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TWA Pilots vs. ALPA in DFR suit

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TWA Pilots vs. ALPA in DFR suit

Old 02-19-2012, 08:20 PM
  #181  
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Originally Posted by All Nighter View Post
Global,

Referencing our discussion awhile back where you asked how I had knowledge that TWA's 3rd and final BK was contrived to grease the path for AA.

Sorry for the delay in posting this. It took me a while to get permission from the author. Then life intruded. Sorry for the formatting, but I'm a pilot not a computer geek.


July 26, 2011
Captain Lee Moak, President
Air Line Pilots Association, International
1625 Massachusetts Ave NW #800
Washington D.C., DC 20036-2242
Certified Mail – Return Receipt Requested
Dear Captain Moak,
This is the second time since my retirement from TWA that I am compelled to write to the president of the Air Line
Pilots Association. The first, in 2007, was to correct misinformation that Captain Prater was disseminating about
the lawsuit that the TWA pilots had filed against ALPA. This one is intended to correct misinformation that ALPA
continues to distribute – especially in light of the JetBlue pilot organizing effort.
At the conclusion of the TWA Pilots’ lawsuit and a jury verdict of guilty, ALPA published a “FastRead” which stated
the following:
“Update on Brady vs. ALPA litigation
The Air Line Pilots Association, Int'I, will pursue all available legal remedies to overturn yesterday's jury
decision in the Brady VS. ALPA case arising from American Airlines' acquisition of Trans World Airlines
more than ten years ago. We believe that there are still major issues to be decided in court, including
whether the jury verdict can stand under the facts and the law.
The basic claim in the case, made by some Trans World Airlines' pilots, has been that the Air Line Pilots
Association, Int'I, violated its representation duty during the period that Trans World Airlines was threatened
with liquidation and American was proposing to buy its assets. The Air Line Pilots Association, Int'l,
believes that it fully supported the Trans World Airlines' pilots as they made the tough decisions required to
secure jobs with American Airlines in the wake of Trans World Airlines' third bankruptcy, which occurred in
2001.
At this point, there have been no remedies imposed in the Trans World Airlines' case, with numerous
issues still to be decided in the courts before any question of remedies would arise in another trial.”
I will address this propaganda first and then turn to the letter that you sent to the JetBlue pilots.
This lawsuit began in 2002. It is equally true that the case was initially dismissed. That judgment resulted in the
TWA pilots filing an appeal in the United States Court of Appeals for the Third Circuit. As you can probably guess,
that appeal took some time to work its way through the system. The result was that, in spite of ALPA’s objections,
we won the appeal and were permitted to move forward against ALPA.
From that point in 2004, ALPA used every legal delay tactic known to man, including a motion for Summary
Judgment. As you are most probably aware, Summary Judgment is based upon a motion by one of the parties
(ALPA) that contends that all necessary factual issues are settled or are so one-sided they need not be tried. The
motion is supported by declarations under oath, excerpts from depositions which are under oath, admissions of fact
and other discovery, as well as legal argument (points and authorities), that argue that there are no triable issues of
fact and that the settled facts require a Summary Judgment for the moving (ALPA) party. ALPA lost that motion
and we were then allowed to proceed to trial.
July 26, 2011
Captain Lee Moak, President
Air Line Pilots Association, International
Page 2
That still did not deter ALPA from filing other motions to deny our justice and further delay the case. Finally, all
legal schemes being exhausted, we went to trial on June 6, 2011 and a verdict handed down on July 13, 2011 after
20 days of testimony and only seven hours of deliberation by the jury.
Let us settle, here and now, once and for all, the statement that the lawsuit was filed “by some Trans World Airlines'
pilots…(emphasis mine)” The fact is, this was a class action lawsuit with the class being certified by a court (over
ALPA’s objections) and consisted of every TWA pilot on the seniority list in 2001 – some 2300 pilots. Because the
law requires that the entire Class be contacted during the proceedings, our attorneys sent out the requisite forms to
each and every TWA pilot asking if they wished to remain part of the Class or opt out. Five chose to opt out. One
of them testified on behalf of ALPA at the trial. So please do not obfuscate the situation by saying “some” TWA
pilots.
The trial was heard by a jury of 12 men and women who heard the evidence from both sides. From our side we
presented TWA’s Local Executive Council representatives, the former merger committee chairman and members of
our negotiating committee, among others. For your part, you presented former ALPA President Duane Woerth,
now a United States Presidential appointee as Ambassador to the International Civil Aviation Organization. Also
testifying was former ALPA President Randy Babbitt and now a Presidential appointee as Federal Aviation
