Lead Opinion
Plaintiff CSX Transportation Inc. appeals the district court’s decision granting a motion to dismiss for defendants, Brotherhood of Maintenance of Way Employes (BMWE or “the union”) and several union members, on the grounds that a railroad cannot obtain monetary damages under the Railway Labor Act (RLA), 45 U.S.C. §§ 151-188, fob an illegal strike by the union. The majority affirms the district court and holds that monetary damages are never awardable under the RLA for a strike over a minor dispute. I, however, dissent from this holding.
I.
In September of 1990, CSX Transportation Inc. assigned part of a “stationary” track gang headquartered in Cynthiana, Ky., to perform track repairs away from its headquarters. CSX provided a truck driver to take lunch orders from gang members and bring their lunches to the job site. On September 19, 1990, defendant F.N. Simpson complained to CSX that CSX was violating the collective bargaining agreement by having these union members eat lunch on the job site instead of at the motel where the union members had been meeting each day. The union members contended that this was a “major dispute” under the RLA and that CSX was violating the RLA’s status quo obligations under the RLA by changing a term of employment. CSX countered that this was a minor dispute.
On September 20, 1990, CSX brought suit against the BMWE and union members Mac Fleming, Neil J. Marquar and F.N. Simpson for declaratory, injunctive and compensatory relief. On September 22, 1990, the union approved a strike over the lunch dispute. On September 24,1990, at 5 a.m., the union began a nine-state strike against CSX. That same day, at 10:35 a.m., CSX obtained a temporary restraining order, enjoining the strike. The parties then agreed to submit the dispute to arbitration as required by the RLA, and the arbitration panel upheld CSX's view that this was a minor dispute. ■ The dispute was resolved through this arbitration process.
CSX, however, continued this action for compensatory relief. In its amended complaint filed February 11, 1991, CSX claimed that despite the swift injunctive relief, the strike had disrupted its business and delayed its trains, and also had stalled shipments to the Persian Gulf War. On May 3, 1991, the district court granted BMWÉ’s motion to dismiss, finding that no court had allowed damages in this situation and that Congress had failed to “affirmatively approve such remedies.” On appeal, plaintiff-appellant CSX contends that damages should be available under the RLA because
II.
In reviewing defendant’s motion to dismiss, the standard of review that we must apply is that, “to be granted, there must be no set of facts which would entitle the plaintiff to recover. Matters outside the pleadings are not to be considered, and all well-pleaded facts must be taken as true.” Jackson v. Richards Medical Co.,
As the arbitration panel found and the district court recognized, this lunch controversy constitutes a minor dispute, and therefore defendants violated the RLA by striking over a minor dispute.
The question of whether monetary damages are available under the RLA for an illegal strike is one of first impression for this Circuit, and only one other circuit has addressed this issue. See Burlington Northern Ry. v. Brotherhood of Maintenance of Way Employees,
In Franklin, the Court addressed whether an implied right of action under Title IX of the Education Amendments of 1972, 20 U.S.C. §§ 1681-1688, supports a claim for money damages. The Court held that money damages are available under Title IX, and it indicated that once a right has been implied under a statute, courts need only decide what remedies are available under that statute. Id. at -,
As we have often stated, the question of what remedies are available under a statute that provides a private right of action is ‘analytically distinct’ from the issue of whether such a right exists in the first place. Davis v. Passman,442 U.S. 228 , 239,99 S.Ct. 2264 , 2274 [60 L.Ed.2d 846 ] (1979). Thus, although we examine the text and history of a statute to determine whether Congress intended to create a right of action, Touche Ross & Co. v. Redington,442 U.S. 560 , 575-76,99 S.Ct. 2479 , 2489 [61 L.Ed.2d 82 ] (1979), we presume the availability of all appropriate remedies unless Congress has expressly indicated otherwise. Davis, supra442 U.S., at 246-47 ,99 S.Ct. at 2277-2278 . This principle has deep roots in our jurisprudence.
Id. The Franklin Court relied on Bell v. Hood,
A.
Applying the Franklin framework to
According to Franklin, because the Supreme Court has already implied a right of action under the RLA where the union conducts or threatens an illegal strike, we need not undertake an analysis, using the line of Supreme Court cases discussing implied rights,
B.
In determining whether Congress has expressly intended to limit the presumption that all appropriate remedies are available under the RLA, Franklin instructs that ordinarily it is futile to resort to the traditional statutory interpretation tools of examining the text and legislative history of a statute because Congress usually has not spoken about remedies under a right that the Supreme Court, rather than Congress, created. Franklin, — U.S. at -,
At the. time of the RLA’s enactment in 1926, the Supreme Court “regarded the denial of a remedy as the exception rather than the rule.” Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Curran,
C.
As noted above, the Supreme Court pointed out in Franklin that legislative history ordinarily is not helpful in determining what remedies are available under a federal statute from which the courts already have implied a right of action. However, this is not the usual case where because the statute itself “supported no express right of action, it is hardly surprising that Congress also said nothing about the applicable remedies for an implied right of action.” Franklin, — U.S. at -,
It is clear from the legislative history that Congress did not intend to fashion any remedies in the RLA itself, but instead intended that the courts would decide what remedies were necessary to enforce the RLA. See 1-4 The Railway Labor Act — A Legislative History (1988) [hereinafter Legislative History ].
