Oakey v. U.S. Airways Pilots Disability Income Plan

Citation723 F.3d 227
Decision Date19 July 2013
Docket NumberNo. 12–5115.,12–5115.
PartiesMichael S. OAKEY, Appellant v. US AIRWAYS PILOTS DISABILITY INCOME PLAN, Appellee.
CourtUnited States Courts of Appeals. United States Court of Appeals (District of Columbia)

723 F.3d 227

Michael S. OAKEY, Appellant
v.
US AIRWAYS PILOTS DISABILITY INCOME PLAN, Appellee.

No. 12–5115.

United States Court of Appeals,
District of Columbia Circuit.

Argued March 18, 2013.
Decided July 19, 2013.


[723 F.3d 229]


Appeal from the United States District Court for the District of Columbia (No. 1:03–cv–02373).

Anthony F. Shelley argued the cause for the appellant.
Timothy P. O'Toole was with him on brief. Jeffrey M. Hahn entered an appearance.

Mark W. Robertson argued the cause for the appellee. Everett C. Johnson, Jr. entered an appearance.


Before: HENDERSON, GRIFFITH and KAVANAUGH, Circuit Judges.

Opinion for the Court filed by Circuit Judge HENDERSON.

KAREN LECRAFT HENDERSON, Circuit Judge:

Michael S. Oakey, a former pilot for U.S. Airways, Inc. (U.S. Airways), appeals the district court's dismissal of Oakey's claim under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001 et seq., seeking benefits from a collectively-bargained pilot disability plan. We conclude that section 204 of the Railway Labor Act (RLA), 45 U.S.C. §§ 151 et seq., vests in the “applicable adjustment board” exclusive jurisdiction over Oakey's claim because it is grounded in the application and interpretation of a collective bargaining agreement. Accordingly, we affirm the dismissal for lack of jurisdiction.

I.
A. Statutory Background

ERISA is a “comprehensive statute designed to promote the interests of employees and their beneficiaries in employee benefit plans” and “to provide a uniform regulatory regime over employee benefit plans.” Shaw v. Delta Air Lines, Inc., 463 U.S. 85, 90, 103 S.Ct. 2890, 77 L.Ed.2d 490 (1983); Aetna Health Inc. v. Davila, 542 U.S. 200, 208, 124 S.Ct. 2488, 159 L.Ed.2d 312 (2004). ERISA requires notice of the denial of an employee disability claim, “ ‘setting forth the specific reasons for such denial, written in a manner calculated to be understood by the participant,’ ” and a reasonable opportunity for a “ ‘a full and fair review’ ” of the denial. Heller v. Fortis Benefits Ins. Co., 142 F.3d 487, 492 (D.C.Cir.1998) (quoting 29 U.S.C. § 1133). ERISA also grants a disability claimant the right to “sue ‘to recover benefits due to him under the terms of his plan.’ ” Fitts v. Fed. Nat'l Mortg. Ass'n, 236 F.3d 1, 4 (D.C.Cir.2001) (quoting 29 U.S.C. § 1132(a)(1)(B)). Its “comprehensive legislative scheme” includes “an integrated system of procedures for enforcement” that the Congress intended to be “exclusive” and to preempt “any state-law cause of action that duplicates, supplements, or supplants the ERISA civil enforcement remedy.” Davila, 542 U.S. at 208–09, 124 S.Ct. 2488 (quotation marks omitted); see29 U.S.C. § 1144. Exclusive jurisdiction over an ERISA-based claim lies in federal

[723 F.3d 230]

district court. Bd. of Trustees of Hotel & Rest. Emps. Local 25 v. Madison Hotel, Inc., 97 F.3d 1479, 1483–84 (D.C.Cir.1996) (citing 29 U.S.C. § 1132(e)(1)).

The more narrowly focused RLA was initially limited to the railroad industry but has been applied to disputes between air carriers and their employees since 1936. Air Line Pilots Ass'n, Int'l v. Delta Air Lines, Inc., 863 F.2d 87, 88 (D.C.Cir.1988) (citing 45 U.S.C. § 181 (1982)); see also Int'l Ass'n of Machinists v. Cent. Airlines, Inc., 372 U.S. 682, 685–86, 83 S.Ct. 956, 10 L.Ed.2d 67 (1963)). It was enacted “to promote stability in labor-management relations by providing a comprehensive framework for resolving labor disputes.” Hawaiian Airlines, Inc. v. Norris, 512 U.S. 246, 252, 114 S.Ct. 2239, 129 L.Ed.2d 203 (1994). Under section 204 of the RLA, such disputes “growing out of grievances, or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions ... may be referred by petition of the parties or by either party to an appropriate adjustment board.” 45 U.S.C. § 184. Each air carrier has a duty “to establish a board of adjustment,” id., and the statutory grievance procedure is “ ‘mandatory, exclusive, and comprehensive,’ ” Delta Air Lines, 863 F.2d at 88 (quoting Bhd. of Locomotive Eng'rs v. Louisville & Nashville R.R. Co., 373 U.S. 33, 38, 83 S.Ct. 1059, 10 L.Ed.2d 172 (1963)). Judicial review of the board of adjustment's decision is limited to three categories expressly set out in the RLA. Id. (citing Union Pac. R.R. v. Sheehan, 439 U.S. 89, 93, 99 S.Ct. 399, 58 L.Ed.2d 354 (1978); 45 U.S.C. § 153 First (p)).

