, subject to action by the National Mediation Board under the RLA.

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Bluebook (online)
349 F. Supp. 2d 495, 2004 U.S. Dist. LEXIS 23790, 2004 WL 2725152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooper-v-twa-airlines-llc-nyed-2004.