98 F. Supp. 3d 1012
D. Minnesota2015Background
- Jeanie Montgomery, a Compass Airlines flight attendant (2008–2013), requested intermittent FMLA leave in 2013 after migraine/sinus problems; Compass initially denied the request, required a company exam, and the company doctor found her unfit for duty.
- Compass accused Montgomery of submitting fraudulent/altered FMLA documentation, held a meeting with a union representative, and terminated her December 13, 2013 for alleged fraudulent documentation.
- Montgomery’s union (AFA) filed a grievance alleging termination without cause; the CBA’s System Board grievance/arbitration process remains pending.
- Montgomery sued in federal court asserting (1) violation of the FMLA, (2) defamation, and (3) negligent infliction of emotional distress. Compass moved to dismiss for lack of subject-matter jurisdiction and for failure to state claims.
- The magistrate recommended dismissal because the CBA requires arbitration of FMLA claims; the district court adopted the R&R, concluding the CBA contains a clear and unmistakable waiver of the judicial forum for FMLA claims and dismissing the federal claim without prejudice and declining supplemental jurisdiction over state claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the CBA manifests a clear and unmistakable waiver of the judicial forum for FMLA claims | Montgomery: the arbitration clause is general and does not name the FMLA in the same provision, so no clear waiver | Compass: the CBA broadly mandates arbitration of grievances arising under the agreement and Section 14.D expressly incorporates the FMLA into the CBA | Held: The CBA, read as a whole (Section 11 + Section 14.D), clearly and unmistakably requires arbitration of FMLA claims |
| Whether the grievance/arbitration process is mandatory (not optional) | Montgomery: the CBA’s arbitration language is permissive and does not state arbitration is the sole and exclusive remedy | Compass: other provisions (timelines, waiver for failure to grieve, finality of System Board decisions) show a mandatory grievance/arbitration system | Held: The grievance procedure is mandatory; failure to timely grieve waives the dispute and the System Board’s decisions are final and binding |
| Whether arbitration of the FMLA claim effects an impermissible waiver of FMLA rights under federal law (Gardner‑Denver/regulation) | Montgomery: FMLA regulation bars waiver of prospective FMLA rights and judicial forum cannot be waived for statutory remedies (liquidated damages, fees) | Compass: waiver of initial judicial forum is permitted where CBA clearly and unmistakably requires arbitration; arbitration does not foreclose later federal remedies if arbitration does not provide full statutory relief | Held: Waiver is permissible; arbitration is an acceptable initial forum and Montgomery can seek statutory remedies (e.g., liquidated damages, fees) in court if arbitration does not provide them |
| Whether to retain supplemental jurisdiction over state-law claims (defamation, emotional distress) | Montgomery: (no specific objection in R&R) | Compass: urged dismissal of federal claim, and if federal claim dismissed, state claims should be dismissed | Held: Court declines supplemental jurisdiction and dismisses the state-law claims without prejudice |
Key Cases Cited
- Wright v. Universal Mar. Serv. Corp., 525 U.S. 70 (1998) (collective bargaining agreement must be "clear and unmistakable" to waive judicial forum for statutory claims)
- 14 Penn Plaza LLC v. Pyett, 556 U.S. 247 (2009) (CBA provision that names statutory claims and makes them subject to grievance/arbitration is a clear waiver)
- Ibarra v. United Parcel Service, 695 F.3d 354 (5th Cir. 2012) (explicit incorporation of statutes elsewhere in CBA can make waiver clear and unmistakable)
- Gilbert v. Donahoe, 751 F.3d 303 (5th Cir. 2014) (separate CBA provisions — grievance procedures plus explicit statutory incorporation — can together show mandatory arbitration)
- Thompson v. Air Transp. Int'l Ltd., 664 F.3d 723 (8th Cir. 2011) (FMLA claims may be subject to mandatory arbitration under a CBA)
- Alexander v. Gardner-Denver Co., 415 U.S. 36 (1974) (union-negotiated proceedings cannot completely foreclose statutory remedies; discussed in context of judicial waiver)
- McNamara v. Yellow Transp., Inc., 570 F.3d 950 (8th Cir. 2009) (waiver of judicial forum is a waiver of initial forum, not of the statutory claim itself)