Santiago v. United Air Lines, Inc.
Wanda Raquel SANTIAGO v. UNITED AIR LINES, INC.
Attorneys
Wanda Raquel Santiago, Hollywood, FL, pro se., Tom A. Jerman, Jones Day, Aparna Bhagwan Joshi, Omelveny & Myers, LLP, Washington, DC, Benjamin James Coleman, Elizabeth Bethea McRee, Jones Day, Chicago, IL, for Defendant.
Full Opinion (html_with_citations)
Among the perks of working for an airline is the ability to fly for free or at reduced rates. United Airlines is no exception. Pursuant to its âpass travelâ program, United issues to all of its employees, both active and retired, ticket vouchers for travel on any United flight â contingent, however, on there being an unsold seat on the plane. Doc. 163 at 3-4 (reported at 969 F.Supp.2d 955, 958 (N.D.I11.2013)). In the event there are fewer empty seats than employees seeking to travel, United must prioritize their requests. 969 F.Supp.2d at 959. When Wanda Santiago, a United flight attendant, retired in 2009 after 33 years with the airline, retirees with more than 25 yearsâ service always had the highest priority. Ibid. That changed after United merged with Continental Airlines in 2010. Now, in some circumstances, active employees have priority over retirees, even those like Santiago with lengthy tenures. Ibid.
Disappointed with this change to the pass travel program, Santiago sued United and her union, the Association of Flight Attendants (âAFAâ), under the Railway Labor Act (âRLAâ), 45 U.S.C. § 151 et seq. Doc. 1. Alleging that the change violated the collective bargaining agreement (âCBAâ) negotiated by United and the AFA, Santiago claimed that United violated the RLA by failing to submit to arbitration her challenge to the change, and asked the court to compel United to sub-mit the dispute to arbitration. Santiago also claimed that the AFA breached its duty of fair representation under the RLA by refusing to assist her in pursuing her challenge. The court denied Unitedâs motion to dismiss, Docs. 62-63 (reported at 2012 WL 2049486 (June 6, 2012)), but granted the AFAâs, Docs. 103-104 (reported at 2012 WL 3583057 (N.D.Ill. Aug. 17, 2012)),
United then moved for summary judgment. Doc. 128. The court denied the motion on the ground that Santiago, although retired, is still an âemployeeâ under the 'relevant provision of the RLA, meaning that her dispute is subject to mandatory arbitration. 969 F.Supp.2d at 96566. In addition, the court ordered United, pursuant to Rule 56(f), âto file a brief explaining ... why Plaintiff is not entitled to judgment as a matter of lawâ on Santiagoâs request that the court enjoin United to conduct the arbitration. Doc. 162. Before responding to the Rule 56(f) notice, United sought and received leave to depose Santiago regarding whether she had exhausted the companyâs internal grievance procedures. Docs. 168, 172. And in the event it turned out that judgment could not be entered for either party as a matter of law, the court set trial for February 9, 2015. Doc. 201. In its Rule 56(f) brief, United not only opposes the courtâs granting summary judgment to Santiago, but also seeks summary judgment on the ground that Santiago failed to exhaust the companyâs internal grievance procedures. Doc. 188. Santiago responded in a series of filings. Docs. 189, 193â 197, 199-200. For the following reasons, summary judgment is granted to United.
Background
Much of the factual and legal background is set forth in the courtâs previous opinions in this case and so need not be recounted in full. 969 F.Supp.2d at 957-59; 2012 WL 2049486, at *1-2. All facts are stated as favorably to Santiago as permitted by the record. See Hanners v. Trent, 674 F.3d 683, 691 (7th Cir.2012).
Santiago worked for United as a flight attendant from 1977 through 2009. 969 F.Supp.2d at 958. As mentioned, United through its pass travel program has long
Santiago believes that . Unitedâs unilateral decision to change the pass travel programâs priority rules violated the CBA. 969 F.Supp.2d at 958. United disagrees, arguing that the CBA gives it the right to modify or even eliminate the program in its sole discretion. Ibid. The RLA governs all such disputes between airlines and their employees: âThe 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, ... shall be handled in the usual manner up to and including the chief operating officer of the carrier designated 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[.]â 45 U.S.C. § 184. âSuch boards of adjustment may be established by agreement between employees and carriers,â ibid, and United and the AFA have established such a board, called the United-AFA System Board of Adjustment (âSystem Boardâ), 969 F.Supp.2d at 957. Whether Santiagoâs dispute with United is governed by § 184 depends on two questions: whether she is an âemployeeâ within the meaning of the RLA, and, if so, whether her dispute is of the sort described in § 184.
