WINFREE, Justice.
An employee filed suit against her employer for wrongful termination after her union refused to take her grievance to arbitration under the applicable collective bargaining agreement. Relevant federal law required the employee to prove as part of her wrongful termination claim that her union had breached its duty of fair representation when handling her grievance.
The employer appeals the trial court's denials of its motions for a directed verdict, JNOV, and a new trial or remittitur. Because the trial court did not commit legal error or abuse its discretion in denying the motions, we affirm the trial court's decisions
Deborah Chang-Craft worked as a customer service agent for Alaska Airlines, Inc. under a collective bargaining agreement (CBA) between Alaska Airlines and the International Association of Machinists and Aerospace Workers (Union). Chang-Craft's wrongful termination claim against Alaska Airlines centers on events occurring December 14-15, 2003, at the Alaska Airlines cargo facility where she worked.
Chang-Craft claimed that on the evening of December 14, coworker William Cameron approached her saying, "I want to show you my new baby," and proceeded to use her computer to show her a picture of a gun. Chang-Craft claimed she previously told Cameron several times she was not interested in guns, and this time she told him to leave her alone and not to bring guns to work. Chang-Craft claimed Cameron approached her again shortly thereafter and told her she displayed "the classic signs" of Obsessive-Compulsive Disorder (OCD).
Cameron claimed that after telling Chang-Craft about his new gun, she told him: "It's a good thing that I don't have [a gun]. If I did, I would probably use it." Cameron claimed he later observed Chang-Craft appearing "agitated and upset" and out of concern for her health asked if she had been diagnosed with OCD. Cameron claimed that in response Chang-Craft went on a diatribe about her job and coworkers.
The next day, December 15, Cameron met with Miranda Bowey, an Alaska Airlines employee services manager, detailing his version of the previous day's events. Union shop steward
According to Chang-Craft, that evening supervisor Mike Stanley told her "we need to see you upstairs" but assured her that a shop steward would be present at the meeting. But when Chang-Craft went upstairs, Bowey "call[ed] out to [Chang-Craft]" and, without a shop steward present, told Chang-Craft she was suspended, she must hand over her badge, Bowey and Stanley would escort her from the building, and if she did not leave quietly they would call the police. Chang-Craft felt "frantic" and "frightened" after Bowey told her she was suspended. Eniero was working in a copy room and was unaware that Bowey and Stanley actually called Chang-Craft to the meeting until Chang-Craft, upset and crying, came into the room to tell Eniero that Chang-Craft was being sent home. Eniero gave Chang-Craft a "brief synopsis" of Cameron's statements to Bowey and told Chang-Craft to "just go ahead and go home and we'll deal with . . . it," and Chang-Craft left the room. Eniero did not see Chang-Craft again that day.
Bowey and Stanley followed Chang-Craft as she collected her things. Bowey insisted on taking Chang-Craft's badge, and Bowey yelled that she was going to call the police. Chang-Craft retrieved her personal belongings from her locker and exited the building. Bowey came out after Chang-Craft, telling her to come back into the building; a police officer was already standing by Chang-Craft's car and more police cars were coming.
In his deposition presented at trial, Stanley testified that after Chang-Craft collected
Chang-Craft claimed she was told not to return to work until further notice. But on December 22 Alaska Airlines sent Chang-Craft a letter stating that her December 15 statement that she was "never coming back," combined with emptying her personal belongings from her locker and failing to respond to telephone calls or requests to participate in the investigation, constituted a resignation, which the company accepted. After receiving the letter, Chang-Craft submitted a "Grievance, Suspension, and Discharge Appeal" to the Union, alleging that Alaska Airlines failed to conduct an impartial investigation of the incident and wrongfully terminated her.
In January 2004 three Union shop stewards represented Chang-Craft at a step-one grievance hearing with Alaska Airlines.
Jerri Lochner, the Union shop steward who originally filed Chang-Craft's grievance, testified that she disagreed with the Union's decision not to have Chang-Craft attend the step-one hearing. Lochner testified that in her opinion "grievant[s] should always be [at the step-one hearing] to present their side" and because Chang-Craft was not, she was not represented fairly. But Lochner also testified that in her opinion Alaska Airlines had not investigated the incident and its representatives "came in there not really wanting to resolve this" but only "to hear what we had to say." Lochner testified on cross-examination that neither Alaska Airlines nor the Union cooperated as required by the CBA.
Lochner helped compile and send the grievance documentation to the Union's General Chair, Don Welch, for a step-two grievance hearing.