[I]t is our understanding from the hearings that the parties have agreed in the main upon a procedure whereby these boards will be established. Now, then, if one party to the dispute shows no inclination whatever to carry out the terms and provisions of this act there is a violation of a very important legal obligation that is laid down in the law, and that is enfor-cible [sic] in the courts.
Legislative History, supra, at 282-83.’ The dialogue continued:
MR. NEWTON of Minnesota: ... That is, there is no compulsion to do or not to do specific acts; but there are imposed upon the parties, in the interests of the public and the maintenance of uninterrupted service, certain duties. The violation by either party of these duties would call for appropriate action in the courts of law and equity by the aggrieved party or the public.
MR. SPROUL of Kansas: In what way? Where, is there any such provision?
MR. NEWTON of Minnesota: Through the theory of the common law. The duties are laid down. The law for enforcement would be developed in the courts after the obligations are made and understood.
MR. GARRETT of Tennessee: ... Does the gentleman mean that the matter to which we have just been referring can be enforced now by mandatory injunction? MR. NEWTON of Minnesota: I mean that there are obligations imposed by this bill upon both carrier and employee; that these obligations can be enforced in the law and equity courts just the same as other obligations and duties are enforceable in those courts....
Legislative History, supra, at 283 (House Debate, February 24, 1926).
MR. WHEELER: They have simply said in so many words, practically, that after the 60 days provided, if they violate any of the provisions, the roads can go into court and get an injunction against them. They have offered to have any award of this board entered as a judgment in the courts of the country, and if they violate the provisions of the award, under the decisions of the Supreme Court the roads can sue them in damages.
Legislative History, supra, at 549-50. Later Senator Wheeler commented:
[I]n the event that a strike is threatened or a dispute arises under this bill, the men agree not to go on a strike for 60 days, while the whole question is being thrashed out in its different stages; and if they attempt to go on a strike, if the men should violate the láw in any respect, then the railroads and the Government would have the right to go into court and get out an injunction to prevent them from going ahead with the strike. If the men violate the provisions of this law, the railroads or the Government can go in and sue the unions for a violation of their contracts and take away from them the money that they have saved in their treasuries. Not only that, but after they have finally come to an agreement it is made binding upon the parties by making it a court record.
Id. at 559.
Thus, the legislative history indicating Congress’s intent that the courts would enforce the RLA with all available remedies, as well as the Franklin presumption of the full range of remedies, indicate that we have the power to enforce the RLA with any appropriate remedy. We note that the right of action implied by the Supreme Court in Chicago River was to enforce compliance with the RLA. That right of action is not merely for the specific remedy provided in that case — injunctive relief — but a general right of action that can be enforced with any appropriate remedy. •
III.
The only question, then, is whether a damages remedy is appropriate to compensate. a railroad for a union’s illegal strike over a minor dispute. , The district court disposed of this case on a motion to dismiss because it believed that damages can never be appropriate in such a situation. Accordingly, the district court did not examine the particular facts surrounding this case. The majority affirms this result. I, however, would reverse the district court’s granting of the motion to dismiss for the reasons outlined below. I would hold that there may be circumstances in which a railway could recover damages from a union for an illegal strike over a minor dispute. Because the appropriateness of a remedy must be determined on a case-by-case basis, I would remand the case to the district court to deny the motion to dismiss and to' permit discovery and the factual development necessary to permit the district court
A.
A brief overview of the RLA is useful in examining the appropriateness of a damages remedy for an unlawful strike. The RLA was passed in 1926 as a joint effort of labor and management that was ratified by Congress and the President. Chicago & N.W. Ry. v. United Transp. Union,
The railroads and their employees were invited by the' President to reach an agreement. They have compromised their differences and have presented their agreement to Congress, and we are asked to examine it and either approve it or reject it.
Legislative History, supra, at 312.
The RLA has five stated purposes:
(1) To avoid any interruption to commerce or to the operation of any carrier engaged therein;
(2) to forbid any limitation upon freedom of association among employees or any denial, as a condition of employment or otherwise, of the right of employees to join a labor organization;
(3) to provide for the complete independence of carriers and of employees in the matter of self-organization to carry out the purposes of this chapter;
(4) to provide for the prompt and orderly settlement of all disputes concerning rates of pay, rules, or working conditions;
(5) to provide for the prompt and orderly settlement of all disputes growing out of grievances or out of the interpretation or application of agreements covering rates of pay, rules, or working conditions.
45 U.S.C. § 151a. The Supreme Court, however, has held that Section 2, First, 45 U.S.C. § 152, First, is “the heart” of the RLA. Chicago & N. W. Ry.,
In this situation the parties have been unable to agree. They are in disagreement, but under this plan which has been agreed to they agree to maintain the status quo. And, gentlemen of the House, this will give the public more rights and will do more to enable them to maintain continuous, uninterrupted transportation upon a disagreement and deadlock than any other provision that has been written into law.
Legislative History, supra, at 291.
As noted earlier, the RLA seeks to avoid interruption of service by requiring that all “minor disputes”
B.
