LEROY BENSEL, individuаlly and as representative of a class consisting of former Trans World Airlines, Inc., pilots employed by TWA Airlines LLC as of April 2001, Appellant v. ALLIED PILOTS ASSOCIATION; TWA AIRLINES, LLC; AIR LINE PILOTS ASSOCIATION; AMERICAN AIRLINES, INC.
No. 03-3176
United States Court of Appeals for the Third Circuit
October 26, 2004
Precedential
2004 Decisions
Opinions of the United States Court of Appeals for the Third Circuit
10-26-2004
Bensel v. Allied Pilots Assn
Precedential or Non-Precedential: Precedential
Docket No. 03-3176
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UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT
No. 03-3176
LEROY BENSEL, individually and as representative of a class consisting of former Trans World Airlines, Inc., pilots employed by TWA Airlines LLC as of April 2001, Appellant
v.
ALLIED PILOTS ASSOCIATION; TWA AIRLINES, LLC; AIR LINE PILOTS ASSOCIATION; AMERICAN AIRLINES, INC.
On Appeal From the United States District Court for the District of New Jersey (D.C. Civil No. 02-cv-02917) District Judge: Hon. Joseph E. Irenas
Argued July 12, 2004
BEFORE: RENDELL, FISHER and VAN ANTWERPEN, Circuit Judges
(Filed October 26, 2004)
Jerald R. Cureton, Esq. (Argued)
H. Thomas Hunt, III, Esq.
Anthony Valenti, Esq.
Tara Ann Mosier, Esq.
Cureton Caplan
950B Chester Avenue
Delran, NJ 08075
Counsel for Appellant
Steven K. Hoffman, Esq. (Argued)
Edgar N. James, Esq.
James & Hoffman
1101 17th Street, N.W.
Suite 510
Washington, DC 20036
James Katz, Esq.
Jennings Sigmond
1040 North Kings Highway
Suite 300
Cherry Hill, NJ 08034
Counsel for Appellee Allied Pilots Association
Donald L. Havermann, Esq. (Argued)
Harry Rissetto, Esq.
Morgan, Lewis & Bockius
1111 Pennsylvania Avenue, N.W.
Washington, DC 20004
Alfred J. Lechner, Jr., Esq.
Joseph A. Piesco, Jr., Esq.
Morgan, Lewis & Bockius
502 Carnegie Center
Princeton, NJ 08540
Counsel for Appellees TWA Airlines, LLC and American Airlines, Inc.
Katz & Ranzman
1015 18th Street, N.W.
Suite 801
Washington, DC 20036
Counsel for Appellee Air Line Pilots Association
OPINION OF THE COURT
VAN ANTWERPEN, Circuit Judge
In this appeal of summary judgment, Appellants challenge the order of the District Court which granted summary judgment as to all Defendants-Appellees and dismissed all counts of Appellants’ Second Amended Restated Complaint. Plaintiffs-Appellants (the “Class“) are a group of airline pilots formerly employed by Trans World Airlines, Inc. (“TWA“). The gravamen of the Class’ complaints, which arise under the Railway Labor Act (“RLA“),
I. Facts
As the material facts are generally not in dispute, the facts presented below are taken in large part verbatim from the District Court‘s opinion in this case. Additional facts are incorporated from the parties’ submissions and appendices.
The Asset Purchase Agreement
After several years of failing to make a profit, on January 9, 2001, TWA entered into an agreement with Defendant-Appellee American whereby American agreed to purchase the majority of TWA‘s assets following TWA‘s filing for Chapter 11 bankruptcy protection. TWA made such a filing the following day, January 10, 2001. As a condition of the purchase agreement, American agreed to hire almost all of TWA‘s unionized employees provided that certain labor protective provisions in their various contracts were eliminated.
