Calif. airline case could chill whistleblowers

By Gina Keating

LOS ANGELES, April 10 (Reuters) - The California Supreme Court was asked on Thursday to rule whether a laid-off airline whistleblower can pursue wrongful termination claims in state court after federal labor officials denied his claims, in a case that could chill employee reports of air safety problems.

The case, brought by ex-Alaska Airlines quality control auditor Kevin Murray, is playing out at the federal and state appellate levels as U.S. airlines cancel hundreds of flights to perform government-mandated safety checks on aging fleets.

Reports to Congress by whistleblowers and a government watchdog about maintenance lapses and ineffective oversight at Southwest Airlines Co (LUV.N: Quote, Profile, Research, Stock Buzz) triggered an industrywide Federal Aviation Administration review of airline safety compliance.

The Ninth U.S. Circuit Court of Appeals, which has jurisdiction over the case, asked the state high court to resolve discrepancies in state law that governs when such claims can be relitigated and when they are barred.

If the California high court finds that Murray is allowed to opt out of the U.S. Department of Labor's claim process, the appellate court would let him litigate his claims against Alaska Airlines in federal district court.

If not, a lower court's dismissal of the case will stand.

"I think it's really significant here because the remedy that is available under (a federal airlines whistleblower law) is significantly inferior to what a person could get in state court or in federal court under a wrongful termination claim," Murray's attorney James Stoneman said.

A ruling against Murray "would send the wrong message to employers who are engaged in unsafe practices," Murray said.