Opinion ID: 3028631
Heading Depth: 4
Heading Rank: 1

Heading: Claims Against Continental

Text: Both Eastern’s pilots and Continental agree that Continental I and Continental II control the outcome of this case, but they rely on these decisions to reach opposite conclusions.7 The Eastern pilots argue that Continental I imposes an obligation on Continental to arbitrate the Labor Provision dispute, see Continental I, 125 F.3d at 138, even though relief against the airline is no longer available. Continental argues that Continental II dictates that arbitration for relief under the CBA is unavailable after Continental’s bankruptcy discharge. See Continental II, 279 F.3d at 229. Under Continental II, it is clear that all claims against Continental based on a right of seniority integration were discharged in bankruptcy. We stated explicitly that “[a]ll claims for seniority relief must be based on the [CBA],” and that all such claims were construed in Continental I as permitting only “a ‘claim’ dischargeable in bankruptcy.” Continental II, 279 F.3d at 7 Indeed, each side has filed a motion for summary action. See Third Circuit Local Appellate Rule 27.4 (“A party may move for summary action affirming, enforcing, vacating, remanding, modifying, setting aside or reversing a judgment, decree or order, alleging that no substantial question is presented or that subsequent precedent or a change in circumstances warrants such action.”). -10- 230 (citing Continental I, 125 F.3d at 136). Besides such a claim, no relief is available to Eastern’s pilots under the CBA. Accordingly, because Eastern’s pilots have waived their claims in bankruptcy pursuant to the Stipulation of Withdrawal, no relief against Continental remains. Eastern’s pilots seem to concede as much, repeatedly assuring us that they seek nothing from Continental itself.8 In spite of this limitation, the Eastern pilots contend that claims against Continental’s pilots remain under the CBA, and Continental can be forced to attend an arbitration seeking such relief. They argue that Continental’s duty to arbitrate is wholly separate from the availability of relief against it. For support they point to our statements in Continental I establishing Continental’s “duty to arbitrate” the Labor Provision dispute. See Continental I, 125 F.3d at 138 (“Accordingly, we conclude that Continental is bound by its prior representations that it has a duty to arbitrate the [Labor Provision] dispute.”). We are doubtful, however, that our decision in Continental I contemplated a scenario in which Continental would be forced to attend an arbitration between Eastern’s pilots and its own, after its obligations under the CBA had been discharged. The section in Continental I entitled “Duty to Arbitrate,” id., was responsive to Continental’s contention that it was not bound to arbitrate under a CBA to which it was not a party. Our discussion rejected that contention and permitted arbitration to determine the airline’s liability to Eastern’s pilots. When these claims were discharged, settled, or waived, 8 It is on this point that we see some divergence between appellants Weglarz and the Eastern Pilots Merger Committee. It seems that Weglarz still pursues relief against Continental through arbitration. As the record reflects, however, Weglarz waived all claims in bankruptcy against Continental, pursuant to the Stipulation of Withdrawal. Accordingly, as relief in bankruptcy was the only relief available under Continental I and Continental II, Weglarz cannot pursue relief against Continental. We also note that Weglarz appealed a decision of the District Court denying his motion to impose sanctions on Continental. Because we will affirm the District Court on all other grounds, we will also affirm this decision. -11- Continental’s duty was satisfied. Because of its discharge, any arbitration against Continental will necessarily be futile, and we will not compel the airline to participate in an arbitration whose award cannot be enforced against it. See AmeriSteel Corp. v. Int’l Bhd. of Teamsters, 267 F.3d 264, 276 (3d Cir. 2001) (“[C]ourts should not compel parties to submit to arbitration when there is nothing to arbitrate.”). Although we have declined to determine a remedy for a possible breach of the CBA, Continental I, 125 F.3d at 130, we have also concluded that any award against Continental was discharged. Continental II, 279 F.3d at 230.9 Therefore, there is nothing left for Continental to arbitrate and we see no basis for compelling a futile proceeding, “the very antithesis” of what an arbitration should be. District Court Opinion, 2004 WL 3119835, at .