Podlesnick v. Airborne Express, Inc.Podlesnick v. Airborne Express, Inc.
OPINION; DECISION AND ENTRY SETTING FORTH FINDINGS OF FACT AND CONCLUSIONS OF LAW; NOMINAL DAMAGES AWARDED TO PLAINTIFF; PLAINTIFF’S REQUEST FOR REINSTATEMENT OVERRULED; PLAINTIFF’S REQUEST FOR PUNITIVE DAMAGES OVERRULED; JUDGMENT TO BE ENTERED FOR PLAINTIFF ON THE ISSUE OF DAMAGES; TERMINATION ENTRY
Plаintiff A1 Podlesnick was terminated by Defendant Airborne Express, Inc., on May 15, 1981 from his position as chief pilot. Plaintiff had previously served Defendant as a line pilot. After trial to the Court, judgment was entered in favor of Plaintiff and against the Defendant on the issue of liability. (Doc. # 69). The Court found Plaintiff to prevail on his claim for breach of contract, while Defendant was found to prevail on Plaintiff’s claims under the Railway Labor Act (RLA), 45 U.S.C. § 151 et seq. Briefs and proposed findings of fact and conclusions of law were subsequently filed by the parties and a hearing was held on July 3, 1984 on the question of a remedy for Plaintiff.
For the following reasons, the Court concludes that Plaintiff is entitled to only nominal damages and that Plaintiff is not entitled to recover punitive damages. Finally, Plaintiff is not granted the specific performance, namely reinstatement, which he seeks. In setting forth its reasoning, the Court assumes familiarity with its previous decisions in this case, particularly its March 29, 1984 opinion on the issue of liability (Doc. # 69) (hereinafter also referred to as March 29 opinion).
I. Findings of Fact
In conformity with Fed.R.Civ.P. 52(a), the Court sets out its findings of fact rеlevant to the issue of the remedy sought by Plaintiff.
(1) Plaintiff has withdrawn his request for attorney’s fees. (Tr. 1628-29). Plaintiff chose not to offer testimony at trial on the issue of punitive damages. (Tr. 1629).
(2) Defendant established the Airborne Express System Board of Adjustment on November 26, 1980. (Plaintiff Trial Exh. 39-1, 39-2).
(3) Defendant no longer operates the Caravelle aircraft which Plaintiff is qualified to fly. Defendant now flies only DC-9 and YS-11 aircraft. Plaintiff is not qualified to fly either of these aircraft and has never flown either aircraft. (Tr. 1684, 1694, testimony of Podlesnick).
(4) Plaintiff has not received training in the current simulator for the DC-9, and did not previously complete DC-9 ground school. (Tr. 1685-86, testimony of Podles-nick).
(5) As of July 3, 1984, Plaintiff had flown approximately 100 hours since the May 15, 1981 date of his termination by Defendant. Approximately 50 hours of this flight time occurred in jet aircraft. Plaintiff was a pilot in command for 25 of *1115 these flight hours, with the last of these hours flown on May 24, 1982. Plaintiff last served as a pilot in command of a jet aircraft on January 13, 1982 (Tr. 1689-90, testimony of Podlesnick).
(6) Both Plaintiff and Defendant are concerned about Plaintiff’s lack of recent flight experience. (Tr. 1751, testimony of Kuli; Tr. 1688, testimоny of Podlesnick).
(7) Plaintiff seeks reinstatement as a DC-9 captain with Defendant. More specifically, he seeks a requalification period of three months in order to become qualified to fly a DC-9. (Tr. 1683, 1691-92, testimony of Podlesnick).
(8) Defendant would incur costs of $7,200 in order to rehire Plaintiff and to train him to serve as a DC-9 captain. (Tr. 1739-40, testimony of Hete).
(9) During the period from November 17, 1980 through November 30, 1980, Plaintiff earned $1,707.69 as Defendant’s chief pilot. Had Plaintiff served as a line pilot during that period, he would have earned $1,661.54. Thus, Plaintiff earned $46.15 more аs chief pilot for the thirteen days remaining in his 180-day “probationary period” subsequent to Defendant’s breach than he would have earned as a line pilot during that period. (Tr. 1745-46, testimony of Gibbons).
(10) Feelings of hostility and mistrust have been generated by the involvement of the parties in this litigation during the past several years. (Tr. 1634-35, 1752, testimony of Kuli).
II. Conclusions of Law
(1) For purposes of analyzing Plaintiff’s recovery, the breach by Defendant in this case is more analogous to the breach of an option contract than to the breach of an alternative cоntract.
Compare Saltman v. Dunham,
(2) Under Ohio law, an employment contract of indefinite duration is terminable at any time by either the employer or the employee with or without cause.
