Air Line Pilots Ass'n Intern. v. Transamerica Airlines, Inc.
Decision Date | 01 July 1987 |
Docket Number | No. 85-2455,85-2455 |
Citation | 817 F.2d 510 |
Court | U.S. Court of Appeals — Ninth Circuit |
Parties | 125 L.R.R.M. (BNA) 2777, 125 L.R.R.M. (BNA) 3107, 106 Lab.Cas. P 12,376 AIR LINE PILOTS ASSOCIATION, INTERNATIONAL, Plaintiff-Appellant, v. TRANSAMERICA AIRLINES, INC., Defendant-Appellee. |
Michael E. Abram, James Linsey, New York City, for plaintiff-appellant.
James E. McDonald, Jr., Atlanta, Ga., for defendant-appellee.
Appeal from the United States District Court for the Northern District of California.
Before CHOY, GOODWIN and PREGERSON, Circuit Judges.
While the Air Line Pilots Association, International ("ALPA") and Transamerica Airlines ("Transamerica") were in the process of negotiating a new collective bargaining agreement, and while the parties were in mediation to assist this process, ALPA filed the instant suit against Transamerica. The complaint alleges that Transamerica violated the Railway Labor Act ("the Act") by refusing to bargain and by establishing a nonunion replacement subsidiary to which Transamerica would divert business. Transamerica moved to dismiss the complaint under Fed.R.Civ.P. 12(b)(1) and 12(b)(6), and the district court granted the motion, 615 F.Supp. 371. ALPA appeals the dismissal of the complaint.
We hold that the district court had subject matter jurisdiction over both alleged violations and that both violations give rise to claims upon which relief can be granted.
ALPA is the exclusive collective bargaining representative under the Act for pilots employed by Transamerica. In March 1984, ALPA and Transamerica began negotiating the terms of a new collective bargaining agreement. The parties jointly invoked the assistance of the National Mediation Board ("the Board") in July 1984 and have been involved in mediation since that time. On March 27, 1985, ALPA commenced the instant action against Transamerica.
The complaint alleges that Transamerica, together with its corporate parent, Transamerica Corporation, formulated a plan to institute pay scales without the approval of ALPA; that to further this plan, Transamerica entered into collective bargaining negotiation with ALPA, but failed and refused to exert reasonable efforts to reach agreement or bargain in good faith; and that Transamerica acted with its corporate parent to achieve the plan's wage-lowering goal by establishing a separate subsidiary to operate in Transamerica's marketplace. The complaint also alleges that Transamerica threatened to terminate its operations. Count I of the complaint alleges that this conduct violates 45 U.S.C. Sec. 152 First. Count II alleges that this conduct violates 45 U.S.C. Sec. 152 Third and Fourth.
Affidavits from the parties describe the following additional facts. On or about August 11, 1986, Transamerica announced its intention to cease all flight operations. On September 30, 1986, Transamerica ceased all flight operations. Transamerica pilots were permanently furloughed effective October 2, 1986. Transamerica stated that it is going out of business permanently. For this reason, Transamerica moved after the completion of briefing to dismiss this appeal as moot. 1
Disposition of a motion to dismiss for lack of subject matter jurisdiction and disposition of a motion to dismiss for failure to state a claim are both reviewed de novo by this court. Peter Starr Production Co. v. Twin Continental Films, Inc., 783 F.2d 1440, 1442 (9th Cir.1986) (subject matter jurisdiction); Fort Vancouver Plywood Co. v. United States, 747 F.2d 547, 552 (9th Cir.1984) ( ). The reviewing court must, with respect to both motions, construe the allegations of the complaint favorably to the plaintiff, and must dismiss the complaint only if no set of facts could be proved that would entitle the plaintiff to relief under the complaint. Scheuer v. Rhodes, 416 U.S. 232, 236-37, 94 S.Ct. 1683, 1686-87, 40 L.Ed.2d 90 (1974).
45 U.S.C. Sec. 155 First establishes a procedure for settling disputes between employees and the carrier concerning, inter alia, changes in pay, rules, and working conditions. See Brotherhood of R.R. Trainmen v. Jacksonville Terminal Co., 394 U.S.
