Oakey v. US Airways Pilots Disability Income Plan

723 F.3d 227, 406 U.S. App. D.C. 204, 56 Employee Benefits Cas. (BNA) 1006, 2013 WL 3762903, 196 L.R.R.M. (BNA) 2381, 2013 U.S. App. LEXIS 14622
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 19, 2013
Docket12-5115
StatusPublished
Cited by28 cases

This text of 723 F.3d 227 (Oakey v. US Airways Pilots Disability Income Plan) 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
Oakey v. US Airways Pilots Disability Income Plan, 723 F.3d 227, 406 U.S. App. D.C. 204, 56 Employee Benefits Cas. (BNA) 1006, 2013 WL 3762903, 196 L.R.R.M. (BNA) 2381, 2013 U.S. App. LEXIS 14622 (D.C. Cir. 2013).

Opinion

Opinion for the Court filed by Circuit Judge HENDERSON.

KAREN LECRAFT HENDERSON, Circuit Judge:

Michael S. Oakey, a former pilot for U.S. Airways, Inc. (U.S. Airways), appeals the district court’s dismissal of Oakey’s claim under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001 et seq., seeking benefits from a collectively-bargained pilot disability plan. We conclude that section 204 of the Railway Labor Act (RLA), 45 U.S.C. §§ 151 et seq., vests in the “applicable adjustment board” exclusive jurisdiction over Oakey’s claim because it is grounded in the application and interpretation of a collective bargaining agreement. Accordingly, we affirm the dismissal for lack of jurisdiction.

I.

A. Statutory Background

ERISA is a “comprehensive statute designed to promote the interests of employees and their beneficiaries in employee benefit plans” and “to provide a uniform regulatory regime over employee benefit plans.” Shaw v. Delta Air Lines, Inc., 463 U.S. 85, 90, 103 S.Ct. 2890, 77 L.Ed.2d 490 (1983); Aetna Health Inc. v. Davila, 542 U.S. 200, 208, 124 S.Ct. 2488, 159 L.Ed.2d 312 (2004). ERISA requires notice of the denial of an employee disability claim, “ ‘setting forth the specific reasons for such denial, written in a manner calculated to be understood by the participant,’ ” and a reasonable opportunity for a “ ‘a full and fair review 1 ” of the denial. Heller v. Fortis Benefits Ins. Co., 142 F.3d 487, 492 (D.C.Cir.1998) (quoting 29 U.S.C. § 1133). ERISA also grants a disability claimant the right to “sue ‘to recover benefits due to him under the terms of his plan.’ ” Fitts v. Fed. Nat'l Mortg. Ass’n, 236 F.3d 1, 4 (D.C.Cir.2001) (quoting 29 U.S.C. § 1132(a)(1)(B)). Its “comprehensive legislative scheme” includes “an integrated system of procedures for enforcement” that the Congress intended to be “exclusive” and to preempt “any state-law cause of action that duplicates, supplements, or supplants the ERISA civil enforcement remedy.” Davila, 542 U.S. at 208-09, 124 S.Ct. 2488 (quotation marks omitted); see 29 U.S.C. § 1144. Exclusive jurisdiction over an ERISA-based claim lies in federal *230 district court. Bd. of Trustees of Hotel & Rest. Emps. Local 25 v. Madison Hotel, Inc., 97 F.3d 1479, 1483-84 (D.C.Cir.1996) (citing 29 U.S.C. § 1132(e)(1)).

The more narrowly focused RLA was initially limited to the railroad industry but has been applied to disputes between air carriers and their employees since 1936. Air Line Pilots Ass’n, Int’l v. Delta Air Lines, Inc., 863 F.2d 87, 88 (D.C.Cir.1988) (citing 45 U.S.C. § 181 (1982)); see also Int’l Ass’n of Machinists v. Cent. Airlines, Inc., 372 U.S. 682, 685-86, 83 S.Ct. 956, 10 L.Ed.2d 67 (1963)). It was enacted “to promote stability in labor-management relations by providing a comprehensive framework for resolving labor disputes.” Hawaiian Airlines, Inc. v. Norris, 512 U.S. 246, 252, 114 S.Ct. 2239, 129 L.Ed.2d 203 (1994). Under section 204 of the RLA, such disputes “growing out of grievances, or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions ... may be referred by petition of the parties or by either party to an appropriate adjustment board.” 45 U.S.C. § 184. Each air carrier has a duty “to establish a board of adjustment,” id., and the statutory grievance procedure is “ ‘mandatory, exclusive, and comprehensive,’” Delta Air Lines, 863 F.2d at 88 (quoting Bhd. of Locomotive Eng’rs v. Louisville & Nashville R.R. Co., 373 U.S. 33, 38, 83 S.Ct. 1059, 10 L.Ed.2d 172 (1963)). Judicial review of the board of adjustment’s decision is limited to three categories expressly set out in the RLA. Id. (citing Union Pac. R.R. v. Sheehan, 439 U.S. 89, 93, 99 S.Ct. 399, 58 L.Ed.2d 354 (1978); 45 U.S.C. § 153 First (p)).

B. Factual Background

Oakey was employed as an airline pilot by U.S. Airways from 1988 to 2002 and was enrolled in the U.S. Airways Pilot Disability Plan (Plan), which initially took effect on January 1, 1975 — the effective date of ERISA — as the result of collective bargaining between U.S. Airways’ predecessor (Allegheny Airlines) and the Air Line Pilots Association (ALPA). The original Plan agreement contained the following provision governing the term of its coverage: “Each pilot will become covered for benefits on the date he is employed and is classified as being in active service. If a pilot becomes classified as being other than in active service, he will no longer be covered as of the date of such change in employment status.” Allegheny Airlines Pilot’s Long Term Disability & Loss of License Plan (1975 Disability Plan) art. 5.1 (Jan. 1, 1975) (JA 593). The 1975 Disability Plan does not define “active service” or address the effect of a pilot’s furlough status on benefits eligibility. In 1997, however, U.S. Airways produced an “amended and restated” version of the plan. USAir, Inc. Pilot Disability Plan (effective Feb. 18, 1997) (1997 Amendment) (JA 63). The 1997 Amendment is signed by a U.S. Airways officer but not by an ALPA representative. Id. at 18-19. It defines “active service” as “those periods during which the Employee is in active payroll status with the Employer,” id. art. 1.2, and specifically provides that “[b]enefits payable [tjhereunder shall cease upon ... the date the Participant is placed on furlough status from the Employer,” id. art. 3.6.

Under both the 1975 Disability Plan and the 1997 Amendment, benefit claims are reviewed and decided by the U.S. Airways Retirement Board, see also Letter of Agreement Between U.S. Air, Inc. and the airline Pilots re: RETIREMENT BOARD (JA 558) § 1.6. (Feb. 9,1990). The Retirement Board consists of four members— two selected by U.S. Airways and two by ALPA. A decision by agreement of three *231

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723 F.3d 227, 406 U.S. App. D.C. 204, 56 Employee Benefits Cas. (BNA) 1006, 2013 WL 3762903, 196 L.R.R.M. (BNA) 2381, 2013 U.S. App. LEXIS 14622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oakey-v-us-airways-pilots-disability-income-plan-cadc-2013.