# Petition for Writ of Certiorari — Northwest Airlines, Inc. v. Air Line Pilots Ass'n

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1967
- **Citation:** 389 U.S. 827

## Text

"“IPREME COURT, * Be JUN 2¢ 90

JOHN F. Lyn de

a Inthe
| enen Court of 15 United Sue

Aa. 05

N - NORTHWEST AIRLINES, IN O,

: Petitioner,
va. : i
‘AIR LINE PILOTS-ASSOCIATION, INTERNATIONAL,
5 DAVID G. RALI. and R. E. LEE, |
PETITION fo A WRIT OF CERTIORARI TO THE 2
UNITED STATES COURT OF APPEALS 25
FOR THE EIGHTH CIRCUIT

Henry HALLApAy |
2400 First National Bank Building
ae tus Minneapolis, Minnesota 55402
3 Attorney * Petitioner
Dorsey, Manquarz, WINDHORST,
| West & Hatnapay |
Of Counsel

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CONSTITUTIONAL AND STATUTORY PROVISIONS INVOLVED..
. ̃— I em a GS
ARGUMENT: | ae :

I. The question of the degree of finality of awards of airline
System Boards of Adjustment is a source of conflict between
air carriers and their employees, and will continue to
create conflict until it is Wen ane ecttled dy this
6»·⁊:!k . —-— . C1. ̃ ͤ ——

III. Certiorari should be granted to drevent further miscon-
struction and misapplication of the decision of this Court
in Gunther v. San Diego. & Aris. B. Ry., 382 U.S. 257

(1965) ieee. fee.
CONCLUSION 7 .
APPENDIX A: , 3 :
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APPENDIX B :
Railway Labor Act, §3, 48 Stat. 1189 (1984) (prior to Amend- N
ments of 1966, 80 Stat. 208 „„ re
Railway Labor Act, §3, 48 Stat. 1189 (1934), as amended 45
// / A
Rallway Labor Act, $7, 44 Stat. 582 (1926), as amended 45
rr tosiettocenuusisacancnnie te cn
Railway Labor Act, 38, 44 Stat. 584 (1926), as amended 45
ß ˙ ——— ha a — ů
Railway Labor Act, 39, 44 Stat. 585 (1926), as amended 45
U.S.C. §159 (19600... ...... .. eie eee
Railway Labor Act, 3201, 49 Stat. 1189 We eee ee:
Railway Labor Act, §204, 49 Stat. 1189 (19386) 8
Railway Labor Act. 5206, 49 Stat. 1190 (1936) 8

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A “AUTHORITIES CITED |
er cs hen ty, Page
~ Airline Pilots Ass'n, Int'l, v. TransWorld Airlines, Inc., 203 f. j
— . MAB %⅛—T— ͤ— U (RF
American Airlines, Inc. v. Air Line Pilots Ass'n, int 'i. 91 F. Sup pv.

629 (B. D. N.Y. 1950) . . ses cian PE Aah ed AT Ren 9 ‘
Arnold v. United Air Lines, Inc., 296 F.2d 191 (7th Cir. 1961) 9
Baltimore & O. R. R. v. Brady, 288 U.S: 448 (1933) 22
Barrett v. Manufacturers Ry., 264 F. Supp. 376 (B. D. Mo. 1966). 28 3° |
Bates v. Northwest Airlines, Inc., 171 F.Supp. 273 (D. Minn. |

1 ee eee Wee 3 9
Beacon Theatres, Inc. v. Westover, 359 U.S. 500 (1969) 24
Blair v. Cleveland, C., C. & St. L. Ry., 45 F. 2d 792 (EB. D. III. 1931), Ris

aff'd 59 F.2d 478 (7th Cir. 1932). 8 21 5
Boos v. Railway Express Agency, Inc., 253 F. 2d 896 (8th Cir. A

1 W VVV 8 17-18
Bower v. Eastern Airlines, Inc., 214 F. 2d 628 (3d Cir. 1954), cert.

denied, 348 U.S. 871 (1954) . . 8

Brotherhood of Locomotive Engineers v. Louisville & N. R.R., 373
„ r Wen 1 n 32
0 Brotherhood of R.R. Signalmen v. Southern Ry., 254 F.Supp. 564 + °

(M.D. No. Car. 1966) „?!!!! daseit 28

Brotherhood of R. R. Trainmen v. Louisville & N. R. R., 334 F. 2d

79 (5th Cir. 1964) N c 18, 25
Brotherhood of Railway Clerks v. Atlantic Coast Line R.R., 253

F.2d 753 (4th Cir. A eae Nia eee 8 - 29
Brotherhood of Ry. and S.S. Clerks v. Atlantic Coast Line R. R.,

e 17
Callan v. Great Northern Ry., 299 F.2d 908 (5th Cir. 1961) 18
Capital Airways v. Air Line Pilots Ass’n, Int’l, 341 F.2d 288 (6th

Cir. 1965), cert. denied; 381 U.S. 913, 952 (BOOB)... . .. . 8,9
Crist v. Public Belt R. R. Comm’n, 93 F.Supp. 103 (E.D. La.

Re SAE CS A RTOS a 1 18
Dahlberg v. Pittsburgh & L. B. R. R., 138 F. 2d 121 {3d Cir. 1943)

B00 FFF 17, 19, 25
Dairy Queen; Inc. v. Wood, 369 U.S. 469 (1962) LA ERO Nic Mpeg 24
Edwards v. Capital Airlines, Inc., 176 F. 2d 755 ( D. C. Cir. 1949),

cert. denied, 338 U.S. 885 (1949 . 8
Farriss v. Alaska Airlines, 113 F. Supp. 907 (W. D. Wash. 1953). 9
Gunther v. San Diego & Aris. E. Ry., 38 2 U. 8. 257 1

. 3 10, 12, 18, 26,27, 28, 29, 30, 31, 32, 33, 34, 35
Hanks v. Delaware & H, R. Corp., 63 F.Supp. 161 (N. D. N. V.

P ͤͤ AAA r FF 18
Hanson v. Chesapeake & O. Ry., 236 F. Supp. 56 (S. D. W.Va. 1964)

%%% A ee. ...... ... . . ...e. 18, 88
Hartley v. Pan American Airways, Inc., 98 F.Supp. 247 (N. D. Cal.

„„ r ee T ͤ K 9

Hodges v, Atlantic Coast Line R. R., 310 F.2d 438 (5th Cir. 1962). 18
Hodges v. Atlantic Coast L. R.R., 363 F.2d 534 (6th Cir. 1966) 28
International Association of Machinists v. Central Airlines, Inc.,

372 U.S. 682 (1963) 8. 10,11, 18, 14, 16, 17, 20, 25, 26, 27, 31

— *

— * —— 2 — PPP A — *

8 Page
Jones ¥ v. central of Georgia Ry. 331 F. 2d 649 (5th Cir. 1964). 18, 28
. Kirby v. Pepnsylvania R. R., 188 F.2d 798 (8d Cir. 1961) 17
Larsen v. American Airlines, Inc., 313 F.2d 599 (2d Cir. 1963)... 8
Meeker & Co. v. Lehigh Valley R. R., 236 U.S. 412 (1918) 20, 21, 22
Metcalf v. National ‘Airlines, Inc., 271 F. 2d 817 (5th Cir. 1959)... 8
Mogis v. Lyman-Richey Sand & Gravel Corp., 189 F.2d 130 at 141
‘ JW esos 34
3 Moore v. IIlinois Cent. R.R., 312 U.S. 630 (1941) N 12
, Order of R. R. Telegraphers v. Union Pacific R. R., 231 F. Supp. 33
* ß ̃ Tr...... ĩð⁊ . ic nduee, 18
Order of Sleeping Car 8 v. 8 — Co., 47 F. Supp. 599 f
(B. D. Wis. 1942) VVV
Pennsylvania R. R. v. Day, 360 U.S. 548 (1959). — — 29
Railroad Trainmen et al. v. e River & Indiana R. Co., 353
U.S. 30 1 15). AB ESE Si 3 tt TT cc cc c (( 8 30, 32
Sigfred v. Pan American World Airways, — 230 F. 2d 13 (5th N
_ Cir. 1956), cert. denied, 351 U.S. 925 (1956) ~....... SE RE an I. N 8
Slocum v. Dela ware L. & W. R. R., 339 U.S. 239 (1950) 8 31. 32. 33
Southern Ry. v. Bichler, 56 F.2d 1010, 1018 (8th Cir. 1932) 21. 22
Taylor v. Hudson Rapid Tubes Corp., 362 F. 2d 748 (3d Cir. 1966). 28
Thomas v. New Tork, Cal. & St. L. R. R., 186 F. 2d 614 (6th Cir.
„ 17
Transcontinental and Western Afr, Inc. v. Koppal, 345 U. 8. 653
(1958) ............ n ee ene — * 8, 12, 13
’ Union-Pacific R. R. v. Price, 360 U.S. 601 (1959). . 25. 31. $2, 33
Walker v. Southern Ry., 386 U.S. 196 (1966) 12
Ward v. New Orleans Publie Belt R. R. Comm’n, 97 F. Supp. 1002
,! T fen se evweloseepusasdbumpanivoesbesie 18
Washington Terminal Co. v. Boswell, 124 F. 2d 236 (DC. Cir.
1941), aff'd, 319 U.S. 782 (1943) 14, 17, 18, 19, 22, 31
Wooley v. Dastern Air Lines, Inc., 250 F.2d 86 (5th Cir. 1957). *
‘cert. denied, 356 U.S. 981 8 6 — SER 8
— 3 5 7
STATUTES AND CONSTITUTION: a |
Interstate Commerce Act, 49 U.S.C. §16(2) 8 . 20, 21 :
‘Labor Management Relations Act, 5801. 30 —
Railway Labor Act: :
13, 48 Stat. 1189 (1984) URSIN TES LGD ORS ODED SOR ALE SEE SD 8 ‘|
subeoad 210, 11, 12, 14, 16, 17, 19, 20, 21, 23, 24, 26, 26, 27, 28, 29, 34 4
$7, 44 Stat. 582 (1926), as amended 45 U.S.C. 6167 (1864) 5,1 |
$8, 44 Stat. 584 (1926), as amended 45 U.S.C. 6188 (1964) 9,19
: 59, 44 Stat. 585 (1926), as amended 4 U.S. C. 5159 (1964) :
RIO ETRE EO MesserescesssesenesezersssnenessecessegegsertenteseeseceesesssseeesDp 10,19, 20
5 x $201, 49 Stat. 1189 (19356) re eee 17 .
„ 1204, 49 stat. 1189 (1986) eee eee 10, 12, 20
: $205, 49 Stat, 1190 (1986) ee eee eee 12, 18
rs. Const., amend. VII. ͥ eee —B — ae
“TEXTBOOK REFERENCES: BS *
: Jaffe, Tudicial Control of Administrative 8 356 ( 1968). e 25

In the )

| Supreme Court of the Anited States

a Oocrosm Ta, 1967

No.

NORTHWEST AIRLINES, Id,
, ee Petitioner,
V. ry ns

Am LINE PILOTS ASSOCIATION, INTERNATIONAL,

DAVID G. RALL and R F. LEE,

*

PETITION FOR A WRIT OF CERTIORARI TO n
UNITED STATES COURT OF APPEALS
FOR THE EIGHTH CIRCUIT —

Petitioner Northwest Airlines, Ine. (“NWA”) prays that
a writ of certiorari issue to review the judgment of the

United States Court of Appeals for the Eighth Circuit en-
tered on — 23, 1967. 59 55

OPINIONS BELOW |
Te opinion of the Court of Appeals is reported at 373 F. 2d

N 136 (Sth Cir. 1967), and is reprinted in Appendix A, infra,
Pp. 37-46. The opinion of the District Court (R. 73- 77)1 is

not t reported.

References to -M are to the certified transcript of the record in this cass

3
—

J

*

5 a JURISDICTION 2

The — of the Court of Appeals (Appendix ‘ por
p. 47) was entered on February 23, 1967. A petition for
rehearing was timely filed, and the Court of Appeals entered
its order denying said petition on March 30, 1967: The juris-

diction of this Court is invoked under 28 U.S.C. §1254(1).

QUESTION PRESENTED

Ik a federal court and jury are competent to pass on cru-
cial elements of managerial imposition of safety disciplines
in an airline employee’s suit for alleged breach of contract,
is not the same competence available in an airline employee’s

suit to enforce an award growing out of the same disciplines -

: for the same ** breach of the same contract?

5 CONSTITUTIONAL AND STATUYORY PROVISIONS INVOLVED

The constitutional provision involved is U. S. Const.
amend. VII:

“In Suits at common law, where the value in controversy
shall exceed oe. erm the right to trial de jury
shall be presérved .

The statutes involved are y amen ub Act, Section 3,
48 Stat. 1189 (1934) ;? Section 7, 44 Stat. 582 (1926), as
amended 45 U.S. C. §157 (1964); Section 8, 44 Stat. 584

(1926), as amended 45 U.S. C. §158 (1964); Section 9, 44

Stat. 585 (1926), as amended 45 U.S.C. §159 (1964); See-
tion 201, 49 Stat. 1189 (1936); Section 204, 49 Stat. 1189
(1936); and Section 205, 49 Stat. 1190 (1936). Because of

the length of the provisions, tlie pertinent text is reprinted
in Appendix B, infra, pp. 57-64. The provisions of 28
U. S. C. A. §2403 may also be applicable. No court has cer-

3 *This section ‘was amended after the instant action was commenced. 80 Stat.
208 (1966), 45 U.S.C.A. §153. eae tee oF the cotta Gale and ether Oy
ee -

5
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— — apt

tified to the Attorney General the fact that the constitution
ality of an Act of Congress affecting the public interest was

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drawn in question.

