PIERRE BERNARD, Appellant, v. ALASKA AIRLINES, INC., Appellee.
Supreme Court No. S-15592
THE SUPREME COURT OF THE STATE OF ALASKA
February 12, 2016
No. 7082
Before: Fabe, Chief Justice, Winfree, Stowers, Maassen, and Bolger, Justices. MAASSEN, Justice.
Notice: This opinion is subject to correction before publication in the PACIFIC REPORTER. Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts, 303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email corrections@akcourts.us. Superior Court No. 3AN-13-08887 CI. Appeal from the Superior Court of the State of Alaska, Third Judicial District, Anchorage, Frank A. Pfiffner, Judge. Appearances: Vikram N. Chaobal, Anchorage, and Frederick W. Triem, Petersburg, for Appellant. Gregory S. Fisher and Elizabeth P. Hodes, Davis Wright Tremaine LLP, Anchorage, for Appellee.
O P I N I O N
I. INTRODUCTION
A former airline employee sued his former employer for wrongful termination without first attempting to arbitrate his claims under the provisions of a collective bargaining agreement subject to the federal
II. FACTS AND PROCEEDINGS
In June 2011 Alaska Airlines charged that Pierre Bernard, one of its baggage handlers, had taken part in drafting and sending a threatening text message to a co-worker and had then deleted a recorded conversation relevant to the ensuing investigation. The company terminated Bernard‘s employment.
The employment‘s terms and conditions were governed by a collective bargaining agreement (sometimes abbreviated “CBA“) negotiated by Bernard‘s union, the International Association of Machinists and Aerospace Workers, pursuant to the federal
A few weeks after the August decision a union representative wrote to Bernard informing him that “[i]f the Union brings your case to an arbitration, there is paperwork you must fill out,” and advising him that he “may acquire a lawyer at any time.” The union‘s written notice to Bernard that it had decided not to appeal is dated November 14, 2011, nearly two months after the 30-day appeal deadline had expired. The union informed Bernard that it had thoroughly reviewed his case, concluded that “we could not sustain our position before the System Board of Adjustment,” and closed its file.
In August 2013, two years after the unappealed decision of the secondary hearing, Bernard filed a complaint against Alaska Airlines in the superior court. He alleged a background to his termination: that in 2009 he had filed a sexual harassment complaint against a supervisor and was ostracized as a result; that he was later unfairly disciplined after a co-worker imposed upon him with inappropriate personal demands; and that the allegedly threatening text message for which he was discharged in 2011 had actually been “sent in jest” in response to “a hostile and threatening text from another employee.” He alleged that his termination was in retaliation for his reports of sexual harassment and therefore violated the covenant of good faith and fair dealing.
Bernard opposed the motion and filed an amended complaint, adding allegations that Alaska Airlines had violated a state employment discrimination statute4 and public policy. Alaska Airlines renewed its motion to dismiss on the exhaustion-of-remedies theory, arguing that because the collective bargaining agreement incorporated the company‘s anti-discrimination policies, Bernard was required to seek relief through contractual remedies even for statutory claims, which he had not done.
Bernard moved for leave to file a second amended complaint, this time to add a claim that the union had breached its duty of fair representation by failing to notify him of its decision not to pursue arbitration with the System Board of Adjustment until after the appeal deadline. The superior court denied Bernard leave to add this claim, concluding that it was barred by the six-month statute of limitations for “hybrid claims.”5
Bernard appeals.
III. STANDARDS OF REVIEW
The superior court dismissed Bernard‘s action for lack of subject matter jurisdiction pursuant to Rule 12(b)(1). “We review de novo a superior court‘s decision to dismiss a complaint for lack of subject matter jurisdiction.”6 “In exercising our
This appeal also requires us to interpret a collective bargaining agreement. “Contract interpretation presents a question of law that we review de novo.”8 “When interpreting contracts, the goal is to ‘give effect to the reasonable expectations of the parties.’ ”9 “In determining the intent of the parties the court looks to the written contract as well as extrinsic evidence regarding the parties’ intent at the time the contract was made.”10 “Where there is conflicting extrinsic evidence the court, rather than the jury, must nonetheless decide the question of meaning except where the written language, read in context, is reasonably susceptible to both asserted meanings.”11
Finally, this appeal requires us to interpret the
IV. DISCUSSION
A. Bernard‘s Claims Were Not Subject To Arbitration.
The superior court ruled that Bernard‘s claims were preempted to the extent they relied on the contract and not preempted to the extent they existed independent of the contract. Because it went on to hold that Bernard was required to exhaust his contractual remedies as to both kinds of claims, it did not need to differentiate further between the preempted claims and the non-preempted claims. But because we hold that Bernard was not required to exhaust his contractual remedies, we must begin by deciding whether any of his claims were preempted.
