Society of Professional Engineering Employees v. Boeing Co.

921 F. Supp. 2d 1122, 2013 WL 393303
CourtDistrict Court, D. Kansas
DecidedJanuary 31, 2013
DocketCivil Action Nos. 05-1251-MLB, 07-1043-MLB
StatusPublished

This text of 921 F. Supp. 2d 1122 (Society of Professional Engineering Employees v. Boeing Co.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Society of Professional Engineering Employees v. Boeing Co., 921 F. Supp. 2d 1122, 2013 WL 393303 (D. Kan. 2013).

Opinion

MEMORANDUM AND ORDER

MONTI L. BELOT, District Judge.

After entering an order denying summary judgment to Boeing on the majority of plaintiffs’ section 301 claims1 (Doc. 581), this court instructed the parties to submit briefs on the issue of whether the claims may be submitted to a jury. The parties have now done so. (Docs. 583, 586). The court is prepared to rule.

Analysis

Pursuant to Federal Rule of Civil Procedure 39(a)(2), the court must deny a jury trial when it determines that there is no federal right to a jury trial on the issues raised. Plaintiffs contend that their request for compensatory damages on the section 301 claims are legal in nature and, therefore, ensure their right to a jury trial even though the request for monetary relief is combined with claims for equitable relief. Boeing responds that plaintiffs are not entitled to a jury trial because they seek equitable relief on their claims.

The Seventh Amendment provides that “[i]n Suits at common law, [1124]*1124where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved.” U.S. CONST, amend. VII. The Supreme Court has stated that “[s]uits at common law” refers to “suits in which legal rights [are] to be ascertained and determined.” Chauffeurs, Teamsters & Helpers, Local No. 391 v. Terry, 494 U.S. 558, 564, 110 S.Ct. 1339, 108 L.Ed.2d 519 (1990). “Maintenance of the jury as a fact-finding body is of such importance and occupies so firm a place in our history and jurisprudence that any seeming curtailment of the right to a jury trial should be scrutinized with the utmost care.” Beacon Theatres, Inc. v. Westover, 359 U.S. 500, 501, 79 S.Ct. 948, 3 L.Ed.2d 988 (1959).

To determine whether plaintiffs are entitled to a jury trial, the court must undertake a two-part inquiry: (1) comparison of the claims at issue to “18th-Century actions brought in the courts of England prior to the merger of the courts of law and equity” and (2) a review of the remedies sought to determine whether they are “legal or equitable in nature.” Terry, 494 U.S. at 565, 110 S.Ct. 1339. If the two-step inquiry concludes that an action is equitable, the court should strike the jury demand. See id. The Supreme Court has held that a request for an equitable remedy does not waive the right to trial by jury on legal issues. Dairy Queen, Inc. v. Wood, 369 U.S. 469, 473, 82 S.Ct. 894, 8 L.Ed.2d 44 (1962). In “only under the most imperative circumstances, circumstances which in view of the flexible procedures of the Federal Rules we cannot now anticipate, can the right to a jury trial of legal issues be lost through prior determination of equitable claims.” Id. “If a legal claim is joined with an equitable claim, the right to jury trial on the legal claim, including all issues common to both claims, remains intact. The right cannot be abridged by characterizing the legal claim as ‘incidental’ to the equitable relief sought.” Tull v. United States, 481 U.S. 412, 425, 107 S.Ct. 1831, 95 L.Ed.2d 365 (1987).

In Terry, the Court held that a claim brought pursuant to section 301 is comparable to a breach of contract claim and, therefore, a legal issue. 494 U.S. at 569, 110 S.Ct. 1339; see also Lampkin v. UAW, 154 F.3d 1136, 1146 (10th Cir.1998)(the Seventh Amendment right to a jury trial applies in section 301 claims). Therefore, the first part of the inquiry has been satisfied.