One of those provisions concerned the right of TWA‘s pilots to bring to arbitration issues of seniority integration in the event of a purchase of TWA or merger of TWA with another airline. American indicated that it would not proceed with its purchase of TWA unless this labor protective provision, known as Allegheny-Mohawk rights, was eliminated. TWA‘s pilots were represented by Defendant-Appellee ALPA through its TWA Master
The Waiver Agreement
The TWA MEC resisted waiving its seniority protection provisions, and on March 15, 2001, TWA filed a motion under
The ALPA / TWA-LLC Transition Agreement
On April 9, 2001, ALPA and the TWA MEC entered into a transition agreement with TWA-LLC. Upon completion of the asset purchase by American, TWA-LLC would become a wholly owned subsidiary of American. Under that transition agreement, the majority of the provisions of the collective bargaining agreement between ALPA and TWA would remain in effect until such time as the National Mediation Board (“NMB“) adjudicated TWA-LLC and American as a “single carrier” and extended APA‘s certification to cover the TWA-LLC pilots (comprising the Class). The transition agreement incorporated by reference American‘s promise to use its reasonable best efforts to ensure a fair seniority integration process. In addition, ALPA would continue to remain the exclusive representative of the TWA-LLC pilots until the NMB made the appropriate declarations. The next day, on April 10, 2001, American‘s purchase of TWA‘s
Seniority Integration Process
Between at least February and August of 2001, the TWA MEC and APA negotiated with each other over seniority integration under the auspices of a facilitator provided by American. No agreement was reached between the parties. On November 8, 2001, APA and American reached an independent agreement on seniority integration of the former TWA pilots, known as Supplement CC. Under Supplement CC, some TWA pilots did receive credit for their seniority, and certain captains and first officer positions were guaranteed for former TWA pilots at the remaining pilot base for TWA-LLC pilots, in St. Louis, Missouri. Supplement CC was not to become effective until the NMB declared American and TWA-LLC to be a single carrier and extended the APA‘s certification. TWA MEC refused to sign Supplement CC.
NMB Proceedings
On November 9, 2001, APA filed a petition with the NMB seeking the declaration of “single carrier” status. ALPA opposed this petition, but on March 5, 2002, the NMB declared that TWA-LLC and American were a “single carrier” for RLA purposes. On April 3, 2002, after ALPA declined to submit an application to become the bargaining representative for the combined pilot group, and despite the objection to APA certification submitted by TWA MEC, the NMB certified APA as the sole bargaining agent for all American pilots. As a result, the April 9, 2001 TWA-LLC/ALPA transition agreement expired (by its own terms), ALPA‘s certification as the collective bargaining agent for the TWA-LLC pilots terminated, and Supplement CC became effective.
Arbitration Proceedings
Following execution of Supplement CC, ALPA pursued a grievance against American and arbitrated before a System Board of Adjustment, alleging that American violated the promise it made to ALPA in the letter it wrote concurrently with the April 2, 2001 waiver agreement. The grievance alleged that American did not use its “reasonable best efforts” to protect the TWA-LLC pilots’ seniority protections, as it had agreed to do in its letter. Through the arbitration, ALPA sought the nullification of Supplement CC. The arbitrator, in a decision dated April 18, 2002, rejected the grievance and found for American.
Summary of Relevant Dates
For purposes of clarity, the dates mentioned in the foregoing discussion may be summarized as follows:
January 9, 2001: TWA enters into Asset Purchase Agreement with American.
April 9, 2001: ALPA and TWA MEC enter into transition agreement with TWA-LLC.
April 10, 2001: American‘s purchase of TWA‘s assets finalized; TWA-LLC begins operations as a separate air carrier.
November 8, 2001: American and APA execute Supplement CC, an agreement governing the seniority integration of the former TWA pilots. Supplement CC is subject to two conditions subsequent.
March 5, 2002: NMB declares that American and TWA-LLC are a “single carrier” for RLA purposes.
April 3, 2002: NMB certifies APA as the sole bargaining agent for all pilots, making Supplement CC effective; transition agreement between TWA-LLC and ALPA expires.
April 18, 2002: Arbitrator rejects ALPA‘s allegation that American did not use its “reasonable best efforts” to protect the TWA-LLC pilots’ seniority integration, as promised in its letter.
September 3, 2002: Class action initiated by former TWA pilots.
January 27, 2003: Class files Second Amended Restated Complaint.
Procedural Posture
On September 3, 2002, this class action was initiated by filing a complaint notwithstanding a prior action by APA. Pursuant to a series of consent orders agreed to by all parties, the parties were realigned in their present form. The Class filed a Second Amended Restated Complaint against the four Defendants on January 27, 2003. The District Court‘s order dismissing the original action preserved the original filing dates for statute of limitations purposes.
