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CASE NO. 2:13-CV-00471-ROS
REPLY TO US AIRWAYS IN
SUPPORT OF MOTION FOR RULE
25(C) JOINDER OF ALLIED PILOTS
ASSOCIATION (APA) AND FOR
ISSUANCE OF PERMANENT
INJUNCTION
US Airways’ Response, Doc. 326, is a collateral attack on the Ninth Circuit’s
opinion, and a stunning reversal of the positions it took 76 days before its Response here,
when it argued against the appointment and participation of a new East Pilots Merger
Committee in the SLI proceedings. Additionally, US Airways has asked this Court again
to make a business decision for it, a request that this Court properly declined several
years ago. This Court should disregard US Airways’ arguments, and decline again to
make US Airways’ business decision for it.
What a Difference 76 Days Make.
On June 30, 2015, US Airways (1) opposed the appointment and participation of a
New East Merger Committee in the SLI Proceedings; (2) argued that if one were
appointed it would be bound by the Ninth Circuit Mandate1; and (3) stated that it
disfavored any attempt by the East Pilots to fashion a work-around that would allow it to
ignore the Ninth Circuit’s mandate. (See Ex. A: Excerpt of June 30, 2015 Transcript of
Pre-Hearing Meeting before the SLI Board, at pages 37 – 40.) On June 30, therefore, US
Airways stated that it was willing to live with whatever might result from precluding East
Pilots from any further participation the SLI proceedings. Today, US Airways frets about
the potential delay in implementing the new SLI list when it issues, worrying that if the
new East Merger Committee is enjoined from ignoring the Night Circuit’s mandate it will
throw yet another tantrum and walk out of the SLI.2
In arguing that the West Pilots would cause delay by properly seeking enforcement
of the Ninth Circuit’s mandate through an appropriately-worded injunction, US Airways
fails to acknowledge that delay caused by future litigation brought by the East Pilots is
already inevitable. The East Pilots have already evinced their intent to later appeal the
1 US Airways misleads the Court regarding what the SLI Board held about the
effect of a court decision on the Board. [Doc. 323, page 2, lines 12-15.] The Board
actually declined to predict what injunction might issue and, instead, indicated that it
understood the new East Committee would likely be bound by whatever a court of
competent jurisdiction ultimately decides: “The precise question whether, or to what
extent, any injunction ultimately issued by the District Court on remand will limit
advocacy in this proceeding by a newly formed East Merger Committee is a legal
question for the court itself to resolve. The response to that question will depend upon the
precise wording of the injunction, when issued… [We] decline to answer Question No. 2
to the extent that it seeks to have us opine on the applicability of a judicial restriction on
advocacy by any newly appointed East Merger Committee.” (See Ex. C, excerpts of July
5 SLI Board decision, at pages 17-19.)
2 Ironically, if the West Pilots had withdrawn from the SLI process US Airways
would have happily proceeded without them, without seeking a court’s permission first.
(See Ex. A at page 37, lines 2 – 9.)
Case 2:13-cv-00471-ROS Document 327 Filed 09/16/15 Page 2 of 8
Preliminary Arbitration Board (“PAB”) determination that gave the West Pilots a seat at
the table in the SLI proceedings. (See Ex. B, Excerpt of USAPA’s April 3, 2015,
Supplemental Brief filed with the Ninth Circuit, page 5. “[T]he [PAB] order is still open
to challenge and the [McCaskill-Bond] process has yet to run its course.”) Delay will be
once again caused by the East Pilots who – starting in 2008 when they threw a tantrum
and formed USAPA to abrogate the final and binding arbitration that resulted in the
Nicolau Award – ultimately prevented the integration of East and West after America
West and US Airways merged. If the East Pilots walk again, this will be consistent with
their MO of refusing to participate in or accept of the results of final and binding rulings
when those rulings don’t go their way.
The More Things Change, the More They Stay the Same.
In reality, if delay in implementing the SLI list occurs it will be fault of US Airways
if it fails, once again, to implement an integrated seniority list that results from SLI
proceedings based upon agreements (to which it was a party) that facilitated a merger
among the airlines and their pilots (the 2005 Transition Agreement, and the 2013 MOU)
in the first place. The MOU states “[t]he integrated seniority list resulting from the
McCaskill-Bond process shall be final and binding on APA and USAPA (and/or the
certified bargaining representative of the combined pilot group), the company(ies) and
its(their) successors (if any), and all of the plots of American/New American Airlines and
US Airways.” (See MOU at para. 10(c).) It does not say that the integrated seniority list
will not be binding until all legal challenges have run their course.