Henkel v. Educational Research Council,
(3) The bargained-for 180-day “probationary period” took Plaintiff’s oral employment contract out of the employment at will doctrine for that limited 180-day period. (Opinion, Doc. # 69 at 19-20). At the expiration of the “probationary period,” Plaintiff would have been terminable at will by Defendant, whether he had continued to serve as chief pilot or whether he rеturned to the line at that juncture.
(4) Plaintiff remained employed by Defendant as chief pilot for the thirteen days remaining in the “probationary period” subsequent to Defendant’s repudiation of Plaintiff’s option to return to the line. As Plaintiff’s salary as chief pilot exceeded what he would have earned had he returned to the line for those thirteen days, see Finding of Fact # 9, supra, only nominal damages of $1.00 are awarded to Plaintiff.
(5) No authority supports an award of damages to Plaintiff extending beyond the 180 days of the “probationary period.”
(6) The general rule under Ohio law is that specific performаnce of personal service contracts is prohibited.
Felch v. Findlay College,
(7) The equities of the instant case are not sufficiently analogous to those in
State ex rel. Wright v. Weyandt,
(8) It is undesirable to order reinstatement in a case such as this, that is, after disputes have arisen and confidence and loyalty have ebbed. Restatement (Second) of Contracts § 367 Comment a (1979).
(9) Under Ohio law, punitive damаges are not available for breach of contract.
Davis v. Tunison,
(10) Plaintiff is a management official outside the scope of the coverage of the Railway Labor Act (RLA). (Opinion, Doc. *1116 #69, Conclusions of Law “C” & “D”). Claims of anti-union activity by Defendant in violation of the RLA, even were such activity found by this Court, could not support an award of punitive damages to Plaintiff.
III. Discussion
(A) Back Pay
As set forth in Finding of Fact # 5 of the March 29 Opinion, Plaintiff and Defendant agreed to a 90-day “probationary period” as a condition to Plaintiff’s oral contract to serve as Defendant’s сhief pilot. Under this arrangement, Plaintiff retained the option of returning to the position of line pilot (“returning to the line”) for 90 days. At the end of the 90 days, Plaintiff would either stay on as chief pilot or return to the line, depending on (1) Amiel (Mike) Kuli’s evaluation of his performance and/or (2) Podlesnick’s desire to stay on the chief pilot’s job. (Doc. # 69, p. 8).
After the expiration of the first 90-day period of this nature, the parties agreed to a second 90-day period during which Plaintiff could opt to return to the line. On or about November 17, 1980, with thirteen days remaining on the second 90-day period, Defendant, through the statements of Kuli, unilaterally breached that portion of the employment contract permitting Plaintiff to return to the line. (Doc. # 69, Conclusion of Law “F”). Plaintiff did not request to return to the line at the time of Defendant’s breach or upon the lapse of the 180-day period, but continued to serve as Defendant’s chief pilot. He was terminated by Defendant on May 15, 1981, and, several weeks after said termination, unsuccessfully sought to return to the line. (Doc. # 69, Finding of Fact # 11).
Plaintiff now seeks dаmages for back pay. Defendant’s position is that the rules governing damages for breach of an alternative contract preclude Plaintiff’s recovery of damages and that, in any event, Plaintiff was terminable at will by Defendant and is thus not entitled to damages for breach.
Defendant characterizes the employment contract which it breached as an alternative contract, in that two separate employment options were to be available to Plaintiff at the end of the 180-day “probationary period.” Damages for breach of an alternative contract “are determined in accordance with that one of the alternatives that is chosen by the party having an election, or, in the case of breach without an election, in accordance with the alternative that will result in the smallest recovery.” 5A C. Corbin, Contracts § 1079, at 454 (1951). As Plaintiff had not selected either of his employment options at the time of Defendant’s breach, Defendant contends that the rule pertaining to breach without an election of alternatives governs damages in this case. Defendant further contends that damages for breach of the chief pilot alternative would be the damages alternative which it would find the least onerous, given that Plaintiff had remained in the chief pilot position for the thirteen days which remained in the “probationary period” subsequent to Defendant’s breach. Defendant concludes, under this rationale, that Plaintiff is entitled only to nominal damages.
This Court does not agree that the rules of recovery for breaсh of an alternative contract are suitable for application in this case. In the Ohio decision cited by Defendant,
Ach v. Herman A. Straus, Inc.,
In this case, on the other hand, Plaintiff had the option of performing one *1117 of two alternative performances at the end of the 180-day period. While Plaintiff needed Defendant’s concurrance to stay on as chief pilot, the record indicates that there was no impediment to him alone opting to return to the line at the end of the 180 days. Indeed, that was precisely what Plaintiff had bargained for. (Tr. 10-17; testimony of Podlesnick). Given that Plaintiff was the party retaining the flexibility of performance, the damages theory relating to alternative contracts is inappropriate and ought not to govern this case. Cf. Restatement (First) of Contracts § 344, Ill. 2 (1932).
