The Supreme Court declined to review Boeing’s attempt to block a lawsuit brought by the Southwest Airlines pilot union regarding the 737 Max aircraft.
The justices issued a brief order with no dissents, leaving intact a Texas state court ruling that permits the case to move toward trial.
Driving the news: Boeing argued that the lawsuit should be halted due to federal preemption under the Railway Labor Act (RLA), a law governing labor relations in the rail and airline industries.
- The lawsuit from the Southwest Airlines Pilots Association (SWAPA) claims Boeing misrepresented the safety of the 737 Max and fraudulently encouraged pilots to fly it without adequate training, seeking damages for lost compensation.
Flashback: The dispute followed two fatal 737 Max crashes in 2018 and 2019, which killed 346 people and led to the aircraft’s lengthy grounding.
- Texas’s highest court previously rejected Boeing’s preemption argument, noting that the RLA applies to airlines and their employees – not to Boeing or the pilot union itself.
Zoom in: Boeing warned in its Supreme Court petition that the ruling entrenches conflicting interpretations of labor law and would encourage “forum shoppers.”
- SWAPA urged the Supreme Court to reject the appeal, insisting the lower court was correct and describing the case as “factually atypical” with little broader legal impact.
What we’re watching: The decision allows the pilot union’s fraud and misrepresentation claims against Boeing to proceed through the Texas courts.
