Lead Opinion
Opinion by Judge TASHIMA; Dissent by Judge BYBEE.
This case arose out of a bitter seniority dispute precipitated by the merger of U.S. Airways, Inc., and America West Air-lines (“AWA”). Following the merger, the companies’ respective seniority lists had to be integrated to create a single list for the merged airline. The U.S. Airways, Inc., pilots (“East Pilots”) and the AWA pilots (“West Pilots”), who were both represent-' ed by the Air Line Pilots Association (“ALPA”), began exploring methods of integration pursuant to ALPA’s policy regarding mergers. The East Pilots generally had been hired earlier and favored a strict date-of-hire system, while the West Pilots sought a seniority system that would take into consideration the relative premerger strength of their airline over U.S. Airways, Inc. Ultimately, the union submitted the internal dispute to arbitration.
Certain West Pilots brought this action against the newly-certified union alleging that USAPA breached its duty of fair representation (“DFR”) by negotiating a contract that would impermissibly favor the East Pilots at the expense of the West Pilots. A jury found that the union had breached its DFR, and the district court, after a bench trial on the remaining equitable issues, granted the West Pilot Plaintiffs an injunction against USAPA. Addington v. U.S. Airline Pilots Ass’n,
BACKGROUND
In 2005, U.S. Airways, Inc., and AWA merged to form a single carrier called U.S. Airways (or the “airline”). At the time of the merger, ALPA was the collective bargaining representative for both the East Pilots and the West Pilots. Each group had a separate collective bargaining agreement (“CBA”) which was administered by each group’s Master Executive Council. As with most mergers, an integrated seniority list had to be created. The East Pilots were the bigger group — about 5,100, compared to about 1,900 West Pilots — and were generally hired before the West Pilots. The West Pilots received more favorable wages under their CBA and, unlike the East Pilots, no West Pilots were furloughed at the time of the merger.
The two merging airlines and ALPA entered into a Transition Agreement (“TA”), which incorporated by reference ALPA’s Merger Policy. Under the TA, the carriers agreed not to object to ALPA’s seniority integration proposal, provided it did not result in certain additional costs. The seniority integration proposal could be implemented only as part of a single CBA. The single CBA would require approval by the East Master Executive Council, the West Master Executive Council, and a majority of each of the East and West pilot groups, effectively giving each side a veto. Until the single CBA was negotiated, with few exceptions, the TA placed a “fence” between East and West operations, such that each would continue to operate under its respective CBA.
Pursuant to the ALPA Merger Policy, the two pilot groups began negotiating seniority integration, but to no avail. Under the union’s Merger Policy, if negotiation and mediation between the two sides fail, the issue is submitted to “final and binding” arbitration. The merged seniority list is then presented to the airline, and ALPA is to “use all reasonable means at its disposal to compel the company to accept and implement the merged seniority list.” The arbitrated list is not subject to a separate ratification vote, but becomes part of the single CBA, which is subject to member ratification.
George Nicolau was selected to chair the arbitration panel, pursuant to the Merger Policy. Arbitration commenced between “the U.S. Airways Pilot Merger Representatives and the America West Pilot Merger Representatives.” In early May 2007, the panel issued its award (the “Nicolau Award”). A majority of East Pilots “strenuously objected” to the Nicolau
While the arbitration was pending, negotiations with the airline progressed, and the airline proposed a comprehensive CBA in May 2007. In late July 2007, the East Master Executive Council determined that the East Pilots would never ratify a CBA that incorporated the Nieolau Award. On August 15, 2007, the East Pilots withdrew their representatives from the committee negotiating the new CBA with the airline, halting those negotiations. In late 2007, ALPA submitted the Nieolau Award to the airline, which accepted the award on December 20, 2007.
In the meantime, several East Pilots began exploring the possibility of forming a new union that would not implement the Nieolau Award. They formed USAPA and, on November 29, 2007, the National Mediation Board certified a representation election. USAPA won the election and was certified as the collective bargaining representative for the entire group of pilots, East and West, on April 18, 2008. From the date the East Pilots withdrew from negotiations until ALPA was decertified, there were no further negotiations with the airline.