US Airways, rather than make that business decision on its own because of a
potential threat by the East Pilots, has asked this Court once again to make a decision for
it and force it to comply with its own contract. As Yogi Berra would say, it’s déjà vu all
over again. This Court previously declined to make US Airways’ business decision for it
when this Court declined to issue a declaratory judgment about what course of action US
Airways should make in light of competing threats by the pilot groups in US Airways,
Inc. v. Addington, et al., 2:10-CV-01570-ROS (“Addington II”). As this Court noted
years ago, that is a business decision for the carrier to make, rather an issue to bring to
this Court. US Airways goes to great lengths to remind the Court that neither it, nor APA,
were party to USAPA’s breach and that they should therefore be unaffected by its
wrongdoing. In so doing, US Airways ignores that USAPA did not insert the improper
paragraph 10(h) into the MOU without the agreement of US Airways, APA and
American’s agreement to the offending provision, on which USAPA capitalized in its
breach of the duty of fair representation to the West Pilots. Having agreed to the improper
language that codified USAPA’s breach, US Airways (and APA) would nevertheless like
to remain unaffected by the harm that resulted therefrom, leaving the West Pilots to
continue to fight for their rightful seniority positions on multiple fronts. Surely, this is
not equitable.
If and when the SLI Board issues its seniority list, it will be up to US Airways to
decide whether to implement the SLI list while litigation is threatened by the East Pilots,
or to fall back and wait it out. The West Pilots will have nothing to do with the decision
US Airways ultimately makes in that regard.
The Ninth Circuit’s Mandate Must Be Implemented.
The Ninth Circuit held that USAPA’s abandonment of the Nicolau Award violated
its duty of fair representation. It directed this Court to enter an injunction that would
require USAPA to advocate for the Nicolau Award if it were to participate in the
McCaskill-Bond proceedings. Yet, in its Response here, US Airways argues that “[e]ach
pilot merger committee should be free to present any position it wishes in the SLI
Arbitration.” Doc. 326 at 4:3 to 326:4. That is directly contrary to the mandate which
plainly constrains what can be advocated.
US Airways might not like it, but the law of the case here is that USAPA cannot
“present any position it wishes in the SLI Arbitration.” If USAPA is to participate in
those proceedings, it must advocate for the Nicolau Award. There should be no question
then that the East Pilots cannot participate in the SLI Arbitration (the McCaskill-bond
proceedings) unless they advocate for the Nicolau Award.
Contrary to US Airways’ argument, Plaintiffs have not proposed an injunction that
limits the “authority” of the Arbitration Board. Doc. 326 at 3:24 to 326:26. Plaintiffs’
proposed injunction only constrains the merger committee representing the East Pilots,
which is precisely what was envisioned by the Ninth Circuit. The Court, therefore, should
join APA pursuant to Rule 25(c) for the reasons stated in Plaintiffs’ Reply to APA, which
is being filed concurrently. It should enter an injunction as proposed, using the language
from Rule 65(d)(2).
The only open question is whether the East pilots, by reforming their merger
committee as an Allied Pilots Association (“APA”) committee, can evade the intent of
the Ninth Circuit’s opinion. Rule 65(d)(2), the common law upon which it is based, and
common sense tell us that they cannot.3 Whether APA is joined under Rule 25(c) or not,
when it created an East Merger Committee and engaged the experts and attorneys used by
the USAPA merger committee, it acted in active concert with USAPA and, thus, is bound
by the injunction. Plaintiffs merely ask that the injunction be stated in language that
makes this point crystal clear.
In the end, it is up to this Court to decide the scope of the injunction. Regular
practice is to include the Rule 65(d)(2) language. The West Pilots respectfully suggest
that there is no good reason to deviate from the norm. Indeed, there are particularly good
3 All references to “Rules” are to the Federal Rules of Civil Procedure
reasons to use the precise language of the rule given the East Pilots’ long history of
feeling free, and finding ways, to ignore court and arbitration rulings. It is time to shut
the door on any opportunity for the East Pilots to disrespect and disregard yet another
court order.
Respectfully submitted this 16th day of September, 2015.
