O'DONNELL v. Pan American World Airways, 107

• Decision Date: 07 January 1953
• Docket Number: Docket 22496.,No. 107,107
• Citation: 200 F.2d 929
• Parties: O'DONNELL et al. v. PAN AMERICAN WORLD AIRWAYS, Inc. et al.
• Court: U.S. Court of Appeals — Second Circuit

200 F.2d 929 (1953)

O'DONNELL et al. v. PAN AMERICAN WORLD AIRWAYS, Inc. et al.

No. 107, Docket 22496.

United States Court of Appeals Second Circuit.

Argued December 4, 1952.

Decided January 7, 1953.

Phil E. Gilbert, Jr., New York City (Thayer & Gilbert, New York City, on the brief), for petitioners-appellants.

George J. Solomon, New York City (Landis, Taylor & Scoll and James M. Landis, all of New York City, on the brief), for appellees Former Pilots of American Overseas Airlines, Inc.

John C. Pirie, New York City, for respondent-appellee Pan American World Airways, Inc.

Henry Weiss, New York City, for respondent-appellee Air Line Pilots Ass'n, International.

Before SWAN, Chief Judge, and CHASE and CLARK, Circuit Judges.

CLARK, Circuit Judge.

When in 1950 the Civil Aeronautics Board, acting on instructions of the President of the United States, approved the acquisition by Pan American World Airways, Inc. (PAA) of the assets and business of American Overseas Airlines, Inc. (AOA), it left unsettled, among other problems, the difficult question of seniority among the two groups of pilots. The PAA pilots desired seniority based upon service with PAA, while the AOA pilots desired in substance to take their previous seniority with them to the merged company. The controversy, which had waged for a year before the acquisition, continued for nearly two years thereafter until the CAB, taking jurisdiction, made an award intended to settle the matter. But this determination recognized the rights of the AOA pilots in a way unsatisfactory to the PAA group, who threatened to strike. PAA was of course interested to the extent of preventing a strike against the award, which it was prepared to accept and recognize. Under these conditions the National Mediation Board, acting under 45 U.S.C. § 155, found a labor emergency to exist and offered its services.

As a result of conferences then held, a Mediation Agreement and Articles of Arbitration were agreed upon and executed by PAA and the Air Line Pilots Association, International, the previously designated representative and bargaining agent of all the pilots involved. But the ALPA desired to remain somewhat neutral between its two sets of member pilots; so it allowed the AOA pilots to designate their arbitrator, while PAA permitted its pilots to select the company's arbitrator, these two then selecting the third or neutral arbitrator. In fact the Agreement and Articles were endorsed: "We hereby ratify the action of Air Line Pilots Association, International in executing the foregoing Mediation Agreement and the Articles of Arbitration; and agree that the award to be rendered thereunder shall be final and binding." This was signed: "Veteran Pan American Pilot Group By Henry G. Evans" and "Ex-American Overseas Pilot Group By Emery J. Martin." Evans was the arbitrator selected by the PAA pilots, Martin the arbitrator selected by the former AOA pilots. (Later Evans was succeeded by Frank W. Saul, who eventually dissented from the award made.) The arbitration panel then held thirteen days of hearing, ending April 16, 1952. The present attorney for the petitioners represented the "Veteran Pan American Pilot Group" and presented among the PAA pilot witnesses some of the petitioners in this case. No question was raised as to the propriety or legality of the proceedings. On May 2, 1952, the arbitrators made their award, setting up a scheme for incorporating the former AOA pilots into the PAA roster, and filed it in the district court. On May 12, 1952, the petitioners filed their petition to impeach and vacate the award under 45 U.S.C. § 159. It is from the district court's denial of this petition on July 31, 1952, that the appeal is taken.

The most serious point raised by the petitioners is that the award is invalid because the controversy was not within the jurisdiction of the National Mediation Board. Here their argument is twofold; first, that the controversy from its nature should have been submitted to the PAA System Board of Adjustment, rather than to the National Mediation Board; second, that it was between two groups of employees, and not between the carrier and a group of its employees as required for the jurisdiction of the Mediation Board. As a further line of attack they urge noncompliance with the controlling provisions of the Railway Labor Act in several details as hereinafter discussed. We turn first to the important matter of jurisdiction.

The governing statute is of course the Railway Labor Act of 1934, 45 U.S.C. § 151 et seq., as extended to air carriers by 45 U.S.C. § 181 et seq. Under that Act two differing procedures are set up for the adjustment of disputes between the carrier and its employees or groups thereof susceptible of being settled by agreements between them and of grievances arising under existing employment agreements and affecting individual workmen. The first are within the jurisdiction of the National Mediation Board of three, which uses its good offices to promote settlement or submission to arbitration under the definite statutory rules, 45 U.S.C. §§ 155, 157-159, 183. The second go to the boards of adjustment under the direction of the National Railroad Adjustment Board, 45 U.S.C. §§ 152, 183, 184. The distinction was carefully pointed out and explained in Elgin, J. & E. Ry. Co. v. Burley, 325 U.S. 711, 722-728, 65 S.Ct. 1282, 89 L.Ed. 1886, and adhered to on reargument, 327 U.S. 661, 66 S.Ct. 721, 90 L.Ed. 928. See also Garrison, The National Railroad Adjustment Board: A Unique Administrative Agency, 46 Yale L.J. 566, 576. Petitioners assert that this controversy is only one of grievance among employees as to the application of the PAA collective bargaining agreement of 1945 and...