USAPA adopted a constitution that established an “objective” of “maintain[ing] uniform principles of seniority based on date of hire and the perpetuation thereof, with reasonable conditions and restrictions to preserve each pilot’s unmerged career expectations.” Under USAPA’s constitution, ratification requires a majority vote of the entire union membership, such that each pilot group no longer has its own veto power.
Five months after certification, USAPA presented a seniority proposal to the airline. The proposal incorporated date-of-hire principles. Although the proposal contained some protections for West Pilots, it was not nearly as favorable to West Pilots as the Nieolau Award. The airline had not yet responded to the proposal when the district court entered its permanent injunction.
The airline has been forced to reduce flying because of economic considerations. The reductions have mostly hit the western operations. Because of the continuing separate operations, approximately 175 of the 300 furloughs the airline had announced by the time of trial were West Pilots. At the time of trial, 140 West Pilots had been furloughed. Under a single CBA incorporating the Nieolau Award, none of the West Pilots would have been furloughed.
Six individual West Pilot-Plaintiffs (“Plaintiffs”) filed this hybrid action against USAPA and U.S. Airways, seeking damages and injunctive relief. The district court dismissed the claims against the airline because the System Board of Adjustment had exclusive jurisdiction over them. Addington v. U.S. Airlines Pilots Ass’n,
After a bench trial on remedy, the district court ordered injunctive relief, permanently enjoining and ordering USAPA to (1) “Immediately, and in good faith, make all reasonable efforts to negotiate and implement a single [CBA] with U.S. Airways that will implement the Nieolau
DISCUSSION
Although considerable time, effort, and expense have been devoted to the merits of Plaintiffs’ DFR claim before both this Court and the district court, we are without jurisdiction to address the merits of the claim unless it is ripe. See S. Pac. Transp. Co. v. City of L.A.,
No published case has expressly addressed when a DFR claim based on a union’s negotiation of a CBA becomes ripe. Thus, we apply the general principles underlying the ripeness doctrine and take guidance from our decisions regarding the related issue of when a DFR claim accrues for statute of limitations purposes in the context of the administration of a CBA. We conclude that Plaintiffs’ DFR claim is not yet ripe.
The ripeness doctrine rests, in part, on the Article III requirement that federal courts decide only cases and controversies and in part on prudential concerns. See Maldonado v. Morales,
A question is fit for decision when it can be decided without considering “contingent future events that may or may not occur as anticipated, or indeed may not occur at all.” Cardenas v. Anzai,
We conclude that this case presents contingencies that could prevent effectuation of USAPA’s proposal and the accompanying injury. At this point, neither the West Pilots nor USAPA can be certain what seniority proposal ultimately will be acceptable to both USAPA and the airline as part of a final CBA. Likewise, it is not
We also conclude that withholding judicial consideration does not work a direct and immediate hardship on the West Pilots. “To meet the hardship requirement, a litigant must show that withholding review would result in ‘direct and immediate’ hardship and would entail more than possible financial loss.” Winter v. Cal. Med. Review Bd., Inc.,
Plaintiffs correctly note that certain West Pilots have been furloughed, whereas they would still be working under a single CBA implementing the Nicolau Award. It is, however, at best, speculative that a single CBA incorporating the Nicolau Award would be ratified if presented to the union’s membership. ALPA had been unable to broker a compromise between the two pilot groups, and the East Pilots had expressed their intentions not to ratify a CBA containing the Nicolau Award. Thus, even under the district court’s injunction mandating USAPA to pursue the Nicolau Award, it is uncertain that the West Pilots’ preferred seniority system ever would be effectuated. That the court cannot fashion a remedy that will alleviate Plaintiffs’ harm suggests that the case is not ripe.
Plaintiffs seek to escape this conclusion by framing their harm as the lost opportunity to have a CBA implementing the Nicolau Award put to a ratification vote. Because merely putting a CBA effectuating the Nicolau Award to a ratification vote will not itself alleviate the West Pilots furloughs, Plaintiffs have not identified a sufficiently concrete injury.
