# Petition for Writ of Certiorari — Kaufman v. Allied Pilots Ass'n

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386010_1449%3A1

## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2002
- **Citation:** 535 U.S. 1034

## Text

Supreme Court, U.S.

I) FILED
Q11232 FEB 192003
No. 01- DEES 06 ae ci
IN THE

Supreme Court of the United States

DR. RICHARD KAUFMAN, on behalf of himself
and all others similarly situated, et ai.,

Petitioners,

v.
ALLIED PILOTS ASSOCIATION, et ai.,

Respondents.

On PETITION FOR A WRIT OF CERTIORARI TO THE
UnNitep States Court OF APPEALS FOR THE FirtH CIRCUIT

PETITION FOR A WRIT OF CERTIORARI

Russet H. Beatie
Counsel of Record

BEATIE AND OsBorRN LLP
521 Fifth Avenue
New York, NY 10175
(212) 888-9000

Attorneys for Petitioners

(Additional Counsel listed on signature page)

172077 ce}

COUNSEL PRESS
(800) 274-3321 + (800) 359-6859 [2%

ee

a saath eae mr

£ eR E C IEEE

ree ePIC

PRL NS NT RN ET

i

QUESTION PRESENTED FOR REVIEW

Should the Railway Labor Act be extended to preempt
state law claims for damages suffered while a temporary
restraining order is in effect, the union intentionally violates
the order by striking, and the claimants are not parties to the
collective bargaining agreement?

il
PARTIES TO THE PROCEEDINGS
Petitioners

The Petitioners, in addition to Richard Kaufman,
Dr., on behalf of himself and all others similarly situated, are:
Jack Marut, on behalf of himself and all others similarly situated;
C. Anthony Wainsright, on behalf of himself and all others
similarly situated; Jeffrey Krasnoff, Dr., on behalf of himself
and all others similarly situated; Steven Carli, on behalf of
himself and all others similarly situated; Shon Prejean, on
behalf of himself and all others similarly situated; Center for
Rehabilitative Medicine; Jim Cashion, individually and on
behalf of the plaintiff class; Joellen Cashion, individually
and on behalf of the plaintiff class; Mark Lewis, on behalf of
himself and all others similarly situated; Nancy Geidel;
Ralph A. MacDonald; Mary C. Cascino; Dave Rogers; and
Carolyn Rogers.

Respondents

The Respondents, in addition to the Allied Pilots
Association, are: Richard T. LaVoy; Brian A. Mayhew; David
Aldrich; Stanley Bissell; Ernest Dryer; J. S. Ditty; David
Duquemin; Mark Hunnibel; Jeff Marchand; Steve Roach;
Randy Trommer; L. G Foster; Robert Ames; Norman A.
Patterson; and Dennis M. Breslin.

ill

TABLE OF CONTENTS

Question Presented for Review ................

Parties to the Proceedings ... . 0. ccc ccccccces

ee ow cus caé cnn

eee

ee

PL TSL. Oo ae aes kus chad ea eee

Statement of Jurisdiction .....................

Statutory Provisions Involved .................

FRET OP TE PPT OCT ere

Reasons for Granting the Writ .................

Conclusion

Sa 6 eo 6 26 2 6.4.86 6664 6 682680 864.6082 060646066664 6°¢

Page

ll

il

iv
TABLE OF CITEDAUTHORITIES
Page
Cases:

Anderson v. American Airlines, Inc., 2 F.3d 590 (5th

SE EE ok kc dk odo as Paco ea ee a 3
Consolidated Rail Corp. (Conrail) v. Railway Labor

Executives’ Ass'n, 491 U.S. 299 (1989) ........ 4
Davies v. American Airlines, Inc., 971 F.2d 463 (10th

Cir. 1992), cert. denied, 508 U.S. 950 (1993) ... 3
Gay v. Carlson, 60 F.3d 83 (2d Cir. 1995) ........ 3
Harris v. Hirsh, 654 N.E.2d 975 (N.Y. 1995) ..... 4

Hawaiian Airlines, Inc. v. Norris, 512 U.S. 246
ib basa e wales oon wen se wees te bae bees 4, 5,6

Hirras v. Nat'l R.R. Passenger Corp., 44 F.3d 278
Ce SE iis 04 ah ois no boa sande chee 3

Lingle v. Norge Division of Magic Chef, Inc., 486
SE RE aicNS sh caaes ds +4 gs eae sued ae 4,6

Maher v. New Jersey Transit Rail Operations, Inc.,
Se Pe Pee BEE ob 65 Choon Swbee ces 3,4

San Diego Building Trades Council, Millmen’s
Union, Local 2020 v. Garmon, 359 U.S. 236
SPP Pann pe pM YC are 3,4,5,7

z x
Cited Authorities
Page
Shafii v. British Airways, PLC, 83 F.3d 566 (2d Cir.
| a re errr ee na 3
Taggart v. Trans World Airlines, Inc., 40 F.3d 269
CU Ge: SEE a hank dnd eee eases cee 3
Trainmen v. Chicago R. & I.R. Co., 353 U.S. 30
hi Sp Pe Or ee ey es ree 5
Westbrook v. Sky Chefs, Inc., 35 F.3d 316 (7th Cir.
SORE 6 ancecindaksanen tiene ia 3
Wisconsin Department of Industry, Laber and
Human Relations v. Gould, Inc., 475 U.S. 282
SUNN sadn as oe aa utla bee e eetes sean 3,4
Statutes:
Bk B EE nb 68So een ce eek neaees ]
SOUSA, S See oainnss heinhpaneoseuaeee 2
yo gt et tom HE! peer rrr Te rer rer 2
gtk Fol PL ferry rer 2
OD CE als Oo ROR oo dese oencnbsanneesse 2,4

MUSLIM ic ee 2

vi

TABLE OF APPENDICES
Page

Appendix A — Opinion Of The United States Court
Of Appeals For The Fifth Circuit Dated And Filed
DUOVERENOT Bi, SNUG Consequentially, the issuance of the
TRO, indicating that the sick-out was likely to be found
illegal under the RLA, only enhances the case for preemption
of the state claim here. The concern of Garmon is not so
much with the righting of labor wrongs, the concern of the
labor relations laws themselves, as with the uniformity and
singularity of remedy provided by federal law. It is a national
labor policy — as this case makes vivid.

25. Gould, 475 U.S. at 283-84 (finding that Garmon required
preemption of statutory regime that punished firms that “found by
judicially enforced orders of the National Labor Relations Board to
have violated the NLRA in three separate cases within a 5 year
period.”); see also Sears, Roebuck, and Co. v. San Diego County
Dist. Council of Carpenters, 436 U.S. 180, 187 (1978) (distinguishing
those activities that are “arguably” protected or prohibited from those,
even more deserving of preemption, where “it is clear or may fairly
be assumed that the subject matter which the state court sought to
regulate ... is either prohibited or protected by the Federal Act.”
(internal quotation omitted)).