/s/ Kelly J. Flood _____________
Marty Harper
REPLY TO US AIRWAYS IN
SUPPORT OF MOTION FOR RULE
25(C) JOINDER OF ALLIED PILOTS
ASSOCIATION (APA) AND FOR
ISSUANCE OF PERMANENT
INJUNCTION
US Airways’ Response, Doc. 326, is a collateral attack on the Ninth Circuit’s
opinion, and a stunning reversal of the positions it took 76 days before its Response here,
when it argued against the appointment and participation of a new East Pilots Merger
Committee in the SLI proceedings. Additionally, US Airways has asked this Court again
to make a business decision for it, a request that this Court properly declined several
years ago. This Court should disregard US Airways’ arguments, and decline again to
make US Airways’ business decision for it.
What a Difference 76 Days Make.
On June 30, 2015, US Airways (1) opposed the appointment and participation of a
New East Merger Committee in the SLI Proceedings; (2) argued that if one were
appointed it would be bound by the Ninth Circuit Mandate1; and (3) stated that it
disfavored any attempt by the East Pilots to fashion a work-around that would allow it to
ignore the Ninth Circuit’s mandate. (See Ex. A: Excerpt of June 30, 2015 Transcript of
Pre-Hearing Meeting before the SLI Board, at pages 37 – 40.) On June 30, therefore, US
Airways stated that it was willing to live with whatever might result from precluding East
Pilots from any further participation the SLI proceedings. Today, US Airways frets about
the potential delay in implementing the new SLI list when it issues, worrying that if the
new East Merger Committee is enjoined from ignoring the Night Circuit’s mandate it will
throw yet another tantrum and walk out of the SLI.2
In arguing that the West Pilots would cause delay by properly seeking enforcement
of the Ninth Circuit’s mandate through an appropriately-worded injunction, US Airways
fails to acknowledge that delay caused by future litigation brought by the East Pilots is
already inevitable. The East Pilots have already evinced their intent to later appeal the
1 US Airways misleads the Court regarding what the SLI Board held about the
effect of a court decision on the Board. [Doc. 323, page 2, lines 12-15.] The Board
actually declined to predict what injunction might issue and, instead, indicated that it
understood the new East Committee would likely be bound by whatever a court of
competent jurisdiction ultimately decides: “The precise question whether, or to what
extent, any injunction ultimately issued by the District Court on remand will limit
advocacy in this proceeding by a newly formed East Merger Committee is a legal
question for the court itself to resolve. The response to that question will depend upon the
precise wording of the injunction, when issued… [We] decline to answer Question No. 2
to the extent that it seeks to have us opine on the applicability of a judicial restriction on
advocacy by any newly appointed East Merger Committee.” (See Ex. C, excerpts of July
5 SLI Board decision, at pages 17-19.)
2 Ironically, if the West Pilots had withdrawn from the SLI process US Airways
would have happily proceeded without them, without seeking a court’s permission first.
(See Ex. A at page 37, lines 2 – 9.)
Case 2:13-cv-00471-ROS Document 327 Filed 09/16/15 Page 2 of 8
Preliminary Arbitration Board (“PAB”) determination that gave the West Pilots a seat at
the table in the SLI proceedings. (See Ex. B, Excerpt of USAPA’s April 3, 2015,
Supplemental Brief filed with the Ninth Circuit, page 5. “[T]he [PAB] order is still open
to challenge and the [McCaskill-Bond] process has yet to run its course.”) Delay will be
once again caused by the East Pilots who – starting in 2008 when they threw a tantrum
and formed USAPA to abrogate the final and binding arbitration that resulted in the
Nicolau Award – ultimately prevented the integration of East and West after America
West and US Airways merged. If the East Pilots walk again, this will be consistent with
their MO of refusing to participate in or accept of the results of final and binding rulings
when those rulings don’t go their way.
The More Things Change, the More They Stay the Same.
In reality, if delay in implementing the SLI list occurs it will be fault of US Airways
if it fails, once again, to implement an integrated seniority list that results from SLI
proceedings based upon agreements (to which it was a party) that facilitated a merger
among the airlines and their pilots (the 2005 Transition Agreement, and the 2013 MOU)
in the first place. The MOU states “[t]he integrated seniority list resulting from the
McCaskill-Bond process shall be final and binding on APA and USAPA (and/or the
certified bargaining representative of the combined pilot group), the company(ies) and
its(their) successors (if any), and all of the plots of American/New American Airlines and
US Airways.” (See MOU at para. 10(c).) It does not say that the integrated seniority list
will not be binding until all legal challenges have run their course.