II. Jurisdiction
Appellate jurisdiction is proper pursuant to
III. Standard of Review
All four Defendants filed motions to dismiss on all claims asserted against them. The District Court elected to treat these motions as summary judgment motions.3
This Court has plenary review of the District Court‘s decision to grant summary judgment. See Blair v. Scott Specialty Gases, 283 F.3d 595, 602-03 (3d Cir. 2002). We apply the same standard as used by the District Court. Id. A grant of summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.”
Under this standard of review, if there is a material issue of fact about when the statutе of limitations period began to accrue, then the District Court‘s granting of summary judgment was improper.
IV. Analysis
Count I
Count I of the Second Amended Restated Complaint asserts against ALPA a series of breaches of its duty of fair representation under the RLA. The District Court found these claims to be time-barred, or alternatively, that they failed to state claims upon which relief could be granted. As explained below, however, it follows from application of the rays of hope doctrine that Appellants’ claims did not accrue until April 18, 2002, the date the arbitrator of the System Board of Adjustment denied Appellants’ challenge to American‘s execution of its “best efforts” promise, or at the earliest, April 3, 2002, the date Supplement CC became effective. Because the Class filed its breach claims against ALPA within six months of both of these accrual dates, the claims were timely filed, and, if proven, state claims warranting relief. Accordingly, we reverse the District Court
A. Accrual of Claim
It is undisputed that the statute of limitations for a duty of fair representation claim against a union under the RLA is six months. Sisco v. Consolidated Rail Corp., 732 F.2d 1188, 1193-94 (3d Cir. 1984).
As a general matter, a duty of fair representation claim accrues and the six month limitations period commences when “the futility of further union appeals becomes apparent or should have become apparent.” Scott v. Local 863, Int‘l Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, 725 F.2d 226, 229 (3d Cir. 1984). If, however, a union purports to continue to represent an employee in pursuing relief, the employee‘s duty of fair representation claim against the union will not accrue so long as the union proffers “rays of hope” that the union can “remedy the cause of the employee‘s dissatisfaction.” Childs v. Penn. Fed‘n Brotherhood of Maintenаnce Way Employees, 831 F.2d 429, 434 (3d Cir. 1987); see also Whittle v. Local 641, Int‘l Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, 56 F.3d 487, 490 (3d Cir. 1995); Miklavic v. USAir, Inc., 21 F.3d 551 (3d Cir. 1994); Vadino v. A. Valey Eng‘rs, 903 F.2d 253, 261 n.11 (3d Cir. 1990). In this context, it is irrelevant if the employees were aware of or with reasonable diligence should have discovered the acts constituting the breach at any time before rays of hope were extinguished. See Childs, 831 F.2d at 436; Miklavic, 21 F.3d at 556.
Two significant policies underlie the view that, despite the employee‘s awareness of the union‘s breach or the futility of further union action, the statute of limitations does not accrue while the union continues to represent the employee and proffers rays of hope regarding the latter‘s claim. First,
it is inefficient and unwise to compel an employee to sue his union in federal court while the union continues, in good faith, to pursue the employee‘s claims and attempts to remedy any past breach of its DFR. If the union can indeed remedy the cause of the employee‘s dissatisfaction, it should be allowed to do so, thus obviating the federal judicial involvement. Childs, 831 F.2d at 434. This policy is especially befitting in the context of labor disputes, where Congress has evidenced its desire to resolve disputes through arbitration. Id. Second, requiring an employee to sue the union within six months of discovering the union‘s breach puts the
employee in an untenable position because “if he waits to sue the union he may lose the right to do so, but if he sues the union immediately he may antagonize the best possible champion of his cause.” Id. at 435.
