Lead Opinion
With apologies to the poet,
I. STATEMENT OF THE CASE
In 1981, appellants Paul Montplaisir, Richard Nemi, Roger Wilson, and Robert O’Connell were employed as air traffic controllers (ATCs) at a Federal Aviation Administration (FAA) facility in Nashua, New Hampshire. The Professional Air Traffic Controllers Organization (PATCO), a union to which the four belonged, was the exclusive bargaining representative for all ATCs in the FAA’s employ. PATCO struck — illegally — on August 3, 1981. President Reagan called the strikers’ bluff and ordered the dismissal of those who, like appellants, refused to return to work immediately. Consequently, appellants were cashiered.
Casting about for remediation, appellants invoked diversity jurisdiction, 28 U.S.C. § 1332(a), and brought suit in the United States District Court for the District of New Hampshire against attorney Richard J. Leighton and Leighton, Conklin, Lemov, Jacobs, & Buckley, a law firm. They alleged that defendants, who served in 1981 as PATCO’s general counsel, encouraged the unlawful strike and negligently advised
Plaintiffs describe their multicount complaint
All four Plaintiffs allege that the Defendants, by their actions in encouraging participation in the 1981 PATCO strike and in failing to properly advise Plaintiffs prior to, during and immediately after the strike, breached their contract and breached their duty to Plaintiffs (Counts I and II); negligently, intentionally and fraudulently made false representations (Counts III, IV, VI); and failed to disclose or otherwise appropriately respond to clear conflicts of interest between PATCO, as an organization, and individual PATCO members, including Plaintiffs (Counts VIII and X).
Appellants’ Brief at 4. Defendants moved to dismiss. Fed.R.Civ.P. 12(b)(1), (6). Believing that it lacked subject matter jurisdiction, the district court granted the motion. This appeal followed.
II. DISCUSSION
The complaint’s various statements of claim are largely window dressing: as appellants candidly concede, “[tjhis is a legal malpractice action....” Appellants’ Brief at 2. Therefore, the inquiry becomes: can the district courts exercise diversity jurisdiction over state-law malpractice claims brought by public employees against their union’s lawyers, when the alleged malpractice occurred within the ambit of the collective bargaining process? For the answer, we look to the governance of the federal workplace and to the rights and responsibilities of public-sector unions and employees. In so doing, we find that two federal labor-law doctrines converge to bar the action.
A. Exclusivity of CSRA.
While plaintiffs base their suit on a state cause of action, we cannot ignore the panoramic federal scheme for regulating federal employee relations. We view Congress’ deliberate consignment to an independent board, the Federal Labor Relations Authority (FLRA), of claims arising under the federal-sector labor statute as relevant to, though not necessarily controlling, the determination whether Congress intended to preempt state-law malpractice claims under the circumstances of this case. The pertinent federal enactment, Title VII of the Civil Service Reform Act of 1978 (CSRA), 5 U.S.C. § 7101 et seq., is an important component of the legislation which “comprehensively overhauled” the federal civil service. Lindahl v. OPM,
Under the rules of that system, judicial oversight is “both prescribed and proscribed,” Tucker v. Defense Mapping
Because Congress constructed an “integrated scheme of administrative and judicial review,” United States v. Fausto,
Most recently, the Supreme Court has ruled that district courts cannot entertain a federal employee’s damages action against his union for an ostensible breach of the union’s duty of fair representation. Karahalios,
The same result obtains once it is recognized that the complaint’s allegations amount au fond to unfair labor practice charges. Compare 5 U.S.C. § 7116(b) (“it shall be an unfair labor practice for a labor organization_ (7)(A) to call, or participate in, a strike, work stoppage, or slowdown ... or (B) to condone any [such] activity ... by failing to take action to prevent or stop [it]”). Congress meant to vest the FLRA with “exclusive and final authority to issue unfair labor practice complaints,” limiting opportunities for judicial review to those delineated in 5 U.S.C. § 7123. Karahalios,
B. The Lawyers’ Liability.
Since plaintiffs cannot bypass the provisions of CSRA and sue the union directly in district court, our inquiry reduces to whether they can sue the lawyers. Because the latter were engaged by and working for the union when they offered the challenged advice, we think them immune to suit. It would be equally as disruptive to permit plaintiffs to accomplish indirectly (by suing PATCO’s lawyers) what Karahalios bars them from accomplishing directly (by suing PATCO).
