MAJOR GENERAL THOMAS P. HARWOOD, III, Plaintiff - Appellant, v. AMERICAN AIRLINES, INC., Defendant - Appellee. MAJOR GENERAL THOMAS P. HARWOOD, III, Plaintiff - Appellee, v. AMERICAN AIRLINES, INC., Defendant - Appellant.
No. 18-2033, No. 18-2074
UNITED STATES
Argued: January 31, 2020. Decided: July 6, 2020
Before NIEMEYER, WYNN, and FLOYD, Circuit Judges.
Appeals from the United States District Court for the Eastern District of Virginia, at Alexandria. Liam O‘Grady, Senior District Judge. (1:17-cv-00484-LO-JFA)
PUBLISHED
Affirmed in part, vacated in part, and remanded by published opinion. Judge Niemeyer wrote the opinion, in which Judge Wynn and Judge Floyd joined.
ARGUED: Adam Augustine Carter, EMPLOYMENT LAW GROUP, PC, Washington, D.C., for Appellant/Cross-Appellee. Anton Melitsky, O‘MELVENY & MYERS LLP, New York, New York, for Appellee/Cross-Appellant. ON BRIEF: Andrew D. Howell, R. Scott Oswald, Nicholas Woodfield, THE EMPLOYMENT LAW GROUP, PC, Washington, D.C., for Appellant/Cross-Appellee. Jason M. Zarrow,
NIEMEYER, Circuit Judge:
In this case, a member of the uniformed services claims relief from his civilian employer for not rehiring him promptly after he completed a tour of duty, as required by the Uniformed Services Employment and Reemployment Rights Act (“USERRA“).
As Major General Thomas P. Harwood neared completion of a tour of duty with the United States Air Force Reserve — which was scheduled to end on August 31, 2015 — he sought to return to his former employment as a pilot with American Airlines, Inc. In response to his request, American Airlines confirmed that Harwood would be reemployed in his requested position as of September 1, 2015. But when Harwood thereafter disclosed that during his tour of duty he had been diagnosed with atrial fibrillation (a condition involving an irregular heartbeat) and therefore was unable to secure the required medical clearance from the Federal Aviation Administration (“FAA“) to serve as a pilot, the airline told Harwood that it could not rehire him as a pilot but that it could “explore other paths.” Following further communications between the parties, American Airlines offered Harwood an alternative position on October 22, 2015, which Harwood initially turned down. After several months, however, Harwood accepted the alternative position and was accordingly reemployed by the airline on January 25, 2016. On that day, Harwood also obtained a waiver from the FAA that entitled him to serve again as a pilot, and the next day, American Airlines reassigned him to a pilot position, which he continues to hold.
Harwood commenced this action in April 2017 under USERRA to recover damages he incurred from September 1, 2015, to January 25, 2016, due to the airline‘s failure to reemploy him promptly, as required by the Act. He also claimed that, during the rehiring process, the airline discriminated against him on the basis of his uniformed service, also in violation of the Act.
The district court dismissed Harwood‘s discrimination claim but granted him judgment on his claim that American Airlines failed to rehire him promptly and awarded him slightly more than $50,000 in damages. The court, however, rejected both Harwood‘s claim that the airline‘s action was “willful,” which would have entitled him to liquidated damages, and his request for injunctive relief.
Harwood filed this appeal, contending that the district court erred (1) in dismissing his discrimination claim; (2) in determining that the airline‘s violations were not willful; (3) in denying his request for injunctive relief; and (4) in reducing the damage award by income he received from the Air Force for service performed during the period of delay. American Airlines filed a cross-appeal, contending that the district court erred (1) in concluding that the airline did not rehire Harwood promptly; and (2) alternatively, in determining the period of time for which Harwood was entitled to damages in the form of backpay.
For the reasons that follow, we affirm on all issues of liability but vacate the damage award and remand for a recalculation of damages.
I
Harwood was first employed by American Airlines as a commercial pilot in 1992. During his employment he also served in the Air Force Reserve and, from time to time, took leave to fulfill his military commitment. From June 2013 to August 31, 2015, Harwood took leave to serve a tour of duty in Saudi Arabia, and before the end of that tour, on June 3, 2015, he contacted the New York Manager of Flight Crew Administration of American Airlines to inform the airline that he intended to return to work on completion of his tour. He requested that he be assigned as a domestic flight captain of a Boeing 737, based out of LaGuardia Airport in New York, his base before taking leave for his tour of duty. American Airlines responded on August 3, 2015, confirming that Harwood would be reemployed in the requested position on September 1, 2015, and informing him that his retraining would begin on September 5, 2015.