It is important to examine the nature of the claim that CSX asserts here. CSX does not merely seek damages for a minor dispute, but instead seeks damages resulting from the union’s unlawful strike over a minor dispute. In fact, the lunch dispute itself was later submitted to arbitration and resolved there as required by the RLA. CSX’s claim, then, cannot be .equated with an attempt to bypass the RLA’s arbitration procedures and take a minor dispute into federal court in order to get relief not available in the arbitration process. Such an attempt to bypass the RLA’s procedures clearly would be impermissible. McKinney v. International Ass’n. of Machinists & Aerospace Workers,
Neither are the circumstances surrounding the CSX claim analogous to the circumstances in Kaschak v. Consolidated Rail Corp.,
While there is no doubt that an employee may not opt to have his minor dispute resolved before a court rather than the Board, that is not the situation which Kaschak’s claim presents to this court. Kaschak contends that he never had the chance to choose between the Board and the district court. Rather, he claims that he requested the Union to present his grievance to the Board and that the time for individual resort to the Board passed while he was relying on the Union to represent him.
Id. at 908. The Kaschak court, then, permitted the plaintiff to come to federal court despite the RLA’s conciliatory provisions only because the union, one of the players under the RLA scheme, frustrated the RLA’s process so that it could not have worked for this plaintiff.
In contrast, the claim that CSX makes here is not the kind of claim which could be heard by Adjustment Board arbitrators. That Board is only charged with handling minor disputes by interpreting collective bargaining agreements and making awards, not with enforcing the RLA’s provisions. Chicago & N.W. Transp. Co. v. Railway Labor Executives’ Ass’n,
C.
The appropriate means of enforcing a right under the RLA must be determined on a case-by-case basis. In Kaschak,
The Supreme Court has repeatedly addressed the issue and determined that the provisions of the RLA are more than mere exhortations to the parties, creating legal obligations enforceable by whatever means appropriate ...
The question remaining is which are the appropriate means for the enforcement of the obligations which have been created between Conrail, the Union and Kaschak. Generally, the propriety of the*371 means of enforcement is to be determined on a ease-by-case basis.
Id. at 906 (citations omitted). In light of Kaschak’s reasoning, I would not hold, as the majority does, that there can be no case in which a damages remedy is both appropriate and necessary to enforce the RLA’s prohibition against illegal strikes. .
In Chicago River, the Supreme Court permitted enforcement of the RLA’s goals through injunctions against illegal strikes over minor disputes. Chicago River,
Here, too, the district court correctly determined that CSX’s request for an injunction to stop a strike over a minor dispute was appropriate pursuant to Chicago River. In doing so, the district court could only have issued an injunction because damages did not provide an adequate remedy; damages could not prevent the strike from occurring, and the strike, resulting in the interruption of service, constitutes the damage to a railroad. However, merely because an award of damages was found to be inadequate, and thus the injunction was appropriate to stave off the harm that damages could not have prevented, does not mean that damages are not an appropriate remedy to compensate for the strike and deter further strikes. Cf. Bivens v. Six Unknown Named Agents of Fed. Bureau of Narcotics,
As in Franklin, here equitable relief may not be súfficient in itself to enforce the RLA’s goals or afford CSX an adequate remedy. See Franklin, — U.S. at -,
D.
The union argues, and the majority concurs, that permitting damages today may upset the balance of power that has developed over the years between labor organizations and railways under the RLA. Because the RLA was bargained for by labor and railways long ago and, until now, no' monetary damages have been awarded to remedy illegal strikes, the majority worries that to provide such damages now is to risk upsetting this bargained-for relationship between the parties. I disagree.
In Kaschak, a panel of this Court commented on “the.unique history behind the RLA.”
Though formulated as a piece of federal legislation, “it was, and was acknowledged to be, an agreement worked out between management and labor, and ratified by the Congress and the President.” The provisions of the RLA are, thus, enforceable as .quasi-contractual obligations, even absent a § 301-like provision saying so.
First, damages are typically available under a contract, and thus damages could be appropriate to enforce this joint effort of labor and management. Second, both labor and management bargained for the provisions of the RLA and thus should be bound by them as parties to the quasi contract. In 1934, Section 3, First was added to the RLA, creating the National Railroad Adjustment Board and making it compulsory for minor disputes to be resolved by the Adjustment Board. 45 U.S.C. § 153, First. As noted in Chicago River,
In addition, both railroads and unions have been permitted damages as part of the negotiation and arbitration processes set up by the RLA to resolve minor disputes. See McKinstry Co. v. Sheet Metal Workers’ Int’l Ass’n.,
The majority further contends that permitting a damages remedy will, deter legiti: mate strike activity by labor organizations. The majority fears that legitimate strikes over major disputes, arising when the union believes that the, railroad has violated the status quo, may be deterred out of fear that the controversy eventually will be de
A holding that monetary damages may be appropriate to remedy an illegal strike would have no greater chilling effect on the unions’ legitimate strike activity than the availability of monetary damages against the railroads for violations of the status quo would have on legitimate activity by the railroads. The RLA’s provisions impose reciprocal obligations on unions and management, and nothing in such a holding implies that monetary damages are not available to the union as well as to the railroads to remedy violations of those obligations. See, e.g., Brotherhood of Locomotive Engineers v. Missouri-Kansas-Texas Ry.,
Under the majority’s view that a railway cannot obtain damages even for strikes over disputes that are clearly minor ones, a railway’s only recourse is injunction to halt the illegal strike. I am not prepared to say that an injunction, although an important remedy, will always be adequate to prevent and to compensate for illegal strikes by unions. Furthermore, even if the union, out of fear of being subject to damages, should opt not to strike over a dispute as to whose character (i.e., major or minor) it was legitimately. uncertain, the union is still left with several options. It can go to the federal courts, just as a carrier can, to enjoin the railway from violating the status quo provisions. Detroit & T.S.L.R.,
the machinery of the Railway Labor Act channeled these economic forces, in matters dealing with railway labor, into special processes intended to compromise them. Such controversies, therefore, are not the same as those in which the [remedy] strips labor of its primary weapon without substituting any reasonable alternative.