STATEMENT OF CASE |
This cause arises out of disciplinary action by NWA. which

was taken because of management’s morally justifiable and

legally required concern for the safety of airline passengers. :

On February 8, 1964, NWA discharged pilots David G. Ral]
and Robert E. Lee, along with flight engineer Franklin E.
Todd. R. 18, 22, 94. Rall was discharged because he had
violated the NWA rule, and the Air Line Pilots Association
(“ALPA”) rule as well, (R. 336) ‘prohibiting the use of al-
coholic beverages within 24 hours immediately preceding a
flight to which he was assigned as a ‘crew member. R. 18.

Fall had been assigned as Captain on Flight NO27 which was

. estate

Tek 2 9 — — a pe

2 he use of alcoholic beverages hy crew members while 6 on duty,

to carry military passengers on a DC 7 propeller- driven air-

plane from the Hawaiian Islands to Eniwetok Atoll on the
morning of January 1, 1964. R. 192, 389. Before Rall’s dis-

. charge NWa's investigation showed that he had reported

for Flight NO27 early on that New Year’s Day in an intoxi-

- cated condition. Rall had also suffered a head injury, which
had rendered him unconscious and caused him to bleed. R.
90-92, 97, 224.225. Rall’s physical condition had been weak- |

ened by drinking, unconsciousness, vomiting, and persistent
bleeding from his cuts, R. 196, 198, 394.396. ars
_ Co-pilot Lee was also discharged because he connived with
Rall and technically served as first pilot because, of Rall's
apparent physical disability. R. 22.

Flight Engineer Todd was also discharged because of his

drinking and because he had influenced and encouraged Rall,

on call, or during the 24-hour period immediately preceding departure of
any flight to which assigned as a crew member, is prohibited.” R. sis

peek 1 ee

Lee and other crew members to take Flight NO27 across the
Pacific on New Year's Day, 1964, knowing of Rall’s inca-
pacity. R. 941. NWA also. ‘meted out safety-oriented disci- .

pline against other crew members in its efforts to establish
management’s overwhelming need for physically, emotion-
ally-and morally fit flight crew members. In this respect,
the discharges of February 8, 1964, occurred only after the
terrifying evidence of the misconduct of Captain Rall, Co-

pilot Lee, and Flight Engineer Todd turned up in the course

of an entirely unrelated investigation. R. 158.
Notwithstanding the violation of the NWA and the ALPA

rule against pre-flight drinking, Rall, Lee and Todd all dis-

puted their discharges. Rall and Lee’s grievances (“minor

disputes”) were processed through the procedures estab- f
lished by the contracts between NWA and ALPA, each ulti-

mately appealing to separate but identical five-man System,

Boards of Adjustment. Todd, the Flight Engineer and third

in command of Flight NO27, also had a hearing before the
Flight Engineers System Board. The fiveman ALPA Sys-
tem Board, despite a finding of a violation of the NWA and

ALA rules, ordered NWA to reinstate Rall and Lee with

back pay. NWA’s discharge of Todd was sustained by his
System. Board, the same neutral chairman b+ aos as in
the Rall and Lee cases.

their
have devised the terms “minor dispute” for disagreements concerning the in-
terpretation of an existing contract, and “major disputes” which arise when a
contract is sought. See Brotherhood of R.R. Trainmen v. Chicago River
J.S. 30, 83 (1957); International Ass’n of Machinists v.
n 682 (1968).

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Act, 44 Stat. 577 (1926), as amended 45 U.. C. 66 151.
188, prescribes different procedures for the settlement of disputes between
employees, depending on the nature of the dispute. Courts

This certiorari proceeding, therefore, grew out of a suit
commenced on February 11, 1965, in which respondents
sought enforcement of the two awards of the System Boards.
The paramount interests of safety compelled NWA to refuse
to comply with the Rall and Lee System Board awards, com-
; pelled it to resist their Petition for Enforcement, and com-
Pel it to continue that resistance now. It may be that: the

safety elements on a propeller-driven airplane are somewhat |
less critical than on a 600-mile per hour plus jet or the up-
: cecming supersonic transports. The fact still remains that
on flight crew drinking presents an ever-present danger to the

lives of millions of traveling Americans, and the ability of

management to’ protect against the extraordinary hazards
created by the use of alcohol by flight crew members is at the
very root of this dispute. See Mohler, Recent: Findings on
the Impairment of Airmanship by Alcohol, Federal Aviation

Agency pamphlet AM 66-29 (1966). The existence of this
1 safety factor in the face of the confusion and doubt over the
meaning and application of the Railway Labor Act, collec-
tive bargaining agreements entered into thereunder, common
carrier duties and responsibilities and constitutional ques-
tions of trial by jury call for prompt and definitive action hy
this Court. r a 8
. After the commencement of suit by respondents, and
os NWA’s answer, respondents made two motions for summary,
es judgment. The principal issue on both motions was the ques- |
, tion of whether NWA was entitled to a full-fledged judicial

trial on the issues growing out of the discharges of Rall and
On August 6, 1965, the District Court entered its first or-
der, holding then that “the decisions overwhelmingly sustain
: the right of the carrier to a trial de novo in the enforcement
proceedings. [Citing authority]. R. 53. :

After this decision, respondents made a second motion for
summary judgment, based upon the December 8,. 1965, deci-
sion of this Court in Gunther v. San Diego & Ariz. E. Ry.,
382 U.S. 257 (1965). The District Court entered its Order
of July 20, 1966, denying NWA de novo review of the
Awards. In a memorandum accompanying. that Order, the
Court certified, pursuant to 28 U.S. C. §1292(b), that the
“order denying Northwest Airlines, Inc. a dé novo review of
the award [sic] of the System Board of Adjustment herein
involves a controlling question of law about which there is
substantial ground for differences of opinion and that an im-
/ mediate appeal will materially advance the ultimate deter-
mination of this litigation.” R. 77.

| Petitioner’s timely application for. permission to appeal
was granted by the Court of Appeals for the Eighth Circuit
on August 15, 1967. The Court of Appeals, on February 23,
1967, affirmed the Order of the District Court denying NWA
the right to make a full judicial presentation of evidence in
support of the discharges of Rall and Lee. As heretofore
noted, rehearing was also denied.

The question of the finality of the Awards of the System
Boards herein was determined by both the District Court and
the Court of Appeals, not on the basis of the contract be-
‘tween the parties, but on the basis of an interpretation or
83 of the Railway Labor Act, which is expressly made in-
applicable to carriers by air. :

— * — — — 9 . V ²·Ü p e A Ne ap

ne 2

7

I. THE QUESTION OF THE DEGREE OF FINALITY OF AWARDS

OF AIRLINE SYSTEM BOARDS OF ADJUSTMENT is A

_ SOURCE OF CONFLICT BETWEEN AIR CARRIERS AND

THEIR EMPLOYEES, AND WILL CONTINUE TO CREATE co.

FLICT UNTIL IT IS. AUTHORITATIVELY SETTLED BY sad
count.

There are more than 25 3 United States com-
mercial airlines subject to the provisions of the Railway La-
bor Act. Each of these airlines has. contracts with unions

representing employees and establishing System Be Boards of
Adjustment. NWA, only one example, has contracts estab-
_ lishing separate System Boards for each of the fourteen

_ crafts of employees represented by a total of eight unions.®

The relevant provisions of all of the contracts dealing with

the finality to be accorded Awards of System Boards are vir-
_ tually identical, and the provisions involved in the instant

case are representative. They are printed at R. 5-12.

The question of the extent to which parties to Airline Sys-
tem Board contracts have ousted the traditional jurisdic- .

tion of Courts to hear suits for wrongful discharge thus af-
fects hundreds of thousands of employees in addition to re-
spondents Rall and Lee, and many airlines besides petitioner.

The public interest in safe air travel is also involved herein.

Historically, judicial treatment of questions . to

H P
Cae, Pons Society of Meteorologists; Brotherhood of Ry. and Steam-
t

I Northwest Airlines Foremen’s Association; Trans- .

port Workers of America,

. The separate crafts or classes represented by the unions are as follows:

Airline Flight Pursers, Flight Service Attendants and Stewardesses; Airline

Radio and Operators; Airline Navigators; Airline Pilots; Cleri-
and Passenger Service “Employees; Dispatchers; Flight

‘Airline System. Boards has been tentative, unsophisticated

and uncertain. ‘Basically, three issues have been before the

- courts concerning Awards by Airline System Boards, viz. :
_ (1) Must a discharged employee exhaust his’ administrative

remedy before commencing a suit for wrongful discharge?
(2) Does a federal district court have jurisdiction to con-

sider Awards of Airline System Boards of Adjustment?

and, the issue raised by this Petition, (3) To what extent
have parties to Airline System Board contracts destroyed the
competence of courts to hear suits involving a ‘claim of
wrongful discharge? 8

The question of whether an airline nities. must exhaust
his administrative remedies prior to bringing a suit for
wrongful discharge was settled by this Court in the first re- .
ported case which raised the issue. Transcontinental and
Western Air, Ino. v. Koppal, 345 U. S. 653 (1953).

The question of federal jurisdiction was answered in the

affirmative by this Court in International Association of Ma-
chinists v. Central Airlines, Inc., 372 U. S. 682 (1963), con-

‘trary to the two. earlier cases in which the issue had been

raised.
ö By tar the most widely litigated issue, and the issue which

nag not yet been settled by this Court, is the question of the

“finality” to be accorded Awards of Airline System Boards:

Certiorari has been men sought in five such cases,

TThe vitality of that decision is questioned in Larsen v. American Airlines,
Inc., 818 F.2d 599 (2d Cir. 1908).

Metcalf v. National Airlines, Inc., 271 F.2d 817 (Sth Cir. 1959); Airline
—.* TransWorld Airlines, Inc. ne 488 (W.D. Mo.

®*Capital Airways v. Air Line Pilots Ass’n, Int I. 341 F.2d 288 (6th Cir. 1965),
. denied, 381 U.S. 918, 982 (1968); Wooley v. Eastern Air Lines, Inc.,

and the issue has been raised fn five other cases, 1e besides the
instant case. 3
- This volume of litigation, and the Petitions for Certiorari,
. attest to th general importance of the issue. The confusion
surrounding’ the issue is apparent. For example, since the
System Board makes an “Award,” courts have confused Sys-
tem Boards with Boards of Arbitration. See Capital Airways
v. Air Line Pilote An, Int t, 341 F.2d 288 (6th Cir. 1968),
cert. denied, 381 U.S. 918, 952 (1965). 3
The only true arbitration provisions of the Act are found
in Sections 7-9. Section 7" provides that both major and
minor disputes may be settled by arbitration rather than
through mediation or submission to an “appropriate board
of adjustment“. Section 812 spells out the requisite and tech-
nical elements of an agreement to arbitrate, and Section 91
details the essentially mechanical method of énforcement of
the resulting arbitration award. reas : 2s
It seems rather elementary that when Airline System Board
agreements, such as that involved herein, do not comply
with the provisions of Section 8, they are not in fact agree-
ments to arbitrate, and therefore the enforcement provisions
of Section 9 are also inapplicable. Nonetheless, confusion be-
tweén enforcement of Airline System Board Awards and See-
tion 9 Arbitration Awards persists, and will eontinue unless
this Court grants certiorari. and settles the question. It is
not an answer to say that Section 9 arbitration is ad hoe and
voluntary while Airline System Boards are continuing and

D. ; Air-
lines, Inc. v. Air Line Pilots Ass’n, Int’l, 91 F. Supp. 629 (E.D. N.Y. 1950).

. Stat. 584 (1926), as amended, 48 U.S.C.. §158 (1964).
1844 Stat. 585 (1926), as amended, 45 U.S.C. §159 (1964),

10
compulsory, | because the question still remains as to the en-

forcement of Airline System Board Awards. Congress could

have made enforcement of Airline System Board Awards as
precise as that prescribed in Section 9, but it has not seen
fit to do so.

But an even more basic and fundamental confusion exists
in this case and others involving Airline System Boards, con-
cerning the distinction between Awards of the National Rail-
road Adjustment Board (“NRAB”) and Awards of Airline ;

‘System Boards.

Section 3 of the Act was expressly made inapplicable to
air carriers by §201 of the Act, 49° Stat. 1189 (1936), al-
though all of the other provisions of the Act do apply to ‘
air -carriers. Instead, air carriers and their employees

vere required by Section 204, 49 Stat. 1189 (1936) “to

establish a board of adjustment of jurisdiction not eaceed-

ing the jurisdiction which may be lawfully exercised by
' [railroad] system, group or regional boards of adjustment

under the authority of Section 3” of the Railway Labor Act

(emphasis supplied). It was because of the inapplicability ~
of §3 to airlines that this Court was called upon, in Central

Airlines, supra, to decide whether any basis of federal *
dietion existec.
Despite the ‘fact that §3 of the Act is ‘expressly made

- inapplicable to air carriers, courts, including the courts be-

low in the instant case, frequently have used decisions con-
struing §3 when determining the scope of review of Air-

line System Board Awards. Indeed, the District Court here-
in, having once denied respondents’ motion for summary

judgment, reversed itself and partially granted summary
judgment, basing the reversal on the decision in Gunther v.

San Diego & Ariz. Z. Ry., supra, a decision which, though

fraught with uncertainty, deals solely with the expressly in-

" i
applicable 53 of the Act. The Court of Appeals fell into the
same error. | e
Courts are not alone in their confusion over the effeet to

be given §3 in cases involving airlines, Litigants and labor
contract negotiators in this case and others are faced with
the same difficulties. Because some courts have applied §3
to airlines, despite the proscription in §201, both litigants
and negotiators find themselves occasionally inadvertantly
accepting the applicability of that section. If certiorari is
granted herein, the confusion can be halted and a decision
reached which will give airlines and their employees a re-
liable guide through future ‘negotiations or litigation.