During this same period, Harwood began the process of obtaining a “first-class medical certificate,” which was required by the FAA for commercial pilots. In late July or early August, however, he discovered that his ability to obtain the certificate was impeded by the fact that while he was on his tour of duty, he had been diagnosed with atrial fibrillation. In August 2015, Harwood requested that the FAA waive the certification requirement, and he sent the agency the necessary documentation for a waiver. He was not, however, cleared for flight at that time. With the start of his pilot retraining approaching, Harwood informed the airline about this problem on August 20, 2015. The airline‘s New York Manager of Flight Crew Administration responded, asking Harwood to “let [the airline] know as soon as possible if the medical is going to take some time so it [could] avoid setting up a training that [Harwood] [would] not be able to attend.” The Manager then called Harwood on August 26 to discuss the situation further. During that conversation, Harwood said that he would like to be reemployed as a pilot notwithstanding his lack of a medical certificate and noted that he had a sick leave balance of 854 hours that he could use while he tried to obtain clearance to fly. The Manager informed Harwood, however, that the airline could not reemploy him as a pilot without the medical certificate or a waiver.
On September 1, 2015, the day on which Harwood was scheduled to be reemployed, he emailed Scott Hansen, the airline‘s Director of Flight Operations, to obtain confirmation that his employment was beginning on that date. Hansen responded that Harwood could be returned to active employment, “presuming [he] meet[s] USERRA guidelines and company policy for reemployment. So long as you have a current and valid medical, and are available for training, you‘re good to go.” Harwood wrote back by email that he did not yet have the certificate but that he had met all the conditions for reemployment set forth in USERRA. In response, on September 4, 2015, Hansen wrote:
It looks like you meet the general requirements for reemployment under USERRA (qualifying discharge, timely return, etc.) and we‘re willing to put you back to work in a reasonable time.
In my view, your situation isn‘t so much centered on
§ 4312 , which deals with general reemployment. It‘s really more of a§ 4313 issue involving your reemployment position. Assuming you‘re qualified to fly, we‘re fully committed to getting you back on the line with the same seniority etc. It seems to me, however, that you‘re telling us you‘re not medically qualified to fly which probably puts us under§ 4313(a)(3) assuming youhave a disability that was incurred in or aggravated while you were serving. If so, our first goal is to try to work with you to see if we can make any reasonable accommodations that will get you back to your position as a line pilot. . . . If there‘s nothing we can do to reasonably accommodate you so that you can return to flying status, then we can explore other paths. . . . Please let me know when you can have a meeting or a call to discuss our options. I‘ll include HR in the process. I look forward to talking to you.
After receiving Hansen‘s email, Harwood retained counsel who wrote the airline on October 1, 2015, stating that Harwood‘s goal was to be “reemployed as quickly as possible so that he [could] gain access to his 854 hours of sick leave.” Counsel requested that Harwood be reemployed as a pilot or, if he were unable to obtain a medical clearance from the FAA, in a position of comparable status and pay in Operations Safety and Compliance or Flight Operations, located in Dallas, Texas. American Airlines responded on October 22, 2015, offering to extend Harwood‘s military leave while he continued to seek a waiver of the medical certificate requirement or alternatively to employ him in a custom-made position in the airline‘s Flight Technical Operations Group in the Flight Department in Dallas. The airline explained that this position would be “appropriate for his status” and be compensated “at the same rate he would receive if actively flying.” Harwood declined this offer, at least at that time.
During the next three months, Harwood spent time on active duty with the Air Force and received income and benefits from the military for doing so. On January 25, 2016, however, he accepted American Airlines’ offer of reemployment in the custom-made position in Dallas. On that same day, Harwood also received a waiver of the medical certificate requirement from the FAA. Accordingly, the airline reassigned Harwood the next day to the position of a Boeing 737 domestic flight captain. Harwood has been employed as a pilot by the airline ever since that date and has taken and returned from additional military leave without incident.
Over a year later — in April 2017 — Harwood commenced this action under USERRA, alleging that the airline discriminated against him as a member of the uniformed services, in violation of
The district court granted the airline‘s motion to dismiss Harwood‘s discrimination claim brought under
From the district court‘s judgment dated August 21, 2018, Harwood filed this appeal, and American Airlines filed a cross-appeal.
II
Harwood contends first that the district court erred in dismissing his discrimination claim under
American Airlines argues that the district court‘s ruling correctly followed our decisions in Francis v. Booz, Allen & Hamilton, Inc., 452 F.3d 299 (4th Cir. 2006), and Butts v. Prince William County School Board, 844 F.3d 424 (4th Cir. 2016), which, in its view, limited
At the outset, we note that USERRA “was enacted to protect the rights of veterans and members of the uniformed services” and therefore “must be broadly construed in favor of its military beneficiaries.” Francis, 452 F.3d at 303 (cleaned up). In particular,
A person who . . . has performed . . . service in a uniformed service shall not be denied initial employment, reemployment, retention in employment, promotion, or any benefit of employment by an employer on the basis of that . . . service . . . .
