Donald Steward v. Airtran Airways, Inc.

351 F.3d 1338, 173 L.R.R.M. (BNA) 2826, 2003 U.S. App. LEXIS 24437, 2003 WL 22861882
CourtCourt of Appeals for the Eleventh Circuit
DecidedDecember 4, 2003
Docket02-15185
StatusPublished
Cited by6 cases

This text of 351 F.3d 1338 (Donald Steward v. Airtran Airways, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donald Steward v. Airtran Airways, Inc., 351 F.3d 1338, 173 L.R.R.M. (BNA) 2826, 2003 U.S. App. LEXIS 24437, 2003 WL 22861882 (11th Cir. 2003).

Opinion

COX, Circuit Judge:

I. INTRODUCTION

A group of five pilots, William Mann, Wayne Dalland, Edward Marino, James Weir, Gary Shepard, and Charles Musick (the “Mann-Dalland Pilots”), which prevailed in a grievance arbitration, appeal summary judgment against them and in favor of a different group of pilots, Donald Steward, David Schriner, George Dick-man, Donny Griffin, William Atwater, Richard Dunn, and David McKennan (the “Steward-McKennan Pilots”), which sued to have the court set aside the arbitrator’s award. For the reasons stated below, we affirm the judgment of the district court setting aside the award and remanding the grievance to the AirTran Airways Pilots’ System Board of Adjustment (“Board”).

II. BACKGROUND AND PROCEDURAL HISTORY

In 1990, a group which included the Steward-McKennan and Mann-Dalland *1341 Pilots joined together to start their own airline, Destination Sun Airways. In September, 1991, they entered into an agreement that ranked them for seniority purposes, using the dates on which they purchased Destination Sun stock to fix their ranking. By the terms of the agreement, the ranking would continue in effect should Destination Sun become another airline.

In 1993, Destination Sun and another airline, Conquest Airlines, joined together to form a new airline, Conquest Sun Airlines. It is disputed whether Conquest Sun ever honored the Destination Sun seniority agreement.

In 1994, AirTran Airways, Inc. purchased Conquest Sun. Rather than simply hiring all of Conquest Sun’s pilots, AirTran interviewed all of the pilots and hired only some. AirTran held its first pilot training class in July 1994. The former Conquest Sun pilots who attended this first training class are the Steward-McKennan Pilots. AirTran held its second training class in August 1994, which the Mann-Dalland Pilots attended. AirTran fixed its pilots’ seniority rankings by the date on which the pilots began training. Thus, the Steward-McKennan Pilots were ranked above the Mann-Dalland Pilots for AirTran seniority purposes.

In 1997, AirTran’s pilots formed a union, the AirTran Pilots’ Association (“ATPA” or “the Association”). All the pilots involved in this case were members of the ATPA. In April 1998, AirTran and the ATPA entered into a collective bargaining agreement (“CBA”). The CBA contained provisions governing the integration of two airlines should AirTran merge with another airline, provisions governing seniority rankings, and provisions governing how AirTran and the ATPA would resolve employee grievances. The grievance provisions provide several steps for resolution of disputes. The first two involve discussions between AirTran and the employee, whether or not represented by the union, and call for AirTran’s Vice President of Flight Operations to render a decision on the grievance. The CBA then provides:

3. If the decision of the Vice President-Flight Operations or his desig-nee is not satisfactory, the President of the Association, or his designee, may within seven (7) calendar days after the receipt of the decision, appeal the grievance in writing to the AirTran Airways Pilots’ System Board of Adjustment. The Pilots’ System Board of Adjustment will consist of two (2) members appointed by the Association and two (2) members appointed by the Company. Both parties will provide each other the names of the System Board members.
4. A majority vote of all members of the System Board of Adjustment will be competent to make a decision and decisions at the Board in all cases properly referable to it will be final and binding upon the parties hereto.
5. In the event of a deadlock in rendering a decision on any case before the Board, the Company and Association will, within ten (10) working days, select a mutually agreeable arbitrator to sit as a neutral member of the Board to make the decision. The arbitrator will render his decision within sixty (60) calendar days of final testimony.

(R.2-52 at Ex. 9 at 12-2.)

Shortly after the CBA took effect, the Mann-Dalland Pilots filed a grievance under the CBA seeking to have AirTran recognize and follow the Destination Sun seniority ranking, pursuant to the CBA’s merger protection provisions. The parties *1342 were unable to settle the grievance in the first two steps, and the Mann-Dalland Pilots apparently found the Vice President of Flight Operations’s decision unsatisfactory.

Just after the Mann-Dalland grievance was filed, AirTran merged with ValuJet Airlines, and the new company kept the name AirTran. ValuJet’s pilots had recently become members of the National Pilots’ Association (“NPA”). After the merger, ATPA pilots also became members of the NPA, and the NPA and Air-Tran entered a collective bargaining agreement identical to the AirTran-ATPA CBA. An AirTran pilot, Warzocha, sued AirTran and the NPA in a separate case regarding the integration of the seniority rankings of AirTran and ValuJet pilots. The parties to Warzocha’s suit agreed to settle the suit with binding arbitration. In the settlement agreement, they agreed that:

The Seniority Integration Arbitration does not include arbitration of any grievance currently pending by any former Airways flight deck crew member relating to Destination Sun. Those grievances will be arbitrated in separate proceedings, if necessary, and any decision rendered in a Destination Sun arbitration hearing which affects seniority will be implemented subsequent to the Seniority Integration Arbitration.

(R.l-35 at Ex. 2, ¶ 10.)

After Warzocha’s seniority integration arbitration was complete, the Mann-Dal-land Pilots contacted the NPA to begin resolution of their grievance. The Mann-Dalland Pilots refused to follow the grievance-resolution process outlined in the CBA, insisting that the settlement agreement in Warzocha’s case entitled them to forego the contractual procedure and proceed instead before a single arbitrator. The NPA initially insisted that the grievance be processed according to the CBA, but eventually took the position that, as the Mann-Dalland Pilots were represented by their own counsel, the NPA would not oppose foregoing the contractual procedure, if AirTran consented to it. AirTran apparently consented, and the grievance was scheduled to be heard by a single arbitrator.

The parties agree that the arbitrator did not send notice of the arbitration to the Steward-McKennan Pilots, who stood to lose some of their seniority by the arbitration. Beyond this, the facts are in some dispute as to the notice the Steward-McKennan Pilots actually received of the arbitration hearing. The parties agree that two of the Steward-McKennan Pilots actually attended the arbitration hearing. One was Dohny Griffin, whom AirTran called as a witness at the hearing. The other was David McKennan, a non-practicing attorney as well as a pilot. The undisputed evidence shows that McKennan learned of the hearing by a chance meeting with the NPA’s grievance chairman. At the hearing, McKennan objected to the arbitrator’s jurisdiction and to the fact that several pilots who would be affected by the arbitration were neither present nor represented at the hearing.

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351 F.3d 1338, 173 L.R.R.M. (BNA) 2826, 2003 U.S. App. LEXIS 24437, 2003 WL 22861882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donald-steward-v-airtran-airways-inc-ca11-2003.