Even more important, a definitive decision here will at
last mark out the quantum of finality which this Court has
80 far only termed “some degree“. International Asen. 8
Machinists v. Central Airlines, Ino, supra. With such a de-
cision in the case at bar, all air carriers and their employees
can be told and will know that unless they explicitly waive
court and constitutionally protected review on the merits of
grievances, a federal question is presented which will allow
resolution of legal issues by federal courts and factual issues
by juries. © . >

By such a decision, this Court can accomplish a number
of ends, all significant to sound labor relations and consistent
with due concern over uninterrupted and safe interstate
transportation, all valuable in the even handed administra-
tion of justice, all consonant with the principle of first re-
course to administrative remedies, and all reconcilable with ,
constitutional guarantees. The decision which reaches these
administrative ends is quite simple. It reduces itself to the
following step by step analysis. 1 8 n

1. Air carriers are required to provide contraetual griev-
ance machinery to handle disputes over contract interpreta-
tion and administration, including disciplinary action;

\

* a
. \ » f N
. ° . * » .
— — .
— - — 7 0 — = — ne — „

12 : ° »

2. Air carriers, their employees and unions must first In-
vin and comply with the contractual machinery before La)
resorting to self-help, or (b) filing suit;

3. When the contractual grievance machinery has bn

| completed, or while it is in progress, the moving party: ( air
carrier, union or employee) may bring a federal action to

a protect or enforce the contractual machinery or the results

thereof with the right to jury trial preserved on all aspects
which fall within the constitutional protection. 7
This kind of a decision will perhaps require re examina-
tion of Koppal but not of Moore v. Illinois Cent. R. R., 312
U.S. 630 (1941), Gunther or Walker v. Southern Ry., 385
U. S. 196 (1966), because they are under different law.

Any fear that this re examination may result in prolifera-
tion of airline labor litigation or grievances is unfounded.
The National Mediation Board can establish a National Air
Transport Adjustment Board (“NATAB”) to bring Airline
System Board cases within the umbrella of Gunther, and
open those awards only to the same extent as court review of
NRAB awards.

Railroad System Boards, 5 jurisdiction Section 204
Airline System Boards may not exceed, are permitted to be b
established by the provisions of §3 Second. §3 Second also
permits dissatisfied parties to revoke such a Railroad Sys-
tem Board arrangement, and to elect to come under the
jurisdietion of NRAB. But dissatisfled parties to Airline
System Boards have no such recourse. Although 3205 of
the Act (49 Stat: 1190 (1936) ) provides for the creation of
NATAB at such time as the National’ Mediation Board
(NMB) concludes that it is necessary for the “prompt and
orderly settlément of disputes,” no such NATAB has yet
_ been created, or even recommended. Vet, it is only NATAB,
if and when created, which will have powers and ae and
whose “findings and awards [shall be] enforced . . . in the

; 6

same manner and to the same extent as provided with refer - > ey

ence to [the NRAB] by section 153 of this title.” Railway
Labor Act, Section 205. Conversely, until NATAB is created,
Airline System Boards may have decisional finality power of
a lesser degree than NATAB. Consequently, the extent of
the power of the courts to review the Awards as final, or
something less than final, not yet settled by this Court, can
de settled by granting this Petition for Certio 3
Transcontinental and Western Air Lines o. Koppal; ru,
establishes the competence of federal courts to determine the
legal and factual merits of a dispute over the discharge of an
airline employee in his initial lawsuit. It is confusing, to
say the least, if the courts somehow lose their competence to
decide the legal and factual merits of the discharge merely
a because the matter arises in the form of a suit to enforce an
Airline System Board Award of reinstatement, while courts —
are still competent, to hear a suit for damages for wrongful ©
discharge. The issues to be decided are identical. The only
difference in court access is procedural, in the option of suit
or grievance by the employee or his union. If the airline em-
ployee opts to sue, he and the carrier get all the facts
including grave matters of air safety and aleshol. be-
fore a court and jury. If the employee follows the minor
dispute route, then what happens in court? That is the prob-
In International Ass’n of Machinists v. Central Airlines,
Inc., supra, this Court ruled that federal courts have jurisdic.
tion to entertain a suit under a complaint to enforce an Air-
line System Board Award. Contractual provisions broaden-
ing or limiting the scope of judicial review [degree of final-
ity] were also held within the parties’ competence.
Some semantic problems here appear. If “utter finality”
is agreed upon between an airline and its employees, then a
federal court would, arguably, have no jurisdiction other

*

"oY

14°

than to enforce an Airline System Board Award as if it were
an appellate court reviewing a jury verdict.. If “some degree ö
of finality” less than “utter” is agreed upon, then the scope
of federal review is expanded and the award may be given
prima facie effect or even the weight — of finality], per-
haps, of an expert opinion.

It is interesting that Section 3 First (p), as to railroads,
utilized a very similar ‘concept by giving NRAB division
Awards a prima facie “degree of finality”; and that such a
degree was likened, in Washington Terminal Co. v. Boswell,
124 F.2d 235 (D. C. Cir. 1941), aff'd by an equally divided
court, 319 U.S. 732 (1943), to the W of the opinion evi-
dence of an. expert. a
But Central Airlines leaves unanswered important ques-
tions of ‘whether contracts with provisions such as are here
concerned precludes judicial review on the merits. (“utter
finality”) or gives the Awards prima facie, expert or some
other degree of finality consistent with the Railway Labor
Act. ‘In short, the Central Airlines decision does not settle
the most. frequent, pervasive, and troublesome question in-
volving Awards of. Airline System Boards, and the issue is

_ , Pipe for consideration at this time.

The instant case does not involve an isolated contract and
a simple dispute between Messrs. Rall and Lee and NWA.
Rather, it involves questions of importance to the entire bil -
lion dollar airline industry and all of its hundreds of thou-

Sands. of employees, almost all being governed by contracts

containing “some degree of finality” provisions.

As noted, an employee who 1 ‘is discharged may-elect to pro-
ceed with a grievance before the Airline System Board or he
may commence ‘a suit for wrongful discharge and seek dam-
ages. he alternatives are mutually exclusive, and once one
route is chosen, the other is forever closed. Until the ques-
tion of the degree of finality problem is authoritatively

-
TCC
5

- *

15 P

settled by this Court, an employee must make his decision in

a vacuum, and must remain in doubt as to the advantages 8

one procedure against the other. ‘Similarly, air carriers,

faced with an Award they consider unjust and incorrect,
must know whether the Award will be summarily sustained,

or whether judicial review shall be permitted. Furthermore,
negotiators for both air carriers and unions have no way of
knowing what degree of finality” less than “utter finality” |

may lawfully be fixed for Airline System Board Awards.
Neither side can, therefore, foretell how far either may go in

imposing: or opposing safety discipline in a burgeoning in-

dustry. -

A prompt decision ~ this Court is necessary to avoid the
uncertainty and dispute permeating this cause. Further de-
lay in resolving these doubts will result in further litigation

between employees and air carriers, confuse contract nego-
tiations, unsettle fail-safe air carrier regulations and ham-

per, if not frustrate, expeditious treatment of pending griev-

ances” Can tate the nation’s carriers by air.

ll. THE COURT OF APPEALS HAS DECIDED THE QUESTION as
THE DEGREE OF FINALITY OF AWARDS OF AIRLINE SYS-
TEM BOARDS IN CONFLICT WITH DECISIONS or THIS
COURT AND IN CONFLICT WITH LONG-ESTABLISHED PRE-
CEDENTS IN THE COURTS OF APPEALS.

The Court of Appeals herein affirmed the ruling of the
District Court that NWA was not entitled to a full judicial
presentation of its evidence on the i issue of whether Captain
Rall and Co-pilot Lee were properly discharged. Neither
court examined the contract between the parties i in determin-
ing whether there was only “some degree of finality”, “utter
finality” ör something in between. Both. courts made the
silent assumption that the degree of finality of Awards of
the statutory NRAB and of contractual Airline System

ran

16

Boards was identical, and engrafted their interpretation of
the provisions of tlie inapplicable Section 3 of the Railway
Labor Act to the NWA-ALPA contract.

We have set forth in Part I of this Petition the reasons
why we believe that 83 of the Railway Labor Act, and
court decisions construing that section, are inapplicable to
Awards of ‘Airline System Boards. But if reference to
83 is permitted in determining the scope of review, the
decision below is inconsistent with long-established prece-
dents in the Courts of Appeals and overleaps constitutional |
jury rights. If, instead, reference to the applicable contract
| _is required to determine the degree of finality agreed upon,
then the.Court of Appeals’ decision herein is at odds with
International Ass’n of Machinists v. Central Airlines, supra. |
In either case, certiorari should be granted by reason of the
conflict between the decision of the Court below and decision
of this Court and long-established precedent. Moreover, cer-
tiorari should be . to elarify en comes is cor-
reet.

The Central Airlines ae may be read to require fed-
eral courts, in a suit to enforce an Airline System Board
Award, to consider two questions: (1) To what extent does
the contract provide for some degree of finality and thus com-
press or expand a judicial review of the Award? and (2)
Are these provisions consistent with the requirements of the
Railway Labor Act? Or that decision may be read as holding
that the System Board agreement involved therein, as a mat-
ter of law, foreclosed ee review * as a ministerial
matter.

Whichever alternative 8 of the Central Air-
lines decision is correct, it is clear that the.courts below in
the instant case chose neither. Instead, they merely exam- .
ined §3 of the Railway Labor Act, and then applied their
interpretation of that section to the parties herein, with-

17
out examining the applicable contract to determine whether
that result was warranted by the contract. Moreover} the de-
cision was reached by the courts below in ruling on a Motion
for Summary Judgment. | F | |
The decision of the Court of Appeals, then, conflicts with
the implicit holding of the Central Airlines case that judi-
cial review of Airline System Board Awards is determined.
_by reference to the applicable contract, not the statute. It
also conflicts with the plain language of 5201 of the Rail-
way Labor Act, which specifically excludes air carriers from
coverage under 83. i
But even if Central Airlines does permit courts to deter-
mine the finality of Airline System Board Awards and the
scope of -their judicial review by reference to §3 of the
Railway Labor Act rather than the ‘contract (which we dis-
pute), the decision of the Court of Appeals herein is in con-
flict with the cases construing that section and at odds with

_ NWA’s right to a trial by jury.“

No fewer than sixteen cases in Distriet Courts and Courts
of Appeals have held that NRAB enforcement suits proceed
de novo, and that a railroad may submit oral evidence on the

‘merits of NRAB Awards. All such NRAB Awards had

to be constitutionally defective in that they deprive parties of a jury trial.

The constitutional argument we make regarding the interpretation of §3
prior to the amendments (infra, pp. 49-57) applies with equal force to the
issue of the constitutionality of the 1966 amendments.

: . — wr ese TEER
W 8 , —— —

18

more than the “some degree of finality” which must attach
to Airline System Board Awards, equal to the degree of
finality which will be given to NATAB. Awards once it is
Vo doubt the leading authority on this issue is Washington
Terminal Co. v. Boswell, 124 F.2d 235 (D.C. Cir. 1941), af-
firmed by an equally divided court, 319 U.S. 732 (1943). The
Washington Terminal case is the first case to hold that a
District Court must conduct a de novo review of an award
of a Railroad Adjustment Board. | |
In Washington Terminal, ‘the Court of Appeals ruled that
in an employee’s suit for enforcement, the District Court
must conduct de novo review. Washington Terminal rejected
the employer’s due process objections on the ground that
the status quo remains in effect until the District Court has
conducted a full hearing. The Court reasoned : ö N
“Though the effects of an award favorable to an employee
are ‘substantial, they do not conclude the employer’s
rights. The Board cannot enforce its awards. That is
left for the courts to do. It can be done only in a suit de
novo. !?. . The carrier is limited in no way as to its
defenses or the evidence it may wish to present. Its day
in court in the enforcement .suit is a full one. That is
hardly disputed.” (Emphasis supplied.)

“°Because of its prima facie factual effect, the award | ,
may give the suit something more than the character of

(8th Cir. 1988); Callan v. Great Northern Ry., 299 F.2d .908 (5th Cir.
1961); Hodges v. Atlantic Coast Line R. R., 310 F.2d 438 (5th Cir. 1962);
Jones v. Central of Georgia Ry., 331 F.2d 649 (5th Cir, 1964); Brotherhood
of R. R. Trainmen v. Louisville & N. R. R., 334 F.2d 79 (5th Cir. 1964);
Order of Sleeping Gar Conductors-v. Pullman Co., 47 F.Supp. 599 (E. D.
Wis. 1942); Hanks v. Delaware & H. R. Corp., 63 F. Supp. 161 (N. D. N.Y.
1945); Crist v. Public Belt R. R. Comm'n, 98 F. Supp. 103 (E. D. La. 1950);
Ward v. New Orleens Public Belt R. R. Comm’n, 97 F.Supp. 1002 (E. D.
La. 1981); Order of R. R. Telegraphers v. Union Pacific R. R., 231 F. Supp.
33 (D. Colo. 1964); Hanson v. Chesapeake & O. Ry., 236 F.Supp. 56 (S. D.
“W.Va. 1964). In Part III of this Petition we consider the effect of Gunther
v. San Diego & Ariz. E. Ry., 382 U.S. 257 (1965), on these precedents.

— — aetiiy aes * SFE

19
a normal suit de novo. But the suit may be classified .
thus more accurately than as one for review proper.“
124 F. 2d at 244 (emphasis supplied).

In Dahlberg v. Pittsburgh & L. E. R. R., 138 F.2d 121 (3d
Cir. 1943), the Court of Appeals held that full judicial re-
view was required. It reasoned that there must be some
limitation on the meaning of the phrase “final and binding”
as used in §3 First (m). It suggested that the words were
used: . 8 : .