In denying Unitedâs summary judgment motion, the court answered both questions âyes.â First, the court held that Santiago, though retired, was an âemployeeâ for purposes of the RLA under the holding of Pennsylvania Railroad Co. v. Day, 360 U.S. 548, 551-53, 79 S.Ct. 1322, 3 L.Ed.2d 1422 (1959). 969 F.Supp.2d at 965-66. The court also held that her dispute is what Consolidated Rail Corp. v. Railway Labor Executivesâ Association (âConrailâ), 491 U.S. 299, 303-04 & n. 4, 109 S.Ct. 2477, 105 L.Ed.2d 250 (1989), called a âminor dispute,â because it âmay be conclusively resolved by interpreting the existingâ CBA. 969 F.Supp.2d at 962 (quoting Conrail, 491 U.S. at 305, 109 S.Ct. 2477). Section 184 provides that minor disputes must be handled according to the companyâs internal grievance procedures and then, if an accord is not reached, through arbitration before the System Board. Id. at 961-63.
Pursuant to the RLA, the CBA establishes a detailed internal grievance procedure that culminates in final and binding arbitration before the System Board. Id. at 958. In February 2008, the AFA and United, â[i]n order to ... resolve disputes pertaining to non-disciplinary actions ... quickly and effectively,â agreed to modify the CBA to require any âFlight Attendant who has an issue concerning any action of the Company which affects her/him, except as may arise out of disciplinary action,â to âfile a worksheet with the [union], setting forth the basis for the dispute within 60 calendar days after the Flight Attendant(s)
After learning of the March 2011 change to the pass travel program, Santiago attempted to object in writing, first in a pair of August 2011 letters to John Nelson, a United lawyer, and Jeff Smisek, Unitedâs CEO, and again in a December 5, 2011 letter to Gregory Davidowitch, President of the United Master Executive Council for the AFA. Doc. 188-3 at 2-3; Doc. 1 at Âś 53; see Air Wisconsin Pilots Prot. Comm. v. Sanderson, 909 F.2d 213, 215 (7th Cir.1990) (âALPA does not have locals, but at each airline that it represents there is a committee, called the Master Executive Council, elected by the pilots of that airline. These committees are subordinate bodies of ALPA. Their powers are defined in ALPAâs constitution and bylaws ... [but] do not include the power to act as collective bargaining representative â ALPA itself is the bargaining representative of the pilots employed by ALPA-organized airlines.â). At her deposition, in response to the question âdid you ever file a worksheet with the [union] objecting to changes in the companyâs pas[s] travel policy?â Santiago replied that she âcalled Unitedfs] legal departmentâ and later âspoke directly to Mr. Smisek,â after which she wrote the August 2011 letters. Doc. 188-2 at 4. According to the lawyer who represented Santiago at the deposition but for reasons unexplained has not filed an appearance, âitâs [Santiagoâs] interpretation that this complied with whatever requirements there were in the [union] contractâ regarding the filing of a worksheet. Ibid. And in one of her briefs, Santiago asserts that she âinstituted the statutory grievance procedures by her phone call to John Nelson,â the United lawyer. Doc. 189 at 12. Santiago testified that the first written contact she had with the AFA was in December 2011:
A: ... Iâm telling you I sent [Davi-dowitch] a letter on December 5th, 2011.
Q: And thatâs the first time you sent any letter toâ
A: Thatâs what Iâ
Q: -AFA?
A: âremember, yes.
Doc. 188-2 at 5. Santiago also testified that she did not remember having âany communications with any representative of AFA between March 30, 2011 andâ a telephone call with AFA executive vice president Linda Farrow, whom she called â[s]ome-where around th[e] timeâ that she sent the December 5, 2011 letter to Davidowitch. Id. at 4-5.