Administration Administrator. In addition, the ALPA MEC legal counsel, ALPA in-house counsel and bankruptcy
counsel from Cohen Weiss and Simon testified against the TWA pilots. That’s a pretty powerful group from your
side.
In the end, the jury found unanimously for the TWA pilots. Justice was served - but it is quite an embarrassment to
the Air Line Pilots Association – a union formed by TWA pilots in 1931 and awarded the distinction of Councils 2, 3
and 4.
Now let us proceed in clearing up the issue of TWA’s third bankruptcy, as both the FastRead and JetBlue letter
contain references to it. Here I speak from a position of authority as I was the pilots’ representative to the TWA
Board of Directors. That bankruptcy was a requirement of the Asset Purchase Agreement. From that agreement:
“WHEREAS, TWA intends to file, and to cause each of the other Chapter 11 Sellers (as defined in
Exhibit A) to file, voluntary petitions for reorganization pursuant to chapter 11 of title 11 of the United States
Code, 11 U.S.C. Sections 101 et seq. (the “Bankruptcy Code”)…” (emphasis mine).
The reason for this requirement was for American Airlines to not have to inherit the onerous Karabu Agreement
with Carl Icahn. And while bankruptcy previously had the stigma of a firm in poor financial health, it no longer is; it
is simply another business tool as you probably learned during the UAL and DAL bankruptcies.
TWA was NOT faced with “liquidation.” Period
Finally, the FastRead contends that “ALPA believes that it fully supported the TWA pilots….” While you and others
within ALPA may believe that, the jury did not. Indeed, it was ALPA’s failure to fund and provide leverage for the
TWA pilots that led to the verdict.
Now let us turn to the JetBlue pilot letter sent under your name. Once again you begin with the myth “Some former
Trans World Airlines pilots…” Hopefully the aforementioned facts cleared the air with regard to that matter.
Let us tackle the Seham Report mentioned in the JetBlue letter. That report was bought and paid for by the TWA
pilots to get a second and independent opinion of our position. It has been on our Website for several years. While
it is true that the judge disallowed it for presentation in court – it was not for the reasons that you insinuate. The
real reason was the judge in the case did not believe that we needed an outsider to present ALPA’s failure to
represent and that our Master Executive Council representatives were to be considered the experts from our side.
July 26, 2011
Captain Lee Moak, President
Air Line Pilots Association, International
Page 3
“Experts” were disallowed from both sides. That said, the Seham report is an excellent account of ALPA’s
behavior. An even better account will be the trial transcript. That too, will be posted on our Website.
Not mentioned is the fact that all of TWA’s MEC’s records, which ALPA had custody of after our decertification by
the National Mediation Board, were destroyed and the hard drives of Captain’s Woerth and Mugerdichian (the then
ALPA Vice President of Administration, as well as every other ALPA material witness in this case, were wiped clean
during the trial discovery phase.
I will agree with one statement in your missive:
“So while rumors circulate about the amount of possible damages in the case, those rumors are
speculation and unsupported by any facts or evidence in the case. In other words, there is a long way to go
before there are final results on liability or damages.”
You are correct that there will be another trial. The result of the inaction by ALPA will be brought forth to another
jury where the evidence of over a thousand pilots being stapled to the American Airlines Seniority List which
resulted in Captains being reduced to First Officers and over a thousand TWA pilots used as furlough fodder,
including many Captains. It was an attempt by ALPA to lure 10,000 plus AA pilots back into the ALPA fold at the
expense of a charter member of the Air Line Pilots Association.
You ended your JetBlue letter with, “I urge you to continue to ask questions, get the facts, and carefully analyze the
risks of each course of action rather than trade in rumor, rhetoric, and speculation.” Bravo! Sage advice. May I
suggest that you follow your own recommendation.
From a personal perspective, I was a loyal volunteer within the ALPA organization for 34 years. It hurts me deeply
to not only write this letter, but to have look back at ALPA’s abandonment of the TWA pilots - one of its founding
airlines which holds a prominent place in Flying the Line.
On behalf of the 2300 Trans World Airlines pilots, from Council’s 2, 3 and 4:
Respectfully,
Robert A. Pastore
Captain, TWA (ret.)
Former Chairman, TWA Master Executive Council
Former member, Trans World Airlines Board of Directors
Too bad more pilots aren't aware of this side of the story from TWA pilots. Sounds pretty reprehensible. Of course another "Rumor Alert" could take care of putting out any concern some might have about ALPA's actions. Sad.
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Old 09-13-2012, 09:02 PM
  #182  
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Well written letter by Captain Pastore; and completely, 100% factual.
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Old 01-23-2014, 11:21 AM
  #183  
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Just received email.