.. in the sense that the award is the definitive act of a.
mediative agency, binding until and unless it is set aside
in the manner prescribed, and that it was intended that
the Court should exercise broader powers than merely
directing coercive process to issue if satisfied that the
proceeding was authorized by law.“
138 F. 2d at 122. . g

Both Washington Terminal and Dahlberg squarely reached
the conclusion that trial in District Court proceeds de novo.
We cite in n. 15 the nunierous other authorities which reach - :
the same conclysion. No real purpose would be served in ex-
amining each of those cases here. The reasoning of some does
warrant special comment, however. | . ~

As previously noted, the previsions of §§ 7-9 of the Act |
deal with arbitration of disputes as contrasted with the Sys-
tem Board -involved herein. The Court in Brotherhood of
Raiba Clerks v. Atlantic Coast Line R. R., 253 F. 2d 753

(Ath Cir. 1958), reasoned that Congress must have intended
de novo review of NRAB Awards, because the plain language
of §3 First (p) required it. In providing specially for the
enforcement of awards of a board of arbitration created un- :
der §9, Congress had provided that the award simply be filed |
with the Clerk of District Court, and it would become con-
clusive upon the expiration of ten days unless impeachment
were sought onsthe specified limited grounds set forth in the

20

_ statute. The provisions of 83 First (p) are more elaborate.
Section 3 First (p) cannot be read to impose finality, the
Court concluded, for Congress has shown its awareness of a
method for providing. for finality and has. not chosen that
method in §3. The Court recognized that to foreclose de
novo review after a Board Award would be to ignore the
plainly different methods provided by two sections of the
same statute, or, to put it in context with Central Airlines,
the statutory degree of finality of NRAB awards would be-
come improperly. identified with that of Section 9 arbitration
awards despite Congress’ deliberate selection of completely
* different language. And not even the 1966 amendments to
; 83 engraft the “utter finality” approach: which is still pro-
vided’ in 59. F }
> _ . Again, assuming applicability of 83 to 8204 Airline Sys-
tem Board Awards, we cannot ignore the fact that language
of the Railway Labor Act (§3 First (p)) is almost identical
to that provided for Interstate Commerce Commission
(“ICC”) orders. 24 Stat. 384 (1887).2* It takes no concen-
tration to observe the identical nature of ICC enforcement
under §16(2) with that provided by §3 of the Railway Labor
Act. Hence, when Congress created §3 of the Railway Labor
_ Act with enforcement provisions practically copied from
816 (2) of. the Interstate Commerce Act, it guaranteed a full
de novo hearing. In Meeker & Co. v. Lehigh Valley R. R., 236
US. 412 (1915), this Court said:

‘1649 vs c. §16(2) provides as follows:

“(2) Proceedings in courts to enforce orders; costs; attorney’s feo. If
a carrier does not comply with an order for the payment of money . . . the
complainant ... may file in the district court of the United States

a complaint Such suit . . shall proceed in all respects like other
ctl suits for damage, except that onthe tial of such sult the findings and
order of the Commission shall be prima facie evidence of the facts therein
erer
court nor for costs at any subsequent stage of the proceedings unless they
accrue upon his appeal. If the plaintiff shall finally prevail he shall be al-

” | ——<_<
costs suit.”

5 et | 33
“[Section 16 (2)] only established a rebuttable presump-
tion. It cuts off no defense, interposes no obstacle to a
full contestation of all the issues, and takes no question
of fact from either court or jury. At most therefore it is
merely a rule of evidence. It does not abridge the right
of trial by jury or take away any of its incidents. Nor
does it in any wise work a denial of due process of law.”
[Emphasis supplied]. „
236 U.S. at 430. This language was quoted with Approval in
Southern Ry. v. Eichler, 56 F. 2d 1010, 1018 (8th Cir. 1982). |
In Blair v. Cleveland, C., C. & St. L. Ry., 45 F. 2d 792 (E. D.
III. 1931), aff’d 59 F. 2d 478 (7th Cir. 1932), the Court de-

5 scribed the hearing as follows:

“The hearing in this court is de novo, and the court is en-
titled to receive and consider evidence in addition to
‘that before the. Commission, but the prima facie case
made out by the findings and order of the Commission
will prevail unless overcome by evidence submitted by
defendants.” ae ae a a,

45 F.2d at 793.
It would be more than an anomaly if the later Congression-
al enactments in the Railway Labor Act, 33 “First (p)
and the Interstate Commerce Act, 49 U.S.C. §16(2) were
given such widely divergent effect as would result were this
Court to hold that 83. First (p) does not provide an eviden-
tiary hearing in “reviewing” NRAB awards. This is especial-
ly true since the Railway Labor Act provisions were enacted
not only long after the Interstate Commerce Act, but long
after the Meeker case. Congressional knowledge of this
Court's interpretation of §16(2) of the Interstate Commerce 3
Act must be presumed in such a situation. :
Moreover, although §16(2) of the Interstate Commerce
Act“ provides a separate non-reviewable method for the en-
forcement. of non-money Awards, Congress chose to enact
only one method for the enforcement of either e or non-
money NRAB Awards by 63 First (p). That section clearly

~ : id

contemplated a full hearing in District Court, at which the
findings of the NRAB constitute, by specific statutory lan-
guage, only prima facie evidence of the facts stated in those
findings.

Courts have also been concerned with the question of in-
suring rights guaranteed under the Constitution, when exam-
ining the enforcement procedures of the Railway Labor Act
and the Interstate Commerce Act. The answer has always
deen that the party who chose to take the dispute to the ad-
ministrative tribunal has made an election about which he
may not complain. The other party, the cases point out, is’
entitled to a full scale hearing in the enforcement proceed-
ings which provides these Constitutional necessities. E. g.,
Washington Terminal Co. v. Boswell, supra (Railway Labor
Act) ; Meeker & Co. v. Lehigh Valley R. R., supra (Interstate
Commerce Act); Baltimore & O. R. R. v. Brady, 2 U.S.
448 (1933) (Interstate Commerce Act).

In the Brady case, this Court held that one who submits an
issue to the ICC is bound by the decision. It explained:

“The fact that the Act merely makes the findings and re-
port of the Commission prima facie evidence and so pre-
serves the defendant’s right to contest the award gives
no support to plaintiffs contention that it does not bind
Fim. It is to be remembered that, by electing to call on
the Commission for the determination of his damages,
plaintiff waived his right to maintain an action at law
upon his claim. But the carriers made no such election.
Undoubtedly it was to the end that they be not denied
‘ the right of trial by jury that Congress saved their right
to be heard in court upon the merits of claims asserted
against them. The right of election given to a claimant
reasonably may have been deemed an adequate ground
for making the Commission’s award final us to him.”

288 U.S. at 458. (Emphasis supplied). ?
The Court in Southern Ry. v. sister, 56 F.2d 1010 (8th
ir. 1982), considered this same issue in .a, proceeding

«

23

brought to enforce an ICO award. The Court reversed the

ICC. It held that the evidence did not support the decision,
and defined the role of the Court as follows: et ane

“If an order for reparation is made by the Commission,

it can be enforced only by suit in some court of general .

- jurisdiction. Section 16, 49 USCA p. 6. Thus the con-

Stitutional provisions guaranteeing trial by jury and due

process of law (Const. U. S. Amendments 7 and 14) are

satisfied. Meeker & Co. v. Lehigh Valley R. R. Co., 236

U.S. 412, 35 S.Ct. 328, 59 L. Ed. 644, Ann. Cas. 1916B,
ow” . , 8 8

56 F.2d at. 1013. cal
The right to a jury trial is guaranteed to NWA by the.
Seventh Amendment to the United States Constitution.
“In Suits at common law, where the value in controversy

shall exceed twenty dollars, the right of trial by jury
shall be preserved. 5 :
U. S. Const. amend. VII.
NWA did not invoke the System Boards, It does invoke
the Constitution. 7

As the cases previously cited have shown, this constitu-
tional guarantee of. a jury trial is satisfied only by de
novo, hearing of the sort provided the employer under §3
First (p). But the holding of the Court below in this case,
by rejecting de novo review, deprives NWA of the right

toa jury trial under a contract permissibly establishing a
lesser degree of finality for an Airline System Board Award
than the Act prescribes for an NRAB award.

The basic issue involved in the dispute herein is whether
the discharge of Rall and Lee was demanded or justified by
. NWA’s safety duties. The fact that respondents seek equit-

able relief does not eliminate the right to a jury trial. Thus
n . . Ma . . . ‘ |
170ur claim of right to jury trial embraces the need for compulsory attendance .

of witnesses. cross-examination of all witnesses, and all of the other elements
essential to the maintenance of due ‘process of law. . on

24 ‘ . /

in Beacon Theatres, Inc. b. Westover, 359 U.S. 500 (1959),
the plaintiff brought in action for declaratory judgment,
seeking an injunction prohibiting defendant from instituting
an anti-trust suit for damages. Defendant counterclaimed

‘for damages. This Court held a jury trial essential. If anti-

trust issues are triable to a jury in a treble damage action,
it reasoned, then defendant could not be deprived of a jury
trial merely because plaintiff took advantage of the declara-
c tory judgment procedure and sued first. J ustice Black
__ Stressed that “only under the most imperative circumstances,
eireumstances which in view of the flexible procedures of the.
Federal Rules we cannot now anticipate, can the right to a
jury trial be lost through prior determination of equitable —
claims.” 359 U.S. at 510-511. ¥

Similarly, in Dairy Queen, Inc. v. Wood, 369 U.S. 469
e this Court required a trial by jury:
. [T]he district judge erred in refusing to grant 1 pe
e demand for a trial by jury on the factual is-
sues related to the question of whether there has been a
breach of contract. Since these issues are common with
those upon which respondents’ claim for equitable relief
is based, the legal claims involved in the action must be
determined prior to any final court determination of re-
spondents’ equitable claims.”

369 U.S. at 479.

We urge that NWA’s right to a fee trial 1 not
and cannot be abrogated merely because respondents sought
N equitable relief from the District Court. ;
The language of 83 First (m), when compared to the lan-
7 guage of $3 First (p), creates what has been referred to as

an enigma. §3 First (m) provides that the awards are to be
“final and binding”, while 83 First (p) . that * en-
foreement proceeding: ;

“Shall proceed in all respects as other 1 suits, except
that on the trial of such suit the fin and order of

*

the division of the Adjustment Board shall be prima

facie evidence of the facts therein stated. . . If the
petitioner shall finally prevail he shall be allowed a rea-
sonable attorney’s fee. . . . The district courts are em-
‘powered . . . to enforce or set aside the order of the

division of the Adjustment Board.” .

Faced with the explicit language of 63 First (p), courts,

as we have seen, ascribed to the language of §3 First (in) a

meaning of final administrative action, subject to court re-
view. (e. ., Dahlberg v. Pittsburgh & L. E. R. R., 138 F. 2d
121 (3d Cir. 1943); Brotherhood of R. R. Trainmen v. Louis-
ville & V. R. R., 334 F.2d 79 (5th Cir. 1964); Jones v. Cen-
tral of Georgia Ry, 331 F.2d 649 (5th Cir. 1964)), This re-
sult is consistent with the action of this Court in the face of
other statutes which provide for finality. Professor Louis
Jaffe, a widely acknowledged authority in Administrative
Law, states: “A provision merely making the action of an

officer ‘final’ is often held not to exclude review. It is some-

times said that such a provision emphasizes its administra-
tive finality.” (Emphasis supplied.) Jaffe, Judicial Control
of Administrative Action, 356 (1965).
It would seem to be clear from the foregoing tliat if judi-
cial scrutiny of Awards of Airline System Boards of. Ad-
justment is to be determined by reference to §3 of the Act,
the decision of the Court of Appeals is contrary to long estab-
lished precedents. If reference to the contract is required by

Central Airlines, the Court of Appeals has decided the issue

in a way in conflict with that case. In any event, without

"Clarification of what limited degree of finality airlines and

. unions may confer on their System Boards, or without an-

swer to the applicability of §3 to Airline System Boards, no
one can proceed to litigate or negotiate in this sensitive area

7 with any assurance of the legal or practical consequences.

On the question unanswered by the Eighth Circuit, it is

our position that the contract. involved herein requires a

ro

3

fall de novo . in the ott for enforcement W it
did not give the System Board. Award „ like “utter

‘ finality. ”

The System’ Board Agreement was made in January, 1952

f That agreement sets forth language almost verbatim to that

in 83 First as then in force and interpreted. Thus, paragraph

Y of the Agreement provides that the decisions of the. Board

shall be “final and binding“. R. 9. And in paragraph (m)

it is said that “a majority vote of the Board shall be final,

binding and conelusive.“ R. 9. All rights, under the Rail -
way Labor Act, were preserved. R. 9-10.

It is patent that this language was selected i in the light of
the then known NRAB “degree of finality” decisions, viz.,
nine pre-1952 cases interpreting 83 of the Abt!“ as requiring
a full de novo review of NRAB Awards. The Court of Ap-

peals, without examining the meaning of the contract, none-

theless. summarily disposes of this argument on the ground |
that “Gunther interprets the statutory law as it has at all
times here material existed,” and, therefore, since 83 was

meant to be incorporated into the contract, “utter finality”

(the supposed interpretation of that section by Gunther) was
nunc pro tunc imported into the “some degree of finality”
mutual agreement of thirteen years standing.

This reasoning runs completely counter to the Central Air-

lines holding. It also misconstrues our argument, in that

it is based on a belief that we argued that §3 was to, be in-

corporated into the contract, and thus conceded that a later

different. C@nstruction or amendment of that section would
ipso facto change the meaning of the contract. No such ar-
gument was intended or made. The error was compounded
by the Court of Appeals when it proceeded (on assumption
rather than on an interpretation of the contract as required

+

18These cases are cited in n. 15 of this petition.