12a

Appendix A

The district court also found that attaching liability to
post-TRO conduct that violates state law will not
meaningfully disrupt labor-management relations — that is,
that it will not seriously harm the federal regulatory scheme
for labor relations. Garmon preemption requires the
balancing of state interests with federal regulatory interests.”°
However, irrespective of the state interest in protecting
private parties from interference with their freedom of
contract,”’ the activities here are so fundamental that Garmon
preemption must immunize them from state tort liability if
the RLA structure is to be preserved. While courts have
refused to apply Garmon preemption to state tort claims that
served substantial state interests and did not threaten
interference with the federal regulatory scheme,” this is not

26. See Sheet Metal Workers Local Union No. 54, AFL-CIO v.
E.F. Etie Sheet Metal Co., 1 F.3d 1464, 1470 (Sth Cir. 1993) (“That
inquiry requires not only looking to the factual bases of each
controversy, but also examining the interests protected by each claim
and the relief requested.”). —

27. Cf. Local 926, Int’l Union of Operating Engineers
AFL-CIO v. Jones, 460 U.S. 669, 689 (1983) (Rehnquist, J.,
dissenting) (“There can be no doubt that safeguarding the integrity
of contractual relations is an interest of paramount importance in an
economy such as ours.”).

28. See, e.g., Farmer, 430 U.S. at 304-05 (refusing to preempt
state claim of intentional infliction of emotional distress arising out
of discrimination in hiring hall practices because proof of state claim
required proof of “outrageous conduct” and the “potential for
interference is insufficient to counterbalance the legitimate and
substantial interest of the State in protecting its citizens”); Belknap
v. Hale, 463 U.S. 491, 510-12 (1983) (holding breach of contract

(Cont'd)

13a

Appendix A

our case. Slicing the claim into before and after the TRO
does not change the reality that the state law is being asked
to take hold of the same controversy as the federal labor laws.

Finally, we are not persuaded by the plaintiffs’ effort to
distinguish the pre-TRO conduct of the APA from its post-
TRO conduct.” “It is the conduct being regulated, not the
formal description of governing legal standards, that is the
proper focus of concern.”*° The existence of a TRO does not
transform conduct constituting a work-stoppage, and
therefore central to federal labor relations law, into conduct
falling outside of the ambit of Garmon. We note also that
any effort to characterize this suit as arising out of a violation
of the TRO encounters an additional blockade — the

(Cont'd)

aud misrepresentation claims by replacement workers against
employer not preempted even though conduct was arguably prohibited
by NLRA because the Board would focus on strikers’ rights, not
replacement workers’ rights); Windfield, 890 F.2d at 769- 70 (refusing
to preempt state claims arising out of employer’s personal guarantee
to former employee because they required only a “discrete, narrow
inquiry into the relationship between [the employee] and his former
employer.”).

29. The plaintiffs argued in the district court that their claims
based upon pre-TRO conduct were not Garmon preempted, but the
district court held that those claims were preempted, and the plaintiffs
do not appeal that determination.

30. Lockridge, 403 U.S. at 292 (emphasis added) (applying
Garmon preemption to a state law claim for breach of contract arising
out of a union’s discrimination against the plaintiff).

l4a
Appendix A

plaintiffs are not entitled to any remedy for violation of a
TRO to which they are not a party.*'

iil

The APA also argues that the plaintiffs’ claims are
preempted by the Airline Deregulation Act. Since we have
concluded that those claims are Garmon preempted, we need
not reach the question of ADA preemption.

IV

_ Because the plaintiffs’ state law claims of tortious
interference with contract are Garmon preempted, we
REMAND this case to the district court and instruct that the
claims be DISMISSED with prejudice.

31. Northside Realty Associates, Inc. v. United States, 605 F.2d
1348, 1356-57 (5th Cir. 1979) (holding that compensatory damages
for nonparties could not be granted as part of Government’s remedy
in civil contempt proceeding against real estate corporation).

15a

APPENDIX B — MEMORANDUM OPINION AND
ORDER OF THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS, DALLAS
DIVISION DATED, FILED AND ENTERED
SEPTEMBER 26, 2000

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION

CIVIL ACTION NO.
3:99-CV-0480-P

IN RE ALLIED PILOTS CLASS ACTION LITIGATION

MEMORANDUM OPINION AND ORDER

Now before the Court for consideration are:

(1) The Findings and Recommendation of the United
States Magistrate Judge filed November 15, 1999;

(2) Plaintiff’s Response to Magistrate’s Ruling
Regarding Defendants’ Motion to Dismiss filed
December 6, 1999;

(3) APA Defendants’ Opposition to Plaintiffs’
Objections filed December 16, 1999;

(4) APA Defendants’ Objections to the Findings and
Recommendation of the United States Magistrate
Judge filed December 6, 1999;

(5) Plaintiffs’ Response to Allied Pilots Association
Defendants’ Objections to Magistrate’s
Recommendation filed January 7, 2000;

l6a

Appendix B

(6) APA Defendants’ Reply in Further Support of their
Objections filed January 25, 2000;

(7) Motion of the Texas AFL-CIO State Council for
Leave to File Amicus Brief in Support of
Objections of Allied Pilots Association to
Magistrate Judge’s Findings and Recommendation
filed December 6, 1999, and

(8) Motion of Air Line Pilots Association, International
for Leave to File Amicus Brief in Support of
Objections of Allied Pilots Association to
Magistrate Judge’s Findings and Recommendation
filed December 6, 1999.

After reviewing all of the above materials along with
the relevant law, the Court hereby GRANTS the Motions
for Leave to File Amicus Briefs,' SUSTAINS the APA
Defendants’ objection to the Recommendation of the
Magistrate as to preemption of the civil conspiracy claim by
the RLA, OVERRULES Defendants’ remaining objections,
OVERRULES the Plaintiffs’ Objections to the Recommendation
of the Magistrate, and MODIFIES the Recommendation of the
Magistrate Judge as specified herein.

1. Pursuant to L.R. 7.2(b), both the AFL-CIO and the Air Line
Pilots Association, International demonstrated sufficient interest in
the outcome of the litigation to warrant leave to file the amicus briefs.

17a

Appendix B
FACTS

The facts giving rise to this case have been thoroughly
discussed in the parties’ motions, the Magistrate’s
Recommendation, and in American Airlines, Inc. v. Allied Air
Pilots Assoc., 53 F.Supp.2d 909 (N.D.Tex.1999). Therefore,
the Court will give only a brief recitation of the facts.