Settled.

No dues increase
No assessment.



January 23, 2014

Fellow ALPA members:

ALPA goes to great lengths to plan for its future to ensure that your union remains strong in our defense of your career. Our risk management program and meticulous financial planning provide the necessary safeguards against unforeseen circumstances so we can seamlessly provide the services our members rely on and deserve.

Today, we settled a long-standing 2002 lawsuit. Some alleged that Brady v. ALPA, with initial damages sought in the billions, could impair our future. It won’t. In fact, the settlement we secured in the lawsuit, a case that has been in the courts for more than a decade and the subject of wild speculation, allows your union to move forward in a strong position and continue our work on your behalf. This is positive progress for you and for your union and will close a difficult chapter in ALPA’s history.

ALPA settled this case as a pragmatic business decision to preserve the long-term health of the union and is in no way an admission of guilt. The settlement agreement reached is for a fraction of the amount sought by the plaintiffs in the litigation and one that ALPA planned for and in no way affects our work on your behalf.

Despite speculation, the facts are as follows:

Your dues will not go up. In fact, your dues rate went down on January 1, 2014 as planned.

There will be no assessment of our membership. You bear no personal liability for the settlement.

The settlement will in no way impair or affect ALPA’s ability to continue its tireless advocacy on your behalf.

The settlement will close a difficult chapter in ALPA’s history, dating back more than a decade, that some alleged would lead to ALPA’s demise. That chapter and those riotous rumors are behind us now and ALPA remains strong going into our future.
Through diligent strategic and financial planning under the guidance of our elected governing bodies, our risk management program allows us to resolve Brady in a way that protects ALPA’s future. Our reinsurers will pay a significant portion of a shared payment of $53 million to the plaintiffs and their attorneys and we are currently engaged in discussions with the reinsurers that we expect will increase the amount of their contribution even more. With initial damages sought in the billions, this settlement, while significant, is far less than what the plaintiffs pursued. And because of our preparation and risk management, ALPA will make our portion of the payment without impairing our operations or services, without assessing our members, and without raising dues.

We have a settlement agreement and the judge now has to approve it. But the progress we have made on the Brady case allows your union to move forward in a strong position, without affecting our members’ financial obligations in any way. ALPA continues its more than 80 year history of never assessing our membership due to litigation.

To read more about Brady v. ALPA and how your union protects itself against litigation, go to www.alpa.org/brady, where you can read more about the history of the 2002 lawsuit, the settlement agreement, and ALPA’s insurance program, which helped to significantly defray ALPA’s financial obligation.

Despite unfortunate cases like this where pilots sue pilots, your union, under the direction and guidance of your democratically elected representatives, goes to great lengths to protect your career. At the bargaining table, in Washington, DC and Ottawa, and in scheduling with safety, we are your voice to ensure that your chosen profession is the safest in the world, and one that you can be proud of.

Sincerely,


Lee Moak
President

Questions or comments on this e-mail? Give us your feedback at [email protected].


Air Line Pilots Association, International
www.alpa.org

If you wish to unsubscribe, please click here to login and update your Standard Mailings/E-Mail Distribution Lists preferences.
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Old 01-23-2014, 12:11 PM
  #184  
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So over a decade of time, and money put in to sue ALPA, how much are the TWA guys getting, per person?
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Old 01-23-2014, 12:27 PM
  #185  
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Originally Posted by Snarge View Post
So over a decade of time, and money put in to sue ALPA, how much are the TWA guys getting, per person?
You mean after the Legal Firms and Lawyers take the Majority of the Cut?
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Old 01-23-2014, 12:42 PM
  #186  
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Originally Posted by RedeyeAV8r View Post
You mean after the Legal Firms and Lawyers take the Majority of the Cut?

Exactly.. was it a good RoI?

Any Brady TWA guys on this forum can tell us how much each pilot is getting? Is it the same for each one... or is there a formula that gives some more than others?
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Old 01-23-2014, 04:07 PM
  #187  
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We all were just informed of this today and we know no details as of yet. Of course ALPO is down playing it as "just business" and this is not an "admission of guilt". They were found guilty already (in 2011)! This was just preparation for the damages trial!

ALPA was found guilty of a DFR and whatever bucks come my way will be gravy.
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Old 01-23-2014, 06:47 PM
  #188  
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yeah but will it be worth it? Or was it emotional?
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Old 01-23-2014, 10:29 PM
  #189  
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Originally Posted by sailingfun View Post
I would be shocked if it went anywhere. The TWA pilots made the choice they made. I guess ALPA could have tried to force them to not agree with the demands of the AA pilots to complete the merger but then its highly likely TWA would have shutdown.
TWA pilots did not make or have a choice.
The majority got stapled and then fired.
Alpa lawyers made this decision and rammed it up their arses.
AA pilots benifitted greatly by flying 125 TWA planes for the next seven years while providing jobs for just 400 TWA captains.
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Old 01-24-2014, 01:06 PM
  #190  
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Originally Posted by Godzilla View Post
TWA pilots did not make or have a choice.
The majority got stapled and then fired.
Alpa lawyers made this decision and rammed it up their arses.
AA pilots benifitted greatly by flying 125 TWA planes for the next seven years while providing jobs for just 400 TWA captains.

Did TWA vote for their reps? Were TWA pilots fired? Or furloughed? What happened to TWA pilots was extremely unfortunate. But when you work for an airline that went to BK court 3 times in 10 years because it failed it to make a profit in that time, the outlook is bleak. AMR for all intents and purposes, saved TWA from liquidation. So it's likely that without AMR, all TWA employees would've ended up on the street.

So while I am sympathetic to what happened to the TWA pilots, what happened is not all ALPA's fault. They made some good out of a terrible, and extremely unfortunate situation.
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