27
by Central Airlines) to hold that §3 forecloses judicial re-
view by imparting “atter finality’ to NRAB Awards and
therefore NWA agreed to this conclusion. _- |
Whatever may be the effect of Gunther, it certainly can-
not magically and unilaterally change the pre-1952 interpre-
tation of 83 to provide for anything more than “some degree
of finality”. The decision of the Court of Appeals results in
the meaning and impact of the contractual language being
changed with the Vicissitudes of litigation, between parties
6 foreign to that contract, and governed by a section of the
Railway Labor Act specifically made inapplicable to airline
contracts and the parties thereto. ~ 3
Under such circumstances, certiorari should be granted to
resolve ‘the conflict between the decision of the Court of
Appeals and long-established precedents of this and other
courts.

Ill. CERTIORARI SHOULD BE GRANTED To PREVENT FURTHER |
MISCONSTRUCTION AND MISAPPLICATION OF THE oec.
SION OF nus COURT IN GUNTHER v. SAN DIEGO & ARIZ.
k. RY., 382 U.S. 257 (1965). i, :

While it is our view, as more fully set out in Part I of this
Petition, that the decision of this Court in the Gunther case
is of no relevance to the instant case, since it involves an
interpretation of an inapplicable section of the Railway La-
bor Act, we deal with the case for two rather obvious reasons,

First, the. Gunther decision was relied upon by the courts

below in the instant case, and for this reason alone certiorari °
should be granted to prevent the further misapplication of
eases interpreting Section 3 to cases which do not arise un-
der Section 3. 9

Another reason for examining the Gunther ense is that
the opinion has been uncritically read and applied by Courts.

28
We therefore assume arguendo that the Gunther decision is

| relevant to the issues raised i in this Petition.

After the December 8, 1965, decision of this Court in
Gunther, several courts immediately interpreted that deci-
sion as giving “utter finality” to, and thus foreclosing judi-
eial review of, Awards of the NRAB. 19 In the instant case
the District Court and the Court of Appeals SO interpreted

. Gunther, and misapplied that interpretation to Awards of
Airline System Boards.

We submit that such an interpretation of Gunther is 15
correct for the following reasons: (1) the Gunther opinion
yields several “curiosities” if it rejects de novo review; (2)
the cases cited by the.Gunther Court in its opinion do not re-

- ject de novo review; (3) rejection of de novo review does

violence to the plain words of the statute, and obliterates the
carefully drawn distinction between §3 First (p) and other
statutory arbitration review provisions; (4) a ‘recent Con-
gressional amendment to §3 First (p) is wholly unnecessary
if de novo review was already foreclosed; and (5) denial
of de novo review infringes on carriers’ Constitutional right»
to jury trials. (This latter point has already been discussed
in part II of this Petition.)

The “curiosities” affecting the Gunther decision, if it is

read to reject de novo review, can be summarized: (1) The

Gunther opinion does not use the phrase. “de novo” in either
text or footnote. Neither does the opinion cite or in any other
way take notice of the overwhelming number of decisions
which uniformly hold that a trial de novo is required in an

NRAB enforcement proceeding. One would think that if
these cases were to be overruled and the de novo trial elimi-

. . Ry., 367 F.2d 134 (4th Cir. 1966); Hodges
v. Atlantic Coast L.. R. R., 363 F.2d 534 (5th Cir. 1966); Taylor v. Hudson
Rapid Tubes Corp., 362 F.2d 748 (3d Cir. 1966); Brotherhood of por
b ., 254 F. Supp. 564 (M.D. No. Car. 1966); and

- Barrett v. Manufacturers Ry., 254 F. Supp. 876 (E. D. Mo. 1966).

©

„

er

29

nated, some mention. of the phrase or reference to the cases
which employ it would have been made in the opinion. The

silence of this Court in this respect weighs heavily against
an interpretation of its opinion which would eliminate de
novo review. ier,

(2). Gunther does not discuss or even acknowledge dis-
sents by its author or by Justice Douglas in earlier cases be-
fore the Supreme Court involving §3. In Pennsylvania R.R. 7
v. Day, 360 U.S. 548 (1959), Justice Black said in his dis-
sent: ee 3 ae |

This case and Union Pacific R. R. v. Price appear to
foreclose de novo review for a dissatisfied employee.] In
contrast, however, a railroad may obtain a trial substan-
tially de novo of any award adverse to. it. For, under
Section 3 First (p) of the Act, if a carrier does not vol-

untarily comply with the Board’s award, including wage
awards for money damages, a wage earner can enforce
the Board’s order only by bringing, in a United States
District Court, a suit which ‘shall proceed in ali respects
as other civil suits, except that on the trial of such suit
the findings and order of the division of the Adjustment

. Board shall be prima facie evidence of the facts therein

stated ... 2” | . =o :
|. 360 U.S. at 558-559 (emphasis supplied). - Similarly, in

Union Pacifie R. R. v. Price, 360 U. S. 601 (1959), (cited in

(Gunther, 382 U. S. at 263), Justice Douglas had said, in a

dissent joined by Justice Black:

en ae

Tolerance of judicial review has been more and more
the rule as against the claim of administrative finality.
_[Citing authority]. The weight of the Administrative
° Procedure Act, 60 Stat. 243, 5 U.S. C. 81009, is on the
. _ side of judicial review, the finality of administrative ac-
tion being sanctioned only where ‘it is clear from the
statutory scheme that judicial review is precluded.”
360 U. S. at 619.

The pre- Gunther opinions of Justices Black and Douglas
. illustrated by the above quotations are certainly clear. Only

1 1 5

— —— SSD

230

this Court can tell whether those views were overruled in
Gunther without any mention whatever. We suggest that
Justice Black, speaking for this court, has not changed his
previous opinion in dissent ; we submit that NRAB Award

- peview is still de novo except cases in parity with the re-

markable eleven-year Gunther litigation over managerial pre.

rogatives versus contractual restraints. thereon. Moreover, as
we later show, Gunther was preoccupied with contract inter-
pretation and the authority of a federal court to consider the
merits of such an interpretation..by an expert, not factual

determination of the merits of cause for discharge.

(3) Finally, the assertion that the carrier was not en-
titled to de novo review in Gunther was made by neither of
the parties to the dispute. That issue was raised in an amicus
brief which cited none of the plethora of cases which guar-
antee the right to de novo review, but merely set forth cases

| arising under 8301 of the Labor Management Relations Act.

For that reason, this Court may inadvertently have used
language which is now seized upon by respondents and courts
to support a wholly unintended result.

The claim that Gunther rejects de novo review is infected

with more than curiosities. An analysis of the cases cited in
Gunther indicates that these cases do not support such a

claim. At 382 Us S. 263 in the Gunther opinion, this Court
says:
“In Brotherhood of Railroad Trainmen et al. v. ». Chicago
River & Indiana R. Co., 353 U.S. 30, the Court gave a
Board decision the same finality that a decision of arbi-
trators would have.” :
This statement is not accurate. The dispute between the
parties in Chicago River had been submitted to the NRAB
for only a few days when the legal proceedings were insti-

‘tuted. No decision had been rendered. The issue before this
Court was whether a railroad union can strike over matters

ö f 8

vending before the Adjustment Board. 353 U.S. at 37. This
Court held it could not. This is a far cry from a holding or
even an indication that would. preclude de novo review. ö

The Gunther opinion next quotes some of the language of
the opinion in Union ‘Pacific R. R. v. Price, 360 U.S. 601
| (1959). The language quoted at 382 U.S. 263, from page 616 9
of the Price opinion, is not complete. The entire passage is
set forth in full here, the portion italicized having been omit- g
ted in the Gunther quotation: a
ö “This grist of labor relations is such that the 3 5
scheme cannot realistically be squared with the conten- ;
tion that Congress did not purpose to foreclose litiga-
tion in the courts over grievances submitted to and dis-
posed of by the Board, past the action under §3 First (p)
. authorized against the noncomplying carrier, see Wash -
ington Terminal Co. v. Boswell, 75 U.S. App. D. C. 1, 124
F.2d 235, aff'd by an equally divided Court, 319 U.S.
ae 732, or the review sought of an award claimed to result
; 5 from a denial of due process of law, see Ellerd v. South--
ern Pacific, R. Co., 241 F.2d 541; Barnett v. Pennsyl-
vinia-Reading Seashore Lines, 245 F. 2d 579, 582. So far
as appears, all of the Courts of Appeals and District
Courts which have dealt with this problem have reached
the conclusion we reach here.”

360 U.S. at 616-617 (emphasis supplied).

The Price case, it can be seen, actually supports the claim
that de novo review is proper in NRAB enforcement pro-
ceedings. Moreover, the Price opinion deals with the ques-
tion of the remedies available to an employee who has chosen
the NRAB rather than a court, and who later is unhappy |
with his choice. Furthermore, Price approves Washington

Terminal (as does Central Airlines) and Gunther does not
even mention Washington Terminal which started the whole
“degree of finality” discussion.

Slocum v. Delaware L. & W. R. R., 339 U.S. 239 (1950),
(cited in Gunther, 382 U.S. at 261), involved a railroad

32

which had contracts with two separate unions. Each union
claimed its members were entitled to certain jobs. The rail-
road brought a declaratory judgment action seeking a de-
termination as to which one of the unions was entitled to
the jobs. This Court held that this sort of dispute must, be

submitted 2. the NRAB. Slocum one not bear on *

of finali

Brotherhood of Locomotive Engineers v. Louisville & N.
R. R., 373 U. S. 33 (1963) (eited i in Gunther, 382 U. S. at 263),
like Chicago River, involved the question of the right of a

railroad organization to strike, where the railroad had com- |
plied with an order for reinstatement but disputed the

amount of back pay. The case merely holds that there can
be no strike under such circumstances.

This Court notes in Gunther at the outset : pa

“We granted certiorari because the holding of the two
courts below seemed, in several respects, to run counter
to the requirements of the Railway Labor Act as we have
construed it.“

382 U.S. at 260.
The only cases cited by Justice Black in Gunther were

Chicago River, Price, Sloowm and Locomotive Engineers.
Presumably it is the construction of the Railway Labor Act

in the cited cases with which the holding of the “two courts
below” seemed to differ. We have seen above that these cases

do not detract from the de novo rule. And we have not found

one pre- Gunther case which questions that rule. The incon-

sistency between the lower court opinions and the cases cited
in Gunther, then, must be found in some area other than that

of de novo review. It is suggested that this inconsistency is
in the decision which purports to oust the jurisdiction of the
NRAB in disputes over alleged management prerogatives.

In Chicago River and Locomotive Engineers the labor or-

"” ganization sought to settle the dispute with the tools of eco-

re ————— — RAN

*

N nomic’ warfare, rather nea use the orderly processes of the
Railway Labor Act. And in Price the employee attempted
to abort the NRAB procedures which he had himself invoked:
by commencing an action for wrongful discharge, rather than
attempting to set the NRAB decision aside on the limited
grounds available to him. Slocum involved an employer who
sought to have the Court, rather than the NRAB, hear the
jurisdictional dispute. In each of the cases cited in Gunther,
the efforts aimed at avoiding the processes of the Act were
not permitted by this Court.

Gunther. involved the claim of the employer that the dis-
qualification of an employee is strictly a “management pre-
rogative” and that the NRAB had no jurisdiction to consider
the issue. The District Court concluded that disqualifica-
tion was indeed a management prerogative, unregulated by
the collective bargaining contract.

The Court of Appeals in Gunther was of the opinion that
the NRAB had exceeded its jurisdiction in considering the
matter, drawing a distinetion between discharge for cause,
and disqualification. 336 F.2d at 547. The Court of Appeals
also found disqualification to be a right. of management.

It is submitted that the holding of the “two courts below” |
in Gunther which was counter to this Court’s construction of
the Railway Labor Act and LMRA, as well, can be found only
by this analysis. The lower courts in Gunther. purported to
declare a class of subjects which were not within the juris-
diction of the NRAB. This Court would not permit that;
and in so ruling merely said that the merits of NRAB con-
tract interpretation could not be considered anew by a tederal
court. No issue of fact for trial by court or jury was in-
volved. No purpose would have been served by a remand in
Gunther for consideration as to whether Gunther need be
reinstated. The sole issue remaining was the amount of back
pay, on which/issue Gunther ordered a trial. The holding of

.
—

O

Gunther, despite or because of the language employed and

the circumstances included does not disturb the overwhelm- -

ing authority assuring a jury trial in the case at bar.

As we have shown, an interpretation of Gunther which
yields a conclusion that de novo review is not ‘permitted in-
fects that. opinion with curiosities, and makes the cases cited
-inapropos to that conclusion. In addition, such a reading
‘makes a recent congressional amendment to §3 of the Rail-
way Labor Act —* to be an elaborate waste of congres-
sional time.

It is an act of Congress which must be interpreted. In the

event of ambiguity, the intent of Congress must be examined.
Recent evidence of that intent can be found in the enactment
of amendments to 83 First, on June 20, 1966. 80 Stat. 208
(1966). These amendments, adopted more than six months

after the Gunther decision, eliminate the exception in §3
First (m) relating to money awards; and in 83 First (p)
the phrase “shall be conclusive on the parties“ i is substituted
for the phrase “shall be prima facie evidence of the facts

therein stated.” The amendments also add a proviso to §3
First (p) sharply. restricting the area in which a court is
tree to set aside an award.
It is a well established principle of statutory n
_ that “the legislature, in adopting an amendment of a statute,
intended to make some change in existing. law.” Mogis v.
Lyman-Richey Sand & Gravel Corp., 189 F.2d 130 at 141
(Sth Cir. 1951). [Cite U. S. case.] In the Mogis case, the

Court reasoned that, since a 1951 amendment to a statute ~

eliminated a filing requirement, filing was required prior to
the amendment. In the instant case, §§ 2(c), 2(d) and 2(q)
of the 1966 amendments eliminate the de novo requirement.
Therefore, de novo review was required prior to ‘the amend-
ments. 8 wis .