B. Application
Before applying the rays of hope doctrine to the instant scenario, we note that, contrary to the District Court‘s and ALPA‘s position, Supplement CC was not the inevitable outcome of the April 2001 waiver of Appellants’ Allegheny-Mohawk provisions. In other words, despite waiving an important labor protective provision, rays of hope remained that, with appropriate continued representation by ALPA, a more propitious seniority agreement than Supplement CC could have been obtained for the Class. First, although concession of its Allegheny-Mohawk rights left the Class in an admittedly weak bargaining position, the Class received in exchange for its waiver American‘s promise to use its “reasonable best efforts” to ensure “a fair and equitable process for the integration of seniority.” ALPA brought to arbitration the issue of whether American adhered to its best efforts promise. A favorable outcome could have resulted in the invalidation of Supplement CC. Second, ALPA submitted an opposition to APA‘s application to the NMB for a declaration of single carrier status, and ALPA, through the TWA MEC, requested that the NMB stay extension of APA‘s representational certification pending an investigation into possible interference by American. Success in any of these endeavors would have prevented imposition of Supplement CC, as the single carrier determination and extension of certification were prerequisites to its enforcement. Third, had ALPA attempted to require American and TWA-LLC to negotiate with it the terms of the Class’ seniority integration, or attempted to challenge certification of APA as the certified collective bargaining agent of the former TWA pilots as requested by the TWA MEC, or attempted to seek representational rights of the combined pilots before the NMB, or challenged Supplement CC directly, actions that ALPA failed to take in purported violation of its fair representation duty to the Class, a more favorable integration agreement could arguably have been implemented. Finally, because waiver of the contractual Allegheny-Mohawk provisions did not constitute a clear and unmistakable waiver of statutory bargaining rights under the RLA, compare Gullickson v. Southwest Airlines Pilots’ Ass‘n, 87 F.3d 1176 (10th Cir. 1996), Supplement CC was not the foregone conclusion of the Class’ waiver. Rays of hope were not аutomatically extinguished by virtue of the Class’ waiver of the Allegheny-Mohawk provisions. Indeed, Supplement CC itself did not endtail all of the former TWA pilots.
1. NMB Certification
Appellants argue that the statute of limitations began to run no sooner than April 3, 2002, when ALPA lost
This Court has applied the rays of hope analysis in the absence of any arbitration proceeding. Our discussion of the doctrine makes obvious that its supporting principles are not inherently dependent on the presence of an arbitration proceeding. An arbitration proceeding is merely illustrative of one way in which a union can proffer rays of hope that it will obtain the relief the complaining employee desires in spite of a breach of its duty of fair representation. We have also applied the rays of hope doctrine to a union‘s attempted renegotiation of the terms of a collective bargaining agreement with the employer on behalf of its members. Although the alleged breach of the duty of fair representation occurred during these negotiations, we found that the employees’ potential cause of action against the union did not accrue until the union was decertified, for only then “were the rays of hope extinguished.” Miklavic, 21 F.3d at 556.
Although Supplement CC was executed on November 8, 2001, it was an agreement subject to conditions subsequent-namely, that the NMB would render a single carrier determination and designate APA as the certified collective bargaining agent for all pilots. As stated earlier, ALPA and TWA MEC formerly opposed these determinations before the NMB. Had any of these conditions subsequent failed to transpire, the transition agreement between TWA-LLC and ALPA would have remained in effect at least until renegotiation with ALPA, and further bargaining on the issue of seniority negotiation would have occurred. Thus, rays of hope remained at least until these conditions subsequent were satisfied, rendering effective and binding Supplement CC, and ALPA lost representation rights as the Class’ bargaining agent.
Rays of hope had to extend until at least April 3, 2002, when the NMB certified APA as the sole bargaining agent for all American pilots. As suit was filed on September 3, 2002, the action was timely. We do not rest solely upon the April 3, 2002 date because, as discussed below, we believe that rays of hope extended until April 18, 2002, when the adverse arbitration decision was rendered.
2. The Arbitration Proceeding
Where a union represents the employee in an arbitration proceeding and proffers rays of hope concerning the possibility of success in spite of its breach, this Court has held that the employee‘s cause of action does not accrue until the arbitration board denies the employee‘s claim. Childs, 831 F.2d at 436; Whittle, 56 F.3d at 490. Although forcing a plaintiff to delay pursuing a meritorious duty of fair representation claim during fruitless representation by the union until the arbitration or grievance board issues its final decision sacrifices the policy of avoiding futile administrative procedures, this Court has determined that this policy is outweighed by the important federal
Pursuant to this approach, the Class’ claims against ALPA accrued when the adverse arbitration decision was rendered on April 18, 2002. The instant action was filed on September 3, 2002, within six months of accrual.