Robert Hartnett, the Alaska Airlines labor services manager who denied Chang-Craft's grievance after the step-two hearing, testified during Alaska Airlines's case that although he was involved from the beginning, he began handling Chang-Craft's grievance on behalf of Alaska Airlines for the second step of the process. Hartnett explained that during a step-two hearing Alaska Airlines becomes aware of all the details surrounding a grievance as the Union and the employer debate whether the grievance should be granted. Hartnett testified that Welch was a "worthy opponent" and that he and Welch talked about Chang-Craft's grievance "on a number of occasions." Hartnett testified that Welch vigorously argued the case for Chang-Craft at the step-two hearing. But on cross-examination Hartnett conceded that no documents in his grievance-hearing file supported Alaska Airlines's position that Chang-Craft had resigned, and further conceded that the Union had not provided him
In early April 2004 Welch appealed to the System Board of Adjustment for an arbitration "hearing and decision" regarding Chang-Craft's grievance.
Chang-Craft testified that she had no meaningful communication from the Union during the eight months between the step-one hearing and Welch's letter explaining the Union's tentative decision. Chang-Craft claimed she telephoned the Union's Minnesota and Seattle offices several times to "get an update" on her grievance, but the Union consistently told her "[she] just needed to be patient." When asked about her experience with Welch, shop steward Lochner responded that "[i]t was very difficult to deal with him, in general." She testified that Welch often lost paperwork, he "was not very good with his follow-through," and timelines "were extended a lot with him." Lochner testified that she nicknamed Welch's office "Grievance Land" because when she filed a grievance with Welch she "never knew what happened. . . or where it was."
Chang-Craft retained an attorney to respond to the Union's tentative decision to withdraw her grievance from arbitration, and in mid-September 2004 her attorney sent a letter to the Union asking it to "reconsider the decision to withdraw [her] grievance" based on the following points: (1) Chang-Craft had never been "written up or disciplined" during her six years of employment and she had never owned or fired a gun; (2) Chang-Craft denied making any violent threat and insisted the evidence would demonstrate that Cameron's allegations were "inconsistent with [her] personality, history and temperament"; (3) Chang-Craft requested the presence of a union representative at the investigatory meeting but was denied the right to union representation; (4) Chang-Craft's statement about not returning to the building was misconstrued by her employer as a resignation; and (5) Chang-Craft claimed she had been subjected to Cameron's inappropriate behavior before, postulating that Cameron's allegations were retaliatory because he knew she wanted to file a grievance against him. The Union responded that it would reopen the matter.
Fifteen months later, in mid-December 2005, the Union's new General Chair informed both Alaska Airlines and Chang-Craft that the Union would not proceed with Chang-Craft's grievance before the System Board of Adjustment.
At the beginning of December 2005 Chang-Craft filed a defamation claim against Cameron, alleging his statement "that she was going to shoot her fellow employees" caused her to be wrongfully terminated from Alaska Airlines. Chang-Craft amended her complaint to include a wrongful termination and separate defamation claim against Alaska Airlines after the Union withdrew her grievance from arbitration. The case went to trial in October 2008.
Towards the end of Briskey's testimony, Alaska Airlines moved to strike a portion of her testimony as contrary to a pretrial ruling that Chang-Craft could not recover damages for lost travel benefits for non-dependent family members. Chang-Craft argued that the pretrial order precluded recovery only for third-party travel benefits, but not travel benefits that would have been given directly to her for transfer to family members, such as "buddy passes." When Alaska Airlines argued that Briskey's damages calculations did not make such a distinction, the trial court concluded that the dispute was a question of fact for the jury and that it would give an appropriate jury instruction. The court denied the motion to strike the portion of Briskey's testimony.
At the close of Chang-Craft's case-in-chief and again at the close of all of the evidence, Alaska Airlines moved for a directed verdict on Chang-Craft's wrongful termination claim, arguing Chang-Craft failed to establish the Union had breached its duty of fair representation. The trial court denied the first motion because reasonable inferences from Chang-Craft's testimony about the Union's lack of response to (1) her inquiries regarding her grievance and (2) her attorney's letter appealing the Union's tentative decision to withdraw her grievance provided "enough evidence to raise an issue of material fact" even though there was "not a lot of evidence" demonstrating the Union had breached its duty of fair representation. The trial court denied the second motion "[f]or the reasons already stated."
The jury returned a special verdict, finding in relevant part that: (1) Alaska Airlines wrongfully terminated Chang-Craft; (2) the Union violated its duty of fair representation; and (3) Chang-Craft was entitled to compensation totaling $479,111 for the wrongful termination.
The trial court denied both motions. Addressing the JNOV motion, the trial court found "sufficient evidence to support the jury's verdict." The trial court first noted evidence indicating the Union "failed to adequately pursue the grievance after [step one] of the procedure," citing the lack of evidence demonstrating the Union had actually considered Chang-Craft's appeal during the one-year delay between the Union's tentative decision and its final decision to withdraw her grievance from arbitration. The trial court found that a reasonable jury could infer from both the delay and the Union's lack of response to Chang-Craft's attorney's letter that the Union failed to consider her grievance properly. The trial court also concluded the jury could have reasonably found the Union failed to "exercise special care" when handling Chang-Craft's grievance for wrongful termination, "the most extreme sanction an employer can impose against an employee."