Allied Pilots Association (“the APA” or “the
Defendants’’) is the exclusive bargaining agent for more than
9,000 pilots of American Airlines, Inc. (“American”).
(See Pls’ Am. Compl. f¥ 2.07, 4.02). In 1998, a dispute arose
over terms of the current collective bargaining agreement
(“the CBA”) between the APA and American.” See American
Airlines, 53 F.Supp.2d at 914. The dispute culminated in a
staged sick-out by the pilot members of the APA. /d. at 915.
The sick-out began on February 6, 1999, and continued until
February 9, 1999, resulting in the cancellation of more than
1600 American flights due to lack of crew. Jd. On February
10, 1999, American applied for and received a temporary
restraining order, (“the TRO”), from Judge Kendall of the
Northern District of Texas. The TRO prohibited the union or

2. Parties stipulated and agreed, and the court found, that the
dispute leading up to the sick-out and the TRO was a “minor dispute”
under the RLA. See Stipulanon filed by the parties on April 28, 1999,
cited with authority, American Airlines, 53 F. Supp.2d at 938 n. 177;
Findings of Fact and Conclusions of Law filed February 13, 1999, at
1, cited with authority, American Airlines, 53 F.Supp.2d at 938
n. 178. As discussed infra, because this was a minor dispute, the
RLA prohibited the APA from engaging in a job action or self-help.
See Consolidated Rail Corp. (“Conrail”) v. Railway Labor Executives’
Assoc., 491 U.S. 299, 303-04 (1989) (stating that the RLA permits
the resort to self-help only when a “major dispute” is at issue).

18a

Appendix B

its officers from “calling, permitting, instigating, authorizing,
encouraging, participating in, approving or continuing any
interference with American’s airline operations, including
but not limited to any strike, work stoppage, sick-out,
slowdown or other concerted refusals to fly over a minor
dispute or otherwise in violation of the RLA, 45 U.S.C.
§§ 151-188 (1988).” See American Airlines, 53 F.Supp.2d
at 918 (quoting language from the TRO).

The day after Judge Kendall ordered an end to the APA’s
staged sick-out, the number of canceled flights actually
increased, so that on February 11, 1999, American canceled
approximately 1200 flights. See American Airlines,
53 F.Supp.2d at 915. On February 12, 1999, Judge Kendall
held a hearing on American’s motion tc hold the APA in
contempt for violating the terms of the TRO. At the
conclusion of the hearing. Judge Kendall adjudged the
Defendants to be in civil contempt of court and ordered the
APA to place $10,000,000 into the Registry of the Court
pending resolution of the amount necessary to reimburse
American the amount of money lost because of the APA’s
contumacious acts. See American Airlines, 53 F.Supp.2d at
916. After reviewing additional evidence, the court issued
its findings of facts and conclusions of law, which resulted
in a civil contempt finding of more than $45,000,000
damages due to American by the APA. See American Airlines,
53 F.Supp.2d at 937.

3. The Plaintiffs allege that American canceled over 2,200
scheduled flights between February 10, 1999 and February 17, 1999
“as a direct, intended, and foreseeable result of the Defendants’ acts
in furtherance of the Sick-Out.” (Pls’ Am. Compl. § 4.21).

19a

Appendix B

The case currently before this Court is a class action to
recover economic damages suffered by passengers as a
result of the APA’s illegal sick-out. Plaintiffs represent
ticketed passengers whose flights were either delayed or
canceled as a result of the sick-out. They assert claims under:
(1) the Railway Labor Act (“RLA”), 45 U.S.C. §§ 151-188
(1986); (2) the Racketeer Influenced and Corrupt
Organizations Act (“RICO”), 18 U.S.C. §§ 1961-1968 (1984);
and (3) state common law theories of civil conspiracy,
negligence per se, and tortious interference with contract.
Defendants filed a motion to dismiss the action under Rule
12(b)(6) of the Federal Rules of Civil Procedure. The matter
was referred to United States Magistrate Judge Kaplan for
Findings and Recommendation, which was issued on
November 15, 1999. Magistrate Judge Kaplan recommended
a dismissal of Plaintiffs’ federal claims finding that the RLA
does not permit a private cause of action for monetary
damages and that Plaintiffs failed to satisfy the elements of
a RICO claim. (See Findings and Recommendation at 8, 10).
He also recommended dismissing Plaintiffs’ claim for
negligence per se after finding that claim requires an
interpretation of the CBA and is therefore preempted by the
RLA. (See Findings and Recommendation at 12-13).

In addressing the remaining state law claims of tortious
interference with contract and civil conspiracy, Magistrate
Kaplan divided the Plaintiffs into two sub-classes: those
whose claims rested on acts occurring prior to the issuance
of the TRO and those whose claims rested on acts occurring
after the issuance of the back to work order. After analyzing
the preemption arguments, he then found that the former
group’s claims should be preempted by the RLA while the -

20a

Appendix B

latter group’s claims should not be preempted. (See Findings
and Recommendation at 11-12). Finally, Magistrate Kaplan
recommended that this Court decline supplemental
jurisdiction over the surviving state law claims and dismiss
them without prejudice so that Plaintiffs could institute their
claims in state court. Jd. at 18. Both parties filed objections
to the Findings and Recommendations.

STANDARD

Pursuant to 28 U.S.C. § 636(b), this Court will make a
de novo determination of those specified proposed findings
and recommendations to which the parties make an objection.
However, the Court need not consider frivolous, conclusory
or general objections. See DFW Vending, Inc. v. Jefferson
- County, Tex., 991 F.Supp. 578, 583 (E.D.Tex.1998) (stating
that a blanket objection fails the specificity requirement of
Fed.R.Civ.P. 72(b) and 28 U.S.C. § 636).

I. Defendants’ Objections

Defendants advance four separate arguments in objecting
to the Magistrate’s finding that some of Plaintiffs’ state law
claims should not be dismissed with prejudice: (1) that federal
labor law preempts and precludes state law remedies for damages
resulting from a peaceful labor dispute; (2) that federal labor
law preempts all of Plaintiffs’ state law claims because their
resolution depends upon an interpretation of the CBA;
(3) that federal law precludes actions by non-parties for
breach of a federal court order; and (4) that the Airline
Deregulation Act of 1978 (“ADA”), Pub.L. No. 95-504,
92 Stat. 1705 (codified as amended in scattered sections of

2la

Appendix B

49 U.S.C.), preempts all of the state law claims.‘ After
reviewing Defendants’ Objections, the amicus curiae briefs,
and Plaintiffs’ Response, the Court must agree with
Defendants except as to the tortious interference with contract
claim arising after the TRO was issued.

A. The RLA and the Nature of the Sick-Out

Congress enacted the Railway Labor Act of 1926 in
order “to promote stability in labor-management relations
by providing a comprehensive framework for resolving labor
disputes.” Hawaiian Airlines, Inc. v. Norris, 512 U.S. 246,
252 (1994). In furtherance of that goal, the RLA provides a
mechanism of mandatory arbitration for the “prompt and
orderly settlement” of disputes. 45 U.S.C. § 151a. “Major”
disputes concern “rates of pay, rules or working conditions,”
id., and relate to “the formation of collective [bargaining]
agreements or efforts to secure them.” Consolidated Rail
Corp. (Conrail) v. Railway Labor Executives’ Assoc.,
491 U.S. 299, 302 (1989). “Minor” disputes “gro[w] out of
grievances or out of the interpretation or application of
agreements covering rates of pay, rules, or working conditions,”
45 U.S.C. § 151la, and thus involve “controversies over the
meaning of an existing collective bargaining agreement in a
particular fact situation.” Trainmen v. Chicago R. & LR. Co.,
353 US. 30, 33 (1957). “The distinguishing feature of [a minor
dispute] is that the dispute may be conclusively resolved by
interpreting the existing [CBA].” Conrail, 491 U.S. at 305.