Although we do not hold that a DFR claim based on a union’s promotion of a policy is never ripe until that policy is effectuated, we conclude that, in this case, there is too much uncertainty standing in the way of effectuation of Plaintiffs’ harm to warrant judicial intervention at this stage. Cf. Sergeant v. Inlandboatmen’s Union of the Pac.,
Our conclusion that Plaintiffs’ claim is not ripe is consistent with our DFR decisions, which have found DFR violations based on contract negotiation only after a contract has been agreed upon.
Indeed, the Supreme Court case that clarified that the DFR was applicable during contract negotiations articulated its holding in terms that imply a claim can be brought only after negotiations are complete and a “final product” has been reached. See Air Line Pilots Ass’n, Int’l v. O’Neill,
Notably, even in the cases on which Plaintiffs rely most heavily, the policy that the plaintiffs claimed injured them had already been effectuated when the plaintiffs brought the claim. See Ramey v. Dist. 141, Int’l Ass’n of Machinists & Aerospace Workers,
We also note in these cases the apparent absence of contingencies that stood between the union’s advocating to the employer a position on a certain policy and the implementation of that policy. Neither Ramey nor Teamsters references a ratification requirement, and in both cases the employer seemed predisposed to follow the union’s proposal. In Teamsters, the court found accrual at the date the union communicated its adverse action to the employees.
Finally, we find instructive our cases analyzing accrual of DFR claims that are based on a union’s alleged errors outside the contract negotiation process.
“There was, at one time, some indication in this Circuit that the employee ‘should know’ of his Union’s errors in representing him at a hearing when he saw the errors committed during the hearing, and that the six-month [statute of limitations] period began to run from that date even if the grievance board had not yet rendered its final decision.”
Id. at 640 (citing Galindo v. Stoody Co.,
CONCLUSION
For the foregoing reasons, we hold that Plaintiffs’ DFR claim is not ripe; therefore, the case is REMANDED to the district court with directions that the action be DISMISSED. No costs to either side.
Notes
. The dissent asserts that "nothing would be gained by postponing a decision, and the parties' interest would be well served by a prompt resolution of the West Pilots' claim.” Diss. op. at 8017 (internal alterations, quotation marks, and citation omitted). To be sure, the parties' interest would be served by prompt resolution of the seniority dispute, but that is not the same as prompt resolution of the DFR claim. The present impasse, in fact, could well be prolonged by prematurely resolving the West Pilots’ claim judicially at this point. Forced to bargain for the Nicolau Award, any contract USAPA could negotiate would undoubtedly be rejected by its membership. By deferring judicial intervention, we leave USAPA to bargain in good faith pursuant to its DFR, with the interests of all members — both East and West — in mind, under pain of an unquestionably ripe DFR suit, once a contract is ratified.
. Plaintiffs' alleged hardship cannot instead be premised on any delay caused by USAPA in reaching a single CBA. As the district court noted, Plaintiffs abandoned their claim that USAPA is intentionally delaying negotiation of a CBA. Addington,
. We do not address the thorny question of the extent to which the Nicolau Award is binding on USAPA. We note, as the district court recognized, that USAPA is at least as free to abandon the Nicolau Award as was its predecessor, ALPA. The dissent appears implicitly to assume that the Nicolau Award, the product of the internal rules and processes of ALPA, is binding on USAPA. See Diss op. at 1187-88.
. The dissent agrees with “the general rule that we evaluate the duty of fair representation based on the fairness of the actual representation as memorialized in the [CBA,]” but would hold that this "is an unusual case and ... an exception” to that rule. Diss. op. at 1184. As much as the dissent stresses the case-specific nature of our inquiry, however, there is no disputing that this case would be the first time we allowed a DFR suit to proceed in a collective bargaining/ contract negotiating context before the CBA at issue was ratified. Such a departure from the norm would invite parties to bring suit long before internal disputes have had a chance to work themselves out. It would also force us in each case to decide — without the benefit of hindsight that is enjoyed in statute of limitations accrual cases — whether a union’s position is a mere announcement of a bargaining position or the adoption of a permanent change in position. Although the dissent believes that it is an easy question in this case, it will not always be so.
