allied pilots association v. amr corporation

8/2/2019 Allied Pilots Association v. AMR Corporation

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UNITED STATES BANKRUPTCY COURTSOUTHERN DISTRICT OF NEW YORK

In rehapter 11 Case No.AMR CORPORATION, et aL,1-15463-SHL

Debtors.Jointly Administered)ALLIED PILOTS ASSOCIATION,

Plaintiff,V .dv. Proc. No.

AMR CORPORATION andAMERICAN AIRLINES, INC.,Defendants.

COMPLAINT FOR EXPEDITED DECLARATORY RELIEFPlaintiff Allied Pilots Association ("APA"), the certified collective bargaining

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APA are obligated, instead, to continue complying with the provisions of the Railway Labor Act,

45 U.S.C.51-188 ("RLA").JURISDICTION AND VENUE

This Court has jurisdiction over this action pursuant to 28 U.S.C. 157, 1331,1334 and 1337, and the district court's Standing Order of Reference re Title 11, because it arisesunder the RLA, a federal statute affecting interstate commerce, and it arises in and/or is related tothe pending Chapter 11 case involving the defendants, In re AMR Corporation, et al., Ch. 11Case No. 11-15463 (SHL).

2 .enue in this judicial district is proper pursuant to 28 U.S.C. 1391(b) and (c),because American does business in this judicial district and is subject to personal jurisdiction inthis district.

This action is a core proceeding.THE PARTIES

4. Plaintiff APA is an unincorporated association and labor union which has beencertified by the National Mediation Board ("NMB") as the collective bargaining representative



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7. Defendants AMR and American are Debtors in the pendin2. Chapter 11proceeding, In rc .(111 s Corporation, et al. , Ch. 11 Case No. 11-15463 (SHL). Plaintiff APA is aparty to the Debtors bankruptcy case and has been designated as a member of the UnsecuredCreditors Committee in that case.

GENERAL ALLEGATIONS8. APA and American concluded their first collective bargaining agreement

("CBA") in 1963. Since that first contract, the parties have negotiated and administered a seriesof successor CBAs covering terms and conditions of employment for pilots employed atAmerican. The parties' most recent comprehensive CBA (also referred to as the "Agreement" orthe "2003-2008 CBA") was a five-year contract beginning May 1, 2003.

9. Section 26-C of the 2003-2008 CBA, the general "duration" clause, defined theCBA's five-year contract term as effective from May 1, 2003 until May 1, 2008: "ThisAgreement shall become effective May 1, 2003, except as otherwise dated herein, and shallcontinue in full force and effect until May 1, 2008." Section 26-C provided that the 2003-2008CBA would "renew itself without change until each subsequent May 1 thereafter, unless written



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10 . American in filet issued a Section 6 notice on July 21, 2006. The Section 6 noticeissued by American forestalled automatic renewal of the terms of the 2003-2008 CBA ii,ovemedby Section 26-C alter the May 1. 2008 expiration date provided in that duration clause.

11 . In accordance with Section 6 of the RLA, the parties have entlaued in netzotiationsfor a contract to succeed their old 2003-2008 CBA but have not yet reached aueement on a newcontract. Pursumit to Section 5, First, of the RLA, 45 U.S.C. 155, First, the NMB has takenjurisdiction of this dispute and has conducted mediation with the parties, a process that continuesto date. The NMB has not yet completed its "final required action" under Section 5, First.

12 . RLA Section 2, Seventh, prohibits carriers from changing "the rates of pay, rules,or working conditions of its employees, as a class, as embodied in agreements except in themanner prescribed in such agreements or in section 156 of this title." 45 U.S.C. 152, Seventh.RLA Section 6 provides that "rates of pay, rules, or working conditions shall not be altered" bythe carrier until the matter has been "finally acted upon" by the NMB. 45 U.S.C. 156.

13 . The "rates of pay, rules, [and] working conditions" of American pilots have notbeen altered since the May 1, 2008 contract expiration date.



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"investigate promptly the facts as to the dispute and to make a report thereon to the President" toprevent the interruption of interstate commerce. 45 U.S.C. 160.

15 . APA seeks to continue negotiations with American and to conclude a new CBAunder the NMB's auspices. APA is seeking a proffer of binding arbitration from the NMB andwill participate in a Presidential Emeruency Board if necessary to reach an aucement. Uponreaching agreement with American, APA would cooperate in presenting the contractualsettlement to this Court for approval as prescribed by the bankruptcy code.