1. The RLA did not preempt Bernard‘s state law claims.
The
As a general rule, “the
Alaska Airlines argues that “garden variety state-law claims for wrongful termination are absolutely preempted under the
We discussed this issue in Norcon, Inc. v. Kotowski, in which we observed that the federal
2 The CBA did not clearly and unmistakably waive the right to sue in court.
An employee may have the right to pursue a claim in state court — because the claim is not preempted by the
“We will not infer from a general contractual provision that the parties intended to waive a statutorily protected right unless the undertaking is ‘explicitly stated.’ More succinctly, the waiver must be clear and unmistakable.”38 In Hammond we adopted the two-pronged test used by the Second and Fourth Circuits, and later the United States Supreme Court, for finding a “clear and unmistakable” waiver: The contract “must either (1) contain an arbitration clause including ‘a provision whereby employees specifically agree to submit all federal causes of action arising out of their
The collective bargaining agreement at issue here does not meet either prong of the Hammond test. First, it lacks “a provision whereby employees specifically agree to submit all . . . causes of action arising out of their employment to arbitration.” Grievances that may “result[] in the loss of pay (suspension and discharge)” are addressed, as described above, through a two-stage hearing process followed by an appeal to arbitration before the System Board of Adjustment. According to the collective bargaining agreement, “[t]he Board shall have jurisdiction over disputes between any employee or employees covered by this Agreement and the Company growing out of grievances or out of interpretation or application of any of the terms of this Agreement.” Although “disputes . . . growing out of grievances” is a very broad category, the agreement further explains the purpose of the Board as “adjusting and deciding disputes or grievances which may arise under the terms of this Agreement, and which are properly submitted to it after exhausting the procedure for settling disputes.” (Emphasis added.) “Proper submission” is further defined: Describing the results of the secondary hearing, the agreement provides that “[i]n the event the issue(s) is not settled satisfactorily, the General Chair may appeal to arbitration within thirty (30) calendar days“; and defining the duties of the System Board of Adjustment, the agreement provides that “[t]he Board shall consider any dispute properly submitted to it by the General Chair of the Union or his/her designee, or by the Representative of the Company.” (Emphasis added.) The agreement thus emphasizes repeatedly that, on the employee side, only appeals to arbitration taken by the union or its representatives are contemplated. There is nothing in the agreement‘s plain language that would lead an
The contract‘s apparent foreclosure of a grievant‘s right to arbitrate if the union declines to do so on the grievant‘s behalf is inconsistent with the first prong of the Hammond test, which requires the employee‘s specific agreement to submit all claims to arbitration; it is also inconsistent with the second prong of the Hammond test, which requires “a broad and general arbitration clause.”41 We emphasize that we are not deciding here whether Bernard, regardless of the language of his collective bargaining agreement, had an individual right to pursue arbitration that he failed to exercise, as Alaska Airlines urges and as the superior court held. We have not decided whether the
The collective bargaining agreement at issue here also lacks the “explicit incorporation of the statutory anti-discrimination requirements” necessary to the second prong of the Hammond test.43 As noted above, the agreement included a general provision incorporating Alaska Airlines’ other rules and policies, stating that employees “shall be governed by the Company‘s General Policy and Operating Manuals, and the System Regulation and Customer Service Manuals and by all other applicable rules, regulations and orders issued by properly designated authorities of the Company, which are not in conflict with the terms of this Agreement.” Among these incorporated policies is the company‘s Code of Conduct and Ethics, which includes this anti-discrimination provision:
The Company is an equal opportunity employer. This means the Company is committed to providing equal consideration in all employment decisions (including, for example, recruiting, hiring, training, promotions, pay practices, benefits, disciplinary actions and terminations) without regard to age, race, color, gender, national origin, religion, marital status, sexual orientation, disability, veteran status or any other classification protected by federal, state, or local laws.
More importantly, the collective bargaining agreement expressly retains Alaska Airlines’ right to modify the referenced policies and codes of conduct unilaterally “during the term of the Agreement.” Even assuming that the agreement contains, by its reference to general policies and codes of conduct, “an explicit incorporation of the statutory anti-discrimination requirements” of Alaska law,44 we could not find a “clear and unmistakable” waiver of the employee‘s right to pursue state law claims in state court when the employer retains a unilateral right to modify or eliminate the language on which the waiver is based.
We hold that the collective bargaining agreement did not clearly and unmistakably waive Bernard‘s right to pursue his state law claims in state court. He therefore had that right and did not need to exhaust his contractual remedies before bringing suit. It was error to dismiss Bernard‘s claims as either preempted by federal law or barred by the exhaustion doctrine.45
B. Bernard‘s Hybrid Claim For Breach Of The Duty Of Fair Representation Was Time-Barred.
In his proposed second amended complaint Bernard included a hybrid claim for breach of the duty of fair representation, based on the union‘s alleged failure to notify him of its decision not to pursue arbitration until after the filing deadline. The superior court dismissed the hybrid claim as time-barred. It found that Bernard “had notice that the grievance process had terminated to his disadvantage” when he received the union‘s notice “that it would not appeal his case on November 14, 2011,” and that his complaint in state court, filed August 16, 2013, “was well outside the six-month window for hybrid claims.” We agree with the superior court‘s decision of this claim.
Employee claims for violation of the duty of fair representation are exceptions to the exclusive jurisdiction of the
But federal law subjects all such claims to the six-month limitations period found in
V. CONCLUSION
We AFFIRM the superior court‘s order dismissing Bernard‘s hybrid claim for breach of the duty of fair representation. We REVERSE the order dismissing Bernard‘s other claims as either preempted or subject to the arbitration provisions of the collective bargaining agreement, and we REMAND for further proceedings consistent with this opinion.