. Plaintiffs have identified only one case in which a court allowed a DFR suit to proceed before a contract had been executed. See Mount v. Grand Int’l Bhd. of Locomotive Eng’rs,
. Indeed, we are hesitant to transplant a rule from cases analyzing claim accrual for statute of limitations purposes to the ripeness context. Although we have noted the relationship between the statute of limitations and ripeness inquiries, see Levald, Inc. v. City of Palm Desert,
. Plaintiffs correctly note that Ramey suggests a DFR claim can accrue before implementation of the policy at issue. Analogizing to anticipatory repudiation in a breach of contract case, the Ramey court noted that it would be possible — but not required — for a claim to be brought when a union unequivocally communicates its intention to breach its DFR, but that for statute of limitations purposes, the claim did not accrue until “the date on which performance was due, namely the date on which [the union] advocated a position on the seniority issue to [the employer].”
Because we hold that [the union] has not met its burden to demonstrate that plaintiffs reasonably should have known that the breach occurred before January 28, 1999 [the date six months before filing date], we do not address the difficult and unsettled question of how certain it must be that harm will be caused by a union's breach in order to trigger the statute of limitations. We have held that the statute of limitations is triggered even if it is not absolutely certain that a union member will be harmed by a breach. However, we note that there must be some likelihood that a harm will result from a union's breach before a member may file suit. Otherwise, such claims would be unduly speculative. We caution district courts to consider this issue in the future when faced with a suit brought after a union breaches but before tangible harm is caused.
Id. at 280 n. 5 (citations omitted).
. The DFR applies both to contract negotiation and contract administration. See O’Neill,
Dissenting Opinion
dissenting:
I agree with much of the majority opinion. I concur that, in general, we should not decide duty of fair representation (“DFR”) challenges until “after a contract has been agreed upon.” Maj. Op. at 1181. In the typical ease, the contract will be the best evidence of fair representation or lack thereof. In my view, however, the contract is not the sine qua non of unfair representation, and the fact that a case could be more ripe — in the sense that the issues could be more concrete, more focused — is not evidence of the contrary proposition that the case is not ripe.
This is an unusual case and, in my view, an exception to the general rule that we evaluate the duty of fair representation based on the fairness of the actual representation as memorialized in the Collective Bargaining Agreement (“CBA”). Here, the absence of a CBA is itself powerful evidence of a DFR violation. As set forth quite fairly in the majority opinion and in a lengthy and careful opinion by the district court, the Air Line Pilots Association (“ALPA”) was decertified and a new union, the U.S. Airline Pilots Association (“USA-PA”), certified precisely to frustrate implementation of the Nicolau Agreement and to negotiate a CBA with U.S. Airways that favors the East Pilots. As the district court found, “USAPA’s sole objective in adopting and presenting its seniority proposal to the Airline was to benefit East Pilots at the expense of West Pilots, rather than to benefit the bargaining union as a whole.” Thus, “the terms of USAPA’s seniority proposal are substantially less favorable to West Pilots than the Nicolau Award” made through binding arbitration, an award that “USAPA concedes that it will never bargain for.” It has been nearly five years since the two airlines merged, and the pilots are further from, not closer to, a CBA that reflects the interests of
I
The “basic rationale” of the ripeness doctrine “is to prevent the courts, through premature adjudication, from entangling themselves in abstract disagreements.” Thomas v. Union Carbide Agric. Prods. Co.,
A
Getting the legal question right is critical. Two related cases from the Supreme Court are particularly instructive here. In Ruckelshaus v. Monsanto Co.,
What our decision in Yahoo! and the Court’s decisions in Monsanto and Thomas make clear is that ripeness is a contextual and commonsense doctrine. If the unique circumstances of a particular claim render it fit for decision, the claim is ripe. I submit that this is a case in which “[n]othing would be gained by postponing a decision, and the [parties’] interests] would be well served by a prompt resolu
B
“[A] union breaches the duty of fair representation when its conduct toward a member of the bargaining unit is arbitrary, discriminatory, or in bad faith.” Marquez v. Screen Actors Guild, Inc.,
The majority describes three DFR cases from this circuit — Williams v. Pacific Maritime Association,
Just as importantly, none of these cases addressed the “precise legal question” advanced by the West Pilots. In Williams, “[t]he heart of the employees’ claim of unfair representation [wa]s that the union breached its statutory duty to plaintiffs by agreeing to the adoption of [certain] standards for deregistration.”