For purposes of analyzing Plaintiffs recovery, the Court believes the breach in this case to be more analogous to the breach of an option contract. As discussed in the March 29 opinion (Doc. # 69, at 22), the 180-day “probationary period” gave Plaintiff the option to either stay on as chief pilot, provided that Defendant concurred, or to return to the line. Defendant repudiated the latter option. In
Saltman v. Dunham,
Even with the analogy to the breach of an option contract, this Court finds the employment at will doctrine to block the damages for back pay sought by Plaintiff. There is no dispute that Plaintiff’s employment as chief pilot, upon the expiration of the 180-day “probationary period,” was terminable at will by either party. As for the employment option foreclosed by Kuli’s repudiation, that of Plaintiff’s opportunity to reclaim his former position as a line pilot, that, too, would have been employment at will. In other words, even had Plaintiff opted to return to the line, he could legally have been terminated without cause at any time, with no damages recoverable for any salary period subsequent to termination.
Henkel v. Educational Research Council of America,
Plaintiff attempts to counter the applicability of the employment at will doctrine by pointing to the system boards of adjustment created by the Railway Labor Act for redress of disputes. 1 Evidence admitted at trial (Plaintiff Trial Exh. 39-1, 39-2) shows establishment by Defendant on November 26, 1980 of the Airborne Express Pilots’ System Board of Adjustment. While the *1118 avowed purpose of Defendant’s board was to investigate and decide the appropriateness of Defendant's actions in disciplining or discharging pilots, Plaintiff Trial Exh. 39-3, the document establishing the board does not anywhere provide that the Defendant's ability to discharge was to be limited to discharges with cause. Compare Plaintiff Trial Exh. 7-D (March 25, 1983 Collective Bargaining Agreement between Teamsters and Defendant) (Art. IV, Sec. G(2): “A pilot shall ... be terminated for all purposes when [h]e is discharged for just cause.”). As no collective bargaining agreement was in force at the time of Plaintiffs dischargе, Plaintiff’s position is that the RLA itself requires that pilots only be discharged for cause by ordering the creation of system boards of adjustment. (Doc. # 79 at 3; Doc. # 86 at 2-3). Plaintiff has not tendered any authority to support this position.
Congress extended the RLA to cover air carriers in 1936. 45 U.S.C. §§ 181-188. Its general aim in so doing was to extend to air carriers and their employees the same benefits and obligations which prevailed in the railroad industry.
International Ass’n of Machinists, AFL-CIO v. Central Airlines, Inc.,
With respect to both the National Railroad Adjustment Board and the airline boards of adjustment, Congress intended to ensure labor-management stability and an effectivе system of processing grievances and settling so-called “minor disputes.”
Id.
at 689-90,
The fact that petitioner characterizes his claim as one for “wrongful discharge” does not save it from the Act’s mandatory provisions for the processing of grievances. Petitioner argues that his election to sever his connection with the employer and treat the latter’s alleged breach of the employment contract as a “discharge” renders his claim sufficiently different from the normal disputes over thе interpretation of a collective-bargaining agreement to warrant carving ■out an exception to the otherwise mandatory rule for the submission of disputes to the Board. But the very concept of “wrongful discharge” implies some sort of statutory or contractual standard that modifies the traditional common-law rule that a contract of employment is terminable by either party at will. Here it is conceded by all that the only source of petitioner’s right not to be discharged, and therefore to treat an alleged discharge as a “wrongful” one that entitles him to damages, is the collective-bargaining agreement between the employer and the union.
Id.
at 324,
In
Conrad v. Delta Airlines, Inc.,
Such authority undermines Plaintiff’s position that he would not have been terminable at will, had he returned to the linе, due to the protections of the RLA. With respect to the authority submitted by Plaintiff with respect to his entitlement to back pay, none of it is sufficient to overcome the employment at will obstacle. The Court finds
Falls Stamping & Welding Co. v. Intern. Union,
In summary, this Court is forced tо conclude that, while Defendant repudiated Plaintiff’s option to return to the line before the expiration of the “probationary period,” Plaintiff remained employed at a higher chief pilot’s salary for the remainder of the “probationary period.” At the end of the “probationary period,” Plaintiff would have been an employee at will, even if allowed to return to the line, and thus was subject to termination without cause at any time. As a result, only nominal damages of $1.00 are awarded to Plaintiff as a result оf Defendant’s breach.
(B) Reinstatement
Plaintiff seeks reinstatement to Defendant’s employ, asking that he be given a “reasonable requalifying period” of approximately three months in order to permit him to become qualified to serve as a DC-9 captain. (Tr. 1683, 1691-92, testimony of Podlesnick). Plaintiff recognizes the general rule that, under Ohio law, specific performance is not available to enforce the provisions of an employment contract for personal services.