The Court has long held that “union agents” are not personally liable to third parties for acts performed on the union’s behalf in the collective bargaining process. Atkinson v. Sinclair Refining Co.,
The policy which undergirds the Atkinson rule is straightforward. Congress was deeply concerned by the use of private lawsuits against workers as a “union-busting” device.
Faced with such a powerful line of authority, appellants concentrate most of their energies on a multifaceted claim that Atkinson is inapposite to the facts and circumstances at bar. They offer a handful of reasons, four of which merit decur-tate discussion.
1. The CSRA Difference. Appellants point out, correctly, that Atkinson and its progeny were private-sector cases not involving government employees. That distinction, while true, cuts against appellants’ position. Fair representation claims by private-sector employees are cognizable in federal district court because Congress,
Inasmuch as Congress decided that a public-sector union cannot itself be sued for unfair labor practices, it would defy logic to allow disgruntled union members to accomplish much the same result by circumnavigation. Compare Atkinson,
2. Absence of Damages Remedy. In a variation on the “CSRA difference” theme, plaintiffs complain that pretermitting their suit leaves them without any damages remedy. That may well be so. As we understand the statute, Congress intended (1) to shield unions from tort (or similar) liability for acts related to the collective bargaining process, and (2) to resolve complaints against unions through an administrative process. That injured employees might be left without a means of recovering money damages is a necessary consequence of the construct. Congress, in its wisdom, was fully entitled to prefer administrative enforcement to civil trials.
The question is not what remedy the court should provide for a wrong that would otherwise go unredressed. It is whether an elaborate remedial system that has been constructed step by step, with careful attention to conflicting policy considerations, should be augmented by the creation of a new judicial remedy. ... That question obviously cannot be answered simply by noting that existing remedies do not provide complete relief for the plaintiff. The policy judgment should be informed by a thorough understanding of the existing regulatory structure and the respective costs and benefits that would result from the addition of another remedy....
Bush,
3. Lawyers Are A Breed Apart. Appellants claim that attorneys should not be considered “union agents” within the
This result seems eminently reasonable. The appropriate test for Atkinson immunity ought not to be the actor’s identity, occupation, or formal position, but rather, the role that he played. As the Ninth Circuit explained, one must essay a “functional assessment.” Peterson,
Furthermore, there are strong policy considerations which favor extending Atkinson to lawyers. In the first place, permitting malpractice suits whenever a union’s legal strategies fail would inevitably impede the speedy processing and determination of industrial disputes. State statutes of limitations for legal malpractice are typically far more generous
Then, too, the negligence test employed in state-law malpractice actions differs materially from the federal-law test for unfair representation. Under the latter, plaintiffs must prove that a union’s conduct was “arbitrary, discriminatory, or in bad faith.” Vaca,
Finally, the original concerns which led to development of the Atkinson rule remain salient here. Were disaffected union members allowed to sue the union’s legal advisers,
the union attorney would often be the only defendant against whom a disappointed grievant could proceed. He would become the natural, and only, target in large numbers of what would normally be ... fair representation suits.
Peterson,
In fine, lawyers may be a breed apart— but for purposes of the Atkinson principle, they must be treated the same as other union agents.
4. Scope of “Collective Bargaining Process”. CSRA’s definitions of “employee,” 5 U.S.C. § 7103(a)(2)(B)(v), and “labor organization,” 5 U.S.C. § 7103(a)(4)(D), exclude participants in a strike. Relying upon this language, appellants propound the following syllogism: (1) the federal collective bargaining process does not countenance strikes; (2) defendants met with union members solely to encourage and ensure that a strike would take place; therefore, (3) defendants’ actions were “wholly unrelated” to the collective bargaining process. We think the argument brazen — the pot can scarcely call the kettle black.