Chicago River,
There may well be an element of uncertainty in the precise amount of damage sustained by the Union. But established principle dictates that the burden of that uncertainty must fairly rest on the wrongdoer.... In such casé, while the damages may not be determined by mere speculation or guess, it will be enough if the evidence show [sic] the extent of the damages as a matter of just and reasonable inference, although the result be only approximate. The wrongdoer is not entitled to complain that they cannot be measured with the exactness and precision that would be possible if the case, which he alone is responsible for making, were otherwise.
Id. at 822.
Although I recognize that Bangor is unique in awarding damages to a union from a carrier, there is no reason to find that a damages remedy should not be reciprocal, especially in light of the RLA’s primary goal of avoiding interruptions in service. As the Supreme Court stated in Chicago River,
IV.
Because the RLA is a relatively unformed statute, few decisions have spoken about damages under the RLA and only a handful about damages for an unlawful strike. I recognize that the Supreme Court has not directly spoken on this issue.
In Brown, decided one year after Chicago River, the Fifth Circuit held that damages were not available to compensate a carrier for an illegal strike. The Brown court held:
The Supreme Court has held that a major purpose of this Act was to provide a machinery for settling railway labor disputes in a manner that would prevent or minimize strikes ... However, it does not follow that Congress has, by this announcement, even though stated in terms of “duty,” intended to or succeeded in setting up a statutory right of action for damages for a breach of this duty. Where Congress sought to set up a right of action for damages for breach of duty in other management labor situations, it enacted á statute expressly spelling out the nature of the right of action. See 29 U.S.C.A. § 187, and so also in creating a right of action in the civil rights field. 42 U.S.C.A. §§ 1983, 1985, 1986. We do not think that Congress*377 here intended to or did create a new statutory right of action for damages of the nature declared upon by the plaintiff in Count One.
Id. at 155.
While I agree that Brown is not distinguishable from Burlington Northern and recognize that Brown is the controlling authority in the Fifth Circuit, I disagree with the holdings of our sister circuit in those cases. Brown relies on the mistaken belief that Congress must spell out all available remedies when it cares to provide them, and that because the RLA fails to spell out a damages remedy, none exists. Brown confuses the distinction between a right of action and a remedy, and mistakenly holds that congressional silence is enough to foreclose a remedy. As discussed earlier, the Franklin Court made clear that “what remedies are available under a statute that provides a private right of action is ‘analytically distinct’ from the issue of whether such a right exists in the. first place.” Franklin, — U.S. at -,
Neither am I convinced by the district court cases cited by appellees. National Airlines, Inc. v. Airline Pilots Ass’n Intern.,
The majority argues that this smattering of- cases constitutes the “common law” of the RLA governing the issue of whether monetary damages can be an appropriate remedy under the RLA. I would argue that it is neither wise nor appropriate to
Neither would I find, as the majority does, that-these cases are sufficient to shift the burden to the party seeking damages to demonstrate why monetary damages are appropriate in a particular case.. If Franklin requires that we presume the availability of all appropriate remedies and Kaschak requires that the appropriateness of a given remedy be determined on a case-by-case basis, it would seem to me that the legislative, history of the RLA requires that the, presumption be that monetary damages are appropriate unless under the particular circumstances of the case they are shown not to be. I read the majority’s opinion as holding that (1) while monetary damages are available under the RLA, (2) monetary damages can never be appropriate to remedy the damage resulting to a railroad from an illegal strike over a minor dispute, and (3) that for such damages to be held to be appropriate, the railroad must demonstrate their appropriateness, which (4) the railroad in this case has failed to do. I believe that this holding is intrinsically inconsistent. Either damages can never be appropriate to remedy an illegal strike over a minor dispute, in which case, damages are not available as a matter of law in those situations and nothing which the railroad could present would make any difference, or;' while damages are available as a matter of law, the appropriateness or non-appropriateness of such damages must be specifically demonstrated under the facts of the particular case. The majority opinion, however, appears to hold that monetary damages are never available in these situations, and that the railroad had the burden to demonstrate that damages are appropriate and failed to sustain that burden. Even if the majority’s opinion is read as meaning that the railroad’s burden here was to demonstrate broad changes in the industry or in the relationship between the unions and the railways that would justify the awarding of monetary damages, those changes would be matters of fact. Inasmuch as this- case was decided on a motion by the union to dismiss, the .railroad has had no opportunity to develop the factual basis which might support its contention that under the facts of this case, monetary damages are indeed appropriate.
y.
For the reasons outlined above, I would hold that there may be circumstances in which monetary damages are available to a railroad which suffers damages from a union’s strike over a minor dispute, in violation of Section 153, First and Section 152, First of the RLA.