Turning to the second prong, the court must determine if plaintiffs’ damages are legal or equitable in nature. In their request for relief, plaintiffs seek “an award of contract damages ... to remedy Boeing’s breaches of the labor contracts, in order to attempt to put Plaintiffs in the position they would have been in absent Boeing’s breaches.” (Doc. 548 at 46). The parties have not conducted damages discovery at this time and the pretrial order is silent as to a dollar amount and the exact nature of their monetary damages. Plaintiffs’ position at summary judgment, however, was that their damages consisted of the loss of age 55 pension benefits and health care.

Turning to the facts presented on summary judgment, the court will attempt to construct the potential amount of money damages. There are nine individuals who are named plaintiffs in the Harkness Class. The Harkness Class itself is composed of “hundreds” of individuals. (Doc. 100 at 6). In addition, there are seventeen named plaintiffs who comprise the McCartney/Boone plaintiffs. The CBAs in this case provided early retirement and health care benefits for Boeing employees who had at least 10 years of service and reached age 55. The monthly pension benefit in June 2005 was $60 per year of service. This amount was reduced by 10% [1125]*1125when an employee retired at age 55. Therefore, an employee who elected to take early retirement and had 25 years of service would receive $16,200 per year ($1,500 per month, less 10%). Several of the named plaintiffs had at least 25 years of service in 2005.

This case has been pending for more than seven years. Therefore, considering that the Harkness Class is comprised of hundreds of individuals, the amount of money damages due to plaintiffs for their loss of pension benefits, should they prevail, could potentially be in the millions.2 Plaintiffs also seek equitable relief in the form of specific performance and an injunction requiring Boeing to provide the benefits at issue.

The general rule is that money damages constitute a legal remedy. Terry, 494 U.S. at 565, 570, 110 S.Ct. 1339. Terry recognized two exceptions to this general rule. An award of money damages may be considered equitable relief if it is restitutionary or if the monetary award is incidental or intertwined with injunctive relief. Id. at 571, 110 S.Ct. 1339. Boeing asserts that the money damages in this case are “plainly incidental to or intertwined with injunctive relief — i.e., specific performance in the form of benefits.” (Doc. 586 at 4). Boeing cites a Sixth Circuit opinion, Golden v. Kelsey-Hayes Co., 73 F.3d 648 (6th Cir.1996), in support of its position.

In Golden, the Sixth Circuit addressed unlawful modifications to retiree healthcare benefits and held that the Seventh Amendment did not entitle the plaintiffs to a jury trial. 73 F.3d at 659-63. In addition to declaratory relief and a request for a permanent injunction, the plaintiffs sought damages for costs and expenses sustained due to the defendant’s modifications of their healthcare benefits. In Golden, the plaintiffs incurred damages over a period of approximately two months. The court determined that those damages were incidental to the grant of equitable relief because it allowed the plaintiffs to be made whole. Golden, 73 F.3d at 660-61. Notably, there was a dissent in Golden which held that Dairy Queen

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Related

Beacon Theatres, Inc. v. Westover
359 U.S. 500 (Supreme Court, 1959)
Dairy Queen, Inc. v. Wood
369 U.S. 469 (Supreme Court, 1962)
Tull v. United States
481 U.S. 412 (Supreme Court, 1987)
Great-West Life & Annuity Insurance v. Knudson
534 U.S. 204 (Supreme Court, 2002)
Lampkin v. International Union
154 F.3d 1136 (Tenth Circuit, 1998)
Golden v. Kelsey-Hayes Co.
73 F.3d 648 (Sixth Circuit, 1996)
Brown v. Sandimo Materials
250 F.3d 120 (Second Circuit, 2001)
Calhoon v. Trans World Airlines, Inc.
400 F.3d 593 (Eighth Circuit, 2005)

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Bluebook (online)
921 F. Supp. 2d 1122, 2013 WL 393303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/society-of-professional-engineering-employees-v-boeing-co-ksd-2013.