The majority also cites Air Line Pilots Association v. O’Neill,
None of these cases are relevant with respect to the ripeness issue here. They stand for the noneontroversial proposition that a DFR claim can be brought after a CBA has been completed. By contrast, the issue here is whether a DFR claim can be brought prior to the completion of a CBA.
II
I agree with the majority that this case would be ripe if USAPA and U.S. Air had entered into a CBA. That is not the question that this case presents. We are asked whether our Article III jurisdiction extends to a DFR claim based on a union “constitutionally committed,” Maj. Op. at 1177, to voiding a binding arbitration award and adopting a “date of hire” seniority principle that plainly favors one side of a merger. When the question is posed in this way, I believe the ripeness of the West Pilots’ claims becomes clear.
We employ a two-part test to determine whether a claim is ripe for review, evaluating “(1) whether the issues are fit for judicial decision, and (2) whether the parties will suffer hardship if we decline to consider the issues.” San Diego County Gun Rights Comm. v. Reno,
The West Pilots’ DFR theory does not depend on any contingent future events such as the memorialization of a finalized CBA or seniority integration agreement. The district court explained why the issues were fit for decision and the parties will suffer hardship if we decline to consider the issues:
The issues fit for decision are these: Whether USAPA adopted and presented its seniority proposal without any legitimate union objective, solely to benefit East Pilots at the expense of West Pilots, and if so whether the West Pilots are entitled to damages and an injunction therefor____ USAPA concedes it will never bargain for implementation of the Nicolau Award. It is constitutionally hostile to doing so. The Airline has accepted the Nicolau Award, expressing no opposition to it, and the union has failed to show any legitimate reason (or plausible future reason) for abandoning it. Liability flows from the process and aims of USAPA’s seniority position. The outcome of negotiations is irrelevant. Without an injunction, USAPA’s seniority position inevitably impairs the collective bargaining process.
For this same reason, denying judicial review would work a substantial hardship upon the parties, including the Airline .... In addition to depriving the West Pilots of legitimate representation, USAPA’s bargaining position leaves the Airline to decide between a lack of a single CBA and an unlawful single CBA.,
(Emphasis added).
I agree with the district court that, given the “precise legal question” raised by the West Pilots, this case is “fit for decision.” As the district court correctly observed, given the constitutional commitment of USAPA to date-of-hire principles — principles irreconcilably opposed to the compromise embodied in the Nicolau Award — “the outcome of negotiations is irrelevant.” As a result, the question presented in this case does not pivot on
When the East Pilots campaigned to decertify ALPA and replace it with USA-PA, a new union constitutionally committed to pursuing date-of-hire principles, a DFR claim by the West Pilots would not have been ripe. As the Second Circuit explained in Ramey v. District 141 International Association of Machinists and Aerospace Workers,
The majority argues that this case will not be ripe until “the airline responds to [USAPA’s seniority] proposal, the parties complete negotiations, and the membership ratifies the CBA,” Maj. Op. at 1180, but I respectfully disagree. Certainly this case might be “riper” were plaintiffs to wait for these future events, but when USAPA took the reins as the West Pilots’ union and refused to pursue the Nicolau Award, USAPA’s promise moved from abstract disagreement to adjudicable legal controversy. The future events cited by the majority are not likely to occur anytime soon, and plaintiffs will be harmed all the while. In the words of the Thomas Court, “[n]othing would be gained by post
The ripeness inquiry is not concerned with whether a case is as ripe as it possibly could be. Twelve of the plaintiffs in Thomas had never even entered into FI-FRA arbitration. Their claims would have been riper had they undergone FIFRA arbitration prior to joining with Stauffer in a challenge to FIFRA’s arbitration procedures. Yet the Court noted these plaintiffs’ “continuing uncertainty and expense” and explained that “[o]ne does not have to await the consummation of threatened injury to obtain preventive relief.” Id. at 581,
I respectfully dissent.
. Although the West Pilots are not claiming that USAPA has "deliberately” delayed completing a CBA, Maj. Op. at 1180-81 n. 2, the majority notes that West Pilots have been furloughed and that they would not have been furloughed under the Nicolau Award, id. at 1180.