In the instant case, ALPA pursued an arbitration against American on behalf of the former TWA pilots in an effort to establish that American did not fulfill its promise to use reasonable best efforts to ensure a fair seniority integration process. In instituting the grievance, ALPA sought to prevent enforcement of Supplement CC. Thus, a successful arbitral outcome would have remedied and/or rendered moоt ALPA‘s supposed breaches. Had Supplement CC been invalidated, ALPA could have pressed American and TWA-LLC to bargain directly with it concerning a seniority integration agreement for the Class. Furthermore, Supplement CC‘s abrogation would have rendered moot Appellants’ assertions that ALPA violated its duty of fair representation through its failure to seek representational rights of the combined pilot group before the NMB, its failure to challenge certification of APA as the certified collective bargaining agent of the former TWA pilots as requested of them by the TWA-MEC, and its failure to take action to challenge Supplement CC.
ALPA‘s attempt to distinguish Childs and Whittle on the basis that the breaches of the duty of fair representation asserted against the unions in those cases involved the unions’ conduct during the grievance proceeding or arbitration proceeding is unpersuasive. Although both cases arise in that posture, the reasoning espoused in Childs and Whittle justify its application to situations where the union breach occurs outside the context of the arbitration proceeding itself. Indeed, the instant suit represents such an example. While the breaches asserted against ALPA are unrelated to its conduct during the arbitration, a favorable arbitral outcome would have remedied those breaches, as described above. As such, the polices supporting our reasoning in Childs and Whittle-- that unnecessary federal litigation should be avoided, that administrative procedures should be given “full play,” and that an employee should be spared the “Hobson‘s choice between letting the statute of limitations run and antagonizing his best advocate” Childs, 831 F.2d at 436--are unquestionably furthered here. Moreover, it is significant that this Court has applied the rays of hope analysis in the absence of any arbitration proceeding in Miklavic. Therefore, we refuse to adopt such a narrow interpretation of this precedent when the policies founding them are undoubtedly furthered in circumstances that differ from those decisions’ exact factual postures.
It is of no moment that the arbitration proceeding did not specifically challenge the April 2001 waiver agreement
Accordingly, we hold that Appellants’ breach of the duty of fair representation claims against ALPA did not accrue until April 18, 2002.
We briefly address and dispose of ALPA‘s position. ALPA posits that the six- month statute of limitations on a duty of fair representation claim challenging a collectively bargained agreement begins to run immediately upon execution of that agreement. Relying primarily on Local Lodge No. 1424 v. National Labor Relations Board, 326 U.S. 411, 415-417 (1960), ALPA asserts that this rule bars a legal challenge to both the April 2, 2001 waiver agreement that was subsequently memorialized in the Stipulation and Order of the Bankruptcy Court on April 6, 2001, and all the additional duty of fair representation breaches alleged in the Second Amended Restated Complaint which ALPA contends were the inevitable result of the initial waiver, because those claims accrued no later than April 6, 2001. Local Lodge is distinguishable in a very important respect. It rejected the premise that a collective bargaining agreement that contains a union security clause valid on its face, but which was entered into when the union did not have majority status, gives rise to two independent unfair labor practices, one being the execution of the agreement, the other arising from its continued enforcement. Instead, the Supreme Court held that
[w]here . . . [a] collective bargaining agreement and its enforcement are both
perfectly lawful on the face of things, and an unfair labor practice cannot be made out except by reliance on the fact of the agreement‘s original unlawful execution, an event which, because of limitations, cannot itself be made the subject of an unfair labor practice complaint, . . . permitting resort to the principle that § 10(b) is not a rule of evidence, in order to convert what is otherwise legal into something illegal, would vitiate the policies underlying that section. 362 U.S. at 419 (emphasis added).
This reasoning applies to bar Appellants’ claims in the instant suit only if one accepts the proposition that the limitations period associated with ALPA‘s initial breach accrued on April 6, 2001, and the subsequent alleged breaches are all “inescapably grounded,” 362 U.S. at 422, in the initial breach. Because Supplement CC was not the inevitable result of the waiver agreement, as described in connection with our “rays of hope” analysis, and because the subsequent fair representation allegations constitute breaches independent of the initial waiver agreement, this argument is not compelling.
