United Transportation Union and Carmen J. Famulare v. National Railroad

Court of Appeals for the Second Circuit·Decided December 9, 2009·No. 08-0854-cv·Published

Opinion

08-0854-cv United Transportation Union and Carmen J. Famulare v. National Railroad Passenger Corporation (Amtrak)

UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT

August Term, 2008

(Argued: April 3, 2009 Decided: December 9, 2009)

Docket No. 08-0854-cv

UNITED TRANSPORTATION UNION and CARMEN J. FAMULARE , Plaintiffs-Appellees,

v.

NATIONAL RAILROAD PASSENGER CORPORATION (AMTRAK),

Defendant-Appellant.

Before: CABRANES and HALL, Circuit Judges, and SULLIVAN , District Judge.* Defendant-appellant National Railroad Passenger Corporation (Amtrak) appeals from an order of the United States District Court for the Northern District of New York (Lawrence E. Kahn, Judge), granting plaintiffs-appellees United Transportation Union and Carmen J. Famulare’s motion for summary judgment, denying defendant-appellant’s motion for summary judgment, and setting aside an award issued by a special adjustment board constituted pursuant to the Railway Labor Act. The district court found that the Board failed to comply with the Railway Labor Act by upholding the termination of plaintiff-appellee Famulare. We reverse, and find that under the narrow scope of judicial review afforded to the labor board decision in this matter, the Board acted properly in issuing

*

The Honorable Richard J. Sullivan, of the United States District Court for the Southern District of New York, sitting by designation.

its award.

Reversed and Remanded.

KEVIN C . BRODAR , Associate General Counsel (Clinton J.

Miller, III, General Counsel, on the brief), United Transportation Union, Cleveland, OH, for United Transportation Union and Carmen J. Famulare.

THOMAS E . REINERT , JR ., (Jonathan C. Fritts and Kirsten B.

White, on the brief), Morgan Lewis & Bockius, LLP, Washington, DC, for National Railroad Passenger Corporation (Amtrak).

RICHARD J. SULLIVAN , District Judge:

National Railroad Passenger Corporation (Amtrak) appeals from an order of the United States District Court for the Northern District of New York (Lawrence E. Kahn, Judge) granting United Transportation Union and Carmen J. Famulare’s motion for summary judgment, denying Amtrak’s motion for summary judgment, and setting aside an award issued by Public Law Board No. 6865 (the “Board”), a special adjustment board constituted pursuant to the Railway Labor Act, 45 U.S.C. § 151 et seq. (the “RLA”).1 This case raises what appears to be a novel question in this Circuit involving the interpretation of the RLA and the scope of judicial review of a labor board’s compliance with 45 U.S.C. § 152 Third (“§ 152 Third”) under 45 U.S.C. § 153 First (q) (“§ 153 First (q)”). Put less

1 The special adjustment board at issue was denominated “Public Law Board No. 6865” and was established by agreement of the parties, pursuant to 45 U.S.C. § 153 Second, for resolving a dispute otherwise referable to the National Railroad Adjustment Board. The original 1926 RLA provided for the creation of local boards of adjustment to arbitrate disputes between railroad carriers and their employees. See Ollman v. Special Bd. of Adjustment No. 1063, 527 F.3d 239, 245-46 (2d Cir. 2008). In 1934, Congress amended the RLA to create the National Railroad Adjustment Board, and in 1966, Congress again amended the RLA to allow for the establishment of “special adjustment boards.” See id. The National Railroad Adjustment Board is composed of 34 members — 17 chosen by carriers and 17 chosen by employee unions. See id. at 245. Special adjustment boards sit as panels with one panelist designated by the carrier, one designated by the union and, in the event of a deadlock, one neutral panelist. Id. at 246. The parties in this matter availed themselves of a “special adjustment board,” although the differences between these various permutations of labor boards created under the RLA are not relevant to this decision.

obliquely, we must determine whether the Board failed to comply with the RLA or exceeded its jurisdiction under the RLA when it held that Amtrak was permitted to discipline an employee for conduct that occurred while that employee was functioning as a union representative. The district court found that such a holding by a labor board fails to comply with the RLA, and did not reach the jurisdictional question. For the reasons stated below, we reverse, and find both that the Board’s decision complied with the RLA and that the Board acted within the proper scope of its jurisdiction.

I. BACKGROUND

Carmen J. Famulare began working as a conductor for Amtrak in 1994. At the time relevant to this case, Famulare also served as the local chairman of the United Transportation Union, the labor union authorized to represent certain classes of Amtrak employees. On February 4, 2005, Famulare represented an Amtrak employee at a disciplinary hearing, during which Famulare allegedly attempted to bribe a witness by offering free transportation on Amtrak trains between Poughkeepsie, New York, and Buffalo, New York. Amtrak subsequently charged Famulare with violating its “Service Standards for Train Service and On-Board Service Employees,” as well as interfering with the contractual disciplinary process between Amtrak and the United Transportation Union. Although Famulare denied the allegations, after a formal investigation initiated by Amtrak, an Amtrak hearing officer found Famulare guilty of the alleged conduct. In so finding, the hearing officer determined that “[t]he mere suggestion that any employee of [Amtrak], while acting in the capacity as a union representative could, with complete immunity, engage in acts of bribery or dishonesty for the purpose of influencing the outcome of a disciplinary investigation is simply not tenable.” J.A.8 (Decision of Hearing Officer Ronald Nies, dated March 17, 2005, Case No. 05-066). Amtrak immediately terminated Famulare’s employment, effective March 17, 2005.

The United Transportation Union pursued an appeal on Famulare’s behalf through binding arbitration before the Board. After reviewing the record, the Board concluded that Famulare was guilty as charged. The Board rejected the argument that Amtrak was not permitted to discipline Famulare while he was acting within the scope of his union duties, explaining that “[w]e have considered all the evidence, arguments[,] awards[,] and cases presented by the parties and conclude that significant latitude is provided to employee-representatives when functioning as such. However, that latitude falls far short of being a ‘cloak of immunity,’ and does not cover activities such as that involved in this case.” Nat’l R.R. Passenger Corp. (Amtrak) v. United Transp. Union, Award No. 10, Case No. 24 (Mar. 9, 2006) (Johnson, Arb.).

The United Transportation Union and Famulare next appealed the Board’s decision to the United States District Court for the Northern District of New York, pursuant to § 153 First (q).2 Ruling on cross-motions for summary judgment, the district court vacated the Board’s decision, finding that the RLA “does not provide employers with any say over the conduct of the employees’ representative while the representative is engaged in his or her representative capacity; in fact, the Act forbids it.” United Transp. Union v. Nat’l R.R. Passenger Corp., No. 06 Civ. 503 (LEK), slip op. at 12 (N.D.N.Y. Feb. 4, 2008). Accordingly, the district court set aside the Board’s award, granting the United Transportation Union and Famulare’s motion for summary judgment, and

2 This provision states, in relevant part:

If any employee or group of employees, or any carrier, is aggrieved by the failure of any division of the Adjustment Board to make an award in a dispute referred to it, or is aggrieved by any of the terms of an award or by the failure of the division to include certain terms in such award, then such employee or group of employees or carrier may file in any United States district court in which a petition under paragraph (p) could be filed, a petition for review of the division’s order.

45 U.S.C. § 153 First (q).

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