Felch v. Findlay College,
Citing
State ex rel. Wright v. Weyandt,
Plaintiff attempts to analogize the facts of the instant case to those which entitled the relators in
Wright
to reinstatement. Yet there is no settlement agreement in this case unambiguously providing for Plaintiff’s reinstatement. Nor does a statutorily-created right to reinstatement, believed by the
Wright
court to outweigh the common law “lack of mutuality” objection to specific performance of personal service contracts, figure into this case.
See Masetta v. Foundry Co.,
Plaintiff further attempts to distinguish the rule against specific performance enunciated in
Felch
by insisting that underlying loyalty and confidence remains between Plaintiff and Defendant despite the instant dispute. In
Felch,
the court had believed reinstatement to be undesirable on' the ground that any such basis for a harmonious working relationship would have evaporated during thе disputes which had arisen.
The Court is less impressed with Defendant’s position that, as an ex-management official, Plaintiff has possession of certain knowledge about Defendant which is typically not made available to line pilots. (Tr. 1751, testimony of Kuli). Obviously Defendant was willing to allow Plaintiff to return to the line after 180-days as a management official, and no testimony was introduced to the effect that, after the expiration of the 180-day period, Plaintiff was made privy to certain information to which he had previously not been exposed. While certainly the argument can be made that Plaintiff’s exposure to management-type information increased as his length of service as chief pilot grew, that tenure was at least, in part, the product of Defendant’s repudiation.
Even with this observation, the Court cannot find the factors in this case to be such as to override the general rule that a promise tо render personal services will not be specifically enforced, regardless of which party seeks such enforcement. Restatement (Second) of Contracts § 367(1) (1979). As noted in Comment b to Section 367, the policies, outlined supra, against compelling an employer to retain an employee would not prevent this Court from ordering reinstatement had an anti-discrimination statute or collective bargaining agreement been violated. Such was not the case herein. Indeed, it is the very lack of the protections of a collective bargaining agreement which renders Plaintiff only entitled to nominal damages, given his status as an employee at will under either of the bargained-for options in his oral employment contract. Unfortunately, the harshness of the employment at will doctrine is best remedied by contractual agreements, *1121 rather than resort to the extraordinary remedy of specific performance.
(C) Punitive Damages
Plaintiff presented no evidence at trial with respect to his request for punitive damages. At the hearing, Plaintiff’s counsеl stated the belief, with respect to punitive damages, that “there is adequate demonstration in the record relating to the motives of the company as it relates to the breach of Mr. Podlesnick’s 180 [day] probationary period as chief pilot.” (Tr. 1629). Plaintiff does not contest the authority cited by Defendant to the effect that punitive damages are not available for breach of contract under Ohio law,
Davis v. Tunison,
Plaintiff suggests that the circumstances of Plaintiff’s dismissal by Defendant, which he explains to be the Defendant’s anti-union activity and Plaintiff’s refusal to engage in such activity, should serve as the basis for an award of punitive damages. (Doe. # 79 at 7; Doc. # 84 at 9). This Court specifically refused to make any findings as to Defendant’s alleged anti-union activity, given Plaintiff’s lack of standing as a management official to pursue relief under the RLA. (Doc. #69 at 16). While there is some authority to the effect that an employee who is not representеd by a union may recover punitive damages from his or her employer for violation of the RLA,
Brown v. World Airways, Inc.,
IV. Conclusion
In summary, Plaintiff is awarded nominal damages in the sum of $1.00. Plaintiff’s request for reinstatement is denied, and no punitive damages are awarded. Plaintiff having withdrawn his request for attorney’s fees, no fees are awarded. Judgment is entered for Plaintiff in the amount of $1.00.
The captioned cause is hereby ordered terminated upon the docket records of the United States District Court for the Southern District of Ohio, Western Division, at Dayton.
Notes
. Plaintiff also contends, inaccurately, that this Court found in its March 29 Opinion that Plaintiff had not been terminable at will due to the protections of the RLA. (Doc. # 84, at 3). In fact, this Court held that the 180-day "probationary period” was what brought that initial portion of Plaintiffs oral emplоyment contract out of the employment at will doctrine due to the finite duration of that “probationary period." (Doc. # 69, at 19-20).
See Henkel,
. Although Defendant also introduced testimony as to the $10,600 in costs which it could incur were other employees "bumped back” to serve on other aircraft due to Plaintiff's reinstatement, no testimony was introduced to establish that such a "bump back” would in fact occur were Plaintiff to be reinstated as a DC-9 pilot. Defendant’s witness, Mr. Hete, was instructed to assume a "bump back," and gave his assessment of the re-training costs of the "bump back" based on that assumption. (Tr. 1739-41, testimony of Hete).