SCANLAN v. AMERICAN AIRLINES GROUP, INC.

CourtDistrict Court, E.D. Pennsylvania
DecidedAugust 20, 2025
Docket2:18-cv-04040
StatusUnknown

This text of SCANLAN v. AMERICAN AIRLINES GROUP, INC. (SCANLAN v. AMERICAN AIRLINES GROUP, INC.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SCANLAN v. AMERICAN AIRLINES GROUP, INC., (E.D. Pa. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

JAMES P. SCANLAN, et al. : CIVIL ACTION : v. : : AMERICAN AIRLINES GROUP, INC., : NO. 18-4040 et al. :

MEMORANDUM Bartle, J. August 20, 2025 Plaintiffs James P. Scanlan and Carla Riner bring this lawsuit, now certified as a class action, against defendants American Airlines, Inc. (“American”) and American Airlines Group Inc. (“AAG”) under the Uniformed Services Employment & Reemployment Rights Act, 38 U.S.C. § 4301 et seq. (“USERRA”). They aver that defendants violated Section 4316(b)(1) of USERRA in failing to pay or credit American Airline pilots when they are on short-term military leave, which plaintiffs characterize as sixteen days or fewer, but paying or crediting pilots when on jury duty and bereavement leave. Before the court is the motion of defendants to decertify the Rule 12(b)(2) and Rule 12(b)(3) sub-classes certified by the court on May 3, 2022 (Doc. # 228). Defendants argue that plaintiffs cannot satisfy the commonality requirement under Rule 23(a) for any subclass and cannot satisfy the predominance and superiority requirements for the Rule 23(b)(3) subclasses. They also maintain that certification of the Rule could not properly provide relief to each member of the class. After previously not contesting these issues, defendants justify their turnabout “based on subsequent appellate decisions and further consideration of existing decisions.” (Doc. #228-1). I USERRA is the latest of federal statutes designed to protect employees that leave civilian jobs to perform qualifying

military service. Among its purposes is to prohibit discrimination against persons because of their service in the uniformed services. 38 U.S.C. § 4301(3). It provides that those on leave of absence while performing military service are entitled to the same “rights and benefits . . . as are generally provided by the employer of the person to employees having similar seniority, status, and pay who are on . . . leave of absence under a contract, agreement, policy, or plan in effect. . . .” Id. at § 4316(b)(1)(B). Comparability is critical in deciding any claim under this section of USERRA. Scanlan v. Am. Airlines Grp., Inc., 102

F.4th 164, 170 (3d Cir. 2024). Section 1002.150(b) of Title 20 of the Code of Federal Regulations states that an employee “must be given the most favorable treatment accorded to any comparable form of leave when he or she performs service . . . .” It further provides: In order to determine whether any two types of leave are comparable, the duration of the leave may be the most significant factor to compare. For instance, a two-day funeral leave will not be “comparable” to an extended leave for service in the uniformed service. In addition to comparing the duration of the absences, other factors such as the purpose of the leave and the ability of the employee to choose when to take the leave should also be considered. Id. This list of factors is non-exhaustive. Scanlan, 102 F.4th at 171. In Count I of the second amended complaint, plaintiffs allege that AAG violates § 4316(b)(1) with respect to its profit sharing plan. AAG deposits a certain percentage of its profits into the plan and divides the pie among the pilots based on their earnings. AAG does not credit pilots for any time on short-term military leave in calculating earnings for the purposes of the profit sharing plan despite doing so for those on jury duty and bereavement leave. Thus, the pilots who take short-term military leave receive a lesser share than they would otherwise receive.1 Count III asserts that American violates § 4316(b)(1) when it fails to pay pilots while they are on short-term military leave but does so while on jury duty or bereavement