US Airways, rather than make that business decision on its own because of a
potential threat by the East Pilots, has asked this Court once again to make a decision for
it and force it to comply with its own contract. As Yogi Berra would say, it’s déjà vu all
over again. This Court previously declined to make US Airways’ business decision for it
when this Court declined to issue a declaratory judgment about what course of action US
Airways should make in light of competing threats by the pilot groups in US Airways,
Inc. v. Addington, et al., 2:10-CV-01570-ROS (“Addington II”). As this Court noted
years ago, that is a business decision for the carrier to make, rather an issue to bring to
this Court. US Airways goes to great lengths to remind the Court that neither it, nor APA,
were party to USAPA’s breach and that they should therefore be unaffected by its
wrongdoing. In so doing, US Airways ignores that USAPA did not insert the improper
paragraph 10(h) into the MOU without the agreement of US Airways, APA and
American’s agreement to the offending provision, on which USAPA capitalized in its
breach of the duty of fair representation to the West Pilots. Having agreed to the improper
language that codified USAPA’s breach, US Airways (and APA) would nevertheless like
to remain unaffected by the harm that resulted therefrom, leaving the West Pilots to
continue to fight for their rightful seniority positions on multiple fronts. Surely, this is
not equitable.
If and when the SLI Board issues its seniority list, it will be up to US Airways to
decide whether to implement the SLI list while litigation is threatened by the East Pilots,
or to fall back and wait it out. The West Pilots will have nothing to do with the decision
US Airways ultimately makes in that regard.
The Ninth Circuit’s Mandate Must Be Implemented.
The Ninth Circuit held that USAPA’s abandonment of the Nicolau Award violated
its duty of fair representation. It directed this Court to enter an injunction that would
require USAPA to advocate for the Nicolau Award if it were to participate in the
McCaskill-Bond proceedings. Yet, in its Response here, US Airways argues that “[e]ach
pilot merger committee should be free to present any position it wishes in the SLI
Arbitration.” Doc. 326 at 4:3 to 326:4. That is directly contrary to the mandate which
plainly constrains what can be advocated.
US Airways might not like it, but the law of the case here is that USAPA cannot
“present any position it wishes in the SLI Arbitration.” If USAPA is to participate in
those proceedings, it must advocate for the Nicolau Award. There should be no question
then that the East Pilots cannot participate in the SLI Arbitration (the McCaskill-bond
proceedings) unless they advocate for the Nicolau Award.
Contrary to US Airways’ argument, Plaintiffs have not proposed an injunction that
limits the “authority” of the Arbitration Board. Doc. 326 at 3:24 to 326:26. Plaintiffs’
proposed injunction only constrains the merger committee representing the East Pilots,
which is precisely what was envisioned by the Ninth Circuit. The Court, therefore, should
join APA pursuant to Rule 25(c) for the reasons stated in Plaintiffs’ Reply to APA, which
is being filed concurrently. It should enter an injunction as proposed, using the language
from Rule 65(d)(2).
The only open question is whether the East pilots, by reforming their merger
committee as an Allied Pilots Association (“APA”) committee, can evade the intent of
the Ninth Circuit’s opinion. Rule 65(d)(2), the common law upon which it is based, and
common sense tell us that they cannot.3 Whether APA is joined under Rule 25(c) or not,
when it created an East Merger Committee and engaged the experts and attorneys used by
the USAPA merger committee, it acted in active concert with USAPA and, thus, is bound
by the injunction. Plaintiffs merely ask that the injunction be stated in language that
makes this point crystal clear.
In the end, it is up to this Court to decide the scope of the injunction. Regular
practice is to include the Rule 65(d)(2) language. The West Pilots respectfully suggest
that there is no good reason to deviate from the norm. Indeed, there are particularly good
3 All references to “Rules” are to the Federal Rules of Civil Procedure
reasons to use the precise language of the rule given the East Pilots’ long history of
feeling free, and finding ways, to ignore court and arbitration rulings. It is time to shut
the door on any opportunity for the East Pilots to disrespect and disregard yet another
court order.
Respectfully submitted this 16th day of September, 2015.
/s/ Kelly J. Flood _____________
Marty Harper