‘

—
—

»

‘
eo

35

CONCLUSION

We urge, for the foregoing reasons, that certiorari be
granted to prevent further misconstruction and misapplica-
tion of this Court’s decision i in the Gunther case. In addition,
we urge that certiorari be granted to prevent engrafting Sec-
tion 3 of the Railway Labor Act onto contracts creating Air-
line System Boards of Adjustment except as specifically
agreed upon by the parties to those contracts. Finally, we
urge that certiorari be granted to settle a fundamental ques-
tion of law affecting the entire domestic airline industry, its
hundreds of thousands of employees, and all of the many
unions representing airline employees.

Respectfully submitted,

.. HENRY HALLADATC
2400 First National Bank Building
Minneapolis, Minnesota 55402
Attorney for Petitioner
Dorsgy, MARQUART, WINDHonrstT,
— West & HALLADAY
Of Counsel

| APPENDIX A
UNITED STATES COURT OF APPEALS
No. 18,523

Northwest Airlines, Ine, 1 Bhs
i | Appellant, | Appeal from the
V. United States Dis-
Air Line Pilots Association, Inter- ‘ict — for the
national, David G. Rall and R. E. District of Minne-

Lee, -- sota. pig |

Appellees. |
; [February 23, 1967.]

i

Before VAN OosruRHour, BLACKMUN and MEHaFFy, Circuit
Judges. | Ca

x

VAN OostERHOUT, Circuit Judge. |
This is an appeal by respondent Northwest Airlines, Inc.,
(NWA), from order entered on July 20; 1966, granting par-
tial summary. judgment to petitioners, Air Line Pilots As-
sociation (ALPA), David G. Rall and R. E. Lee. The ma-
terial portions of said order read: eee
“1. That the respondent, Northwest Airlines, Inc.,

is not entitled to a de novo review of the award of the
System Board of Adjustment involving the individual
petitioners, David G. Rall and R. E. Lee, with respect
to any of the issues alleged in respondent’s answer

to the petition herein. |

“2. That the award of the System Board of Ad.
justment. on the records reviewed by the Court in the

2

case of the individual petitioners named We was
not so’ arbitrary and capricious as to be wholly base-
less and completely without reason, and therefore that
defense is not sustained.

43. That respondent shall reinstate nene to
its employ in accordance with Award Nos. 5562 and
5563 of the System Board of Adjustment entered on
January 8, 1965, subject, however, to the right of the
respondent to limit, discharge or terminate petitioners.
employment based upon events occurring or conditions

existing after their discharge by the respondent, and
the Court reserves jurisdiction to determine whether
the events occurring or conditions existing after the
discharge of these petitioners affect their right of re-
instatement or limit the amount of back pay due them
under the System Board’s orders, and reserves juris-

_ diction as to the question of attorneys’ fees to be al-
lowed petitioners as provided in Section 153 First (p)
of the Railway Labor Act. 3 |

44. J — shall be entered a Excep-
tions are reserv

The District cab made a 28 U. 80. A. 31292 (b) deter-
mination that the order denying NWA a de novo review of
the System Board of Adjustment award involves a control-,
ling question of law about which there is a substantial dif-
ference of opinion and that an immediate appeal will ma-
terially advance the ultimate determination of this litiga-

tion; that & lengthy trial on questions as to matters occur-

| ring} subsequent to the discharge may be avoided in the event

N the trial court has erred in its determination of the issues

relating to de novo review and the issue as to whether the

determination of the System Board was „ arbitrary or ca-
pricious. :

This. court by 8 of avid 15, 1966, authorized such

7 interlocutory appeal, and the appeal has been timely taken.

——— NWA. in its brief makes no contention that the court

committed error in its dete ination that the award is not

issue is not before us. The notice of appeal is taken from
the July 20, 1966, order which includes resolution of this

NWA has failed tö demonstrate that the court erred in item
two of its order, supra.

particularly, a right to present oral testimony on the valid-

Rall and Lee are entitled to reinstatement. The yalidity of
the trial court’s decision turns upon the finality to be ac-
corded the Board’s determination on the reinstatement is-
sue. For reasons hereinafter set forth, we hold that the
trial court correctly determined that the portion of the

without power to redetermine such issue.

The rather extensive record. facts bearing upon the reason
for the discharge and. the basis for the reinstatement have

no direct bearing upon the issue here presented and hence

the facts will be stated summarily. First Pilot Rall was

permanently discharged for a violation of a NWA rule pro-

hibiting a pilot from using intoxicants within twenty-four :

hours of the commencement of a flight. Lee was discharged
for acting as chief pilot on a flight. with Rall knowing the

latter had an apparent physical deficiency caused by the

“use of intoxicants. Rall and Lee exhausted their grievance
procedure provided by the contract existing between ALPA,

the authorized bargaining agent for the pilots, and NWA.

On January 11; 1952, in conformity to and in compliance
with 45 U.8.C.4. §184, ALPA and NWA entered into- an
agreement. still in force, creating the Northwest Airlines

Pilots’ System Board of Adjustment to decide minor dis-

arbitrary or capricious. By reply brief, NWA-urges such
sue. We hold such issue is raised by the appeal and that
The basie issue presented by this appeal is whether the

trial court erred in denying NWA a de novo trial—more |

ity of the System Board of Adjustment award determining

award adjudicating that Rall and Lee were entitled to re-
instatement is final and conclusive and that the court is

-

*
, a 2 * 2 — 5 ——
on > eet — —᷑——ä — —
- ——— nem 2 A Sin SO — 2 — — ites . =
j r > *
7, 7 ? 5

40 :
. putes arising under the terms of the working agreement be-

tween ALPA and NWA. The agreement provides that a
decision can be made by a majority of the Board members
and that the Board’s decision on matters properly referable
to it “shall be final and binding upon the parties.” It is un-
disputed that the System Board which heard these cases was
constituted in the manner provided by the agreement and
authorized by statute and that after an evidentiary hearing,
the Board majority by a written final order directed rein-
statement of Rall as of November 1, 1964, and Lee as of May
1, 1964.

The controversy submitted to the Board falls in the minor.
dispute category over which 9 Board was given jurisdic-
tion.

NWA having failed to comply with the award, the peti-
tioners commenced this action in the District Court for the
enforcement thereof on February 10, 1965. The District

Court by memorandum opinion and order filed August 6,

1965, denied ALPA’s motion for partial summary judgment
based upon the same grounds as urged in the motion, the sus-
taining of which gives rise to the present appeal.

After the decision of. the Supreme Court in Gunther v.
San Diego & Arizona Eastern R. Co., 382 U.S. 257, decided
December 8, 1965, respondent again filed its motion for par-
tial summary judgment, which motion was sustained by the
court order herein appealed from.

The trial court, in a very well-considered unreported opin-
ion filed March 7, 1966, with which we fully agree, states:

“However, it is now ‘perfectly clear, . . . that in
Gunther the Court summarily has swept aside all former
uncertainty as to the intent of Congress.in the enact-

ment of Section 153 of the Railway Labor Act and par-
supa Sections 153 First (m) and 153 First (p).

7 . Gunther has limited the trial de novo to the back
pay due the employee under the Board’s award and any

41
other issue decided by the Board is to be accepted by the
District Court. In other words, the court must accept
the findings of. the Board and is empowered to enforce
them by mandamus or otherwise. The only fact issue for
‘the court to determine ig the amount of the money award

based on the Board's findings and such additional evi-
dence.as may bear upon the amount.” |

.Gunther, an engineer, was discharged for physical dis-
ability determined on the basis of a report of the railway’s

physician. The NRAB, to whom the dispute was submitted

after the exhaustion of all remędies at the company level,
after a kull hearing ordered Gunther reinstated. Gunther ap-
plied to the District Court for enforcement. Enforcement

was denied. The Court of Appeals affirmed. The Supreme

Court reversed, stating inter alia:
“Section 3 First (m) provides that Adjustment Board

awards shall be final and binding upon both parties to 5

the dispute, except insofar as they shall contain a money
award.“ The award of the Board in this case, based on
the central finding that petitioner was wrongfully re-
moved from service is twofold, consisting both of an or-
der of reinstatement and the money award for lost earn-
ings. Thus there arises the question of whether the Dis-
triet Court may open up the Board's finding on the
merits that the railroad wrongfully removed petitioner
from his job merely because one part of the Board's or-
der contained a money award. We hold it cannot. This
Court time and again has emphasized and re-emphasized
that Congress intended minor grievances of railroad
workers to be decided finally by the Railroad Ajustment
Board. ae

“The Railway Labor Act as construed in the foregoing |

and. other opinions of this Court does not allow a federal
district court to review an Adjustment Board’s deter-
mination of the merits of a grievance merely because a
part of the Board’s award, growing from its determina-
tion on the merits, is a money award. The basic griev-
ance here—that is, the complaint that petitioner has
deen wrongfully removed from active service as an en-

gineer because of health—has been finally, completely,
and irrevocably settled by the Adjustment Board’s deci-
sion. Consequently, the merits of the wrongful removal
issue as decided by the Adjustment Board must be ac-
cepted by the District Court.” 382 U.S. 257, 263-64.

We completely agree with the trial court’s view that the
Gunther opinion as a whole, and the above quoted language
in particular, compels a holding in this case that the System
Adjustment Board’s determination that Rall and Lee are en-

titled to reinstatement is final, conclusive and 2 and
must be accepted by the courts.

It is true as argued by NWA that many G of Appeal
and Distriet Court cases prior to Gunther have held other-
wise. Such cases were cited and relied upon by the trial court
in its memorandum opinion of August 6, 1965. The validity
of such opinions has been struck down by Gunther. Post-

Gunther cases have uniformly construed Gunther in the
same manner as the trial court here. Brotherhood of Rail- =

road Trainmen v. Denver c Rio Grande Western R. R., 10
Cir., F.2d — (Dec. 28, 1966); Hodges v. Atlantic Coast
Line R.R., 5 Cir., 363 F.2d 534; Kemp v. Atchison, Topeka &

‘Santa Fe Ry., 5 Cir., 358 F.2d 722.

NWA cuneate its position by stating that if Gunther
is interpreted as foreclosing a de novo hearing on the rein-
statement issue, it reaches a result:

(1) Not sought by either party in Gunther,

(2) Contrary to the opinions of the author of the
Gunther opinion, expressed in earlier dissents; N

(3) Contrary to every case decided by every court
considering the issue prior to Gunther;

(4) Contrary to the provisions of the United States
Constitution; ; Ms

(5) Irrelevant to the issues considered by the cases
cited in the Gunther opinion;

;

(086) Obliterating the distinction created by Congress
between 45 U.S.C. 8153 and §§ 157-159; and between
9184 and 8185; * ö
(7). Ignoring the plain language of 3183 First (p);
and 8

(8) Not reached by Congress until more than six
months after the Gunther decision.

Many of such contentions’ have already been answered. It |
is conceded that Gunther is the first Supreme Court case
squarely adjudicating the issue before us. When the Su-

preme Court has spoken clearly upon the most recent occa-
sion on which the pertinent issue has been considered, lower
courts are bound to follow the pronouncements of law made.

In Gunther, the award was made by the National Railroad
Adjustment Board created by 45 U. S. C. A. 8153. In our
present case, the award was made by a System Adjustment

Board created by contract pursuant to statutory authority
found in 45 U.S. C. A. 8184. Under the latter section airline
employees and labor Tepresentatives are authorized and di-

reeted to establish by contract System Boards of Adjustment
having jurisdiction not exceeding that of 9153 boards. It is
conceded that jurisdiction equal to that of 5153 boards may
be established. . aR en gt ices |
hoe” heretofore pointed out, the contract creating the Sys-
tem Board is broad and provides for the finality of Board
rulings. NWA argues that prior to Gunther de novo reviews
existed under the circumstances here. present and that the
parties by ‘their contract could give the Board no greater
power than existed by law in a 8133 Board. We believe such
argument is based on a false premise. Gunther interprets the
statutory law as it has at all times here material existed and
does not purport to change any previous authoritative Su-
preme Court. decision interpreting the statutory provisions

44

with respect to the scope of review of a board’s nonmonetary
award. 9 Pie
International Ase’n of Machinists v. Central Airlines, Inc.,

372 U.S. 682, holds that contracts and the adjustment boards

for which they provide are creations of federal law and
bound to the statute (§184) and its policy and are governed
by federal law, and “that the federal law would look with
favor upon contractual provisions affording some degree of
finality to system board awards.” 372 U.S. 682, 694. See
International Ass’n of Machinists v. N orthwwest Aiclines,
Inc., 8 Cir., 304 F.2d 206, 211.

Title 45 U. S. C. A. §153 was amended 1 to Gunther
by Public Law 89-456, 80 Stat. 208, effective June 20, 1966.
The second sentence of §153 First (m) reading, “A copy of
the awards shall be furnished to the respective parties to the
controversy, and the awards shall be final and binding upon

both parties to the dispute, except. insofar as they shall con-

tain a money award.” was amended by striking therefrom

the words “except insofar as they shall contain a money
award.“ The second sentence of §153 First (p) was amended

by striking therefrom the words “shall be prima facie evi-

. dence of the facts therein stated” and inserting in lieu there-

of, “shall be conclusive on the parties. » A new paragraph
(q) was added giving either the carrier or the employees a
right to petition to the district court for review. It again pro-
vides that the Board’s order shall be conclusive and goes on
to say that it may be set aside. if beyond the Board’s jurisdie-

tion or for fraud or corruption.