Alaska Airlines appeals the trial court's decisions denying the motions for directed verdict, JNOV, and a new trial or remittitur.
Motions for directed verdict and JNOV are provided for in Alaska Rule of Civil Procedure 50. Rule 50(a) acknowledges that a motion for directed verdict may be made after the close of the opponent's evidence and provides that in the event the motion is denied, the moving party may then present its evidence.
At the close of Chang-Craft's evidence Alaska Airlines moved for directed verdict on her wrongful termination claim, arguing that Chang-Craft had not presented sufficient evidence to establish that the Union had breached its duty of fair representation. That motion was denied, and Alaska Airlines
Alaska Airlines appeals all three rulings. This causes us to consider whether the record for review is different for the different motions. We first note that a party cannot appeal the denial of a JNOV motion if the party did not move for a directed verdict at the close of the evidence, although failure to bring a JNOV motion does not preclude review of the denial of a motion for a directed verdict made at the close of all the evidence.
We next consider the standard for directed verdict and JNOV motions. The substantive legal question
Finally, we note that because the sufficiency of the evidence to support a jury verdict is a question of law, our review is de novo.
Because Chang-Craft's employment with Alaska Airlines was governed by the CBA and her wrongful termination claim is predicated on a breach of the CBA,
Under relevant federal law "an employee must attempt to exhaust exclusive grievance and arbitration procedures established by a[CBA]" and may bring a direct action against a private employer for wrongful termination if "the union wrongfully refuses to process the grievance"
The United States Supreme Court has recognized that "under the arbitrary prong, a union's actions breach the duty of fair representation only if [the union's conduct] can be fairly characterized as so far outside a wide range of reasonableness that it is wholly
In Schaub v. K & L Distributors, Inc., we provided further guidance for evaluating whether a union's handling of a grievance was arbitrary.
Alaska Airlines argues the Union did not "egregious[ly] disregard" Chang-Craft's rights, but rather met the special handling requirement for employee termination grievances. Alaska Airlines asserts that by itself, the delay between Chang-Craft's appeal from the Union's tentative decision to the Union's final decision withdrawing her grievance does not constitute a breach of the Union's duty of fair representation. Alaska Airlines asserts that because Chang-Craft's appeal from the Union's tentative decision failed to present new facts, the Union was not required to perform an additional investigation before issuing a final decision. Alaska Airlines further asserts that without evidence demonstrating Chang-Craft's grievance was prejudiced, the Union's failure to communicate with Chang-Craft was negligent at most and "falls far short" of breaching the duty of fair representation.
The flaw in Alaska Airlines's argument is its narrow focus only on the 15-month delay in the Union's response to Chang-Craft's appeal of the Union's tentative decision to withdraw her grievance from arbitration. We instead focus on that decision and the circumstances surrounding that decision. We agree that notwithstanding a lengthy but non-prejudicial delay, when a union offers a reasoned explanation for its decision a court usually should not question the reasoning because "[t]o do so would penalize the union for mere negligent decision making."
Here, although the Union's tentative decision to withdraw the grievance noted that the Union had reviewed the facts, the CBA, and relevant arbitration awards, the Union did not explain how or why those factors supported the tentative decision to withdraw Chang-Craft's grievance from arbitration. The record gives no indication that before issuing its final decision the Union actually considered any of the evidence Chang-Craft set forth in her appeal of the Union's tentative decision. The Union's final decision to withdraw Chang-Craft's grievance failed to provide an explanation; it simply stated that the Union "has determined not to process the. . . grievance further; therefore, we are withdrawing it from the System Board of Adjustment and closing our files." When viewed in the light most favorable to Chang-Craft, this unexplained withdrawal of a meritorious grievance, especially after the 15-month delay, suggests the Union simply disregarded Chang-Craft's appeal or at best "processed [her] grievance in a perfunctory manner."
Also viewed in the light most favorable to Chang-Craft, evidence of the Union's performance during the grievance process provides additional support for the jury's finding that the Union breached its duty of fair representation. Lochner, the Union steward who filed Chang-Craft's original grievance and who attended the step-one grievance hearing, testified that in her opinion the Union did not fairly represent Chang-Craft at the step-one grievance hearing.
In breach of contract actions a "plaintiff must present to the jury evidence sufficient to calculate the amount of the loss caused by the breach."
A trial court may grant remittitur "when a jury returns an otherwise proper verdict awarding an amount of damages that the evidence cannot reasonably support."