369, 377-78, 89 S.Ct. 1109, 1114-15, 22 L.Ed.2d 344 (1969). When such a dispute arises, both parties or either party as part of that procedure may invoke the services of the Board, which 45 U.S.C. Sec. 155 First.
The Act imposes a number of restrictions upon the conduct of the parties throughout the dispute-settlement procedure. These restrictions include "the duty of all carriers, their officers, agents, and employees to exert every reasonable effort to make and maintain agreements concerning rates of pay, rules, and working conditions, and to settle all disputes, whether arising out of the application of such agreements or otherwise...." 45 U.S.C. Sec. 152 First.
The district court held that there is no subject matter jurisdiction over a claim under 45 U.S.C. Sec. 152 First while mediation conducted by the Board is in progress. In support of this holding, Transamerica makes two arguments.
The first is that mediation is a sensitive process that will suffer as a result of judicial interference. In support of this argument, Transamerica cites International Association of Machinists v. National Mediation Board, 425 F.2d 527 (D.C.Cir.1970), which held that courts have only limited jurisdiction to scrutinize the Board's decision not to terminate mediation. But this case is not on point. The question whether federal courts have jurisdiction to review Board decisions is not the same as the question whether federal courts have jurisdiction to enforce provisions of the Act. This distinction is central to the Supreme Court's decision not to allow judicial review of the Board's certification of representatives. Switchmen's Union v. National Mediation Bd., 320 U.S. 297, 305-07, 64 S.Ct. 95, 99-100, 88 L.Ed. 61 (1943). Transamerica has presented no case in which deference to the mediation process has restricted the ability of federal courts to enforce the provisions of 45 U.S.C. Sec. 152 First.
Transamerica's second argument is that ALPA has presented no case in which a court has allowed enforcement of 45 U.S.C. Sec. 152 First while mediation was in progress. This assertion is accurate. Federal courts, however, do have jurisdiction to enforce the provisions of 45 U.S.C. Sec. 152 First. In Chicago & North Western Railway Co. v. United Transportation Union, 402 U.S. 570, 91 S.Ct. 1731, 29 L.Ed.2d 187 (1971), which involved a suit commenced after mediation had been terminated, the Court stated:
[W]e think the conclusion inescapable that Congress intended the enforcement of Sec. 2 First [45 U.S.C. Sec. 152 First] to be overseen by appropriate judicial means rather than by the Mediation Board's retaining jurisdiction over the dispute or prematurely releasing the parties for resort to self-help if it feels such action is called for.
Id. at 582 (emphasis added).
Transamerica has presented no authority restricting federal jurisdiction while mediation is in progress. Similarly, ALPA has presented no case involving litigation undertaken to enforce 45 U.S.C. Sec. 152 First while mediation was in progress. Because Chicago & North Western instructs that enforcement of 45 U.S.C. Sec. 152 First is to be "overseen by appropriate judicial means rather than by the Mediation Board's retaining jurisdiction," we conclude that subject matter jurisdiction exists.
Transamerica contends that ALPA has failed to allege a violation of 45 U.S.C. Sec. 152 First. In the complaint, however, ALPA alleges that "Transamerica has entered into collective bargaining negotiations with ALPA, ostensibly to conclude a new collective bargaining agreement, but in those negotiations it has failed and refused to exert reasonable efforts to reach agreement with ALPA or otherwise to negotiate in good faith with ALPA." This alleged activity violates the requirement in 45 U.S.C. Sec. 152 First that carriers "exert every reasonable effort to make and maintain agreements concerning rates of pay, rules, and working conditions, and to settle all disputes." See Chicago & Northwestern, 402 U.S. at 580 n. 11, 91 S.Ct. at 1736 n. 11; Trans Int'l Airlines, Inc. v. International Bhd. of Teamsters, 650 F.2d 949, 962 (9th Cir.1980), cert. denied, 449 U.S. 1110, 101 S.Ct. 918, 66 L.Ed.2d 839 (1981) () Thus, the ALPA complaint states a claim...
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