4. The APA specifically cites 49 U.S.C. § 41713(b)(1) to support
the preemption theory, which reads as follows: “[A] State ... may
not enact or enforce a law, regulation, or provision having the force
and effect of law related to a price, route, or service of an air carrier
that may provide air transportation under this subpart.”

22a

Appendix B

The courts recognized parties could face risks when categorizing
disputes as major and minor. Therefore, the Supreme Court
established a rule that disputes shall be classified as “minor” if
a party’s actions can be “arguably justified” by the terms of an
existing CBA. Conrail, 491 U.S. at 306.

During the initial proceedings before Judge Kendall,
American and the APA stipulated that the dispute between
the parties was a minor dispute under the terms of the RLA.
See American Airlines, 53 F.Supp.2d at 917. Moreover, in
issuing the TRO, Judge Kendall ruled that the dispute was a
minor dispute. See id. at 917 n. 178. This determination was
very important when considering the issuance of the TRO
because under the RLA, unions retain no right to strike over
a minor dispute. See Conrail, 491 U.S. at 305. Because the
RLA prohibited the APA from striking over this minor
dispute, Judge Kendall found that the sick-out was an illegal
job action. See American Airlines, 53 F.Supp.2d at 917.

B. Lingle/Norris Preemption

The RLA preempts any state law claim where the
resolution of that claim depends upon the interpretation of
the CBA. See Hawaiian Airlines v. Norris, 512 U.S. 246,
262 (1994) (extending preemption of the LMRA as discussed
in Lingle v. Norge Div. of Magic Chef, Inc., 486 U.S. 399,
405-06 (1988) to the RLA). All disputes, however, do not
result in preemption under the RLA. “Purely factual
questions” about the conduct of an employer or employee
do not require the court to interpret a CBA and are therefore
not preempted by the RLA. See Hawaiian Airlines, 512 US.
at 261. Under this analysis, substantive protections provided
by the state, independent of the existence of a collective

23a

Appendix B

bargaining agreement, are not preempted by the RLA. See Hirras
v. National Railroad Passenger Corp., 44 F.3d 278, 282
(5th Cir. 1995). The Supreme Court provided three examples
of these types of claims that the RLA does not preempt:
(1) a state law prohibiting the termination of an employee for
reasons against public policy, such as whistleblowing; (2) a state ©
law requiring cabooses on all trains; and (3) a state law requiring
a certain number of employees to handle a certain type of railroad
equipment. See Hawaiian Airlines, 512 U.S. at 256-57.
The Supreme Court similarly provided an example of a state
claim which was preempted by the RLA. In that case, the
employee sued the employer for wrongful discharge, but the
only basis for claiming that he should not have been discharged
was his allegation that the action violated the terms of the CBA.
Id. at 257. Therefore, his claim did not exist independently of
the CBA and was preempted by the RLA. /d. Even if the
resolution of the CBA dispute and the state claim requires the
consideration of the same set of facts, the state law claim will
not be preempted so long as the claim is derived from a source
independent of the collective bargaining agreement. Hirras,
44 F.3d at 282.

The APA contends that the RLA preempts Plaintiffs’ state
law claims for tortious interference with contract and civil
conspiracy because the resolution of those claims requires
an interpretation of the CBA. The Court addresses each claim
in turn.

1. Tortious Interference with Contract

In order to make a claim for tortious interference, a plaintiff
must prove: (1) the existence of a contract subject to
interference; (2) willful and intentional interference with that

24a

Appendix B

contract; (3) the intentional interference was a proximate
cause of plaintiff’s damages; and (4) actual damage or loss
occurred. See Victoria Bank & Trust Co. v. Brady, 811 S.W.2d
931, 939 (Tex. 1991). As Magistrate Kaplan correctly stated,
none of the elements of tortious interference requires the
Court to interpret the CBA to resolve the claim. (See Findings
and Recommendation at 11). Ascertaining each element
demands only a purely factual inquiry. Specifically, the
element of “willful and intentional interference” can be
established without reference to the CBA.

Plaintiffs need not prove that the interference was illegal
or unjustified in order to establish the elements of their claim.
Yet conversely, Defendants assert that because they argue
that their job action was justified and legal, preemption must
result, even if the conflict is later judged to be a “minor
dispute.” Defendants contend that their proffered affirmative
defense of justification demands an interpretation of the CBA
to determine if the conflict was a “major dispute” that would
justify Defendant’s job action.’ This Court will assume
arguendo that if such interpretation of the CBA were necessary,
then Plaintiffs’ claim would be preempted.

Under Texas law, justification is a defense to a claim for
tortious interference with contract. See Victoria Bank, 811

5. In the Findings and Recommendation, Magistrate Kaplan did
not consider whether the Court would need to reference the CBA
in resolving the APA’s justification defense. (See Findings and
Recommendation at 11). However, this Court will assume without
deciding that “[t]he claim is also preempted if [the defendant] seeks
to defend its conduct on the ground that the conduct was justified
by the CBA.” Polich v. Burlington N., Inc., 942 F.2d 1467, 1470
(9th Cir. 1991).

25a

Appendix B

S.W.2d at 939. Justification may be shown if Defendants
acted so as to protect or further their own legal rights or to
protect a colorable legal right that equals or exceeds the rights
of Plaintiffs. See Bennett v. Computer Assoc. Intern., Inc.,
932 S.W.2d 197, 202 (Tex. App. — Amarillo 1996, writ
denied) (citing Texas Beef Cattle Co. v. Green, 921 S.W.2d
203, 210 (Tex. 1996)). Defendants contend that “their actions
were indeed justified because the dispute with American was
arguably a ‘major’ dispute under the RLA involving
American’s unilateral abrogation or alteration of the existing
collective bargaining agreement.” (APA Defendants’
Objections at 14).

