Pan American World Airways, Inc. v. Cook

Background

A group of airline employees challenged an integrated seniority list that the airline adopted after a merger. The merger plan had been approved by the Civil Aeronautics Board (CAB) as "fair and equitable." The employees sued under the Age Discrimination in Employment Act (ADEA), saying the new seniority list harmed older workers.

Reasoning

The central question was whether employees may bring a collateral age-discrimination lawsuit to attack a seniority list that resulted from a CAB-approved merger plan. The United States Court of Appeals for the Second Circuit held that the employees are entitled to bring such an ADEA action. That decision conflicts with an earlier D.C. Circuit case, Carey v. O'Donnell, which said a provision of the Federal Aviation Act gives exclusive review of CAB orders to the D.C. Circuit and prevents collateral ADEA attacks. The Supreme Court denied review of the Second Circuit's ruling in this case.

Real world impact

Because the Court declined to review, the Second Circuit's rule allowing these ADEA suits remains in place in that case. Employees in similar situations may be able to pursue age-discrimination claims instead of or in addition to seeking review through the CAB review process. The denial does not resolve the circuit conflict, which could leave different rules in different parts of the country. The issue remains unresolved nationally until the Court takes a similar case.

Dissents or concurrances

Justice White, joined by Justice O'Connor, wrote a dissent saying the conflict with Carey should be resolved and that certiorari should have been granted.