NWA urges that Congress in making the foregoing amend-

ments reflects its belief that the act before amendment pro-

vided. for de novo review. Such argument is not persuasive.

The prineipal accomplishment of the amendment is to at-

tach finality also to the money award, an issue on which
Gunther held courts had power to consider new evidence. See

45

Brotherhood of Railroad Trainmen v. Denver & Rio Grande
Western R. R., supra. 3

The issue of the court’s jurisdiction was not raised in the
trial court. By reply briet, NWA urges that $153 First (p)
contains the exclusive provision for jurisdiction and that it
_ likewise contains the provision that the Board’s award
“shall be prima facie evidence of facts therein stated.” The

first sentence of such section is broad, reading: 5

“If a carrier does not comply with an order of a divi. |
sion of the Adjustment Board within the time limit in .
such order, the petitioner, or any person for whose bene-
fit such order was made, may file in the District Court
of the United States for the district in which he resides
or in which is located the principal operating office of
the carrier, or through which the carrier operates, a
petition. setting forth briefly the causes for which he
claims relief, and the order. of the division of the Ad-
justment Board in the premises.“ a may:
The quoted section appears to be broad enough to confer jur-
isdiction. We do not believe that the asserted inconsistency
between sub-sections (p) and (m) goes to the extent of
_ destroying jurisdiction. It is a familiar rule of statutory con-
struction that Statutes must be read together and that the
legislative intent must be given effect if possible. See 82

C. J. S. Statutes §§ 345, 366, and cases there cited.

Gunther expressly holds that the §153 First (m) provi-
sion of finality controls as to nonmonetary awards. The jur-
isdictional issue is not discussed in Gunther. Federal courts
are bound to satisfy themselves with respect to jurisdiction,

It is interesting to note that the Tenth Circuit in Brotherhood of.
Railroad Trainmen determined that the 1966 amendments, which be-

46

whether the issue is raised or not. Gunther obviously is de-
cided upon the basis that jurisdiction exists as to the money
award. ; igs
It is quite true, as urged by NWA, that the Seventh
Amendment guarantees trial by j jury in suits of common law.
However, it is equally well- settled that a right to a jury trial
may be waived. Here the parties by their contract providing
‘for final determination of minor disputes by a Systems
Board authorized by §184 waived any constitutional right
they might have had to a jury trial. Moreover, actions to en-
force awards under arbitration Agreements or statutes were

not known to the common law. Courts in furtherance of the

express policy favoring compulsory arbitration in labor dis-
putes have customarily limited the scope of review of arbitra-
tion awards. Gunther v. San Diego & Arizona Eastern Ry.,
supra; United Steel Workers v. Enterprise Wheel & Car
Corp., 363 U. S. 598, 596; Brotherhood of Railroad Trainmen
v. Denver & Rio Grande N. R., supra. A contrary ruling on
the jury trial issue would upset a long line of cases =
review of arbitration awards. .
We have given careful consideration to all the contentions
vigorously urged by able counsel. We hold that the trial
court correctly determined that the award made was not ar-
ditrary or capricious and that NWA is not entitled to a de
novo review of the portion of the aware, * ä
a ment of Rall and Lee.
Affirmed. .
A true copy. , ft :
Attest: : ate
_ Clerk, J. 8. Court of n Bighth Cirouit.

2

JUDGMENT

UNITED STATES COURT OF APPEALS -
For the Eighth Circuit

No. 18,523 September Term, 1966

Northwest Airlines, Inc., . N
Appellant,
VS.
Air Line Pilots Association, International, David G. Rall
and R. E. Lee, ;
_ Appellees.

Appeal from the United States. District Court for the Dis-
trict of Minnesota.

Ins Cause came on to be heard on the record from thé.
United States District Court for the District of Minnesota,
and was argued’ by counsel. :

Ox ConsmeraTiIon WHERPOF, it is now here ordered and
adjudged by this Court, that the judgment of the said Dis-
: biet Court, in this cause, be, and the same is hereby, affirmed.

February 23,1967 ~~ .
Order entered in accordance with Opinion.

/s/ Robert C. Tucker |
Clerk, U. 8. Court of Appeals
for the Eighth Circuit

fe :

*

8

'

*

„*
*
*
.
7
.
-
—
.

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.
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| . ( "9
Railway Labor Act, 83, 48 Stat. 1189 (1984) (prior to
Amendments of 1966, 80 Stat. 208 (1966)) j

8153. National Railroad Adjustment Board.

First. Establishment; composition; powers. and n
divisions; hearings and awards. ‚ ä

There is established a Board, to be known as the “National
- Railroad Adjustment Board”, the members of which shall be
selected within thirty days after June 21, 1934, and it is pro-
vided— | :
(a) That the said Adjustment Board shall consist of
thirty-six members, eighteen. of whom shall be selected by
the carriers and eighteen by such labor organizations of the
employees, national in scope, as have been or may be organ-
ized in ne with the provisions of section 152 of this
title. ;

(b). The carriers, ses each through its board of direc-
tors or its receiver or receivers, trustee or trustees, or
through an officer or officers designated for that purpose by
such board, trustee or trustees, or receiver or receivers, shall
RK prescribe the rules under which its representatives shall be
Selected and shall select the representatives of the carriers on
the Adjustment Board and designate the division on which
each such representative shall serve, but no carrier or system:
of carriers shall have more than one representative on a any
division of, the Board.

(c) The national labor organizations, as defined in para-
graph (a) of this section , acting each through.the chief execu-
tive or other medium designated by the organization or asso-
ciation thereof, shall prescribe the rules under which the la-
bor members of the Adjustment Board shall be selected and
shall select such members and designate the division on

1

which each member shall ser ye; but no labor organization

shall have more than one representative on * division 2
the Board. 3

*’ 44), | In case of a ‘permanent or We vacancy on the
Adjustment Board, the: vacancy shall be filled by selection in
the same manner as in the original selection.

(e) If either the carriers or the labor. organizations of
the employees fail to select and designate representatives to
the Adjustment Board, as provided in paragraphs (b) and
(c) of this section, respectively, within sixty days after June
21, 1934, in case of any original appointment to office of a

_ member of the Adjustment Board, or in case of a vacancy in
any such office within thirty days after such vacancy occurs,

the Mediation Board shall thereupon directly make the ap-
pointment and shall select an individual associated in inter-
est with the carriers or the group of labor organizations of

employees, whichever he is to represent.

(t) In the event a dispute arises as to the right of any
national labor organization to participate as per paragraph

(e) or this section in the selection and designation of the
labor members of the Adjustment Board, the Secretary of
Labor shall investigate the claim of such labor organization
to participate, and if such claim in the judgment of the Sec -
retary of Labor has merit, the Secretary shall notify the

Mediation Board accordingly, and within ten days after re-

ceipt of such advice the Mediation Board shall request those

national labor organizations duly qualified as per paragraph
(e) of this section. to participate in the selection and desig-
nation of the labor members of the Adjustment Board to se-
lect a representative. Such representative, together with a
representative likewise designated by the claimant, and a

| third or neutral party designated by the Mediation Board,
constituting a board of three, | shall within said days after

oo

.

4

11 i

the a of the neutral member, investigate the
claims of the labor organization desiring participation and
decide whether or not it was. organized in accordance with:
section 152 of this title and is otherwise, properly qualified

to participate in the selection of the labor members of the
Adjustment Board, and the findings of such boards of three
shall be final and binding.

(g) Each member of the Adjustment Board shall 85 com-

N pensated by the party or parties he is to represent. Each
third or neutral party selected under the provisions of para-
graph (f) of this section shall receive from the Mediation

Board such compensation as the Mediation Board may fix,
together with his necessary traveling expenses and expenses as)
actually incurred for subsistence, or per diem allowance in
lieu thereof, subject to the provisions of law applicable there-
to, while serving as such third or-neutral party. 1
(h) The said Adjustment Board shall be composed of i:
four divisions, whose proceedings shall be independent of
one another, and the said divisions as well as the number of
their members shall be as follows:
First division: To have jurisdiction over disputes involv-
ing train- and yard-service employees of carriers; that is,
engineers, firemen, hostlers, and outside hostler helpers, con-
ductors, trainmen, and yard- service employees. This division
: shall consist of ten members, five of whom shall be selected
and designated by the carriers and five of whom shall be se-
lected and designated by the national labor 8 of
the employees. . .
Second division: To have jurisdiction over 8 in-
volving machinists, boilermakers, blacksmiths, sheet · metal
workers, electrical workers, carmen, the helpers and ap-
prentices of all the foregoing, coach cleaners, power-house
employees, and railroad- shop laborers. This division shall
consist of ten members, five of whom shall be selected by the

. .
* -
* 5 .
>
‘

*
.
.

carriers and five by the national labor organizations of the
employees.

Third division: To, ae , jurisdiction over © disputes involv-
ing station, tower, and telegraph employees, train dispatch ·
ers, maintenance-of-way men, clerical employees, freight,
handlers, express, station, and store employees, signal men, ö
sleeping car conductors, sleeping ear porters, and maids and
dining-car employees. This division shall consist of ten mem- .
bers, five of whom shall be selected by the carriers and five
by the national labor organizations of employees. | i

Fourth division: To have jurisdiction over disputes in-
volving employees of carriers directly or indirectly engaged
in transportation of passengers or property by water, and
all other employees of carriers over which jurisdiction is not
given to the first, second, and third divisions. This. division

hall consist of six members, three of whom shall be selected
by the carriers and three by the national labor — |
of the employees. a

(i) The disputes between an cutee or group of « em-
ployees and a carrier or carriers growing out of grievances
or out of the interpretation or application of agreements con-
cerning 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 dis-
putes; 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 *
data bearing upon the disputes. N
63 Parties may be heard either in person, tw counsel,
or by other representatives, as they may respectively elect,
and the several divisions of the Adjustment Board shall give
due notice of all hearings to the employee or employees and

ss
the carrier or earriers involved in any disputes sybmitted to
(k) Any diyision of the Adjustment Board shall have
authority to empower two or more of its members to conduet
hearings and make findings upon disputes, when properly ~—
submitted, at any place designated by the division: Provided, .
_ however, That final awards as to any such dispute must be
made by the entire division as hereinafter provided.
(J). Upon failure of any division to agree upon an award
_ because of a deadlock or inability to secure a majority vote
of the division members, as provided in paragraph (n) of
this section, then such division shall forthwith agree upon
and select a neutral person, to be known as “referee”, to sit

— with the division as a member thereof, and make an award. ~~

Should the division fail to agree upon and seleet a referee
within ten days of the date of the deadlock or inability to
secure a majority vote, then the division, or any member
thereof, or the parties or either party to the dispute may cer-
tify that fact to the Mediation Board, which Board shall,
within ten days from the date of receiving such certificate,
select and name the referee to sit with the division as a mem
ber thereof and make an award. The Mediation Board shall
be bound by the same provisions in the appointment of these
neutral referees as are provided elsewhere in this chapter
for the appointment of arbitrators and shall fix and pay the
compensation of such referees. f

(m) The awards of. the several divisions of the Adjust-
ment Board shall be stated in writing. A copy of the awards
shall be furnished to the respective parties to the contro-
versy, and the awards shall be final and binding upon both
parties to the dispute, except insofar as they shall contain a
money award. In case a dispute arises involving an interpre
tation of the award, the division of the Board upon request

v7 .

84

of either are shall interpret the one in the light of the 2

. dispute. ‘3

| (n) A nasal? vote of all ae of the division of the
‘Adjustifient Board shall be .competent to make an award
with respect to any dispute submitted to *

(0) In case of an award by any division of the Adjust-
ment Board in favor of petitioner, the division of. the Board
shall make an order, directed to the carrier, to make the
award effective and, if the award includes a requirement for

the payment of money, to pay to the employee the sum to
which he is entitled under the award on or before a day
named. . | 3 —

p) If a carrier 1 not comply with an Der of a divi-
sion of the Adjustment Board within the time limit in such
Fat order, the petitioner, or any person for whose benefit such
order was made, may file in the District Court of the United
States for the district in which he resides or in which is lo-
‘cated the principal operating office of the carrier, or through
vos the carrier operates, a a petition setting forth briefly ned
sion of the Adjustment Board in ‘the premises. Such suit in I
the District Court of the United States shall proceed in all
respects as other civil suits, except that on the trial of such |
a3 suit the findings and order of the division of the Adjustment.
Board shall be prima facie evidence of the facts therein
_ stated, and except that the petitioner shall not be liable for |
eosts in the district court nor for costs at any subsequent
stage of the proceedings, unless they accrue upon his appeal,
and such costs shall be paid out of the. appropriation for the
expenses of the courts of the United States. If the petitioner
shall finally prevail he shall be allowed a reasonable attor-
n s fee, to be taxed and collected as @ part of the costs of
the suit. The district courts are empowered, —" the rules

. r

of the court governing actions at law, to make such order
and enter such judgment, by writ of mandamus or otherwise,
as may ‘be appropriate to enforce or set aside the order of the
division of the Adjustment Board.

(q) All actions at law based upon the provisions of this .
section shall be begun within two years from the time the .
cause of action accrues under the award of the 2 of
the Adjustment Board, and not after.