1. In their second amended complaint, plaintiffs also brought a state breach of contract claim against AAG, alleging that it violated the terms of the profit sharing plan (Count II). On summary judgment, the court found for AAG on this claim and our Court of Appeals affirmed. See Scanlan, 102 F.4th at 170. Count II is no longer an issue in this action. leave. Plaintiffs, for purposes of this lawsuit, define short- term military leave as 16 days or fewer. II On October 8, 2021, the court first certified a class of current and former pilots at American Airlines under Rule 23(b)(2). Scanlan, 567 F. Supp. 3d 521 (E.D. Pa. 2021) (Doc. # 124). Initially, plaintiffs sought to certify a class which

included pilots as well as fifteen additional work groups at AAG and American, such as flight attendants. In support of their motion for class certification, plaintiffs asserted that the common question for all class members is “whether short-term military leave is comparable to leave for jury duty or bereavement and thus must be credited . . . or compensated . . . .” Id. at 529. Defendants conceded that “[a]s a general matter, the proof required to resolve the American pilots’ claims will be common” in recognition of their collective bargaining agreement which governs all leave taken by such pilots. (Doc. # 98). They simply opposed class

certification on the basis of intra-class conflicts between pilots and non-pilots. The court agreed with defendants and excluded non-pilots. Scanlan, 567 F. Supp. 3d at 529-30. As to certification under Rule 23(b)(2), defendants argued that injunctive relief was not appropriate as class members seek individualized monetary damages. The court concluded that class treatment of pilots alone was appropriate because American and AAG have standard leave policies that govern this entire work group. Any difference between jury duty and bereavement leave from military leave was a common question and could be litigated on a class- wide basis. The court certified the class under Rule 23(b)(2). It

concluded that the monetary relief sought by the class “incidental to the request for declaratory and injunctive relief and flows from the requested injunction.” See id. at 536. Therefore, certification under Rule 23(b)(3) was not necessary, and the court did not analyze whether the class satisfied its requirements at that time. On January 28, 2022, defendants sought to exclude from the class definition any pilots who retired from either the military or from American, as those pilots would not benefit from any prospective relief and therefore should not be part of a class seeking injunctive relief under Rule 23(b)(2).

Plaintiffs, without objection from defendants, proposed that the court certify a subclass of retired pilots under Rule 23(b)(3). The court amended the class to reflect these definitions on April 6, 2022. See Scanlan, Civ. A. No. 18-4040, 2022 WL 1028038, at *3 (E.D. Pa. Apr. 6, 2022) (Doc. # 155). In doing so, the court found that predominance and superiority existed for the Rule 23(b)(3) subclasses. The subclasses currently certified on May 3, 20222 are: A class of American Airlines, Inc. pilots is certified as follows: (a) For Count I, the court certifies a subclass under Rule 23(b)(2) consisting of current American Airlines, Inc. pilots who presently serve in the military and who: participate at some point in the AAG Global Profit Sharing Plan since its inception on January 1, 2016 through the date of judgment in this action; are employed in the United States or are a citizen or national or permanent resident of the United States and employed in a foreign country while participants in the Plan; took or take short-term military leave in a year during which they were entitled to receive an award under the Plan; and were not credited or imputed earnings for this short-term military leave.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anderson v. Mt. Clemens Pottery Co.
328 U.S. 680 (Supreme Court, 1946)
General Telephone Co. of Southwest v. Falcon
457 U.S. 147 (Supreme Court, 1982)
Tully v. Department of Justice
481 F.3d 1367 (Federal Circuit, 2007)
Wal-Mart Stores, Inc. v. Dukes
131 S. Ct. 2541 (Supreme Court, 2011)
Tyson Foods, Inc. v. Bouaphakeo
577 U.S. 442 (Supreme Court, 2016)
Daniel Ferreras v. American Airlines Inc
946 F.3d 178 (Third Circuit, 2019)
Eric White v. UAL
987 F.3d 616 (Seventh Circuit, 2021)
Casey Clarkson v. Alaska Airlines, Inc.
59 F.4th 424 (Ninth Circuit, 2023)
James Scanlan v. American Airlines Group Inc
102 F.4th 164 (Third Circuit, 2024)

Cite This Page — Counsel Stack

Bluebook (online)
SCANLAN v. AMERICAN AIRLINES GROUP, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/scanlan-v-american-airlines-group-inc-paed-2025.