Discussion
Much of Unitedâs Rule 56(f) brief is devoted to arguing that the court incorrectly denied Unitedâs previous summary judgment motion. Doc. 188 at 5-10, 13-19. United gives no valid reason to revisit the courtâs holdings (1) that Santiago is an RLA âemployeeâ under Day and (2) that her challenge to Unitedâs change to the pass travel program requires an interpretation of the CBA and is therefore a âminorâ dispute under Conrail. 969 F.Supp.2d at 961-66. The court adds only that in a materially identical federal suit in California, United favorably cited and quoted at length this courtâs summary judgment decision â the very decision it attacks in its Rule 56(f) brief in this case â in arguing that the retiree plaintiff there was an RLA âemployeeâ under Day and that
Not quite as perplexing, given that she is pro se, is that Santiago appears to have reversed herself on the question whether her underlying dispute with United&emdash; whether the airlineâs change to the pass travel program violated the CBA&emdash;should be submitted to the System Board, now arguing that this âcourt is not without power to decide this caseâ because the System Board lacks authority to redress her grievance. Doc. 193 at 2-3 (capitalization omitted). Santiagoâs new position on whether this court should resolve that underlying dispute now aligns with Unitedâs, which previously asked this court to serve as a âgatekeeperâ and decide the suit on the merits. 969 F.Supp.2d at 961.
This raises the question whether, with both parties now in agreement, the court can decide the merits of Santiagoâs challenge to the change in the pass travel program. The Supreme Court has long held that the RLAâs strictures are jurisdictional. See, e.g., Conrail, 491 U.S. at 302-04, 109 S.Ct. 2477 (contrasting a âmajorâ dispute, over which âthe district courts have subject-matter jurisdiction,â with a âminorâ dispute, over which â[t]he Board (as we shall refer to any adjustment board under the RLA) has exclusive jurisdictionâ); Union Pac. R. Co. v. Sheehan, 439 U.S. 89, 93, 99 S.Ct. 399, 58 L.Ed.2d 354 (1978) (per curiam); Bhd. of Locomotive Engârs v. Louisville & N.R. Co., 373 U.S. 33, 38-39, 83 S.Ct. 1059, 10 L.Ed.2d 172 (1963). And of course the parties cannot by consent confer subject matter jurisdiction that the court does not have. See CFTC v. Schor, 478 U.S. 833, 851, 106 S.Ct. 3245, 92 L.Ed.2d 675 (1986).
Complicating the picture, however, is the Supreme Courtâs relatively recent decision in Arbaugh v. Y&H Corp., 546 U.S. 500, 126 S.Ct. 1235, 163 L.Ed.2d 1097 (2006), which articulates a âclear statementâ rule for determining whether a statute is jurisdictional: âIf the Legislature clearly states that a threshold limitation on a statuteâs scope shall count as jurisdictional, then courts and litigants will be duly instructed and will not be left to wrestle with the issue. But when Congress does not rank a statutory limitation on coverage as jurisdictional, courts should treat the restriction as nonjurisdictional in character.â Id. at 515-16, 126 S.Ct. 1235 (footnote and citation omitted, emphasis added). Nothing in § 184 âclearly statesâ that its provisions limit the jurisdiction of federal district courts, and so under Ar-baugh the statute would appear not to implicate subject matter jurisdiction. See Union Pac. R. Co. v. Bhd. of Locomotive Engârs & Trainmen Gen. Comm. of Adjustment, Cent. Region, 558 U.S. 67, 81-84, 130 S.Ct. 584, 175 L.Ed.2d 428 (2009) (holding that the conferencing requirement of 45 U.S.C. § 152, Second, Sixth, and certain procedural rules promulgated by the National Railroad Adjustment Board (the analog in the railroad industry to System Boards in the airline industry) under the authority granted by 45 U.S.C. § 153 First (v), are not jurisdictional under Ar-baugh . And if § 184 is not jurisdictional, the court has the power to resolve the merits of Santiagoâs claim that Unitedâs change to the pass travel program violated the CBA.
