Continental Air Lines, Inc., Debtor-in-Possession, and Texas International Airlines, Inc., Debtor-in-Possession (collectively "Continental"), for their First Amended Complaint against Defendants allege: 1. This action is brought for injunctive relief and for damages suffered by the Plaintiffs as the result of an unlawful scheme by the Defendants and others unknown to wrongfully attempt to shut down the business of Continental by engaging in: a) a pattern of illegal and violent acts against a failure to engage in good-faith bargaining, and acts taken against Continental calculated to The Complaint alleges five causes of action arising under the following provisions: a. The Racketeer Influenced and Corrupt Organizations b. The Railway Labor Act, Title 45, U.S. Code, S 151 c. The Sherman Antitrust Act, 15 U.S.c. § 1 et. seg. 3. JURISDICTION AND VENUE This Court has jurisdiction under the Racketeer Influenced And Corrupt Organizations Act of 1970, Title 18, U.S. Code, § 1961, et. seq. (RICO); Title 28, U.S. Code, SS 1331, 1334, 1337, 1471, 2201, and 2202; and Title 29, U.S. Code S 185. 4. Personal jurisdiction and venue are based on Title 18, U.S. Code, S 1965 and Title 28, U.S. Code, SS 1391, 1471, 1472 and 1473 since Defendants are residents of, are found within, have agents within, or transact their affairs in the Southern District of Texas or the activities of the Defendants giving rise to this action occurred in this District. 5. PARTIES Plaintiffs are the Debtors-in-Possession of Continental Air Lines, Inc. and Texas International Airlines, Inc., companies doing business as Continental Airlines. Continental is engaged in the business of providing air transportation service in interstate and foreign commerce pursuant to certificates of public convenience and necessity issued by the Civil Aeronautics Board under the Federal Aviation Act of 1958. Plaintiffs are a common carrier by air as defined in S 201 of the Railway Labor Act, 45 U.S.C. S 181, and are subject to the provisions of the Act. Defendant Air Line Pilots Association International ("ALPA") is an unincorporated association organized for the purposes or objectives of a labor organization, and for other purposes, doing business in this judicial district. ALPA represents pilots employed by Continental. ALPA is a collective bargaining 6. representative as defined in the Railway Labor Act ("Act") and is subject to the provisions of the Act. ALPA members have collective ownership interests in Eastern Airlines, Inc. and Pan American World Airways, Inc., competitors of Plaintiffs. An ALPA representative serves as an employee representative on the Board of Directors of Pan American World Airways, Inc. 7. Defendant Charles W. Hall is a striking Continental pilot who resides in Humble, Texas. At all relevant times Hall was a member of ALPA. 8. Defendant Frances Calvin Earley is a striking Continental pilot who resides in Spring, Texas. At all relevant times Earley was a member of ALPA. 9. Defendant Rolfe L. Munson is a striking Continental pilot who resides in Willis, Texas. At all relevant times Munson was an ALPA member and was chairman of the Security and Intelligence Committee of ALPA's Houston, Texas Local Executive Council for Continental. 10. Defendant Thomas E. Martin is a striking Continental pilot who resides in New Braunfels, Texas. At all relevant times Martin was a member of ALPA. 11. Defendant N. W. Adair is a striking Continental pilot who resides in Magnolia, Texas. At all relevant times Adair was a member of ALPA and was a member of the Security and Intelligence Committee of ALPA's Houston, Texas Local Executive Council for Continental. 12. Defendant Harold M. Bauer is a striking Continental pilot who resides in El Segundo, California. At all relevant times Bauer was chairman of the Security and Intelligence Committee of ALPA's Los Angeles, California Local Executive Council for Continental. 13. Defendant Michael Ripley is a striking Continental pilot who resides in El Paso, Texas. At all relevant times Ripley was a member of ALPA. 14. Defendant W. R. Jackson is a striking Continental pilot who resides in Richardson, Texas. At all relevant times Jackson was a member of ALPA. 15. FACTUAL BACKGROUND Continental's Good-Faith Attempts On September 24, 1983, Continental filed with the United States Bankruptcy Court for the Southern District of Texas petitions for relief under Chapter 11, Title 11 of the United States Code. Continental is continuing to operate its business Continental lost approximately $529 as Debtor-in-Possession. million in the period following passage of the Airline Deregulation Act of 1978 until the filing of bankruptcy. 16. Prior to its bankruptcy filing, Continental had been a party to collective bargaining agreements with ALPA. In the period immediately prior to filing for bankruptcy, Continental attempted on numerous occasions to renegotiate the collective bargaining agreements to obtain economic relief from the burdensome provisions of these contracts. The most recent prefiling round of negotiations with ALPA commenced on August 31, 1983, when Continental's senior management met with Continental's ALPA At the meeting, Frank Lorenzo, Chairman of leadership. Continental, made a presentation outlining the Company's dire financial circumstances. that ALPA accept wage concessions and productivity improvements totalling $60 million per year, on an annualized basis, over May, 1983 pilot costs. Continental emphasized that its goal was cost reduction and that the components of the package were negotiable. At this meeting Continental proposed 39-223 0-84--23 |