U.S. Supreme Court Lets 737 Max Pilot Union Suit Proceed

The Supreme Court of the United States has declined to hear Boeing’s appeal seeking to block a lawsuit filed by the Southwest Airlines Pilots Association over the 737 Max program.

In a brief order issued Monday Feb. 23 without noted dissents, the justices left intact a Texas state court ruling allowing the case to proceed toward trial. Boeing had argued that the claims were preempted by federal law and should not move forward in state court.

The lawsuit stems from the fallout surrounding two fatal crashes involving 737 Max aircraft in 2018 and 2019 that killed 346 people. The crashes, later linked to a flawed flight control software system, led to a global grounding of the aircraft for nearly two years and intense regulatory scrutiny.

The pilot union’s suit alleges that Boeing made misrepresentations about the aircraft and fraudulently induced Southwest pilots to operate the 737 Max without adequate training. The union is seeking damages tied to lost compensation during the prolonged grounding.

Boeing’s appeal relied on the Railway Labor Act, a 1926 federal statute governing labor relations in the rail and airline industries. The company contended that the law preempts the union’s state-law claims because resolving them would require interpreting the collective bargaining agreement between pilots and Southwest Airlines.

However, Texas’s highest court rejected that argument in June, concluding that the Railway Labor Act applies to disputes between airlines and their employees. Because Boeing is a manufacturer rather than an airline employer, the court ruled the law does not shield it from the union’s claims.

In its petition to the Supreme Court, Boeing warned that the ruling could create broader legal uncertainty. The union, commonly known as SWAPA, countered that the case is factually unusual and does not raise a significant federal question warranting Supreme Court review.

With the high court declining to intervene, the litigation will continue in Texas state court, setting the stage for further legal scrutiny of Boeing’s role in the 737 Max crisis.

Sources: AirGuide Business airguide.info, bing.com, thehill.com