16 . However, American and/or AMR have threatened to curtail or circumvent theforegoing statutory processes by using the contract rejection procedure of Section 1113 (c) toimplement non-consensual changes in pilots' employment terms and conditions, contrary to theRLA, if APA fails to accept the latest set of demands presented by American on or aboutFebruary 1, 2012.

17 . Section 1113 allows a debtor in possession to "reject a collective bargainingagreement only in accordance with the provisions of this section," 11 U.S.C. 1113 (a)(emphasis added), and authorizes the Court to "approve an application for rejection of a



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FIRST CAUSE OF ACTIONDECLARATION THAT :AMERICAN MAY NOT USE SECTION 1113(c) TO REJECT

OR CHANGE PILOTS' EMPLOYMENT CONDITIONS THAT ARE NOT PART OF ANEXISTING COLLECTIVE BARGAINING AGREEMENT CURRENTLY IN EFFECT

BETWEEN THE PARTIES

20.he APA realle$4es and incorporates by reference the alle2,ations set forth inParagraphs 1-19 of this Complaint as if fully restated herein.

21.PA seeks a declaration that:a. there is no comprehensive collective bargaining agreement between the

Debtors and the APA that could be "rejected" under 11 U.S.C. 1113(c), andb. 11 U.S.C. 1113(c) does not permit a Debtor to "reject" or change pilots'

employment conditions that are not part of a collective bargaining agreementin effect between APA and American at the time of the Section 1113(c)

application.

2 2 .he declaration requested by APA would not affect application of Section11-15463-shl Doc 1481 Filed 02/28/12 Entered 02/28/12 13:49:35 Main DocumentPg 6 of 7


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pilots' employment conditions that are not part of a collective bargaining agreement in effectbetween APA and American at the time of the Section 1113(c) application.

Award the APA the costs it incurs in pursuing this case, including its attorneys'fees; and

Award such other relief as the Court deems just and proper.

Respectfully submitted,

Edgar N. JamesJames & Hoffman, P.C.1130 Connecticut Avenue, NW, Suite 950Washington, DC 20036(202) 496-0500

/s/ Joshua R. TaylorFiliberto AgustiJoshua Robert Taylor (admitted pro hac viceSTEPTOE & JOHNSON LLP1330 Connecticut Ave., NWWashington, DC 20036



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CERTIFICATE OF SERVICE

I hereby certify that on this 2Sth day of February 2012, a Complaint was filed with theClerk et' the Court using the Court's CN1 [CT system and was served 01 1 the following parties inthe manner indicated:

1. Overnight Federal Express:The Chambers of the Honorable Sean H. LaneU.S. BANKRUPTCY COURT FOR THESOUTHERN DISTRICT OF NEW YORKOne Bowling GreenNew York, NY 10004

Attorneys for the Statutory Committee ofUnsecured Creditors -Attn: John Wm. Butler, Jr., Esq.SKADDEN, ARPS, SLATE, MEAGHER &FLOM LLP155 North Wacker DriveChicago, IL 60606Attorneys for the DebtorsAttn: Stephen Karotkin, Esq.WEIL, GOTSHALL & MANGES LLP

The DebtorsAttn: Kathryn Koorenny, Esqc/o AMR CORPORATION4333 Amon Carter Blvd., MD 5675Fort Worth, TX 76155

Attorneys for the Statutory Committee ofUnsecured CreditorsAttn: Jay M. Goffman, Esq.SKADDEN, ARPS, SLATE, MEAGHER &FLOM LLPFour Times SquareNew York, NY 10036Office of the United States TrusteeAttn: Brian Masumoto, Esq.33 Whitehall Street

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2. Via First Class Mail to the t011owing

AIRCRAFT SERVICE INTERNATIONAL GROUPAttn: General Counsel201 South Oranc .\ c, Suite 1100.A.Orlando. FL 28()1IRS CENTRALIZED INSOLVEACY OPERATIONP.O. Bo.x 7 34 6Philadelphia. PA 19101

IRS HEADQUARTERSINThRNAL REVENUE SERVICE15th & Pennsylvania A \ c. NWWashington, DC 20005