Notes
. The RLA requires that during a "major dispute” neither the railroad nor the union change the status quo by altering a term or condition of employment. 45 U.S.C. § 152, Seventh; § 152, First; § 156; §160. The RLA also requires the parties to arbitrate all "minor disputes” and forbids strikes over minor disputes. See supra note 2 for a more detailed discussion of major and minor disputes.
. Although the "major dispute”/"minor dispute” terminology is not used in the language of the RLA, the Supreme Court first madé this distinction in Elgin, Joliet & Eastern Ry. v. Burley,
In contrast, "major disputes" result from a disagreement in the bargaining process for a new contract or over a change in a term of an existing contract for pay, rules and working conditions. 45 U.S.C. § 152, Seventh. When a major dispute arises, neither party can alter the status quo by striking or altering pay, rules or working conditions until the parties have exhausted the negotiation and arbitration procedures set up by the RLA. Id. § 152, Seventh; § 155, First; § 156; § 160. These procedures include giving notice of the proposed change in pay, rules, or working conditions, 45 U.S.C. § 156; conferring about the change, id. § 152, Second; seeking conciliation services from the National Mediation Board, id. § 155; agreeing, if possible, to submit the dispute to arbitration, id. § 155, First; § 157; and having the President call together an emergency board to investigate whether the dispute threatens to interrupt service, id. § 160. If all of these negotiation steps fail, unions then may strike and management can alter the status quo. See Detroit & T.S.L.R. v. United Transp. Union,
. Before Franklin, the Supreme Court and other courts at times have blurred the distinction between a “right” and a "remedy" and have used the terms interchangeably. See, e.g., Cort v. Ash,
. We do not.accept appellees’ argument .that Franklin’s reasoning is applicable only to civil rights statutes. The initial discussion of rights and remedies in Franklin uses broad language to set out general principles governing the availability of particular remedies under any federal statute. It does not restrict itself to a discussion of Title IX and other civil rights statutes. This is clear from the fact that Franklin discusses a long line of cases in which the Court found a remedy where there was a right, including cases such as Marbury v. Madison,
. The only right or remedy set out in the RLA is a criminal prosecution section. 45 U.S.C. § 152, Tenth. As noted in the subsequent discussion of the RLA's legislative history, the legislative history indicates that this absence of remedies was intentional because Congress intended the courts to fashion remedies to enforce the RLA. 1 The Railway Labor Act of 1926 — A Legislative History, at 235, 282-84 (1988).
. The Supreme Court has also authorized injunctions under the RLA in other contexts. See, e.g., Texas & N.O.R. v. Brotherhood of Ry. & S.S. Clerks,
. In a series of cases, the Supreme Court has discussed implied rights of action and the remedies available under those rights. See Texas & P. Ry. v. Rigsby,
. In Kaschak v. Consolidated Rail Corp.,
We do not feel, however, that a remedy need be implied in this case; the unique nature of the RLA relieves us from having to go that far. As noted, the RLA is quasi-contractual in nature, creating legally enforceable obligations enforceable by whatever means appropriate. Our inquiry regarding Board jurisdiction only requires that we ask to what extent the statute itself has defined the appropriate means for enforcing a limited class of these obligations. The only question under the RLA is where an existing remedy may be enforced.
Id. at 909 n. 13.
This language makes clear that in Kaschak we found that the quasi-contractual nature of the RLA made it unnecessary to imply a right in that situation. We found the RLA to be quasi-contractual because the statute arose from an agreement between labor and management that Congress and the President later ratified. Although Kaschak's quasi-contract analysis may provide another reason why we need not imply a cause of action for an illegal strike, here we do not need to base an implied cause of action for an illegal strike on quasi-contract principles because the Supreme Court already has explicitly created a cause of action in this situation in Chicago River,
. Defendants-Appellees argue that when amending the RLA, Congress had the opportunity to permit damages, but "specifically declined to create such a cause of action." Appellees' Brief at 34. However, Franklin makes clear that silence is not enough to preclude a remedy under an implied cause of action. Instead, Congress must expressly state that damages are not permitted. Franklin, — U.S. at —,
Defendants-Appellees also argue that the Labor Management Relations Act (LMRA), 29 U.S.C..§§ 185 & 187, permits monetary damages for unlawful strikes, but specifically exempts the RLA from application of these provisions. Appellees’ Brief at 34. Section 182 states:
The provisions of this subdivision shall not be applicable with respect to any matter which is subject to the provisions of the Railway Labor Act, as amended from time to time.
29 U.S.C. § 182. While this provision clearly states that the damages provision of the LMRA does not apply to the RLA, this passage cannot
. Justice Scalia, in his concurring opinion in Franklin, criticized the approach taken by the majority in that case, noting, "[W]hat the Court’s analytical construct comes down to is this: Unless Congress expressly legislates a more limited remedial policy with respect to rights of action it does not know it is creating, it intends the full gamut of remedies to be applied.” Franklin, — U.S. at -,
We believe that the RLA, however, presents the very case to which Justice Scalia’s sensible observation does not apply. In enacting the RLA, Congress intended that although it had declined to expressly create rights of action under 'the statute, the courts could, and should, fashion the full gamut of remedies. We note as well that this case is not one in which resort to legislative history is had to "interpret" that which is clear and unambiguous in the language of the statute itself. A study of the legislative history of the RLA, and particularly of the floor debates surrounding its adoption, reveals that Congress, by design, left to the courts the development of the law of enforcement of the statute, both as to the rights of action created under the . statute and the remedies for violations of those rights. That, being the case, we are required to review that history carefully to determine the breadth of remedies available to vindicate the right which the Supreme Court has already implied under the statute.