Defendants’ argument fails with respect to post-TRO
conduct because the issuance of the TRO precluded any
justification defense premised upon the CBA. It is irrelevant
to inquire whether Judge Kendall correctly interpreted the
CBA in finding the conflict to constitute a “minor dispute,”
whether the TRO was therefore rightly or wrongly issued, or
whether or not the sick-out was justified under the CBA.
As the Plaintiffs argued, “[a]fter Judge Kendall’s Back-To-
Work Order, a judicial decree that the APA had no legal
right to engage in or solicit the sick out, nothing in the CBA
could even arguably justify the Defendants’ conduct in
maintaining the sick-out.” (Pls’ Response to APA’s Obj. at 14).
Judge Kendall’s findings need not be consulted by this Court;
once Judge Kendall issued the TRO, his order trumped any
possible justification defense based upon the rights conferred
by the CBA. Ordinarily, parties should always obey the
court’s orders, regardless of whether they think the orders
are correct. See Maness v. Meyers, 419 U.S. 449, 458 (1975).
The only appropriate remedy is to appeal the order, and absent

26a

Appendix B

a stay, the order must be complied with during appeal. /d.
The terms of the CBA, a contract between labor and
management, offer no legal justification for violating a court
order under any interpretation. Since Defendants thus had
no possible legal justification under the CBA, there is no
need to interpret it.° Therefore, because the elements of
tortious interference with contract as well as the affirmative
defense thus involve purely factual inquiries not requiring
reference to the CBA, the claim is not preempted by the RLA.
See Hawaiian Airlines, 512 U.S. at 261.

It is important to note that Plaintiffs’ claim does not rely
upon establishing a violation of the TRO. As the discussion
of the civil conspiracy claim makes clear, infra, third parties
to a TRO may not base claims upon the violation of the TRO.
Here, Plaintiffs can establish all of the elements of tortious
interference regardless of the existence of the TRO. The TRO
merely negates a possible affirmative defense that Defendants .
might wish to raise to justify their conduct. As Plaintiffs state:

as part of their common law action for tortious
interference with contract, Plaintiffs merely
premise their claims on Allied Pilots’ conduct
which just happens to have already been found
contemptuous by Judge Kendall. Plaintiffs
properly plead the undeniable fact that such
conduct was specifically prohibited by Judge
Kendall’s Back-To- Work Order. Plaintiffs do not

6. The same logic would nullify a justification defense for civil
conspiracy based upon the CBA. The Court does not reach this
issue because the civil conspiracy claim is dismissed on other
grounds, infra.

27a

Appendix B

seek liability against the APA Defendants merely
because Judge Kendall prohibited their conduct,
but rather, Plaintiffs point to Allied Pilots’
violation of the Back-To-Work Order as evidence,
arguably conclusive, of the lack of justification
for Allied Pilots’ tortious conduct.

(Pls’ Response to APA’s Obj. at 14-15). Indeed, as for
justification based upon the CBA, the existence of the TRO
conclusively precludes such a defense.

2. Civil Conspiracy

A civil conspiracy is “a combination of two or more persons
to accomplish an unlawful purpose or to accomplish a lawful
purpose by unlawful means.” Triplex Communications, Inc. v.
Riley, 900 S.W.2d 716, 719 (Tex. 1995). Unlike the tortious
interference claim, Plaintiffs cannot establish the elements of
their civil conspiracy claim without relying upon the TRO or
the CBA. Plaintiffs claim therefore fails.

By violating a court order, even one that is later set aside
as incorrect, a party risks being held in civil or criminal
contempt. See Maness v. Meyers, 419 U.S. 449, 458 (1975).
Holding the offending party in either civil or criminal
contempt is the remedy for the violation of a TRO. /d. The
TRO may only be enforced by parties to the suit from which
the order emanated. See Northside Realty Associates, Inc. v.
United States, 605 F.2d 1348, 1356-57 (5th Cir. 1979).
A non-party to the action may not receive civil contempt
damages, nor may an individual institute an independent
claim for civil contempt. See D. Patrick, Inc. v. Ford Motor

28a

Appendix B

Co., 8 F.3d 455, 459 (7th Cir. 1993). Furthermore, a TRO is
not a final judgment for the purposes of collateral estoppel
or res judicata. See Texas v. Wellington Resources Corp.,
706 F.2d 533, 537 (Sth Cir. 1983) (“Hearings on these
nonpermanent injunctions do not serve the same purpose as
a hearing on the merits; they only preserve the status quo
awaiting resolution of the merits.”)

The passengers who have brought suit could not have
brought an action to enforce the back-to-work order. Nor can
the passengers claim that the TRO conclusively proves that
the APA’s actions were illegal. Accordingly, Plaintiffs cannot
rely upon the issuance of the TRO alone to demonstrate
unlawfulness necessary to prove the civil conspiracy claim.
Plaintiffs seem to recognize this limitation by arguing that
their claims are not prefaced upon the violation of the TRO
but that it merely demonstrates the wrongfulness of the APA’s
conduct. But Plaintiffs demonstrate no basis for claiming the
illegality of the conduct other than the violation of the TRO,
as any claim based upon the CBA would be preempted by
the RLA.’ Since Plaintiffs have failed to satisfy the elements
of the civil conspiracy claim, the claim is dismissed.

C. Garmon/Terminal Preemption

With all of the same concerns in mind for a single, federal
regulatory scheme for labor law, the Supreme Court

7. Plaintiffs’ status as total strangers to the labor/management
relationship and the relevant CBA does not require any different
outcome. In fact, the NLRA has previously been held to preempt the
claims of parties who were similarly situated as third parties to the
CBA. See Rehmar v. Smith, 555 F.2d 1362, 1366 (Sth Cir. 1977).

29a

Appendix B

developed another form of preemption referred to as Garmon
preemption.’ See San Diego Building Trades Council v.
Garmon, 359 U.S. 236 (1959). The Garmon Court indicated
a concern “with the potential conflict of two law-enforcing
authorities, with the disharmonies inherent in two systems,
one federal the other state, of inconsistent standards of
substantive law and differing remedial schemes.” Garmon,
359 U.S. at 242. The Supreme Court identified as the common
theme of its cases its “regard to the fact that Congress has
entrusted administration of the labor policy for the Nation to
a centralized administrative agency, armed with its own
procedures, and equipped with its specialized knowledge and
cumulative experience.” Jd. at 242. Due to its concern with
conflict “in the broadest sense,” the judicial system began to
focus on the nature of the activities which the states sought
to regulate rather than the method of regulation imposed by
the states. Jd. at 243. “When the exercise of state power over
a particular area of activity threatened interference with the
clearly indicated policy of industrial relations, it has been
judicially necessary to preclude the States from acting.” Jd.
The Supreme Court went on to state that it does not matter
“whether the States have acted through laws of general
application rather than laws specifically directed towards the
governance of industrial relations. Regardless of the mode
adopted, to allow the States to control the conduct which is
the subject of national regulation would create potential
frustration of national purpose.” Jd. at 244. This does not
remove all power from the states to regulate labor activities

8. Although Garmon addressed claims preempted by the NLRA,
the Court has regularly referred to the NLRA for assistance in
construing the RLA. See Brotherhood of Railroad Trainmen v.
Jacksonville Terminal Co., 394 U.S. 369, 383 (1969).

30a

Appendix B

in some aspects. The Court clearly delineated two areas that
would remain within the states’ power of control: regulation of
activity that is a merely peripheral concern of federal labor law
and regulations where the activity touches an interest deeply
rooted in local feeling and responsibility. /d. at 243-244.

