The U.S. Supreme Court has declined to review a Texas Supreme Court decision that lets a fraud and negligence lawsuit brought by the Southwest Airlines Pilots Association (SWAPA) against Boeing move forward, rejecting Boeing’s argument that the Railway Labor Act (RLA) preempts the state-law claims.
In its Monday order list, the justices denied certiorari without explanation, as is customary, leaving intact the Texas Supreme Court’s March 2025 ruling. The state high court held that SWAPA’s claims can be resolved without interpreting the Southwest-SWAPA collective bargaining agreement, so RLA preemption does not apply.
The suit stems from Boeing’s alleged insertion into 2016 Southwest-SWAPA contract negotiations over whether pilots would need additional training for the 737 MAX. SWAPA claims Boeing falsely assured the union that the MAX was merely a “more fuel efficient” version of the existing 737 with no significant differences requiring extra training. Relying on those representations, SWAPA agreed to contract language mandating pilots fly the MAX.
After the 2018 Lion Air and 2019 Ethiopian Airlines crashes killed 346 people, the MAX fleet was grounded worldwide for over a year. SWAPA alleges pilots suffered lost wages and the union lost dues revenue during the grounding — damages directly traceable to Boeing’s alleged misrepresentations.
The union brought Texas state-law claims for fraud, negligence, tortious interference with contract, and fraudulent/negligent misrepresentation. Boeing argued the RLA (which governs airline labor disputes) preempts the suit because it arises from a collective bargaining context.
A Texas trial court initially dismissed in 2020, but a state appeals court revived the case in 2022. The Texas Supreme Court affirmed, finding no need to interpret the CBA — the dispute centers on Boeing’s external representations to SWAPA, not the agreement’s terms.
The case now advances to discovery in Texas state court.
SWAPA declined comment Monday. Boeing representatives did not immediately respond to requests for comment.
Boeing is represented by Craig D. Primis, Kasdin M. Mitchell, and Aaron L. Nielson of Kirkland & Ellis LLP.
The ruling limits RLA preemption’s reach in aviation fraud claims involving third-party manufacturers and strengthens unions’ ability to pursue state-law tort remedies when alleged misrepresentations impact contract negotiations and member livelihoods — particularly in safety-critical contexts like the 737 MAX saga.