. Mr. Richberg, attorney for the labor organizations, stated:
We have avoided in the bill in any way of getting up any penalty sections or any sections for the invocation of any judicial authority except in the enforcement of an arbitration award, the thought being this, that so far as this law stated duties imposed upon the parties by act of Congress, if they failed to live up to their duties, and there was any action which a court could take, consistent with the judicial powers and its limitations, to compel the enforcement of that duty as a legal obligation, it would be subject to enforcement. But the law for such enforcement or compulsions should be developed' in the courts, ac*366 cording to the old common-law theory of letting the courts develop the law after the obligations are clearly understood, rather than to write into the law a specific line of penalties and writs of enforcement.
I think if either party showed a willful disregard of the fundamental requirements, that they should make every reasonable effort to make an agreement — in other words, if they refuse absolutely to confer, to meet or discuss or negotiate I think there is a question as to whether there might not be invoked some judicial compulsion, but I would rather see that left to development rather than see it written into the law.
Legislative History, supra, at 283-84.
. See also Legislative History, supra, at 284, discussing the availability of damages in court when a party violates an award or agreement reached through the. RLA’s conciliatory and arbitration provisions:
MR. LAGUARDIA: According to the gentleman, after an agreement has been reached and made a part of the record, then either party may resort to law for damages for violation or to equity for specific performance? MR. NEWTON of Minnesota: Exactly. They may resort to any remedy open in the courts of law or equity.
MR. LAGUARDIA: I mean after an agreement has been entered into and made a record of the court as is provided in this bill. Then if there is any disobedience or noncompliance with the provisions of that agreement, the gentleman means to say that the railroad may go into a court of equity and require specific performance?
MR. NEWTON of Minnesota: I have not given thought to that particular provision about specific performance but every legal right that . inures in the common law could be made use of here to enforce these specific obligations that are laid upon the parties.... If he [the aggrieved party] failed there is not any question but that there would be open to the aggrieved party whatever right there might exist under the principles of law and equity for a violation of the agreement.
.
Now, I have said very clearly, and I want to repeat it, that I have no question but that this imposes the obligation not to carry on any strike movement, not to call a strike — that is, not to have the men suspend work and imposes upon the employer precisely the same obligation that he shall not begin picking off men and discharging them in order to disintegrate the forces; and I think those are equally balanced obligations.
Legislative History, supra, at 292 (quoting Mr. Richberg, attorney for the unions, House hearings, at 276-77).
.
MR. CUMMINS: ... But I think the judgment might very well be one which would, restrain a conspiracy in the nature of a concerted abandonment of employment that would, suspend or interfere substantially with transportation.
MR. REED of Pennsylvania: In other words, a strike would be a contempt of court?'
MR. CUMMINS: It might be. That is to say, I think that under this bill there could be a judgment rendered upon an award which would make a strike a contempt of court.
Legislative History, supra, at 526.
.
MR. WHEELER: ... [I]n this bill labor has conceded practically, and in my judgment absolutely, the power of the Government to go into court and use the injunction in labor disputes.
Legislative History, supra, at 560.
. Both sides believed that they had compromised to form the contract that would become the RLA. "The railroad employees are giving up more under this bill than they have ever given up before in the history of the country.” Legislative History, supra, at 538 (Senator Wheeler). Senator Wheeler later noted: "The executives of the railroad organizations ... have gone further in this bill in giving away the rights to which they are entitled under the Con7 stitution than any other labor organization in this country has ever done ..." Id. at 550. And, Senator Cummins stated:
Both railway executives and railway employees have pledged themselves, so far as men can be pledged under such circumstances, to a due observance of the provisions of the pending bill. It is the child of their joint negotiations, consultations, and deliberations. It has not been imposed upon them ab extra. It is to a very considerable degree, though perhaps not altogether, the offspring of their own unbegrudging volition.
Id. at 700.
. In the Senate debate, Senator Wheeler stated:
[T]he people of the country have been crying for the last 15 years for arbitration and wanting the railroads and their employees to get together. That is what we have been trying to do. We have been trying to avoid strikes and have them get together and settle their differences.
Legislative History, supra, at 538. Later in the debate, Senator Fess commented: "But this Nation could not exist if transportation stopped, for people would starve and freeze. Transportation is absolutely essential, and for that reason ' the public has a paramount interest in it and all of our legislation must reflect that particular item.” Id. at 564.
. See supra note 2 for a discussion of major and minor disputes.
. The RLA’s text reads:
All disputes between a carrier or carriers and its or their employees shall be considered, and, if possible, decided, with all expedition, in conference between representatives designated and authorized so to confer, respectively, by the carrier or carriers and by the employees thereof interested in the dispute.
45 U.S.C. § 152, Second.
The disputes between an employee or group of employees and a carrier or carriers growing out of grievances or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions, including cases pending and unadjusted on June 21, 1934, shall be handled in the usual manner up to and including the chief operating officer of the carrier designated to handle such disputes; but, failing to reach an adjustment in this manner, the disputes may be referred by petition of the parties or by either party to the appropriate division of the Adjustment Board with a full statement of the facts and all supporting data bearing upon the disputes.