DEPARTMENT OF THE TREASURY1500 Pennsylvania Avenue, NWWashington, DC 20220

Perdue, Brandon, Fielder, Collins & Mott LLPAttn: Harold Lerew, Esq.P.O. Box 8188Wichita Falls, TX 76307

AT& T ServiL:esAttn: President Managing DirectorOne AT&T Wav. Rm. 3.A218Bedminster, NJ 07021

*S.Cl STOMS SLRVICEAttn: Commissioner1300 PennsyMmia :Avenue. NWWashington, DC 70229

IMMIGRATION & NATURALIZATIONSERVICEAttn: Acting Assistant Secretary425 Eye Street, NW, Suite 7100Washington, DC 20536Kessler & Collins, P.C.Attn: Anthony J. Barbieri, Esq.2100 Ross Avenue, Ste. 750Dallas, TX 75201Aircraft Service International GroupAttn: General Counsel, Legal DepartmentCorporate Headquarters201 South Orange Ave, Ste 1100AOrlando, FL 32801



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3. Via Email on the parties listed on the Nlaster Service 1.ist obtained from the Garden CityGroup's \\ ebsite and attached hereto as Exhibit 1. (Parties on the list without an e-mail \\ereserved ia First Class Mail above.

is/ Joshua R. TaylorJoshua R. Taylor (admitted pro hac viceSTEPTOE & JOHNSON LLP1330 Connecticut Avenue, NWWashington, DC 20036Tel: (202) 429-3000Fax: (202) 429-3902JRTaylorgsteptoe.comCounsel for Allied Pilots Association



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EXHIBIT 1



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MASTER SERVICE LISTe AMR Corporation. 0 a)

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MASTER SERVICE LISTIn re AMR Corporation, et al.

As of 2/2712012 45050 PMAddress 1ddress 2

8500 PENA BLVD, RM 9810

RM 9810

S EST 5255 ST


11 15463 shl Doc 1481 1 Filed 02/28/12 Entered 02/28/12 13:49:35 Certificate


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MASTER SERVICE LISTIn re AMR Corporal nn, et al.

kr of 2F2712012 4:5CAddress 1ddress 2 Address 3 CAIZ P%Cuontry) Errdr,

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11 15463 shl Doc 1481 1 Filed 02/28/12 Entered 02/28/12 13:49:35 Certificate


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Contact Address 1ddr,ss 2MASTER SERVICE LISTIn re AMR Corporation, et atAs of 2/2712012 45050 , -,4"RANGE AVE STE 1800

TE 2700

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11-15463-shl Doc 1481-1 Filed 02/28/12 Entered 02/28/12 13:49:35 Certificate


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11 15463 shl Doc 1481 1 Filed 02/28/12 Entered 02/28/12 13:49:35 Certificateof Service Pg 10 of 16



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1,10,1, 1,4 7 33 12

Address 2ddress 3ddressMASTER SERVICE LISTIn re AMR Corporation, et atMof 2,27/2012 4.5050 PM".233 S WACKERTi

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MASTER SERVICE LISTIn re AMR Corporation, et a,

As of 777 2012 4:51):50Addre, 1ddres$ 2

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STE 1600

'I1TH FLOOR

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MASTER SERVICE LISTIn re AMR Corporation, et at

As of 2/277012 4:50:50 PMC G

. .J DE 31E 505

1ST FL 1005 0ROADWAY

MAIN ST

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FeesrierePort, Represe,esesely Address 1ddress 2 Ctty Fisrelystatei1f0Coarery1of Service Pg 13 of 16

11-15463-shl Doc 1481-1 Filed 02/28/12 Entered 02/28/12 13:49:35 Certificatef S i P 14 f 16


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GCG- MASTER SERVICE LISTIn re AMR Corporation, et at.As of 212712012 40050 PM "

Address 1ddress 210 of 12




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MASTER SERVICE LISTIn re AMR Corporation, et a.

As of 2/2712012 450:50 PMAddress 1

ONE POSf OFFICE SQUARE

CrAep,rey

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MASTER SERVICE LIST11-15463-shl Doc 1481-1 Filed 02/28/12 Entered 02/28/12 13:49:35 Certificateof Service Pg 16 of 16


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In re AMR Corporation, et olAs of 21270012 4:50:50 PW"

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allied pilots association v. amr corporation

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