The last message from ALPA regarding this was dated March 13th:
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Brady v. ALPA
This lawsuit arose out of American’s purchase of TWA assets when TWA was in bankruptcy and facing the real possibility of going out of business. The TWA MEC was very supportive of the transaction because it meant good jobs at a strong carrier for the pilots. The MEC voted to waive the pilots’ contractual right to seniority arbitration; they agreed to this waiver because it was demanded by American as a condition for going forward with the transaction. The MEC received advice from ALPA advisors and independent advisors to waive the right to seniority arbitration in order to ensure that they got the jobs available at American.*
The lawsuit was filed in 2002 and went to trial in June of this year. It took so long to get to this point for several reasons. First, the lawsuit was dismissed by the district court on statute of limitations grounds and then returned to the district court when the court of appeals reversed the dismissal. Second, the plaintiffs hired and fired several sets of lawyers. Third, there was delay caused by dissension among the plaintiffs which resulted in Bud Bensel being removed as a named plaintiff.
The trial lasted about six weeks and a verdict was issued on July 13. The jury found that: (1) ALPA had violated its duty of fair representation; (2) As a result of this violation, “some” TWA pilots were harmed in an unspecified way.
The verdict is one step of a long legal process that has a long way to go. ALPA’s lawyers will be filing a motion to overturn the verdict and, probably, several other motions. They believe that the verdict is not supported by the evidence and is contrary to the applicable law.
There has been no process for determination of damages. Any such process would not even start until after ALPA’s motions are ruled upon. At that time, the judge would order a period of discovery (document production and depositions) to be followed by another trial with respect to the plaintiffs’ damage claims. At that proceeding the issues to be determined would include whether and to what extent damages may be ordered and for whom. Some are claiming that the damages will be “enormous.” There is no basis for this assertion. Any dollar amounts or descriptions of the amount of damages are pure, unsupported speculation.
At the conclusion of the damages trial, ALPA would have the right to appeal to the U.S. Court of Appeals for the Third Circuit. There is also the possibility of settlement discussions which could further delay or conclude the legal process.
Currently, ALPA has agreed to enter into mediation for a possible settlement. This is simply a “next step” in the process. As with any legal proceedings, a settlement that may be reached through mediation may be the best possible solution for both parties. It does not mean an agreement is pending or even expected.
If ALPA were required to cover damages, it has substantial insurance coverage precisely for this type of situation. There are assertions out there that are dead wrong when they say that ALPA’s insurance would not apply to this case.
ALPA has never assessed its membership to pay for litigation, awards, verdicts, or settlements. There is no reason to assume that it would do so in this case.