45 U.S.C. § 153, First (i).
. Kaschak, in referring to the quasi-contractual nature of the RLA, apparently was not referring to “quasi contract" in the traditional legal sense. The legal definition of "quasi contract” is: "[a]n obligation which law creates in absence of agreement: it is invoked by courts where there is unjust enrichment." Black's Law Dictionary, at 1120 (5th ed. 1979). The Kaschak court, though, was referring to the fact that the RLA was the agreement between labor and railway management and subsequently ratified by Congress. In that context, "quasi" is used as it is defined generally: "as if; in a sense or manner; seemingly; in part.” Webster's New World Dictionary, át 1163 (1972). The "quasi-contract" Kaschak was referring to is “almost a contract." Kaschak was focusing on the unique nature of the RLA and the fact that the legislation was like a contract between labor and management in that the two sides had agreed to the provisions of the RLA before it ever went to Congress and the President for ratification.
. In Brotherhood of R.R. Trainmen v. Toledo, P. & W R.R., 321 U.S. 50, 56,
Other means of protection remain. Suits for recovery of damages still may be brought in the federal courts, when federal jurisdiction is shown to exist. Federal statutes supply criminal sanctions, enforceable in the federal courts, against persons who interfere in speci-. fied ways with the operation of interstate trains or destroy the property of interstate railroads ... With these and other remedies that may be available we are concerned no further than to point out that respondent’s failure to observe the requirements of Section 8 has not left it without legal protection.
Id. at 63,
. Only Denver & R.G. W. R.R. v. Brotherhood of R.R. Trainmen,
. The majority cites this 1987 Burlington Northern case.for the proposition that Congress, not the courts, should be the ones to sanction a damages remedy at this stage in the RLA’s development. This argument is undercut by several factors. First, Congress specifically intended the courts to fashion remedies under the RLA, as is clear from the RLA’s legislative history. And, Congress has amended the RLA without indicating that it now intends to take over the job of fashioning remedies. Second, as a panel of this Court held in Kaschak, appropriate remedies to enforce the RLA are to be determined by the courts on a case-by-case basis.
.The Burlington Northern court cites to an article by Harry Lustgarten, Principles of Railway and Airline Labor Law (1984), which held that it was ."unlikely” that courts in the future would award damages because of the potential impact it could have on unions.- Interestingly, an article cited by the Burlington Northern court for other propositions in fact strongly advocated in favor of a damages remedy for unlawful strikes over minor disputes. See D. Arouca, Damages for Unlawful Strikes Under the Railway Labor Act, 32 Hastings L.J. 779 (1981).
. The Burlington Northern court discounts the Franklin decision with a sentence: “Franklin holds that damages are available in a suit under Title IX. Again, even if this Court were considering the issue on a clean slate, Franklin would not control.”
. The Brown Court noted that Congress, when it wanted to create a right of action for damages under other labor management statutes and under civil rights statutes, "expressly spell[ed] out the nature of the right of action.” It cited to 42 U.S.C. §§ 1983, 1985 and 1986, as well as to the Labor Management Relations Act (LMRA), 29 U.S.C. §§ 185, 187. Brown’s reasoning is undercut by Sullivan v. Little Hunting Park, Inc.,
. I would not, however, adopt CSX’s argument that these damages could be characterized as equitable relief and therefore would not be substantially different from injunctive relief, which is permitted under the RLA. CSX argues that damages would be a penalty or restitutionary measure for the illegal strike. The Supreme Court has held that not all awards of money damages are necessarily legal relief. Chauffeurs, Teamsters & Helpers, Local No. 391 v.
Concurrence Opinion
with whom Judge Jones concurs, concurring in part and delivering the opinion of the court in part.
Judge Batchelder concludes that the Railway Labor Act allows a railroad to recover damages from a union that calls a strike over what is later adjudged to be a minor dispute. Since no court in the 66-year history of the RLA has- published an opinion allowing such damages, we are forced to confront two questions of first impression. First, given the RLA’s silence on remedies, are damages ever available for violations of the Act? Second, if so, are damages appropriate for this type of violation? Judge Batchelder answers both questions in the affirmative. We agree that damages are available under the RLA in some circumstances, but we hold damages are not appropriate here.
In Franklin v. Gwinnett County Public Schools, —. U.S. -,
The RLA contains no provisions for private enforcement. However, the legislative history, much of which Judge Batchel-der quotes, leaves no doubt that Congress intended for the courts to develop remedies. Within four years of the RLA’s enactment, the Supreme Court had held that private parties could enforce its provisions. Texas & N.O. R.R. Co. v. Brotherhood of Ry. and S.S. Clerks,
Since'the RLA contains an implied right of action, Franklin directs us to presume that this right can be enforced by damages in appropriate cases unless Congress has clearly spoken to the contrary. As Judge Batchelder has demonstrated, the legislative history reveals that Congress did not rule out the possibility of damages for violations of the RLA. Therefore, it follows from Franklin that damages are available under the RLA in appropriate cases.
The more difficult question is whether this is an appropriate case for damages under the RLA. We conclude that it is not.
The legislative history of the RLA demonstrates that Congress intended for the courts to develop private remedies on a case-by-case basis.
