International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America (Airline Division) v. Association of Flight Attendants, Afl-Cio

864 F.2d 173, 274 U.S. App. D.C. 370, 12 Fed. R. Serv. 3d 979, 130 L.R.R.M. (BNA) 2307, 1988 U.S. App. LEXIS 17541, 1988 WL 136550
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 23, 1988
Docket88-7075
StatusPublished
Cited by14 cases

This text of 864 F.2d 173 (International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America (Airline Division) v. Association of Flight Attendants, Afl-Cio) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America (Airline Division) v. Association of Flight Attendants, Afl-Cio, 864 F.2d 173, 274 U.S. App. D.C. 370, 12 Fed. R. Serv. 3d 979, 130 L.R.R.M. (BNA) 2307, 1988 U.S. App. LEXIS 17541, 1988 WL 136550 (D.C. Cir. 1988).

Opinion

Opinion for the Court filed by Circuit Judge MIKVA.

MIKVA, Circuit Judge:

This case involves a dispute between two rival unions over attorneys’ fees and costs. In the underlying suit, the International Brotherhood of Teamsters, Airline Division (“IBT”) alleged that the Association of Flight Attendants (“AFA”) was unjustly enriched as a result of IBT’s purported obligation to process over 1000 unresolved grievance claims that were previously AFA’s responsibility. The district court granted AFA’s motion for summary judgment and subsequently awarded AFA $23,-106.89 in attorneys’ fees and costs. The district court’s fee award was made on three grounds: Rule 11 of the Federal Rules of Civil Procedure, the bad faith exception to the American rule, and 28 U.S.C. § 1927.

We affirm the district court’s award of attorneys’ fees and costs in this case, but solely on the basis of its exercise of discretion under Rule 11. We therefore do not reach IBT’s arguments under the bad faith exception and section 1927.

I.

A. Background

On January 28,1986, Northwest Airlines, Inc. (“Northwest”) applied to the Department of Transportation (“DOT”) for approval of its application to acquire Republic Airlines, Inc. (“Republic”). The prospective merger raised a question as to which union would represent the post-merger flight attendants — prior to the acquisition, IBT represented the approximately 3,600 Northwest flight attendants; AFA represented the approximately 2,600 Republic flight attendants.

On August 1, 1986, after DOT approved Northwest’s application to acquire Republic, AFA filed an application for an Investigation of Representation Dispute with the National Mediation Board (“NMB”) to trigger an NMB-conducted election under the Railway Labor Act, see 45 U.S.C. § 152 Ninth. On August 12, 1986, however, when the merger was consummated, Northwest announced that it would recognize IBT as the exclusive new representative of the post-merger flight attendants. AFA sought a clarification from the NMB that its certification had survived the merger, but the NMB ruled on September 16, 1986 that AFA’s certificate had been extinguished by the merger. See Northwest Airlines, Inc., 13 N.M.B. 399 (1986). AFA sought reconsideration, but the NMB on November 7, 1986 upheld its previous ruling. Three days later, when the. ballots were counted, IBT had won the election.

During the election campaign, IBT claimed that AFA had failed to process over 1000 grievances since 1979 despite having collected dues and other fees from the Republic flight attendants for this purpose. On September 30, 1986, six weeks before the election, IBT sued AFA in the Superior Court of the District of Columbia for unjust enrichment and injunctive relief, alleging that AFA had been unjustly enriched by failing to process the outstanding employee grievances. On October 28, 1986, the district court below granted AFA’s petition for removal to federal court *175 on the ground that it appeared that the complaint raised issues of federal law.

On June 29, 1987, the district court granted AFA’s motion for summary judgment, finding that IBT failed to state a claim upon which relief could be granted. International Brotherhood of Teamsters v. Association of Flight Attendants, 663 F.Supp. 847 (D.D.C.1987) (“Merits Mem. Op.”). On January 25, 1988, the district court granted AFA’s motion for attorneys’ fees and costs of $23,106.89. International Brotherhood of Teamsters v. Association of Flight Attendants, No. 86-2834 (D.D.C. Jan. 25, 1988) (“Fees Mem. Op.”) [1988 WL 8278]. IBT appeals the latter ruling to this court.

B. The Underlying Litigation

IBT’s complaint, relying on the common law equitable doctrine of unjust enrichment, alleged that AFA’s failure to process grievances filed on behalf of the Republic flight attendants between 1979 and 1986 harmed IBT. IBT sought $500,000 in restitution for expenses incurred in processing the outstanding grievance claims and an injunction ordering AFA to turn over its grievance files.

AFA responded by petitioning for removal to federal court, arguing that IBT’s claims regarding AFA’s handling of grievances arose under the duty of fair representation imposed by the Railway Labor Act. IBT did not oppose this petition, and on October 28, 1986, the district court granted AFA’s petition for removal.

AFA then moved for summary judgment on the basis, inter alia, that there were no disputed issues of material fact, that IBT’s state claims were preempted by federal labor law, and that IBT’s complaint failed to state a claim upon which relief could be granted. IBT responded to this motion by moving to remand the case to state court, arguing that no federal cause of action had been alleged and that the case did not involve the interpretation of provisions in a collective bargaining agreement.

The district court granted summary judgment for AFA, finding subject matter jurisdiction on three grounds. First, the court held that, under the “well-pleaded complaint” rule, IBT’s complaint, which alleged that AFA had a duty to process the grievances, required the interpretation under federal law of various collective bargaining agreements between AFA and Republic flight attendants. Merits Mem. Op., 663 F.Supp. at 852. Second, the court maintained that IBT’s suit, which involved whether AFA processed grievances in an arbitrary manner, required determining whether AFA had breached its duty of fair representation under federal law. Id. at 852. Finally, the court found that “congressional intent to pre-empt suits for violation of collective bargaining agreements, including suits between labor organizations, is clear from the face of the jurisdictional provisions in section 301 of the Labor Management Relations Act, 29 U.S.C. § 185(a).” Id. at 852 (citing Metropolitan Life Insurance Co. v. Taylor, 481 U.S. 58, 107 S.Ct. 1542, 1546, 95 L.Ed.2d 55 (1987)). The court concluded that IBT “appealed] to have ‘artfully pleaded’ unjust enrichment in order to avoid necessary federal questions.” Id. at 852-53.

In short, the court held that federal jurisdiction in this case was proper because IBT’s “state law claim of unjust enrichment is inextricably intertwined with an application of federal labor law principles.” Id. at 854.

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864 F.2d 173, 274 U.S. App. D.C. 370, 12 Fed. R. Serv. 3d 979, 130 L.R.R.M. (BNA) 2307, 1988 U.S. App. LEXIS 17541, 1988 WL 136550, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-brotherhood-of-teamsters-chauffeurs-warehousemen-helpers-cadc-1988.