Air Evac EMS, Inc. v. State of Texas, Department of Insurance

Air Evac filed suit against state defendants, claiming that, as applied to air-ambulance entities, Texas' workers'-compensation system was federally preempted. Air Evac argued that, because the Airline Deregulation Act (ADA), 49 U.S.C. 4173(b)(1), expressly preempted all state laws related to a price, route, or service of an air carrier, Texas may not use state laws to regulate air-ambulance services. The district court granted state defendants' motion to dismiss under Rule 12(b)(1). The court concluded that Air Evac had Article III standing because it had a pecuniary injury that could be redressed with injunctive and declaratory relief; Shaw v. Delta Air Lines, Inc. conferred federal-question jurisdiction because Air Evac's complaint sought injunctive relief on the basis that the ADA preempted Texas law; the Ex parte Young exception applied to this case where, to the extent Ex parte Young required that the state actor "threaten" or "commence" proceedings to enforce the unconstitutional act, state defendants' pervasive enforcement satisfied that test; and the court declined to exercise abstention under Colorado River Water Conservation District v. United States. Accordingly, the court vacated and remanded for further proceedings. View "Air Evac EMS, Inc. v. State of Texas, Department of Insurance" on Justia Law