Northwest Airlines Corp. v. Ass'n of Flight Attendants-CWA (In Re Northwest Airlines Corp.)

349 B.R. 338, 2006 U.S. Dist. LEXIS 65627, 2006 WL 2642194
District Court, S.D. New York·Decided September 14, 2006·No. 05-17930(ALG), 06-1679(ALG)·Published·Cited by 9 cases

Opinion

*343 DECISION AND ORDER

MARRERO, District Judge.

TABLE OF CONTENTS

PAGE

I. BACKGROUND...........................................................343

II. INTRODUCTION..........................................................344

III. FACTS AND PRIOR PROCEEDINGS ......................................347

A. FACTS...............................................................347

B. THE BANKRUPTCY COURT’S DECISION .............................350

IV. STANDARD OF REVIEW..................................................350

V. DISCUSSION.............................................................351

A. THE STATUTORY FRAMEWORK.....................................351

1. The Railway-Labor Act.............................................351

a. Section 2 (First) of the RLA.....................................352

b. Section 6 of the RLA and the Status Quo..........................352

2. The Norris-LaGuardia Act..........................................355

3. The National Labor Relations Act....................................355

4. Section 1113 of the Bankruptcy Code..................................356

B. LACK OF PRECEDENT HARMONIZING THE STATUTES..............357

C. WHEN THE RIGHT TO SELF-HELP ACCRUES.......................358

1. In General.........................................................358

2. In the Bankruptcy Context..........................................362

a. Curtailing the Role of the NMB..................................364

b. Creation of Conflicts between § 1113 and RLA.....................366

c. Accounting for Differences Between the NLRA and the RLA........370

D. HARMONIZING THE STATUTES .....................................373

1. Accommodating the NLGA to the RLA................................373

2. Accommodating the NLGA to § 2 (First) of the RLA...................376

3. The Section 2 (First) Duty in This Case...............................377

4. Harmonizing the RLA and the Bankruptcy Code.......................379

E. CONCLUSION........................................................383

VI. ORDER ..................................................................384

I. BACKGROUND

Northwest Airlines Corporation (“Northwest”) appeals from an order of the Bankruptcy Court rendered on August 17, 2006 denying Northwest’s request for a preliminary injunction under Section 2 (First) of the Railway Labor Act (“RLA”), 45 U.S.C. § 152. Northwest had sought to enjoin the Association of Flight Attendants-CWA (“AFA”) from carrying out threats to engage in a labor strike or other forms of self-help against Northwest, on the basis that such action would cause irreparable harm to Northwest’s estate, unlawful disruption of commerce and of Northwest’s operations, and substantial inconvenience to the public. The Bankruptcy Court denied Northwest’s motion on the ground that the Norris-LaGuardia Act (“NLGA”), 29 U.S.C. §§ 101 et seq., deprived it of jurisdiction to issue an injunction.

On appeal, Northwest argues that the Bankruptcy Court erred in denying North *344 west’s motion for a preliminary injunction on jurisdictional grounds. The matter came before this Court on August 18, 2006, by way of an emergency motion to expedite the appeal or in the alternative for an injunction pending appeal. The matter was heard by the Court’s Part I judge, who granted the motion for the expedited appeal and set a briefing schedule, with a hearing scheduled for August 25, 2006. The Court received briefing from Northwest, AFA, and several amici and intervenors. 1 The Court heard oral argument on August 25, 2006. At the close of the hearing, the Court issued a temporary injunction pending appeal. The injunction barred the AFA from striking pending this Court’s decision on the merits of this proceeding.

The central question before this Court is whether the Bankruptcy Court erred in determining that it lacked jurisdiction to enjoin a strike in the circumstances this case presents, which the Bankruptcy Court characterized as one of first impression. Specifically, the issue presented is whether, following rejection of a collective bargaining agreement in accordance with § 1113(c) of the Bankruptcy Code, 11 U.S.C. § 1113(c) (“ § 1113(c)”), by an insolvent carrier engaged in collective bargaining under the process prescribed in RLA Section 6, a court, pursuant to authority drawn from application of Sections 2 (First) and 6 of the RLA, may enjoin a union from striking in response to such rejection, or whether the granting of such injunction is barred by Section 4 of the NLGA, 29 U.S.C. § 104. This Court holds that a court may enjoin a strike under these circumstances, and that the Bankruptcy Court erred in determining otherwise. For the reasons set forth below, the order of the Bankruptcy Court is reversed.

II. INTRODUCTION

This ease has drawn extensive public attention. A large number of intervenors, amici curiae and interested third persons, including the United States, have appeared in favor of and against the Bankruptcy Court’s ruling here on appeal. The Court has also received in Chambers voluminous correspondence, inquiries and other communications from concerned individuals and members of the press. Mindful of such wide-ranging public interest, the Court here departs somewhat from the traditional model of judicial opinions. To ease understanding of the long and complex analysis that follows, the Court’s ruling begins with an overview of the decision. This syllabus states the Court’s conclusion, explains the conceptual approach and framework for the decision, and provides advance insight into the considerations the Court found most compelling, in particular the applicable legal principles and Congressional mandates on which the outcome here ultimately rests.

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Northwest Airlines Corp. v. Ass'n of Flight Attendants-CWA (In Re Northwest Airlines Corp.), 349 B.R. 338, 2006 U.S. Dist. LEXIS 65627, 2006 WL 2642194 (S.D.N.Y. 2006).

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