To take this route is tempting, because resolving that claim on the merits would be quite simple. It is undisputed
But the court will avoid taking this route, not least because the Supreme Court has never repudiated Conrail in light of Arbaugh. See State Oil Co. v. Khan, 522 U.S. 3, 20, 118 S.Ct. 275, 139 L.Ed.2d 199 (1997) (â[I]t is this Courtâs prerogative alone to overrule one of its precedents.â); United States v. Blagojevich, 612 F.3d 558, 562 (7th Cir.2010) (â[T]he Supreme Court often reminds other judges that they must follow all of its decisions, even those that seem incompatible with more recent ones, until the Justices themselves deliver the coup de grace.â). Nor, to the courtâs knowledge, has the Seventh Circuit or any other circuit held that § 184 is no longer jurisdictional. In addition, the court hesitates to undermine the RLAâs comprehensive statutory scheme: âIn enacting [the RLA], Congress endeavored to promote stability in labor-management relations in this important national industry by providing effective and efficient remedies for the resolution of railroad-employee disputes arising out of the interpretation of collective-bargaining â agreements.... Congress considered it essential to keep these so-called âminorâ disputes within the
That said, the court will not enjoin United to conduct arbitration before the System Board because, as United also argued in its Rule 56(f) brief, Doc. 188 at 11-12, 18-19, Santiago indisputably failed to exhaust the statutorily required precursors to arbitration. The RLA requires unionized airline employees to pursue grievances âin the usual mannerâ; only if a satisfactory resolution cannot be reached may the grievance then proceed to arbitration before an adjustment board. 45 U.S.C. § 184 (providing for employee grievances to âbe handled in the usual mannerâ; âbut, 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 boardâ). Here, it is undisputed that the âusual mannerâ included the âfil[ing of] a worksheet with the [AFA], setting forth the basis for the dispute within 60 calendar days after the Flight Attendant(s) reasonably would have knowledge of the dispute.â Doc. 169-5 at 6.
As noted above, Santiago believes that her call to John Nelson, Unitedâs lawyer, satisfied this requirement. Doc. 188-2 at 4; Doc. 189 at 12. But by Santiagoâs own account, her first written notice to the union was on December 5, 2011, when she sent the letter to Davidowitch. Doc. 188-2 at 5. December 5 is much more than 60 calendar days (it is about 250 calendar days) after March 30, 2011, when Santiago first learned of the change to the program. Ibid. Construing the letter to Davidowitch as Santiagoâs attempt to âfile a worksheet with the [union]â â that is, viewing the letter in a light most favorable to Santiagoâ it is undisputed that Santiago missed the 60-day deadline by a wide margin. Even the August 2011 letters to Nelson and Smisek (who are United executives, not union personnel) were sent well after the 60-day deadline had expired. As for the telephone conversation with Nelson, no reasonable factfinder could conclude that a phone call to a United official satisfies the requirement to file a worksheet (which implies something in writing) with the union. See Citadel Grp. Ltd. v. Washington Regâl Med. Ctr., 692 F.3d 580, 587 (7th Cir.2012) (âWhen the material facts are not in dispute, the existence and interpretation of a contract are questions of law that the court may decide on a motion for summary judgment.â); S.J. Groves & Sons Co. v. Intâl Bhd. of Teamsters, Chauffeurs, Warehousemen & Helpers of Am., Local 627, 581 F.2d 1241, 1244 (7th Cir.1978) (âDisputes over interpretations of âjust causeâ provisions [in the CBA] are resolvable by summary judgment where there is no genuine issue of material fact.â).
