Fell v. Continental Airlines, Inc.

990 F. Supp. 1265, 157 L.R.R.M. (BNA) 2327, 1998 U.S. Dist. LEXIS 539, 1998 WL 24218
CourtDistrict Court, D. Colorado
DecidedJanuary 20, 1998
DocketCivil Action No. 97-B-861
StatusPublished
Cited by1 cases

This text of 990 F. Supp. 1265 (Fell v. Continental Airlines, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fell v. Continental Airlines, Inc., 990 F. Supp. 1265, 157 L.R.R.M. (BNA) 2327, 1998 U.S. Dist. LEXIS 539, 1998 WL 24218 (D. Colo. 1998).

Opinion

MEMORANDUM OPINION AND ORDER

BABCOCK, District Judge.

Defendant Continental Airlines, Inc. (CAL) moves to dismiss the claims of plaintiffs Richard T. Fell (Fell) and Mercedes G. Fell for lack of subject matter jurisdiction pursuant to Fed.R.Civ.P. 12(b)(1). On January 12, 1998, pursuant to a stipulation by the parties, I dismissed all claims of Mercedes Fell. Thus, Fell’s only pending claims are Colorado state claims for unfair labor practices pursuant to sections 8-3-108 and 121, C.R.S. (claim one), breach of contract (claim two), and intentional infliction of emotional distress (claim three).

During this action, CAL filed a third-party complaint against third-party defendant Independent Association of Continental Pilots' (IACP or the Union) for breach of contract. IACP moves to dismiss CAL’s complaint pursuant to Fed.R.Civ.P. 12(b)(1) for lack of subject matter jurisdiction. After consideration of the motions, briefs, and arguments of counsel, I will grant CAL’s motion to dismiss Fell’s complaint and deny the Union’s motion to dismiss CAL’s third-party complaint.

I.

The following facts are undisputed. Fell was hired by CAL in December 1966, and is currently a pilot with CAL. On August 31, 1995, CAL and the Union entered into a collective bargaining agreement (CBA) which included a provision requiring each pilot covered by the CBA to pay the Union a monthly service charge (agency fee) for administration of the CBA and the representation of the pilot. Fell, who is not a member of the Union, acknowledges that he is covered by the CBA but refused to pay any amount of the agency fees which was “in excess of the Union’s expenditures for activity that was [1267]*1267germane to collective bargaining.” C/O ¶ 6. On April 4,1996, the Union requested, pursuant to CBA § 17, CAL to terminate Fell for failure to remit his agency fees. On May 14, 1996, Fred Abbott (Abbott), senior director of CAL flight operations notified Fell by letter that unless Fell appealed within 10 days, his employment with CAL would be terminated on June 14, 1996, for failure to pay agency fees to the Union. On May 20, 1996, Fell wrote to Abbott informing him that he (Fell) was appealing and advised Abbott of his objection “to the use of the [agency fees] for ‘purposes not germane to administering the CBA.’ ” C/O ¶ 9; Fell Resp.Brief, Ex. 2. The Union advised Fell on May 24, 1996, that it would not account for any non-germane expenses. C/O ¶ 10. On June 18,1996, when Fell attempted to sign-in for his next flight, he learned from the CAL computer that he had been terminated. Fell was advised officially by certified letter postmarked June 20, 1996, that he was terminated effective June 18, 1996. The letter also informed Fell that he had the right for thirty (30) days, to appeal the termination decision to Joe Fox (Fox), staff vice-president, Union Labor relations. Id. at ¶ 12. On July 8, 1996, Fell, through his counsel, notified Fox of his appeal. Fox advised Fell’s counsel on September 3, 1996, that CAL “w[ould] bring him back.” Id. at ¶ 15. On September 15, 1996, Fell was assigned to fly a route for one day. On October 1,1996, Fell began regular flight duty. Id. at ¶ 17.

The Fells filed ease no. 97-CV-1687 on March 26, 1997, in the District Court, City and County of Denver, Colorado. CAL then removed the case to this court based on diversity jurisdiction. The Notice of Removal stated the amount in controversy is in excess of $50,000, rather than $75,000, the diversity amount effective January 17, 1997. Notice of Removal, ¶ 6. During oral argument, the parties stated that if CAL’s motion is granted but the IACP’s denied, it was speculative whether the amount in controversy between CAL and the IACP would reach the jurisdictional amount.

After removal, CAL filed a third-party complaint against the Union in which it alleges that the Union breached CBA § 17(6). During this lawsuit, CAL counsel sent a letter to the Union’s counsel stating that pursuant to the CBA, CAL “was tendering its defense of the federal lawsuit to the [Union].” Third-party C/O ¶ 9. On April 2,1997, counsel for the Union telephoned CAL’s counsel and stated that the Union was not. obligated to indemnify and defend CAL in the Fell’s federal diversity lawsuit. Id. at ¶ 11. Thé next day, CAL’s counsel sent a letter to the Union’s counsel asking the Union to reconsider its position. The Union did not respond to the letter. Id. at ¶¶ 11-12.

II.

In response to a Rule 12(b)(1) motion, the district court has wide discretion to consider affidavits, documents, and even hold a limited evidentiary hearing. See Wheeler v. Hurdman, 825 F.2d 257, 259 n. 5 (10th Cir.1987). Here, Fell and CAL have submitted exhibits which I will consider in ruling on these motions. The burden of establishing subject matter jurisdiction is on the party asserting jurisdiction. Basso v. Utah Power & Light Co., 495 F.2d 906, 909 (10th Cir.1974).

III.

A. CAL’s Fed.R.Civ.P. 12(b)(1) motion to dismiss Fell’s claims

CAL moves to dismiss Fell’s complaint pursuant to Fed.R.Civ.P. 12(b)(1) for lack of subject matter jurisdiction. In its motion to dismiss, CAL asserts that Fell’s claims are preempted by the Railway Labor Act, 45 U.S.C. § 151 et seq.

1. Railway Labor Act, )5 U.S.C. § 151, et seq.

Congress enacted the Railway Labor Act (RLA), 45 U.S.C. § 151, et seq. to provide effective mechanisms for resolving labor disputes between railroads and their employees. See e.g., Elgin, J & E Railway v. Burley, 325 U.S. 711, 722-28, 65 S.Ct. 1282, 89 L.Ed. 1886 (1945). The RLA was extended to apply to air carriers and their employees in 1936. RLA §§ 181-188; Pursuant to the RLA, air carriers are required to establish boards of adjustment to consider and resolve disputes between the carriers and their employees. 45 U.S.C. § 184.

[1268]*1268In their CBA, CAL and the Union agreed upon a System Board of Adjustment (SBA or Board) to resolve employment related disputes with CAL’s phots. CBA, § 20, pp. 20-1-7. The SBA has exclusive jurisdiction to hear and decide claims that are considered “minor” disputes under the RLA. If-a dispute is determined to be “minor,” the RLA arbitration provisions are mandatory and preempt state court remedies. Andrews v. Louisville & Nashville R.R. Co., 406 U.S. 320

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990 F. Supp. 1265, 157 L.R.R.M. (BNA) 2327, 1998 U.S. Dist. LEXIS 539, 1998 WL 24218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fell-v-continental-airlines-inc-cod-1998.