B. Factual Background

Oakey was employed as an airline pilot by U.S. Airways from 1988 to 2002 and was enrolled in the U.S. Airways Pilot Disability Plan (Plan), which initially took effect on January 1, 1975—the effective date of ERISA—as the result of collective bargaining between U.S. Airways' predecessor (Allegheny Airlines) and the Air Line Pilots Association (ALPA). The original Plan agreement contained the following provision governing the term of its coverage: “Each pilot will become covered for benefits on the date he is employed and is classified as being in active service. If a pilot becomes classified as being other than in active service, he will no longer be covered as of the date of such change in employment status.” Allegheny Airlines Pilot's Long Term Disability & Loss of License Plan (1975 Disability Plan) art. 5.1 (Jan. 1, 1975) (JA 593). The 1975 Disability Plan does not define “active service” or address the effect of a pilot's furlough status on benefits eligibility. In 1997, however, U.S. Airways produced an “amended and restated” version of the plan. USAir, Inc. Pilot Disability Plan (effective Feb. 18, 1997) (1997 Amendment) (JA 63). The 1997 Amendment is signed by a U.S. Airways officer but not by an ALPA representative. Id. at 18–19. It defines “active service” as “those periods during which the Employee is in active payroll status with the Employer,” id. art. 1.2, and specifically provides that “[b]enefits payable [t]hereunder shall cease upon ... the date the Participant is placed on furlough status from the Employer,” id. art. 3.6.

Under both the 1975 Disability Plan and the 1997 Amendment, benefit claims are reviewed and decided by the U.S. Airways Retirement Board, see also Letter of Agreement Between U.S. Air, Inc. and the airline Pilots re: RETIREMENT BOARD (JA 558) § 1.6. (Feb. 9, 1990). The Retirement Board consists of four members—two selected by U.S. Airways and two by ALPA. A decision by agreement of three

[723 F.3d 231]

or more Retirement Board members is “final and binding.” Id. Absent such agreement, an “Impartial Referee” is designated to sit as a fifth member of the Retirement Board and a subsequent decision by three or more members is then “final and binding upon all parties.” Id. § 2.1.

In 2001, after he was diagnosed with leukemia, Oakey submitted a claim for disability benefits to the Retirement Board, which approved the claim effective January 30, 2002. The following January, U.S. Airways notified Oakey he was to be “furloughed” effective February 4, 2003 as part of a fleet reduction. Letter of U.S. Airways to Michael S. Oakey (Jan. 9, 2003) (JA 441). On March 11, 2003, the Administrator of the Plan (Administrator) advised Oakey that, based on his furlough date, his disability benefits had terminated on February 4, 2003.

Oakey subsequently requested, through legal counsel, that the Administrator provide a “copy of the disability policy.” Letter from Bruce E. Woodske to ING at 1 (Mar. 25, 2003) (JA 175). Oakey's counsel was referred to U.S. Airways, which transmitted a copy of Article 3.6 of the 1997 Amendment stating, to repeat, that disability benefits cease on the date a participant is “placed on furlough status.” Facsimile from U.S. AIRWAYS to Bruce E. Woodske (Apr. 1, 2003) (JA 182). Oakey's counsel subsequently requested “the entire benefits plan with all amendments to the present.” Facsimile from Bruce E. Woodske to U.S. Airways (Apr. 21, 2003) (JA 190). Nonetheless, Oakey “never received a copy of the Disability Plan from U.S. Airways, despite the requirement of ERISA § 104(b)(4), 29 U.S.C. § 1104(b)(4), that such plan documents be provided promptly upon request.” Second Am. Compl. (Compl.) ¶ 27. In August 2003, Oakey took early (and reduced) retirement.

In November 2003, Oakey and six other retired U.S. Airways pilots filed an action under ERISA against, inter alia, U.S. Airways and the Plan for benefits allegedly owed. On October 21, 2011, Oakey, the only remaining plaintiff, filed a “Second Amended Complaint” (Complaint) against the Plan, the only remaining defendant, alleging a single claim for unpaid benefits resulting from the wrongful termination of his disability benefits in February 2003. The Complaint asserts that the 1997 Amendment was ineffective because it was not signed by an ALPA representative, Compl. ¶¶ 7–10, and that Oakey's disability coverage was therefore governed by the 1975 Disability Plan, which does not terminate benefits upon an employee's furlough. Compl. ¶¶ 10, 40–42.

On December 12, 2011, the Plan moved under Fed.R.Civ.P. 12(b)(1) to dismiss for lack of subject matter jurisdiction on the ground that the RLA's mandatory arbitration provision deprived the district court of jurisdiction. On March 19, 2012, the district court granted the Plan's motion and dismissed the action. Oakey v. U.S. Airways Pilots Disability Income Plan, 839 F.Supp.2d 225 (D.D.C.2012). Oakey timely appealed.

II.

We review de novo the district court's grant of a motion to dismiss for lack of subject matter jurisdiction. Nat'l Air Traffic Controllers Ass'n v. Fed. Serv. Impasses Panel, 606 F.3d 780, 786 (D.C.Cir.2010) (quotation marks omitted). For the reasons set out below, we agree with the district court's Rule 12(b)(1) dismissal.

In Air Line Pilots Association, International v. Northwest Airlines, Inc., 627 F.2d 272 (D.C.Cir.1980), we first addressed

[723 F.3d 232]

the interplay between the RLA and ERISA and concluded that the latter (and later-enacted) statute—notwithstanding its broad preemption of state law...

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    ...steps to ensure no objection from the off-panel judges. See 7TH CIR. R. 40(e); Oakey v. US Airways Pilots Disability Income Plan, 723 F.3d 227, 232 (D.C. Cir. 2013) (noting the mechanism for a threejudge panel to overrule circuit law after circulating the proposed opinion to off-panel (27) ......

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