Santiago, as an RLA âemployeeâ under Day, had the right to demand arbitration before the System Board, see 969 F.Supp.2d at 966-69, but that right was conditioned on her following the RLAâs pre-arbitration procedures, which means she was required to abide by- â 'that is, exhaust â the carrierâs internal grievance procedures. See 45 U.S.C. §§ 153 First(i), 184; Union Pac. R. Co., 558 U.S. at 73, 130 S.Ct. 584 (âIn keeping with Congressâ aim to promote peaceful settlement of minor disputes, the RLA requires employees and carriers, before resorting to arbitration, to exhaust the grievance procedures specified in the collective-bargaining agreement (hereinafter CBA).â); Transcon. & W. Air v. Koppal, 345 U.S. 653, 662, 73 S.Ct. 906, 97 L.Ed. 1325 (1953) (holding that an airline employee was required âto show that he had exhausted the very administrative procedure contemplated by the Railway Labor Act. In the instant case, he was not able to do so and his complaint was properly dismissed.â); Bhd. of Locomotive Engârs & Trainmen v. Un
Because Santiago did not exhaust the internal grievance procedures, the court will not enjoin United to submit to arbitration her challenge to the pass travel program. See Union Pac. R. Co., 558 U.S. at 73, 130 S.Ct. 584; Bhd. of Locomotive Engârs & Trainmen, 707 F.3d at 793. This result is consistent with the result recently reached by another district court in a materially identical retiree pass travel program case. See Wyatt v. United Airlines, Inc., 2014 WL 3955078, at *5 (E.D.N.C. Aug. 13, 2014) (granting Unitedâs motion to dismiss a retired flight attendantâs request for an injunction compelling arbitration before the System Board because the plaintiff âfail[ed] to allege that she has presented the dispute, to the airlineâs internal grievance system, a statutory precondition to arbitration under the RLAâ).
Whether a retiree has a meaningful ability to proceed âin the usual mannerâ through the internal grievance process may at times be debatable. The Supreme Court has held that federal courts may take jurisdiction over even âminorâ disputes under circumstances âwhere the effort to proceed formally with contractual or administrative remedies would be wholly futile.â Glover v. St. Louis-San Francisco Ry. Co., 393 U.S. 324, 330, 89 S.Ct. 548, 21 L.Ed.2d 519 (1969). Without the AFAâs support, it is unclear whether Santiago would have had an effective means of vindicating her rights in the internal grievance proceedings. See id. at 327, 89 S.Ct. 548 (holding that judicial intervention is warranted where the company and the union âare working âhand-in-gloveâ â to thwart the employeesâ efforts). Consistent with Glover, in Brotherhood of Railway, Airline & Steamship Clerks v. Atchison, Topeka & Santa Fe Railway Co., 847 F.2d 403 (7th Cir.1988), the Seventh Circuit noted that federal courts may take âjurisdiction in cases in which the extrajudicial dispute-resolution framework of the RLA is either unavailable or ineffective,â such as when both the employer and the union are adverse to the employee. Id. at 410-11; see also Graham v. Bhd. of Locomotive Firemen & Enginemen, 338 U.S. 232,
But there is no need to resolve whether that exception to the System Boardâs exclusive jurisdiction applies here, for Santiago was obligated to âat least attempt to exhaust exclusive grievance and arbitration procedures established by the bargaining agreement.â Vaca, 386 U.S. at 184, 87 S.Ct. 903 (emphasis added); see also Republic Steel Corp. v. Maddox, 379 U.S. 650, 653, 85 S.Ct. 614, 13 L.Ed.2d 580 (1965) (âit cannot be said in the normal situation, that contract grievance procedures are inadequate to protect the interests of an aggrieved employee until the employee has attempted to implement the procedures and found them soâ); Emswiler v. CSX Transp., Inc., 691 F.3d 782, 791 (6th Cir.2012) (requiring under the RLA âa clear and positive showing of futility before excusing a failure to exhaust.... It is insufficient to show that a party subjectively thought procedures would be futile.â) (citations omitted); Pyles v. United Air Lines, Inc., 79 F.3d 1046, 1052 (11th Cir.1996) (âEven given the alleged recalcitrance of the union, ... Appellant should first have attempted to pursue his grievance before a system board of adjustment individually (or with counsel) and without any union assistance.... [I]t was Pylesâ obligation to make an attempt to have his case heard there before resorting to federal court.â). This she failed to do in a timely manner. And even if the court were wrong in so holding â even if Santiago did attempt to exhaust and was foiled, or even if Santiago should for some reason be excused from even attempting to exhaust â the result would be not a compelled arbitration, but a decision by the court on the merits of her challenge to the change to the pass travel program. As explained above, such a decision would be plainly adverse to Santiago.
Conclusion
For the foregoing reasons, United is entitled to summary judgment.