While Garmon began as a case that focused on the
primary jurisdiction of the National Labor Relations Board,
see Jacksonville Terminal, 394 U.S. at 384 n. 19, it has come
to stand for a more sweeping proposition. According to the
Fifth Circuit, “[t]he fundamental precept of Garmon is that
liability under a state cause of action is preempted whenever
it poses a serious risk of conflict with national labor policy.”
Mobile Mechanical Contractors Ass'n, Inc. v. Carlough,
664 F.2d 481, 487 (Sth Cir. 1981). In Carlough, the Fifth
Circuit preempted the plaintiff’s state law claims for damages
resulting from an unlawful, but peaceful, strike. The Court
reasoned, “[t}he basis of the association’s state claims — and
the activity from which its alleged damages flow — is not the
union’s demand . . . but the strike in support of that demand.”
Carlough, 664 F.2d at 487. In short, the focus has shifted from
the labor board’s arguable jurisdiction over the subject matter
to a preference for a unified area of labor law that is relatively
immune from external pressures exerted by the state.

In this same trend, the Supreme Court later ruled that
states cannot make laws refusing to contract with employers
who regularly violate labor laws because such a prohibition
would “interfere with Congress’ ‘integrated scheme of
regulation’ by adding a remedy to those already prescribed
by the NLRA.” Wisconsin Department of Industry v. Gould,
475 U.S. 282, 287 (1986). According to the Supreme Court,

3la

Appendix B

it does not “matter that a supplemental remedy is different
in kind from those that may be ordered by the Board, for
“judicial concern has necessarily focused on the nature of ~
the activities which the States have sought to regulate, rather
than on the method of regulation adopted.” /d. at 287 (internal
quotes omitted). The Fifth Circuit similarly recognized this
principle in Carlough in stating that “to permit the association
to supplement the [NLRB’s] remedy with additional state
damages runs counter to the teachings of Garmon.” Carlough,
664 F.2d at 488 (finding that an award of damages can interfere
with national policy just as preventative regulation can).

1. Pre-TRO Conduct

In the matter at hand, allowing plaintiffs’ state law claims
premised on pre-TRO conduct to proceed would directly and
substantially interfere with federal regulation of the APA’s
strike. The relationship between management and labor exists
in a delicate balance. “The obligation to pay compensation
can be, indeed is designed to be, a potent method of governing
conduct and controlling policy.” Garmon, 359 U.S. at 247.
Allowing the state law tort claims to proceed under these
circumstances, regardless of the legality of the strike, would
place an incredible advantage in the hands of management.
This principle has been regularly noted in cases involving
strikes by public employees. In one case, a New York Court
of Appeals wrote, “[a private action for damages] would be
a powerful deterrent to public employee strikes, but it would
also, as the claims for damages in the Burnes Jackson

. complaint, impose a crushing burden on the unions and each
of the employees participating in the strike.” Burns Jackson
Miller Simms & Spitzer v. Linder, 59 N.Y.2d 314, 329
(N.Y. Ct. App. 1983).

32a

Appendix B

Other cases have also noted the power associated
with awarding damages for illegal strikes by a union.
One court expressed reluctance to allow employers and
unions “to use the club of damages against each other.”
CSX Transportation Inc. v. Marquar, 980 F.2d 359, 379
(6th Cir. 1992). The potential advantage to management
prompted the Fifth Circuit to explicitly refuse an employer’s
claim for damages against a union for losses incurred as the
result of an illegal strike. See Burlington Northern R.R. Co.
v. Brotherhood of Maintenance of Way Employees, 961 F.2d
86, 89 (Sth Cir. 1992); Louisville and Nashville R.R. Co. v.
Brown, 252 F.2d 149, 155 (Sth Cir. 1958). The Fourth Circuit
recently came to the same conclusion and refused an-
employer’s claim for damages resulting from a union’s illegal
strike over a minor dispute. See Norfolk Southern Railway v.
Brotherhood of Locomotive Engineers, 164 LRRM 2641
(4th Cir. 2000).

Regardless of whether the damages are sought by the
employer or a third party, the imbalance to the bargaining
process would be just as profound. As Magistrate Kaplan
recognized, the award of damages for damages incurred in
the “collective bargaining process would, in effect, give the
employer a weapon with which to keep the unions and their
agents “in line.” The risk is no less when the party seeking
damages is a stranger to the collective bargaining process,
such as airline customers affected by an illegal work
stoppage. Management would still be able to use the threat
of large damage awards in potential class actions such as
this one to keep the unions and their agents ‘in line.’ ”
(Findings and Recommendation at 7) (quoting National
Airlines, Inc. v. Airline Pilots Association International,
431 F.Supp. 53, 54 (S.D.Fla.1976)).

33a

Appendix B

All of the above cases dealt with claims brought under
the RLA. However, that is not dispositive of the issue
currently before the Court. Whether the threat of damages
comes under the RLA or common law, the result would be
the same. The best way to produce more unified results and
allow the parties to focus their attention on resolving the
labor dispute is to allow the federal courts and federal law
sole jurisdiction to implement any remedy.

In looking to the nature of the union’s actions, one must
acknowledge that the sick-out was the APA’s response to the
dispute with American. Regardless of the legality of the
strike, the union’s actions and the ability to strike lie at the
heart of labor law. In most cases, strikes by participants of
major industrial companies will affect thousands and
thousands of people who are not a party to the CBA. Due to
the far-reaching consequences of any action taken by these
players, such strikes as the APA’s cannot be considered
peripheral to the concerns of labor law. Moreover, there is
no evidence that the strike used any threats or violence or
concerned any other matter that is grounded in local control
SO as to avoid preemption.

2. Post-TRO Conduct

The Court is mindful that the same factors justifying
preemption of pre-TRO conduct could arguably justify
preemption of post-TRO conduct. Nevertheless, this Court
finds that permitting liability to third parties for conduct
occurring after issuance of a TRO will not meaningfully
disrupt the balance between labor and management.

34a

Appendix B

As discussed above, a TRO must be obeyed until set
aside. Maness v. Meyers, 419 U.S. 449, 458 (1975). Thus,
neither a union nor an employer may hz've any reasonable
expectation or good-faith belief that its conduct in violation
of the TRO is legal, let alone legally protected by federal
labor policy. Those who violate a court order do so at their
peril, and merit no federal license to continue engaging in
conduct that violates the rights of third parties even after a
judge has forbidden them to do so. Further, there is no
ambiguity in a rule refusing to exempt post-TRO conduct
from valid state laws not implicating a CBA. The clear bright
line is crossed only when a party continues to act contrary to
state law after a court has forbidden such conduct by issuing
a restraining order or injunction. There can be no confusion
that such conduct no longer enjoys special legal protection.