A trial court may grant a new trial "on all or part of the issues" tried to a jury "if required in the interest of justice."
Alaska Airlines argues the evidence does not support the jury's damages award because Chang-Craft's travel benefits, which represented the majority of Chang-Craft's future damages, were improperly calculated. Alaska Airlines asserts that Briskey, Chang-Craft's damages expert, produced a fundamentally flawed damages estimate that "cannot constitute an evidentiary basis for the jury's verdict" because it failed to separate Chang-Craft's personal travel benefits from her family's travel benefits. Alaska Airlines further labels Briskey's estimate as speculative, claiming she relied solely on Chang-Craft's statements about future travel and not on "actual facts."
Prior to trial but after Briskey's initial report of lost travel benefits calculations for Chang-Craft and her family members, Alaska Airlines moved for partial summary judgment to preclude Chang-Craft from recovering lost travel benefits for non-dependent family members. Alaska Airlines acknowledged that it provided travel benefits for employees and their spouses, as well as employees' parents and dependent children. But Alaska Airlines argued that assuming damages for travel benefits were recoverable in this case, Chang-Craft had no standing to recover damages for her non-dependent family members' lost travel benefits. The court granted Alaska Airlines's motion as to Chang-Craft's children and parents, but noted that Chang-Craft could "still seek damages related to transferable travel benefits that she herself would have received."
At trial Briskey estimated Chang-Craft would have worked approximately 5 years before retiring and estimated her retirement would last approximately 27 years. Based on Chang-Craft's stated future travel plans and a summary of the number of flights Chang-Craft and her family members had previously taken, Briskey estimated that future travel would include approximately 25 round-trip flights per year. Briskey testified she calculated the travel benefits using $625 as the round-trip flight value because that represented the cost to buy enough frequent flier miles for a round-trip ticket. But she also testified that by the time of trial the cost of buying miles for a round-trip ticket had risen to $687.50.
Alaska Airlines's own expert economist, Michael Reaume, later testified about the court's pretrial order limiting travel benefits damages and his understanding that Chang-Craft's claim for travel benefits was limited to benefits for Chang-Craft, her husband, and her allowable guests, but not for Chang-Craft's children or parents. Because of the vagaries of air fares and restrictions on employee travel, Reaume was not willing to estimate the value of Chang-Craft's travel benefits. But he testified that Alaska Airlines's own estimate of the annual travel benefits was "pretty much the same" as Briskey's original estimate
There is no question that Chang-Craft suffered actual damages in the form of lost travel benefits. Alaska Airlines had the opportunity for pretrial discovery into those damages and to make motions to limit those damages. Alaska Airlines had the opportunity to cross-examine Chang-Craft about her stated retirement travel plans and about the extent of the travel benefits available to retired employees. Alaska Airlines had the opportunity to cross-examine Briskey about her damages calculations. Alaska Airlines had the opportunity to present its own evidence on the extent of travel benefits available to retired employees and how to value airline flights for calculating lost travel benefits. As it turned out, Reaume did not disagree with Briskey's methodology for calculating annual travel benefits, nor did he contest Briskey's updated cost estimates for travel. Reaume's sole argument for a reduction from Briskey's initial estimate was that Briskey improperly included some travel benefits for Chang-Craft's parents and children.
We agree with the trial court that Jury Instruction 27 on travel benefits made it clear that Chang-Craft could not recover for her non-dependent family members' travel benefits. We also agree with the trial court that the jury had sufficient evidence to rationally determine how many annual trips Chang-Craft and her husband would take during her retirement, how many transferable "buddy passes" Chang-Craft would receive during her retirement to use with her trips, and how to value those trips. As Alaska Airlines acknowledged: (1) approximately 70% of Chang-Craft's total damages and 95% of Chang-Craft's future damages were for lost travel benefits, and (2) the jury did not award the full damages Briskey estimated; this reflects that Alaska Airlines's cross-examinations of Chang-Craft and Briskey, along with its own expert testimony and arguments, were persuasive and that the jury followed Jury Instruction 27.
On this record, we are not firmly convinced that the trial court erred "in refusing to order a remittitur . . . [such that] intervention on our part is necessary to prevent a miscarriage of justice."
For the foregoing reasons, we AFFIRM the trial court's decisions.
CHRISTEN and STOWERS, Justices, not participating.
Chang-Craft filed a cross-appeal, raising as a sole point on appeal that the trial court erred by permitting the jury to allocate fault between Alaska Airlines and the Union and then reducing the judgment against Alaska Airlines accordingly. Chang-Craft later dismissed her cross-appeal.
Cent. Bering Sea Fishermen's Ass'n v. Anderson, 54 P.3d 271, 279 n. 20 (Alaska 2002).