James A. Montgomery, on Behalf of Himself and All Others Similarly Situated v. American Airlines, Inc., a Corporation

This is an appeal from the action of the district court, on cross motions for summary judgment, granting judgment in favor of Appellee American Airlines, Inc. (defendant below) and against Appellant James A. Montgomery (plaintiff below).

The district court based its action on the grounds that (1) the action was barred under the doctrine of res judicata, and (2) that the complaint failed to state a cause of action upon which relief could be granted. We affirm on the latter ground.

Appellant Montgomery’s complaint was filed on September 15, 1977, as a class action on behalf of himself and all individuals who purchased scheduled domestic air transportation from Appellee American Airlines, Inc., during the preceding two years. He alleged that American’s practice of granting free and reduced rate transportation to certain officers and employees of two wholly-owned subsidiaries of American, violates Sections 403(b) and 404(b) of the Federal Aviation Act, 49 U.S.C. §§ 1373 (b) and 1374(b), and regulations promulgated thereunder by the Civil Aeronautics Board, 14 C.F.R. K 223.1, et seq. The complaint prayed for $2,000,000,000 (two billion dollars) in damages, calculated as the…