The Court notes that the APA did, in fact, pay for the
consequences of violating the court order. As a result of the
sick-out, Judge Kendall imposed a civil contempt fine of
$45,000,000 against the APA. Yet this award does nothing
to compensate third parties damaged by illegal conduct. Third
parties are not foreclosed by federal labor policy from seeking
compensation for damage they suffered when such claims
will not disrupt that federal policy. Indeed, national labor
policy is not disrupted by permitting post-TRO conduct to
be subject to state law; there is no “potential frustration of
national purpose.” Cf. Garmon, 359 U.S. at 242. Parties do
not forfeit any rights granted under a CBA or subject to
federal management. They merely are not permitted to hide
behind the shield of federal preemption doctrine for conduct
in violation of state law. All conduct prior to a court order
continues to be subject to federal preemption, as does all

35a
Appendix B

post-TRO conduct that implicates a CBA. Employers gain
no new weapon in their arsenal with which to bludgeon
potential strikers; unions will not be more hesitant to strike,
for they incur potential liability to third parties only for
conduct that takes place after a court order is issued.

Note again that enforcing the issuance of a TRO as the
bright line between special legal protection and ordinary
subjection to valid laws does not permit claims to be based
upon the TRO itself. The TRO is instead a boundary; it marks
the point at which the interest of national labor policy no
longer outweighs the peculiarly local concerns of the courts
enforcing state laws. Cf, Garmon, 359 U.S. at 243-244.

D. ADA Preemption

Defendants argue that Plaintiffs’ common law causes of
action are preempted by the Airline Deregulation Act of 1978
(“ADA”), Pub.L. No. 95-504, 92 Stat. 1705 (codified as
amended in various sections of Title 49). This Court adopts
the finding and recommendation of the magistrate to find no
ADA preemption of Plaintiffs’ claims.

E. Liability for Peaceful Labor Strike

This Court adopts the finding and recommendation of
Magistrate Judge Kaplan to reject any defense that no
common law claims can arise from a peaceful labor strike as
inapplicable to this case.

36a

Appendix B

F. Disposition of Remaining State Law Claim

This Court adopts the findings and recommendation of
the magistrate to dismiss the surviving state law claim
without prejudice. The interests of clarity, judicial economy,
and the appropriateness of addressing state law claims in state
courts all counsel against this Court attempting to disentangle
surviving and dismissed claims, surviving and dismissed
plaintiffs, and then remanding them to their separate
originating state courts. This Court chooses not to exercise
its supplemental jurisdiction in this case.

II. Plaintiffs’ Objections

Plaintiffs made three objections to the Findings and
Recommendation. The first two object to Magistrate Kaplan’s
recommendation to dismiss rather than remand Plaintiffs’
surviving state law causes of action. Plaintiffs’ objections
are OVERRULED. The Court’s ruling makes clear that the
state law claim remaining after this Court’s previous rulings
is dismissed without prejudice.

Plaintiffs’ third objection is titled a conditional objection
and argues that in the event the Court sustains the Defendants’
objections, Plaintiffs object to the portions of the Findings
and Recommendation that dismiss Plaintiffs’ claims under
the RLA, RICO, and the claims against the individual
Defendants. Plaintiffs give no specific reason for their
objection and merely incorporate by reference the legal
arguments set forth in their briefs and response to Defendants’
Motion to Dismiss. This objection is precisely the type of
blanket objection that the Court need not consider. See DFW

37a

Appendix B

Vending, Inc. v. Jefferson County, Tex., 991 F.Supp. 578, 583
(E.D. Tex.1998). Accordingly, the Court OVERRULES
Plaintiffs’ Objections to the Findings and Recommendation.

DATED: September 26, 2000
s/ Jorge A. Solis
Jorge A. Solis

UNITED STATES DISTRICT
COURT JUDGE

38a

APPENDIX C — STATUTES INVOLVED

29 U.S.C.A. § 157. Right of employees as to organization,
collective bargaining, etc.

Employees shall have the right to self-
organization, to form, join, or assist labor
organizations, to bargain collectively through
representatives of their own choosing, and to
engage in other concerted activities for the
purpose of collective bargaining or other mutual
aid or protection, and shall also have the right to
refrain from any or all of such activities except to
the extent that such right may be affected by an
agreement requir:ng membership in a labor
organization as a condition of employment as
authorized in section 158(a)(3) of this title.

29 U.S.C.A. § 158. Unfair labor practices
(a) Unfair labor practices by employer
It shall be an unfair labor practice for an employer —

(1) to interfere with, restrain, or coerce
employees in the exercise of the rights guaranteed
in section 157 of this title;

(2) to dominate or interfere with the
formation or administration of any labor
organization or contribute financial or other
support to it: Provided, That subject to rules and
regulations made and published by the Board
pursuant to section 156 of this title, an employer

39a

Appendix C

shall not be prohibited from permitting employees
to confer with him during working hours without
loss of time or pay;

(3) by discrimination in regard to hire or
tenure of employment or any term or condition of
employment to encourage or discourage
membership in any labor organization: Provided,
That nothing in this subchapter, or in any other
statute of the United States, shall preclude an
employer from making an agreement with a labor
organization (not established, maintained, or
assisted by any action defined in this subsection
as an unfair labor practice) to require as a
condition of employment membership therein on
or after the thirtieth day following the beginning
of such employment or the effective date of such
agreement, whichever is the later, (i) if such labor
organization is the representative of the employees
as provided in section 159(a) of this title, in the
appropriate collective-bargaining unit covered by
such agreement when made, and (ii) unless
following an election held as provided in section
159(e) of this title within one year preceding the
effective date of such agreement, the Board shall
have certified that at least a majority of the
employees eligible to vote in such election have
voted to rescind the authority of such labor
organization to make such an agreement: Provided
further, That no employer shall justify any
discrimination against an employee for
nonmembership in a labor organization (A) if he

40a

Appendix C

has reasonable grounds for believing that such
membership was not available to the employee
on the same terms and conditions generally
applicable to other members, or (B) if he has
reasonable grounds for believing that membership
was denied or terminated for reasons other than
the failure of the employee to tender the periodic
dues and the initiation fees uniformly required as
a condition of acquiring or retaining membership;

(4) to discharge or otherwise discriminate
against an employee because he has filed charges
or given testimony under this subchapter;

(5) to refuse to bargain collectively with the
representatives of his employees, subject to the
provisions of section 159(a) of this title.