That the ATCs’ strike was illegal did not make it any less a collective bargaining activity. The measure was designed to put coercive pressure on management and secure the union’s bargaining objectives. The strike climaxed a core dispute that “gr[ew] out of the collective bargaining relationship,” National Treasury Employees,
We find controlling authority in Reis. The Court there held union members harmless from suit over a wildcat strike that violated the collective bargaining agreement and had not been authorized by the union.
Congress deliberately chose to allow a damages remedy for breach of the no-strike provision of a collective bargaining agreement only against unions, not individuals, and, as to unions, only when they participated in or authorized the strike.
Id. at 416,
Before leaving this subject, we add an eschatocol of sorts. Ex-ATCs, such as plaintiffs, stand in a singularly poor position to assert a right of recovery against lawyer-defendants for counseling the commission of an unlawful act. It was plaintiffs’ union which masterminded the strike effort. See PATCO v. FLRA,
III. CONCLUSION
CSRA is the beacon by which we must steer. Given the comprehensive nature of the Act’s remedial scheme and the disruption which private tort actions would cause to its finespun fabric, we think it readily evident that Congress did not intend — and we should not allow — supplementary judicial remedies of the sort envisioned by appellants. And in the afterglow of Karahalios, any lingering doubts dissolve. Mindful of the anomaly which would result from denying members the right to sue the union for deficient representation, but allowing them to sue union agents for precisely the same conduct, we rule that the Atkinson principle extends to federal-sector employment. That being the case, CSRA necessarily precludes the maintenance of state-law malpractice claims against lawyers acting as the union’s emissaries in the collective bargaining process.
We need go no further. Darkling plain notwithstanding, the necessary coruscation emerged. The district court clearly visualized the situation and correctly grounded the suit.
Affirmed.
Notes
. M. Arnold, Dover Beach, st. 4 (1867).
. Counts V, VII, and IX dealt with other matters. Judgment thereon was entered in defendants’ favor on August 10, 1988. There has been no appeal from that judgment. For simplicity’s sake, we treat the complaint as if these counts had not been included.
. That tactic had received Supreme Court sanction in the so-called Danbury Hatters case, Lawlor v. Loewe,
. We are singularly unimpressed by the notion that, since PATCO has been dissolved, appellants should be permitted to sue PATCO’s attorneys because approaching the FLRA would be pointless. On this record, it cannot be said that CSRA’s mechanisms for redress are, in themselves, "absolutely futile,” Glover v. St. Louis-San Francisco Ry. Co.,
. We abjure a detailed discussion at this point, as our expository efforts could add little to what the Court has said in Karahalios,
. For example, at the time appellants’ claims accrued, New Hampshire’s statute of limitations for legal malpractice was six years. The statute was amended in 1986 to set a three-year deadline for all causes of action arising on or after July 1, 1986. See N.H.Rev.Stat.Ann. § 508:4(1).
. Plaintiffs try to distinguish Peterson because it involved "staff attorneys" for unions as opposed to private counsel (as here). The same point was raised in the Peterson concurrence. See Peterson,
. Contrary to plaintiffs’ jeremiad, our decision today by no means entirely insulates labor attorneys against malpractice suits. The union itself may, consistent with Atkinson, sue a retained attorney and use the recovery to compensate union members for damages sustained. Peterson,
Concurrence Opinion
concurring.
The court’s legal analysis and reasoning seems impeccable, and I agree with it, but feel, in this particular case, that its final point should be first. The bare fact is that the union, and plaintiffs as assenting members, knowingly determined to embark on an illegal enterprise, and employed defendants to advise how, to put it bluntly, they could best get away with it. Now they wish to be paid because the operation failed. Cutting away the trappings and formalistic rationalizing, can a bank robber who is apprehended sue the driver of the getaway car? Naturally defendants do not defend by saying that their advice was, in itself, unlawful, but even if defendants fell short of being aiders and abettors, plaintiffs are in no position to seek judicial assistance. I am surprised that they should expect it.