While our decisions in Francis and Butts addressed post-hiring conduct — see Francis, 452 F.3d at 304 (“Section 4311 prohibits discrimination with respect to any benefit of employment against persons who serve in the armed services after they return from a deployment and are reemployed” (emphasis added)); Butts, 844 F.3d at 430 (“Section 4311 applies after a veteran is reemployed following deployment” (emphasis added) (citing Francis, 452 F.3d at 304)) — those cases did not purport to restrict
The airline‘s argument that such a broad reading would render
Although we conclude that the district court read
Accordingly, we affirm the district court‘s dismissal of Harwood‘s
III
American Airlines contends that the district court erred in finding it liable under
Harwood contends, as the district court held, that USERRA requires an employer to rehire returning servicemembers as soon as it determines that the
Under the statutory scheme,
Under
In short, under the statutory scheme created by
Of course, in Harwood‘s case, it is clear from the record that he was not qualified at the time his tour ended to perform the duties of the escalator position, as without the proper medical clearance, he was ineligible to serve as a pilot. But Harwood was eligible for other positions that met the requirements of
On the record in this case, we conclude that the district court did not err in ruling that American Airlines failed to discharge its statutory duty promptly. The airline determined at least as early as August 3, 2015 — when it was without knowledge of Harwood‘s medical condition — that Harwood qualified for reemployment under
American Airlines argues that its October 22 offer to reemploy Harwood in an appropriately senior non-pilot position was sufficiently prompt in view of the circumstances, i.e., Harwood‘s ineligibility to fly as of September 1. We cannot agree. As noted, the airline learned of Harwood‘s medical condition on August 20, and it has provided no reason why it could not have identified an appropriate position for Harwood by September 1. Yet it did not offer him reemployment in an appropriate position until October 22, 2015, over two months after it learned that he would likely need to be rehired in a non-pilot position.
At bottom, we find no error in the district court‘s conclusion that the airline did not reemploy Harwood promptly in an appropriate position. Accordingly, we affirm the district court‘s order finding that the airline violated USERRA when it failed to reemploy Harwood on September 1.
IV
While Harwood succeeded in the district court on his
The district court, however, rejected Harwood‘s argument, concluding that on the record before it, “there [was] simply no evidence that American or any of its agents acted unreasonably and in bad faith. Accordingly, liquidated damages are not applicable to the facts of this case.”
But the evidence in this case fails to support Harwood‘s claim. Indeed, it shows without dispute that American Airlines immediately agreed to rehire him when he notified the airline of his intent to return. Harwood told the airline that his tour of duty would end on August 31, 2015, and the airline instructed him to report for service the next day, September 1, 2015. And when Harwood later advised the airline that he had a medical condition that precluded his employment as a pilot without an FAA waiver, the airline asked Harwood to let it know about the status of his application for a waiver “as soon as possible” so that it could schedule the necessary training. In a follow-up, the airline told Harwood, “[O]ur first goal is to try to work with you to see if we can make any reasonable accommodations that will get you back to your position as a line pilot. . . . If there‘s nothing we can do to reasonably accommodate you so that you can return to flying status, then we can explore other paths.” And on October 22, it offered Harwood an alternative position that it maintains had the same seniority, status, and pay as he would have received as a pilot. Finally, when Harwood later accepted the offer and also advised the airline of his receipt of an FAA waiver, the airline hired him as a pilot the very next day, a position that he continues to hold. This conduct, which demonstrates that the airline made efforts to work with Harwood to accommodate his request for reemployment — even if it operated under a misunderstanding of the statutory relationship between
V
Finally, both parties challenge the relief that the district court ordered. Harwood contends that the district court erred in reducing the award by the income he received for military service during the relevant period, arguing that the service income was a “collateral source” that should not have impacted his backpay award. He also contends that the district court abused its discretion in refusing to issue an injunction against American Airlines to prohibit similar conduct in the future.
With respect to Harwood‘s argument that his backpay should not have been offset by his Air Force earnings, the district court concluded that Harwood‘s income during that period was payment for “services that he would not have been able to complete or that would have required leave from [the airline] but for the USERRA violation.” Thus, Harwood suffered no lost wages or benefits attributable to the airline‘s failure to reemploy him during the time he was on active duty with the Air Force. See
With respect to the district court‘s denial of Harwood‘s request for injunctive relief, we conclude similarly that the district court did not abuse its discretion. While the statute directs the district court to employ all of its equitable powers to “vindicate fully” the servicemember‘s rights, see
Finally, with respect to damages, in view of our conclusions in Part III, above, we agree with the district court that the backpay period began September 1, because it was not error to conclude that promptness in this case required Harwood‘s reemployment by that date. We also reject American Airlines’ argument that the period from September 4 to October 1 be excluded on the ground that Harwood failed to engage in the deliberative process. After receiving Hansen‘s letter on September 4, in which Hansen recited the varying application of three statutory provisions —
In short, the district court should recalculate damages consistent with this opinion, presumptively imposing backpay damages against American Airlines for the period from September 1 to October 22 and denying damages for the period from October 22 to January 25, unless the offered position was not an equivalent under the Act. And any such calculation should include a setoff for service income Harwood received.
AFFIRMED IN PART, VACATED IN PART, AND REMANDED
NIEMEYER, Circuit Judge