The federal courts responded to that challenge by developing appropriate private remedies to redress various types of violations of the RLA. See, e.g., Texas & N.O. R.R. Co.,
Historically, however, the courts have been reluctant to find that damages are an appropriate remedy for an RLA violation.
In the 66-year history of the RLA, no federal court has published an opinion holding that a union may recover damages from a railroad or that a railroad may recover damages from a union. On rare occasions,'individual employees have been allowed to recover damages from their unions or their carriers, but the courts have not permitted the railroads and unions to use the club of damages against each other.
Congress intended for the courts to set up a “common law” for the appropriate enforcement of the RLA. We conclude that the common law that has emerged does not contemplate awards of damages between unions and railroads.
Damages awards between railroads and unions are inappropriate because they threaten the delicate balance intended by the RLA. A court’s task in enforcing the RLA “is to implement a remedial scheme that will best effectuate the purposes of the Railway Labor Act, recognizing that the overarching legislative goal is to facilitate collective bargaining and to achieve industrial peace.” International Bhd. of Elec. Workers v. Foust,
In Foust, the Court reversed an award of punitive damages against a union that had breached its duty of fair representation. The Court agreed that punitive damages would induce unions to represent members
With this general background in mind, we now turn to the specific question of whether damages are appropriate to remedy a union’s violation of its duty to refrain from striking over a minor dispute. In 1957, the Supreme Court held that injunc-tive relief is appropriate to enforce the union’s duty to submit such minor disputes to a conference. Brotherhood of R.R. Trainmen v. Chicago River & Ind. R.R. Co.,
One year after Chicago River approved the use of an injunction to stop a strike over a minor dispute, the Fifth Circuit decided that a damages remedy was not available to a railroad that had been injured by such a strike. Louisville & N. R.R. Co. v. Brown,
Eighteen years after Brown was decided, a district court within the Fifth Circuit reaffirmed its holding. National Airlines, Inc. v. Airline Pilots Ass’n Int’l,
The life cycle of labor-management bargaining is heated and oftentimes results in bitter accusations. Representatives attempt to secure the best possible terms for their respective sides. To create a right of action in favor of an employer against a union and its collective bargaining representatives for losses the former incurs in the course of the collective bargaining process would, in effect, give the employer a weapon with which to keep the unions and their agents “in line.” Surely, neither Congress nor the Appel- ■ late Courts would fashion a remedy which would give the employer a lever upon which to gain such an unfair advantage.
National Airlines,
Most recently, the Fifth Circuit reconsidered Brown in Burlington Northern Railway Co. v. Brotherhood of Maintenance of Way Employees,
No published opinion has ever held that a carrier may recover damages against a union for an illegal strike over a minor dispute.
Congress envisioned that the courts would set up a body of law to enforce the RLA. The resulting body of law has not permitted railroads and unions to recover damages against each other generally and,
CSX has made no such demonstration. We have no reason to believe that the need for damages to deter illegal strikes over minor disputes is any greater today than it was when Brown was decided in 1958 or when the RLA was enacted in 1926.
By contrast, the concerns that weigh against such a remedy are as present today as they ever were. In the volatile atmosphere of labor-management relations, the threat of a damages action could upset the balance intended by the RLA.
The problem 'is particularly acute in a case such as' this where, the union cannot know with 'certainty at the time it calls a strike whether a court will later decide that the dispute was minor or major. If damages were available and the union guessed wrong, it would be liable for damages that could deplete the union treasury and impair its effectiveness as the collective bargaining agent. Cf. Foust,
Even if CSX could point to modern developments justifying an award of damages under the RLA, such an argument properly should be made to Congress. Five years ago, the Supreme Court considered for the first time a claim that the RLA implicitly bars secondary picketing. Burlington N. R.R. Co. v. Brotherhood of Maintenance of Way Employes,
We decline, at this advanced stage of the RLA’s development, to find in it an implied limit on a union’s resort to secondary activity. Instead, “if Congress should now find that abuses.in the nature of secondary activities have arisen in the railroad industry ... it is for Congress, and not the Courts, to strike the balance ‘between the uncontrolled power of management and labor to fur- ' ther their respective interests.’ ”
Id. at 452-53,
An award of damages would change the careful balance between labor and management that has evolved in the 66 years since the RLA was enacted. Since CSX has not shown that any change in the industry or the law warrants such a result, we AFFIRM the decision of the district court to dismiss CSX’s claim for damages.
. See 1 The Railway Labor Act of 1926 — A Legislative History at 282-84 (1988) (remarks of Representative Newton, floor manager of the bill: “The law for enforcement would be developed in the courts”); see also Hearings on H.R. 7180 Before the House Commerce Committee, 69th Cong., 1st Sess. 40 (1926) (remarks of labor spokesman D. Richberg: "[T]he law for such
. As Judge Batchelder points out, however, the adjustment boards set up under the RLA have awarded damages in some cases.
. In support of the proposition that damages are generally appropriate under the RLA, Judge Batchelder cites United Industrial Workers v. Board of Trustees of Galveston Wharves,
. However, in an unreported case, a district court, without discussion, awarded damages to a railroad for an illegal strike. Denver & Rio Grande W. R.R. v. Brotherhood of R.R. Trainmen, 58 L.R.R.M. (BNA) 2568 (D.Colo.1965), rev’d on other grounds,
