973 F.3d 833
8th Cir.2020Background
- John Krakowski, an American Airlines pilot, received a profit-sharing cash payment; American withheld 1% for Allied Pilots Association as "dues."
- Krakowski sued the union in state court for conversion and unjust enrichment seeking return of the withheld amount.
- Allied Pilots removed the case to federal court, arguing the Railway Labor Act (RLA) completely preempted the state claims; the district court denied remand under the complete-preemption doctrine.
- After remand denial, Krakowski amended to add federal claims (including an RLA claim); the district court treated the state claims as preempted and disposed of the federal claims on summary judgment.
- The Eighth Circuit considered whether the RLA completely preempted a dispute between an employee and a union and whether remand to state court was properly denied; it reversed and directed remand to state court, without reaching the merits of Krakowski’s amended federal claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the RLA completely preempts Krakowski’s state-law claims (conversion, unjust enrichment) | Krakowski: his claims do not depend on interpretation of a CBA and so are not completely preempted; they belong in state court | Allied Pilots: the RLA’s scheme displaces state remedies and converts the claims into federal ones, permitting removal | RLA does not completely preempt disputes between an employee and a union; remand should have been granted |
| Whether RLA’s arbitration scheme supplies an exclusive federal cause of action for employee–union disputes | Krakowski: no federal cause of action exists to replace state law between employee and union | Allied Pilots: RLA governance over labor disputes and adjustment boards warrants exclusive federal remedy | RLA creates exclusive federal remedy only for disputes between carriers and employees, not employee–union disputes; no exclusive federal cause here |
| Whether the duty of fair representation provides an exclusive federal remedy that triggers complete preemption | Krakowski: fair-rep claims are judicially implied and not an exclusive statutory remedy; thus do not preempt state claims | Allied Pilots: Krakowski’s claims must be recharacterized as duty-of-fair-representation claims, which are federally governed | Duty-of-fair-representation is a judicially created cause of action without exclusive statutory procedures/remedies; it does not support complete preemption |
| Whether precedent (e.g., Allen) compels finding complete preemption here | Krakowski: Allen involved ordinary preemption and employer involvement; it does not control disputes solely between union and member | Allied Pilots: Allen and other cases show RLA/LMRA preemption principles that support removal | Allen concerned ordinary (defensive) preemption and employer–employee suits; it does not establish complete preemption for employee–union suits |
Key Cases Cited
- Beneficial Nat’l Bank v. Anderson, 539 U.S. 1 (establishes complete-preemption framework)
- Hawaiian Airlines, Inc. v. Norris, 512 U.S. 246 (RLA preemption when claim depends on collective-bargaining interpretation)
- Deford v. Soo Line R.R. Co., 867 F.2d 1080 (8th Cir.) (RLA requires arbitration of minor disputes before adjustment boards)
- Johnson v. MFA Petroleum Co., 701 F.3d 243 (8th Cir.) (complete preemption is rare; framework for analysis)
- Verville v. Int’l Ass’n of Machinists & Aerospace Workers, 520 F.2d 615 (6th Cir.) (no RLA cause of action for employee–union disputes)
- Int’l Brotherhood of Elec. Workers v. Hechler, 481 U.S. 851 (LMRA can completely preempt certain union–member torts; distinguished from RLA)
- Steele v. Louisville & Nashville R.R. Co., 323 U.S. 192 (recognizes judicially implied duty of fair representation)
- Metro. Life Ins. Co. v. Taylor, 481 U.S. 58 (explains extraordinary preemptive power required for complete preemption)
- Gore v. Trans World Airlines, 210 F.3d 944 (8th Cir.) (analysis of RLA and LMRA preemption standards)