In any event, ALPA contends that any challenge brought regarding Supplement CC accrued no later than November 8, 2001, the date of its execution. Again, the cases relied upon by ALPA in support of this view are materially distinguishable. In each case, the union being sued was the union that entered into the challenged agreement. As such, the employees pressing duty of fair representation claims against the union were already bound by the agreement in issue at the time that agreement was either entered into or ratified. Those plaintiffs suffered a definitive injury upon the date of execution or ratification. See United Indep. Flight Officers v. United Air Lines, Inc., 756 F.2d 1262 (7th Cir. 1985) (initial injury occurred when the union failed to reach an agreement with employer and a subsequent injury occurred when the agreement was signed); Gvozdenovic v. United Air Lines, Inc., 933 F.2d 1100 (2d Cir.) (incoming flight attendants were already employed, members of the union, and thus bound as of the date offending agreement was ratified), cert. denied, 502 U.S. 910, 112 S.Ct. 305, 116 L.Ed.2d 248 (1991). Significantly, Gvozdenovic found that the statute of limitations ran not from when the agreement was entered into, but from when it was ratified (and presumably effective). 933 F.2d at 1106. In contrast, although Supplement CC was executed on
3. Relation Back
Given our determination that the Class’ claims against ALPA accrued on April 18, 2002, Appellants’ claims are timely filed. Appellants initiated a class action against ALPA on September 3, 2002, within the prescribed six-month limitations period. ALPA counters that, with the sole exception of allegedly coercing the Class into waiving the Allegheny-Mohawk provisions, the additional purported breaches of its fair representation duty are time-barred nonetheless because they were not alleged until the Class‘s Second Amended Restated Complaint, filed on January 27, 2003. This is approximately nine months following accrual of the Class‘s breach claims. As explained below, ALPA‘s argument is unavailing because the breach claims specifically enumerated in the Second Amended Restated Complaint relate back to Appellants’ original Complaint pursuant to
(c) Relation Back of Amendments. An amendment of a pleading relates back to the date of the original pleading when . . . (2) the claim or defense asserted in the amended pleading arose out of the conduct, transaction, or occurrence set forth or attempted to be set forth in the original pleading.
In accordance with the general theory of liberalized pleading in the federal system, Rule 15(c) is premised on the notion that a party is not entitled to the protection of the statute of limitations based upon the later assertion by amendment of a claim or defense that arises out of the same conduct, transaction, or occurrence set forth in the timely filed original pleading. 6A Wright, Miller & Kane, Federal Practice & Procedure § 1496 (2d ed. 1990). Thus, amendments that restate the original claim with greater particularity or amplify the factual circumstances surrounding the pertinent conduct, transaction or occurrence in the preceding pleading fall within Rule 15(c). See, e.g., Clipper Exxpress v. Rocky Mt. Motor Tariff Bureau, Inc., 690 F.2d 1240, 1259 n.29 (9th Cir.), cert. denied, 459 U.S. 1227, 103 S.Ct. 1234, 75 L.Ed.2d 468 (1982).
The breach clаims which the Class asserted by amendment arose out of the same “conduct, transaction or occurrence set forth . . . in the original pleading,” and therefore under Rule 15(c) of the Federal Rules of Civil Procedure the amendments relate back to the date of the original complaint. Consequently, Appellants’ claims charging ALPA with breaches of its duty of fair representation are timely.
C. Failure to State a Claim
The District Court alternatively dismissed four of Appellants’ breach of the duty of fair representation claims for failure to state claims upon which relief can be granted. For the following reasons, we reverse.
The District Court treated together Appellants’ allegations that ALPA breached its duty of fair representation by failing to seek representational rights of the combined pilot group before the NMB, and by failing to challenge certification of APA as the collective bargaining agent for the combined pilot group before the NMB. In finding that these allegations failed to state a claim for relief, the District Court relied on Dycus v. NLRB, 615 F.2d 820 (9th Cir. 1980). The Ninth Circuit‘s opinion in Dycus, which involved a discharged employee‘s petition for review of an order of the NLRB dismissing an unfair labor practice complaint issued against two union locals, concurred with the Board‘s statement that “Local 598‘s withdrawal as bargaining agent did not constitute a breach of the duty of fair representation.” Id. at 826 n.2. Dycus, however, does not stand for the proposition that a union‘s withdrawal as a bargaining agent never constitutes a breach of the duty of fair representation. The withdrawal must be done in good faith and for a proper purpose. “An exclusive bargaining agent may avoid its statutory duty to bargain on behalf of the unit it represents by unequivocally and in good faith disclaiming further interest in representing the unit. A disclaimer will not be given effect . . . if it is made for an improper purpose . . . .” Id. at 826 (internal citations omitted). Because Appellants aver that ALPA faced a conflict of intеrest in representing the former TWA pilots arising from an active organizing campaign to bring American pilots into ALPA with the knowledge and approval of APA, it is premature to dismiss these duty of fair representation claims at this time. If Appellants prove their allegations that ALPA failed to take specific actions on behalf of its members for an improper purpose or in bad faith, they may obtain relief for ALPA‘s breach of its fair representation duty.