(r) The several divisions of the Adjustment Board shall
maintain headquarters in Chicago, Illinois, meet regularly,

and continue in session 80 long as there is pending before the
division any matter within its jurisdiction which has béen
submitted for its consideration and bison has not been dis-
posed of. 3 2 * é
(s) Whenever practicable, the several divisions or sub-

een of the Ae nn — be. supplied with

—

(t) The Adjustment Board may, subject to the approval
of the Mediation Board, employ and fix the compensations
of such assistants as it deems necessary in carrying on its
N proceedings. The compensation of such employees shall de

paid by the Mediation Board. Ae
(u) The Adjustment Board shall meet within forty days
8 June 21, 1934, and adopt such rules as it deems neces-
sary to control proceedings before the respective divisions |
and not in ¢onflict with the provisions of this section. Im-
mediately following the meeting of the entire Board and the ;
adoption of such rules, the respective divisions shall meet
and organize by the selection of a chairman, a vice chairman, ;
and a secretary. Thereafter each division shall annually ;
designate oné of its members to act as chairman and one N
its members to act as vice chairman Provided, however,

as
*

That the 2 and . of any divi-
‘sion shall alternate as between the groups, 80 that both the

chairmanship and vice-thairmanship shall be held alternate-
ly by a representative « of the carriers and a. representative of

the employees. In case of a vacancy, such vacancy shall be
filled’ for the unexpired term by the selection of a. successor
| from the same group. |

(v) Each division of the Adjustment Board shall annual-
ly prepare and submit a report of its activities to the Media-
tion Board, and the substance of such report. shall be in-
cluded in the annual report of the Mediation Board. to the
Congress: of the United States. The reports of each division
of the Adjustment Board and the annual report of the Media-

tion Board shall state in detail all cases heard, all actions

taken, the names, salaries, and duties of all agencies, em-
ployees, and officers receiving compensation from the United

States under the authority of this chapter, and an account of .

all moneys appropriated by Congress pursuant to the author-
ity conferred by this chapter and disbursed by such agencies,

employees, and officers.

(w) Any division of the Adjustment Board shall have
authority, in its discretion, to establish regional adjustment
boards to act in its place and stead for such limited period

a8 such division may determine to be necessary. Carrier
members of such regional boards shall be designated in keep-
ing with rules devised for this purpose by the carrier mem-

bers of the Adjustment Board and the labor members shall

be designated in keeping with rules devised for this purpose
by the labor members of the Adjustment Board. Any such

~ regional board shall, during the time for which it is ap-

pointed, have the same authority to conduct hearings, make
findings upon disputes and adopt the same procedure as the
division of the Adjustment Board appointing it, and its de

cisions shall be enforceable to the same extent and under

Jul

x et * ,

the same processes. A neutral person, as iii shall be 7

appointed for service in connection with any such regional
| adjustment board in the same circumstances and manner as
provided in paragraph (J) of this section, with een to a
division of the Adjustment Board.

Second. Establishment of system, group, or regional boards
by voluntary agreement.

Nothing in this section shall be constiued to prevent any

individual carrier, system, or group of carriers and any clase
or classes of its or their employees, all acting through their

representatives, selected in accordance with the provisions of -

this chapter, from mutually agreeing to the establishment of

system, group, or regional boards of adjustment for the pur-

pose of adjusting and deciding disputes of the character
specified in this section. In the event that either party to

such a system, group, or regional board of adjustment is dis-

satisfied with such arrangement, it may upon ninety days’
notice to the other party elect to come under the Serene
of the Adjustment Board. .

Railway Labor Act, $3, 48 est 1190 (1984), as amended

45 U.S. C. A. 8158 (1966)

8133. National Railroad Adjustment Board — Establiah-
ment; composition; powers and duties; divisions; hear.
‘ings and awards ; judicial review. l

First. There is established a Board, to be known as the

“National Railroad Adjustment Board”, the members of .

which shall be selected within W days after June 21,
OM, and it is provided— ~

( ade: ‘The awards of the several divisions of the Adjust-

ment Board shall be stated in ae A copy of the award

—
- g : “

shall be furnished to the respective parties to the contro-
vérsy, and the awards shall be final and binding upon both
parties to the dispute. In case a dispute arises involving an

interpretation of the award, the division of the Board upon

request of either party shall interpret the award i in the Tight
of the 2 ;
* so) of * *
(0) In case of an 1 award by any division of the Adjust-
ö ment Board in favor of petitioner, the division of the Board
shall make an order, directed to the carrier, to make the
award effective and, if the award includes a requirement for
the payment of money, to pay to the employee the sum to
which he is entitled under the award on or before a day
named. In the event any division determines that an award
favorable to the petitioner should not be made in any dispute
5 referred to it, the division shall make an order to the *
tioner stating such determination. . N
(p) If a carrier does not comply with an order of a divi-
sion of the Adjustment Board within the time limit in such
order, the petitioner, or any person for whose benefit such
order was made, may file in the District Court of the United
States for the district in which he resides or in which is lo-
cated the principal operating office of the carrier, or through

which the carrier operates, a ‘petition setting forth briefly :

the causes for which he ¢laims relief, and the order of the
division of the Adjustment Board in the premises. Such suit
in the District. Court of the United States shall proceed in
all respects as other civil suita, except that on the trial of
such suit the findings and order of the division of the Adjust-
ment Board shall be conclusive on the parties, and except
that the petitioner shall not be liable for costs in the distriet

court nor for costs at any subsequent stage of the proceed - 1

_ings, unless they accrue upon his appeal, and such costs shall
be we out of the. epproptiation for the expenses of the

\ é ; a . i
/ ’ . . .
Jo 22 — — ee
7 . * *
.

courts of the United States. If the petitioner shall finally
prevail he shall be allowed a reasonable attorney’s fee, to be
taxed and collected as a part of the costs of the suit. The

district courts are empowered, under the rules of the court
governing actions at law, to make such order and enter such
judgment, by writ of mandamus or otherwise, as may be ap-
propriate to enforce or set aside the order of the division of
the Adjustment Board: Provided, however, That such der
may not be set aside except for failure of the division to com

ply with the requirements of this chapter, for failure of thé

order: to conform, or confine itself, to matters within the
scope of the division’s jurisdiction, or for fraud or corrup-
tion by a member of the division making the order.

(q If any employee or group of employees, or any car-
Tier, i is aggrieved by the failure of any division of the Adjust

ment Board to make an award in a dispute referred to it, or

is aggrieved by any of the terms of an award or by the fail-
ure of the division to include certain terms i in such award, ;
then such employee or group of. employees or carrier max
file in any United States district. court in which a petition
under paragraph (p) could be filed, a petition. for review of

the division’s order. A copy of the petition shall be forth-
with transmitted by the clerk of the court to the Adjustment

Board. The Adjustment Board shall file i in the court the rec-
ord of the proceedings on which it based its action. The court

_ shall have jurisdiction to affirm the order of the division or

to set it aside, in whole or in part, or it may remand the. pro-
ceeding to the division for such further action as it may di-
rect. On such review, the findings and order of the. division
shall be conclusive on the parties, except that the order of
the division may be set aside, in whole or in part, or re-

manded to the division, for failure of the division to comply
with the requirements of this chapter, for failure of the or-

dw to conform, or confine ‘iteelf, to matters within the *

.
60 ; 5 5 f a N
:

of the division’s jurisdiction, or for fraud or corruption by a
member of the division making the order. The judgment of
the court shall be subject to review as provided in sections

os 1291 and 1254 of Title 28. |

(r) All actions at law based upon the | provisions of this
section shall be begun within two years from the time the
cause of action accrues under the award of the division of
the Adjustment Board, and not after. |
Is) The several divisions of the Adjustment Board shall
maintain headquarters in Chicago, "Illinois, meet regularly,
and continue in session so long as there is pending before the
division any matter within its jurisdiction which has been
submitted for its consideration and which has not been dis-
posed of.

(t) Whenever practicable, the several divisions or sub-
divisions of the Adjustment Board shall be supplied with
suitable quarters in vend Federal building located at its place
of meeting.

(u) The Adjustment Board may, subject to the approval
of the Mediation Board, employ and fix the compensations of
such assistants as it deems necessary in carrying on its pro-
_ ceedings. The compensation of such employees shall be 88
by the Mediation Board. .

(v) The Adjustment Board shall meet within forty days
after June 21, 1934, and adopt such rules as it deems neces-
sary to control proceedings before the respective divisions
and not in conflict with the provisions of this section. Im-
mediately following the meeting of the entire Board and the
adoption of such rules, the respective divisions shall meet
and organize by the selection of a chairman, a vice-chairman, :
and a secretary. Thereafter each division shall annually
designate one of its members to act as chairman and one of
its members to act as vice chairman: Provided, however,

61

That the chairmanship and vice-chairmanship of ‘any divi-
Sion shall alternate as between the groups, so that both the
chairmanship and vice-chairmanship shall be held alternate -
ly-by a representative of the carriers and a representative of
the employees. In case of a vacancy, such vacancy shall be
filled for the unexpired term by the selection of a successor —
from the same group. |

(w) Each division of the Adjustment Board shall an-
nually prepare and submit a report of its activities to the
Mediation Board, and the substance of such report shall be
ineluded in the annual report of the Mediation Board to the
Congress of the United States. The reports of each division

of the Adjustment Board and the annual report of the Media-
tion Board shall state in detail all cases heard, all actions
taken, the names, salaries, and duties of all agencies, em-
ployees, and officers receiving compensation from the United
States under the authority of this chapter, and an account
of all moneys appropriated by Congress pursuant to the
authority conferred by this chapter and disbursed by such
agencies, employees, and officers.

(x) Any division of the Adjustment Board shall have
authority, in its discretion, to establish regional adjustment
boards to act in its place and stead for such limited period
as such division may determine to be necessary. Carrier
members of such regional boards shall be designated in keep-
ing with rules devised for this purpose by the carrier mem-
bers of the Adjustment Board and the labor members shall
de designated in keeping with rules devised for this purpose
by the labor members of the Adjustment Board. Any such
regional board shall, during the time for which it is ap-
pointed, have the same authority to conduct hearings, make
findings upon disputes and adopt the same procedure as the
division of the Adjustment Board appointing it, and its deci-
sions shall be enforceable to, the same extent and under the

PE LER Om RON

°
0 * f N 7 °
ag \
+ *

game processes. A neutral person, as referee, shall be ap-
pointed for service in connection with any such regional ad-
justment board in the same circumstances and manner as
provided in paragraph (I) of this section, with respect to a
division of the Adjustment Board.

System, group, or regional side: establishment by volun-
tary agreement ; special adjustment boards: establish-
ment, composition, designation of representatives by Medi-
ation Board, neutral member, compensation, quorum, final-
ity and enforcement of awards.

Second. Nothing in this section shall be construed to pre-

| vent any individual carrier, system, or group of carriers and
any class or classes of its or their employees, all acting
through their representatives, selected in accordance with
the provisions of this chapter, from mutually agreeing to the
establishment of system, group, or regianal boards of ad- ;
justment for the purpose of adjusting and deciding disputes .
of the character specified in this section. In the event that
either party to such a system, group, or regional board of
adjustment is dissatisfied with such arrangement, it. may
upon ninety days’ notice to the other party elect to come un-
der the jurisdiction of the Adjustment Board.

If written request is made upon any individual carrier by
the representative of any craft or class of employees of such
carrier for the establishment of a special board of adjustment
to resolve disputes otherwise referable to the Adjustment
Board, or any dispute which has been pending before the Ad-
justment Board for twelve months from the date the dispute
(claim) is received by the Board, or if any carrier makes

such a request upon any such representative, the carrier or
the representative upon whom such request is made shall
Join in an agreement establishing such a board within thirty
days from the date such request is made. The cases which

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—

may be considered by such board shall be defined in the agree -
ment establishing it. Such board Shall consist of one person

designated by the carrier and one person designated by the
representative of the employees. If such carrier or such rep-
resentative fails to agree upon the establishment of such a
board as provided herein, or to exercise its ‘Tights to desig-
nate a member of the board, the carrier or representative
making the request for the establishment of the special board
may request the Mediation Board to designate a member of

the special board on behalf of the carrier or representative

upon whom such request was made. Upon receipt of a re-

. quest for such designation the Mediation Board shall prompt-

ly make such designation and shall select an individual asso-
ciated in interest with the carrier or representative he is to

represent, who, with the member appointed by the carrier or

reprèsentative requesting the establishment of the special

board, shall constitute the board. Each member of the board

shall be compensated by the party he is to represent. The
members of the board 80 designated shall determine all mat-
ters not previously agreed upon by the carrier and the repre-
sentative of the employees with respect to the establishment
and jurisdiction of the board. If they are unable to agree such
matters shall be determined by a neutral member of the board
selected or appointed and compensated in the same manner
as is hereinafter provided with, respect to situations where

board when he has determined such matters. If with respect
to any dispute or group of disputes the members of the board
designated by the carrier and the representative are unable
to agree upon an award disposing of the dispute or group of
disputes they shall by mutual agreement select-a neutral per-
son tobe a member of the board for the consideration and
disposition of such dispute or group of disputes. In the event

the members of the board designated by the parties are un-
able, within fen days after their failure to agree upon an
award, to agree upon the selection of such neutral person,
either member of the board may request the Mediation Board
to appoint such neutral person and upon receipt of such re-
quest the Mediation Board shall promptly make such ap-
pointment. The neutral person 80 selected or appointed shall
de compensated and reimbursed for expenses by the Media-
tion Board. Any two members of the board shall be compe-
tent to render an award. Such awards shall be final and
binding upon both parties to the dispute and if in favor of
the petitioner, shall direct the other party to comply there
with on or before the day named. Compliance with such
awards shall be enforcible by proceedings in the United
States district courts in the same manner and subject to the
same provisions that apply to proceedings for enforcement
of compliance with awards of the Adjustment Board. As
amended June 20, 1966. Pub. L. 89—456, 88 1, 2, 80 Stat.
= Bo

- Railway Labor Act, 87, 44 Stat. 582 (1926), as amended
45 U.S.C. $157 (1964)

3 5157. Arbitration.

First. Submission of nn to arbitration. ‘

Whenever a controversy shall arise between a carrier or
carriers and its or their employees which is not settled either :
in conference between representatives of the parties or by the
appropriate adjustment

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385603_0590%3A1. Public record. Not legal advice.
