Hubbard v. United Airlines, Inc.

741 F. Supp. 195, 1989 U.S. Dist. LEXIS 16992, 1989 WL 222686
CourtDistrict Court, D. Hawaii
DecidedDecember 13, 1989
DocketCiv. No. 89-00671 DAE
StatusPublished
Cited by2 cases

This text of 741 F. Supp. 195 (Hubbard v. United Airlines, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hubbard v. United Airlines, Inc., 741 F. Supp. 195, 1989 U.S. Dist. LEXIS 16992, 1989 WL 222686 (D. Haw. 1989).

Opinion

ORDER GRANTING DEFENDANTS’ MOTIONS TO DISMISS

DAVID A. EZRA, District Judge.

Defendant United Airlines, Inc. (“United”) has moved this court to dismiss Counts I, II and IV through VII of plaintiff’s complaint under Fed.R.Civ.P. 12(b)(6) for failing to state a claim upon which ■relief can be granted by this court.1 Defendants Pacific Insurance Company, Ltd. and The Hartford Life and Accident Insurance Company, Inc. (“Pacific” and “Hartford”) have moved to dismiss the complaint under Fed.R.Civ.P. 12(b)(1) for lack of subject matter jurisdiction; Fed.R.Civ.P. 12(b)(6) for failure to state a claim upon which relief can be granted by this court; and Fed.R.Civ.P. 9(b) for failing to plead with particularity the fraud claim embodied in Count I of the complaint, and the Racketeering Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961 et seq. (“RICO”) claim in Count II of the complaint. Defendant United has also filed a joinder in Pacific and Hartford’s motion to dismiss.

The court heard argument with respect to this matter on December 11, 1989. Kurt A. Gronau, Esq. appeared on behalf of plaintiff Hubbard; Richard M. Rand, Esq. and Sabrina R. Toma, Esq. appeared on behalf of defendant United; and Ronald D. Libkuman, Esq. and Diane W. Wong, Esq. appeared on behalf of defendants Pacific and Hartford. For the reasons set forth below, the court grants defendants’ respective motions for dismissal.

BACKGROUND

On August 25, 1989, plaintiff filed her complaint against defendants in this matter, alleging that the defendants had engaged in fraud (Count I); violated RICO (Count II); engaged in “unfair claims practices” (Count III); breached an implied covenant of good faith and fair dealing (Count IV); converted plaintiff’s property (Count V); negligently inflicted emotional distress (Count VI); and intentionally breached a contract (Count VII). All of plaintiff’s counts seeking relief and damages emanate from defendants’ allegedly systematic underpayment of workers’ compensation benefits to flight attendants such as herself.

The question which must first be addressed is whether plaintiff’s claims are preempted by the Railway Labor Act (“RLA”). If no preemption exists, then the court must determine whether plaintiff has sufficiently plead her fraud and RICO claims as required by the appropriate provisions of the Federal Rules of Civil Procedure and statute.

[197]*197DISCUSSION

RLA Preemption

Plaintiff complains that she has not received the proper amount of workers’ compensation benefits she is entitled to under the collective bargaining agreement (“CBA”). All of the counts in the complaint are directed to this alleged failure of defendants to provide to plaintiff the compensation which she asserts she is entitled.

This alleged obligation to pay additional benefits under the worker’s compensation act arises under Section 29(A)(1) of the CBA. That section reads as follows:

Section 29
Worker’s Compensation Benefits
A. Worker’s Compensation Benefits shall be provided by the Company for all flight attendants as follows:
1. Overwater flight attendant Worker’s Compensation shall be in the amounts equal to those prescribed by the Federal Longshoremen’s and Harbor Worker’s Compensation Act, as amended, or the Worker’s Compensation Law of the States of California or Illinois, whichever Act provides the higher benefits.

Defendants all but concede that they have not paid benefits to plaintiff commensurate with the Longshoremen’s and Harbor Workers’ Compensation Act, which provides benefits that are higher than those under the workers’ compensation law of the states of California, Illinois or Hawaii. What defendants dispute is this court’s jurisdiction to address plaintiff’s complaint. The defendants contend plaintiff must proceed by arbitration under the RLA. Defendants admit that plaintiff has an arbitrable claim, and plaintiff does not suggest that she is legally or otherwise precluded from prosecuting her core claims through arbitration.

The RLA by its express terms applies to disputes between air carriers and their employees.- 45 U.S.C. §§ 181, 182, 184. For matters involving “minor disputes,” the RLA provides mandatory grievance and arbitration procedures. While such minor disputes are not subject to the exercise of federal court jurisdiction, major disputes are. International Assoc, of Machinists and Aerospace Workers, AFL-CIO v. Aloha Airlines, 776 F.2d 812, 815 (9th Cir.1985) [hereinafter Aloha Airlines ].

Whether this dispute is properly classified as a major or a minor dispute in the context of the RLA is an important disposi-tive issue in this action. In Aloha Airlines, the Ninth Circuit provided the following test:

Minor disputes concern the interpretation or application of collective bargaining agreements and are resolved through binding arbitration before the System Board of Adjustment. Federal courts have no jurisdiction to resolve minor disputes. Major disputes, on the other hand, concern the formation of collective bargaining agreements or efforts to secure new rights and incorporate them into future agreements. (Citations omitted, emphasis added.)

Id.

Applying this test to the facts present here, this court must conclude that the gravamen of plaintiff’s complaint constitutes a minor dispute as defined in this circuit. Clearly any questions concerning the obligation to pay benefits under the CBA are matters of interpretation and application of the CBA, and must be submitted to the grievance and arbitration procedure in accordance with the CBA. Allis-Chalmers Corp. v. Lueck, 471 U.S. 202, 105 S.Ct. 1904, 85 L.Ed.2d 206 (1985); Andrews v. Louisville & Nashville R.R. Co., 406 U.S. 320, 92 S.Ct. 1562, 32 L.Ed.2d 95 (1972).

Plaintiff, as a United flight attendant, was covered by the CBA entered into by United and plaintiffs representative, the Association of Flight Attendants (AFA). Plaintiff seeks a remedy based upon United’s contractual obligation as embodied in the CBA, not a remedy based upon an independent statutory or common law ground. When a claim is “inextricably intertwined with the grievance machinery of the collective bargaining agreement and of the [RLA],” the claim is a minor dispute [198]*198and preempted by the RLA. Magnuson v. Burlington Northern, Inc.,

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Related

Hubbard v. United Airlines, Inc.
927 F.2d 1094 (Ninth Circuit, 1991)
Hubbard v. United Airlines
927 F.2d 1094 (Ninth Circuit, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
741 F. Supp. 195, 1989 U.S. Dist. LEXIS 16992, 1989 WL 222686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hubbard-v-united-airlines-inc-hid-1989.