(b) Unfair labor practices by labor organization

It shall be an unfair labor practice for a labor
organization or its agents —

(1) to restrain or coerce (A) employees in the
exercise of the rights guaranteed in section 157
of this title: Provided, That this paragraph shall
not impair the right of a labor organization to
prescribe its own rules with respect to the
acquisition or retention of membership therein;
or (B) an employer in the selection of his
representatives for the purposes of collective
bargaining or the adjustment of grievances;

4ia

Appendix C

(2) to cause or attempt to cause an employer
to discriminate against an employee in violation
of subsection (a)(3) of this section or to
discriminate against an employee with respect to
whom membership in such organization has been
denied or terminated on some ground other than
his failure to tender the periodic dues and the
initiation fees uniformly required as a condition
of acquiring or retaining membership;

(3) to refuse to bargain collectively with an
employer, provided it is the representative of his
employees subject to the provisions of section
159(a) of this title;

(4) (i) to engage in, or to induce or encourage
any individual employed by any person engaged
in commerce or in an industry affecting commerce
to engage in, a strike or a refusal in the course of
his employment to use, manufacture, process,
transport, or otherwise handle-or work on any
goods, articles, materials, or commodities or to
perform any services; or (ii) to threaten, coerce,
or restrain any person engaged in commerce or in
an industry affecting commerce, where in either
case an object thereof is —

(A) forcing or requiring any employer or
self-employed person to join any labor or
employer organization or to enter into any
agreement which is prohibited by subsection (e)
of this section;

42a

Appendix C

(B) forcing or requiring any person to cease
using, selling, handling, transporting, or otherwise
dealing in the products of any other producer,
processor, or manufacturer, or to cease doing
business with any other person, or forcing or
requiring any other employer to recognize or
bargain with a labor organization as the
representative of his employees unless such labor
organization has been certified as the
representative of such employees under the
provisions of section 159 of this title: Provided,
That nothing contained in this clause (B) shall be
construed to make unlawful, where not otherwise
unlawful, any primary strike or primary picketing;

(C) forcing or requiring any employer to
recognize or bargain with a particular labor
organization as the representative of his
employees if another labor organization has been
certified as the representative of such employees
under the provisions of section 159 of this title;

(D) forcing or requiring any employer to
assign particular work to employees in a particular
labor organization or in a particular trade, craft,
or class rather than to employees in another labor
organization or in another trade, craft, or class,
unless such employer is failing to conform to an
order or certification of the Board determining the
bargaining representative for employees performing
such work:

43a

Appendix C

Provided, That nothing contained in this subsection
shall be construed to make unlawful a refusal by
any person to enter upon the premises of any
employer (other than his own employer), if the
employees of such employer are engaged in a
strike ratified or approved by a representative of
such employees whom such employer is required
to recognize under this subchapter: Provided
further, That for the purposes of this paragraph
(4) only, nothing contained in such paragraph shall
be construed to prohibit publicity, other than
picketing, for the purpose of truthfully advising
the public, including consumers and members of
a labor organization, that a product or products
are produced by an employer with whom the labor
organization has a primary dispute and are
distributed by another employer, as long as such
publicity does not have an effect of inducing any ©
individual employed by any person other than the
primary employer in the course of his employment
to refuse to pick up, deliver, or transport any
goods, or not to perform any services, at the
establishment of the employer engaged in such
distribution; ‘

(5) to require of employees covered by an
agreement authorized under subsection (a)(3) of
this section the payment, as a condition precedent
to becoming a member of such organization, of a
fee in an amount which the Board finds excessive
or discriminatory under all the circumstances.
In making such a finding, the Board shall consider,

44a

Appendix C

among other relevant factors, the practices and
customs of labor organizations in the particular
industry, and the wages currently paid to the
employees affecied;

(6) to cause or attempt to cause an employer
to pay or deliver or agree to pay or deliver any
money or other thing of value, in the nature of an
exaction, for services which are not performed or
not to be performed; and

(7) to picket or cause to be picketed, or
threaten to picket or cause to be picketed, any
employer where an object thereof is forcing or
requiring an employer to recognize or bargain with
a labor organization as the representative of his
employees, or forcing or requiring the employees
of an employer to accept or select such labor
organization as their collective bargaining
representative, unless such labor organization is
currently certified as the representative of such
employees:

(A) where the employer has lawfully
recognized in accordance with this subchapter any
other labor organization and a question concerning
representation may not appropriately be raised
under section 159(c) of this title,

(B) where within the preceding twelve
months a valid election under section 159(c) of
this title has been conducted, or

45a

Appendix C

(C) where such picketing has been conducted
without a petition under section 159(c) of this title
being filed within a reasonable period of time not
to exceed thirty days from the commencement of
such picketing: Provided, That when such a
petition has been filed the Board shall forthwith,
without regard to the provisions of section
159(c)(1) of this title or the absence of a showing
of a substantial interest on the part of the labor
organization, direct an election in such unit as the
Board finds to be appropriate and shall certify the
results thereof: Provided further, That nothing in
this subparagraph (C) shall be construed to
prohibit any picketing or other publicity for the
purpose of truthfully advising the public
(including consumers) that an employer does not
employ members of, or have a contract with, a
labor organization, unless an effect of such
picketing is to induce any individual employed
by any other person in the course of his
employment, not to pick up, deliver or transport
any goods or not to perform any services.

Nothing in this paragraph (7) shall be
construed to permit any act which would
otherwise be an unfair labor practice under this
subsection.

46a

Appendix C
45 U.S.C.A. § 15la. General purposes

The purposes of the chapter are: (1) To avoid
any interruption to commerce or to the operation
of any carrier engaged therein; (2) to forbid any
limitation upon freedom of association among
employees or any denial, as a condition of
employment or otherwise, of the right of employees
to join a labor organization; (3) to provide for the
complete independance of carriers and of employees
in the matter of self-organization to carry out the
purposes of this chapter; (4) to provide for the
prompt and orderly settlement of all disputes
concerning rates of pay, rules, or working
conditions; (5) to provide for the prompt and
orderly settlement of all disputes growing out of
grievances or out of the interpretation or
application of agreements covering rates of pay,
rules, or working conditions.

45 U.S.C.A. § 184. System, group, or regional boards
of adjustment

The disputes between an employee or group of
employees and a carrier or carriers by air growing
out of grievances, or out of the interpretation or
application of agreements concerning rates of pay,
rules, or working conditions, including cases
pending and unadjusted on April 10, 1936, before
the National Labor Relations Board, shall be
handled in the usual manner up to and including
the chief operating officer of the carrier designated

47a

Appendix C

to handle such disputes; but, failing to reach an
adjustment in this manner, the disputes may be
referred by petition of the parties or by either party
to an appropriate adjustment board, as hereinafter
provided, with a full statement of the facts and
supporting data bearing upon the disputes.

It shall be the duty of every carrier and of its
employees, acting through their representatives,
selected in accordance with the provisions of this
subchapter, to establish a board of adjustment of
jurisdiction not exceeding the jurisdiction which
may be lawfully exercised by system, group, or
regional boards of adjustment, under the authority
of section 153 of this title.

Such boards of adjustment may be established
by agreement between employees and carriers
either on any individual carrier, or system, or
group of carriers by air and any class or classes of
its or their employees; or pending the
establishment of a permanent National Board of
Adjustment as hereinafter provided. Nothing in
this chapter shall prevent said carriers by air, or
any class or classes of their employees, both acting
through their representatives -selected in
accordance with provisions of this subchapter,
from mutually agreeing to the establishment of a
National Board of Adjustment of temporary
duration and of similarly limited jurisdiction.

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386010_1449%3A1. Public record. Not legal advice.
