LAWSUIT FINALLY ENDS 12/15/1995 2:23:21 AM COMPANY NEWS (sm) provided by Dow Jones/News Retrieval Copyright (c)1995 Dow Jones & Company Symbol Searched: FRNT 11/28/95 High Ct Won't Revive Former Frontier Air Employee Suit>FRNT WASHINGTON -AP- The Supreme Court has refused to revive a lawsuit by former employees of Frontier Airlines Inc. (FRNT) against United Airlines over United's 1986 purchase of Frontier assets. The court, acting without comment, turned down the former employees' argument that Colorado courts improperly dismissed their claim. The lawsuit by 775 former Frontier employees was based on an agreement reached as part of the 1985 purchase of Frontier by People Express Airlines. Under the agreement, People Express agreed to operate Frontier as a separate entity and promised not to sell Frontier's assets to another airline without the employees' consent. In July 1986, United bought $50 million of Frontier's assets. The former Frontier employees sued United in Colorado state court, saying the purchase improperly interfered with their contract with People Express. The former employees said the purchase led to the collapse of Frontier and the loss of their jobs. A Colorado judge dismissed the lawsuit. A state appeals court agreed, saying the lawsuit was pre-empted by the federal Railway Labor Act, which says federal courts must interpret claims involving interpretation of labor contracts. The Colorado Supreme Court denied review. In the appeal, acted on yesterday, the former employees' lawyers said the Colorado rulings left them with no remedy. They cannot sue in federal court under the Railway Labor Act because they had no contract with United, the former employees' lawyers said. Congress did not intend for the federal labor law to bar such claims where there is no labor agreement between the two sides, they added. United's lawyers said the Colorado courts correctly said they could not judge disputes involving a labor contract. The possibility that the former employees may be left without a remedy is irrelevant, they added. The case is Brooks vs. United Airlines, 95-282. United Air Lines is a unit of UAL Corp. (UAL). (END) DOW JONES NEWS 11-28-95

Jake Lamkins