For the foregoing reasons, we reverse the District Court‘s opinion on Count I of the Second Amended Restated Complaint and remand to permit the parties to engage in discovery. It is our belief that at this stage of the proceedings Plaintiffs should be given a fuller opportunity for discovery relating to Count I and permitted to ascertain if there is any factual support for their claims. At this point we ask “not whether a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the claims.” Scheuer v. Rhodes, 416 U.S. 232, 236 (1974), overruled on other grounds, Harlow v. Fitzgerald, 457 U.S. 800 (1982). It may be that ALPA properly carried out its duty of fair representation and there was nothing ALPA could realistically accomplish under difficult circumstances. But it is too early to decide this issue at this point.
Count II
A. Alleged Breaches of the Duty of Fair Representation by APA Prior to April 3, 2002
Count II of the Second Amended Restated Complaint asserts against APA a
A union has the statutory duty to represent all members of the appropriate bargaining unit fairly. See Humphrey v. Moore, 375 U.S. 335, 342 (1964). The scope of the duty of fair representation is commensurate with the scope of the union‘s statutory authority as the exclusive bargaining agent. Accordingly, a member of the bargaining unit has a cause of action against the union for breach of that duty. Vaca v. Sipes, 386 U.S. 171, 186 (1967). Conversely, the union‘s statutory duty of fair representation does not extend to those persons who are not members of the pertinent bargaining unit. Allied Chem. & Allied Workers v. Pittsburgh Plate Glass Co., 404 U.S. 157, 181 n.20 (1971) (holding that because retirees are no longer members of the bargaining unit, the union has no duty to represent them in negotiations with the employer). In other words, exclusive representation is a necessary prerequisite to the statutory duty to represent fairly. Sipes, 386 U.S. at 177.
Recognizing the general principle that a labor union‘s statutory duty of fair representation extends only to the bargaining unit it exclusively represents, Appellants argue that when two employee groups are combined, the duty of fair representation arises from the inclusion or impending inclusion within the bargaining unit that the integration process seeks to create. The cases relied upon by Appellants, however, do not support this contention. With one exception that is not applicable in the present case, none of the cases cited by the Class stand for the proposition that a union‘s duty to a group of employees may attach before those employees formerly enter the pertinent bargaining unit. Instead, as explained below, the finding in each of these cases that the relevant union‘s purported unlawful actions implicated a duty of fair representation occurred in the context of plaintiffs-employees who were members of the pertinent bargaining unit at the time the union took the allegedly unlawful actions.
In Brotherhood of R.R. Trainmen v. Howard, 343 U.S. 768 (1952), the case illustrating the “exception” alluded to above, the Supreme Court held that a union may not use the powers accorded it under the law for the purposes of racial discrimination against employees who are not members of the bargaining unit represented by the union. The Supreme Court emphasized the narrowness and limited reach of this opinion in Allied Chemical: “But whatever its theory, [Howard] does not require a union affirmatively to represent non-bargaining unit members or to take into account their interests in making bona fide economic decisions on behalf of those
Notes
I understand that you wish to have confirmation of American‘s commitment on its part with respect to process for resolving integration of seniority. For its part American Airlines, Inc. (“American“) agrees to use its reasonable best efforts with its labor organization represеnting the airline pilots craft or class to secure a fair and equitable process for the integration of seniority. In that regard, American will engage a facilitator to organize meetings with the labor organizations representing airline pilots and American and TWA-LLC. American agrees to adopt the procedures that result from this process for seniority integration.
