United Transportation Union v. Bnsf Railway Company

710 F.3d 915, 2013 WL 999090, 195 L.R.R.M. (BNA) 2211, 2013 U.S. App. LEXIS 4988
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 13, 2013
Docket11-35714
StatusPublished
Cited by6 cases

This text of 710 F.3d 915 (United Transportation Union v. Bnsf Railway Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Transportation Union v. Bnsf Railway Company, 710 F.3d 915, 2013 WL 999090, 195 L.R.R.M. (BNA) 2211, 2013 U.S. App. LEXIS 4988 (9th Cir. 2013).

Opinion

OPINION

REINHARDT, Circuit Judge:

This case concerns allegations of corruption by a representative of the BNSF Railway Company (“Railway”) during mandatory arbitration of a dispute relating to the discharge of a Railway employee, Richard Kite, represented by the United Transportation Union (“Union”). In brief, after a special adjustment board heard Kite’s case and the neutral member circulated a draft award reinstating him, the Railway representative allegedly threatened the member by stating, “If you are going to issue these kinds of opinions, you will never work for a Class One railroad again.” Within two months of the making of the alleged statement by the Railway representative, the neutral member recused herself and issued an order dismissing the case without prejudice. The case was then reassigned to a new board with a new neutral member (but with the same Railway and Union representatives). The new neutral member ruled against Kite and issued a final award in favor of the Railway. The Union filed a Petition for Review in federal district court under the Railway Labor Act, 45 U.S.C. § 153(q) First, arguing that, because the Railway achieved this favorable outcome through corruption, the court should set aside the award and reinstate the draft award favorable to Kite.

The district court granted the Railway’s motion to dismiss on the basis that (1) it lacked jurisdiction over part of the suit, and (2) with respect to the remainder of the suit, the Union had failed to state a claim upon which relief could be granted. Both determinations were incorrect, and we reverse accordingly.

I. FACTUAL AND PROCEDURAL BACKGROUND

A. Railway Labor Act

To prevent crippling strikes in the railroad industry, Congress enacted the Railway Labor Act (RLA or Act) in 1926. 44 Stat. 577 (1926). Believing that private settlement would “provide for the prompt disposition of disputes between carriers and their employees,” id. at 577, Congress designed the RLA to encourage and facilitate private settlement of labor disputes. The Act’s first substantive section imposed a duty on both labor and management

to exert every reasonable effort to make and maintain agreements concerning rates of pay, rules, and working conditions, and to settle all disputes ... in order to avoid any interruption to commerce or to the operation of any carrier growing out of any dispute between the carrier and the employees thereof.

Id. at 577-78 (codified at 45 U.S.C. § 152, First); see also Trainmen v. Jacksonville Terminal Co., 394 U.S. 369, 377, 89 S.Ct. 1109, 22 L.Ed.2d 344 (1969) (describing this duty as the “heart of the Railway Labor Act”). While this duty was constant, irrespective of the nature of the dispute, the remainder of the Act differentiated between major and minor disputes. For major disputes — i.e., those disputes relating to the formation of collective bargaining agreements 1 — Sections Four *919 through Ten of the Act outlined “a detailed framework to facilitate the voluntary settlement of major disputes,” id. at 378, 89 S.Ct. 1109. Rather than imposing a mandatory arbitration requirement, Congress created the National Mediation Board (NMB), an independent agency, headed by a three-person panel appointed by the President of the United States. The NMB was assigned the function of inducing the parties to settle, either through mediation, arbitration, or at the behest of an emergency board convened by the President. Id. For minor disputes — i.e., those disputes relating to the interpretation or application of existing collective bargaining agreements — Congress created a different but analogous framework favoring voluntary settlement. In Section Three, the Act stated that “[bjoards of adjustment shall be created by agreement between any carrier ... and its ... employees.” 44 Stat. 577, 578 (1926). The Act further described the role of these boards in adjusting minor disputes, including the authority to impose a “final and binding” decision on the parties. Id. at 578.

The 1926 scheme of voluntary arbitration proved ineffectual with respect to minor disputes. Because the adjustment boards were to be created by mutual agreement, and no sanctions existed for failure to create a board, many railroads

refused to participate on such boards or so limited their participation that the boards were ineffectual. Moreover, the boards which were created were composed of equal numbers of management and labor representatives and deadlocks over particular cases became commonplace. Since no procedure for breaking such deadlocks was provided, many disputes remained unsettled.

Union Pac. R.R. Co. v. Price, 360 U.S. 601, 610, 79 S.Ct. 1351, 3 L.Ed.2d 1460 (1959). Because minor grievances were not being resolved in a timely fashion, the railroad industry continued to face the threat of strikes, id. at 610-611, 79 S.Ct. 1351, the very harm that the RLA was enacted to prevent. The labor organizations

were particularly dissatisfied. They urged that effective adjustment of grievances could be attained only by amendments to the 1926 Act that would establish a National Adjustment Board in which both carriers and employees would be required to participate, that would permit an employee to compel a carrier to submit a grievance to the Board, that would provide for a neutral person to break deadlocks occurring when the labor and management representatives divided equally, and, finally, that would make awards binding on the parties and enforceable in the courts, when favorable to the employees.

Id. at 611, 79 S.Ct. 1351. Labor representatives testified before Congress that they were willing to give up their right to litigate minor grievances because they felt that they would achieve “a measure of justice” under their proposed scheme. Id. at 613, 79 S.Ct. 1351 (quoting To Amend the Railway Labor Act: Hearings before the Senate Comm. on Interstate Commerce on S. 3266, 73d Cong., 2d Sess., at 35 (statement of George Harrison, President of the Brotherhood of Railroad Clerks)).

Congress’s 1934 amendments to the RLA closely tracked labor’s suggested revisions. Congress replaced the ad hoc adjustment boards with the National Railroad Adjustment Board (NRAB), a board of 36 private persons representing labor and management in equal numbers. 48 Stat. 1185, 1189 (1934). 2 The NRAB was divided into four Divisions, each representing different classes of employees. Id. at 119091 (codified at § 153(h) First). Under the revised Act, if the carrier and the *920

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710 F.3d 915, 2013 WL 999090, 195 L.R.R.M. (BNA) 2211, 2013 U.S. App. LEXIS 4988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-transportation-union-v-bnsf-railway-company-ca9-2013.