Northeast Master Executive Council v. Civil Aeronautics Board

506 F.2d 97, 165 U.S. App. D.C. 36
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 19, 1974
DocketNos. 73-1595, 73-1608 and 73-1783
StatusPublished
Cited by8 cases

This text of 506 F.2d 97 (Northeast Master Executive Council v. Civil Aeronautics Board) 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
Northeast Master Executive Council v. Civil Aeronautics Board, 506 F.2d 97, 165 U.S. App. D.C. 36 (D.C. Cir. 1974).

Opinion

WILKEY, Circuit Judge:

This case comes to us on petition for review of a Civil Aeronautics Board order arising out of the merger between Delta Air Lines, Inc., and Northeast Airlines, Inc., brought by the Northeast Master Executive Council, representing the flight deck officers (pilots and navigators) formerly employed by Northeast and since the merger employed by Delta. Following the merger, the Master Executive Council filed a petition with the Board challenging the integrated seniority list of pilots of Delta, the merged surviving airline. The Board’s order1 dismissing this petition and a subsequent petition for reconsideration is the subject of our review. Finding no error in the Board’s proceedings, we decline to vacate its order.

I. PROCEEDINGS BEFORE THE BOARD AND THE UNITED STATES DISTRICT COURT

A. Background

On 24 April 1972 the Civil Aeronautics Board approved2 a merger between Delta Air Lines, Inc., and Northeast Airlines, Inc., subject to certain “labor protective provisions” imposed by the Board for the protection of the employees of both companies who might be adversely affected by the merger.3 In addition the Board reserved jurisdiction “to make such amendments, modifications, and additions to the labor protective conditions ... as the circumstances may require . . . . ”4

At all pertinent times the Air Line Pilots Association (“ALPA”) was the certified bargaining representative for employees of both airlines. Pursuant to ALPA’s internal procedure for seniority integration,5 the Master Executive Councils (“MEC’s”) 6 of Delta and Northeast each designated two merger representatives for the purpose of arriving at a single integrated seniority list. When on 5 June 1972 the negotiations culminated in agreement between the merger representatives, ALPA transmit[39]*39ted the list for acceptance by Delta, the surviving airline. By agreement of 26 October 1972 Delta agreed to modify its existing collective bargaining agreement with ALPA so as to implement the new list.

Shortly after its publication, however, the Northeast MEC sought to repudiate the list. ALPA president O’Donnell declined pleas to reject the list and explained that since the merger representatives, not the MEC’s, had been delegated complete authority under ALPA merger policy to compile a merged list, no authority existed in either MEC to alter its terms once the merger representatives reached an accord.

B. Proceedings in District Court

The disgruntled Northeast pilots filed three separate actions in District Court in an effort to set aside the integrated list. In Northeast Pilots Master Executive Council v. O’Donnell and ALPA,7 the Northeast MEC sought “on its own behalf and on behalf of more than 540 pilots which it represents” to enjoin ALPA from executing an agreement with Delta incorporating or acknowledging the integrated seniority list. The pilots’ central argument was that the merger representatives had exceeded the scope of their authority and that the resulting agreement was violative of the Railway Labor Act8 “in that it purports to eliminate the right of any aggrieved pilot or group of pilots to petition for a hearing before the System Board of Adjustment as provided by 45 U.S.C.A. sec. 184.” Citing Hyland v. United Air Lines, Inc.,9 the District Court dismissed the action, holding that exclusive jurisdiction over the controversy lay with the Civil Aeronautics Board. No appeal was taken.

A second suit, W. Peter Carey, et al. v. J. J. O’Donnell and ALPA,10 was filed in District Court on 2 April 1973 by five named plaintiffs “on their own behalf and on behalf of more than 540 former Northeast pilots who are now employed by Delta Air Lines, Inc.” Again the District Court held that the Board had exclusive jurisdiction and dismissed the action.

A third action, George S. Chaudoin, et al. v. ALPA and Delta Air Lines, Inc.,11 filed 19 April 1973 as a class action on behalf of former employees of Northeast Airlines, Inc., was dismissed as barred by res judicata and collateral estoppel.

The Carey and Chaudoin dismissals were appealed to this court, were consolidated for our consideration, and are treated together in the appended opinion of this date.

C. Proceedings Before the Civil Aeronautics Board

On 4 October 1972, after unsuccessful efforts in District Court, the Northeast MEC filed with the Board a Petition for the Exercise of Reserved Jurisdiction. The MEC alleged that the “540 flight deck officers represented by NE MEC will soon have imposed upon them an integrated seniority list that is not fair and equitable.” The Board dismissed the petition:

In sum, it has been, and continues to be, our view that absent a showing of bad faith, the adoption by a carrier of an integrated seniority list proposed by the collective bargaining representatives of the employees involved amounts to the carrier having made “provisions . . . for the integration of seniority lists in a fair and equitable manner” within the meaning of section 3 of the Board’s labor protective provisions.12

Northeast M.E.C. filed the instant petition to review the Board’s order.

[40]*40II. THE BOARD’S RESPONSIBILITY

Jurisdiction of the Civil Aeronautics Board over matters of airline merger, including the fair and equitable integration of seniority lists, is well established.13 We recognized in another context the Board’s “broad authority to approve airline mergers consistent with the public interest.”14 If, as we hold today in the companion cases,15 the Board is vested with exclusive jurisdiction over these matters, we must insure by our direct review16 that that jurisdiction is exercised in a manner that vindicates the policies underlying this and other arguably pertinent statutory provisions.17

Consequently, the Board is charged with the ultimate responsibility of insuring that a fair, just, and equitable solution is reached with respect to the integration of seniority lists as well as all other aspects of the merger it approves. To the extent that the Board relies upon negotiations among the parties most vitally interested, i. e., the pilots, this is recognition of a practical means to reach a result meeting the statutory standard, but delegation cannot relieve the Board of its statutorily imposed ultimate responsibility. Hence we would not hesitate to reverse if we were not satisfied that the Board had discharged this responsibility faithfully. However, on the record before us we conclude that the action below must be affirmed.

III. THE ALPA PROCEDURES EMPLOYED

Faced with the difficulties inherent in the fair and equitable resolution of seniority problems, and recognizing that such problems lend themselves readily to solution by negotiation and voluntary agreement, the Board in the Monarch-Challenger Merger Case18

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506 F.2d 97, 165 U.S. App. D.C. 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northeast-master-executive-council-v-civil-aeronautics-board-cadc-1974.