Justia Aviation Opinion Summaries

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The Ninth Circuit reversed the district court's order preliminarily enjoining enforcement, against any motor carrier doing business in California, of California's Assembly Bill 5, which codified the judge-made "ABC test" for classifying workers as either employees or independent contractors.After determining that CTA has standing to bring suit, the panel held that application of AB-5 to motor carriers is not preempted by the Federal Aviation Administration Authorization Act of 1994 (FAAA), because AB-5 is a generally applicable labor law that affects a motor carrier's relationship with its workforce and does not bind, compel, or otherwise freeze into place the prices, routes, or services of motor carriers. In this case, because CTA is unlikely to succeed on the merits, the district court erred by enjoining the state from enforcing AB5 against motor carriers operating in California. The panel explained that, by failing to follow precedent regarding labor laws of general applicability, the district court committed a legal error to which the panel cannot defer, even at the preliminary-injunction stage. View "California Trucking Ass'n v. Bonta" on Justia Law

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At issue in this case are two provisions of North Dakota Senate Bill 2231. The first prohibits air ambulance providers from directly billing out-of-network insured patients for any amount not paid for by their insurers (the payment provision). The second prohibits air ambulance providers or their agents from selling subscription agreements (the subscription provision).Guardian Flight filed a declaratory judgment action claiming that both provisions are preempted under the Airlines Deregulation Act (ADA). Defendants responded that, even if preempted, the provisions were saved under the McCarran-Ferguson Act. The district court concluded that although the ADA preempted both provisions, the McCarran-Ferguson Act saved the subscription provision.The Eighth Circuit agreed with the district court's ADA preemption analysis and concluded that the ADA preempts both the payment provision and the subscription provision. However, the court held that the McCarran-Ferguson Act does not apply because the provisions were not enacted "for the purpose of regulating the business of insurance." Accordingly, the court affirmed in part, reversed in part, and remanded with instructions. View "Guardian Flight LLC v. Godfread" on Justia Law

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The Supreme Court affirmed in part and reversed in part the decision of the administrative hearing commission (AHC) finding no use tax liability for APLUX LLC and Paul and Ann Lux Associates L.P. on the out-of-state purchase of two aircraft, holding that APLUX was not entitled to resale exemption on the purchase of either aircraft.After purchase, both aircraft - referred to as "the TBM" and "the Excel" - were brought to Missouri. APLUX asserted that it leased, on a non-exclusive basis, the TBM to its parent company, Luxco, Inc., and the Excel concurrently to both Luxco and Aero Charter, Inc. The AHC held that each lease agreement constituted a "sale" for purposes of the tax resale exemption set out in Mo. Rev. Stat. 144.018. The Supreme Court reversed in part, holding that a "sale" to Luxco did not occur, and therefore, APLUX was not entitled to a resale exemption based on the Luxco agreement. View "APLUX, LLC v. Director of Revenue" on Justia Law

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The Court of Appeal held that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) does not preempt application of California's ABC test, originally set forth in Dynamex Operations W. v. Superior Court (2018) 4 Cal.5th 903, and eventually codified by Assembly Bill 2257 (AB 2257), to determine whether a federally licensed interstate motor carrier has correctly classified its truck drivers as independent contractors.The court held that defendants have not demonstrated, as they must under People ex rel. Harris v. Pac Anchor Transportation, Inc. (2014) 59 Cal.4th 772, 785-87, that application of the ABC test prohibits motor carriers from using independent contractors or otherwise directly affects motor carriers' prices, routes, or services. Furthermore, nothing in Pac Anchor nor the FAAAA's legislative history suggests Congress intended to preempt a worker-classification test applicable to all employers in the state. The court granted a peremptory writ of mandate directing respondent court to vacate its order granting in part defendants' motion in limine, and enter a new order denying that motion because the statutory amendments implemented by AB 2257 are not preempted by the FAAAA. View "People v. Superior Court (Cal Cartage Transportation Express, LLC)" on Justia Law

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After plaintiff suffered serious injuries when he was struck by a semi-tractor trailer, he filed suit against C.H. Robinson, the freight broker that arranged for the trailer to transport goods for Costco. Plaintiff alleged that C.H. Robinson negligently selected an unsafe motor carrier.The Ninth Circuit agreed with the district court that plaintiff's claim is "related to" C.H. Robinson's services, but held that the district court erred in determining that the Federal Aviation Administration Authorization Act of 1994's (FAAAA) safety exception does not apply. The panel explained that, in enacting that exception, Congress intended to preserve the States’ broad power over safety, a power that includes the ability to regulate conduct not only through legislative and administrative enactments, but also though common-law damages awards. The panel also held that plaintiff's claim has the requisite "connection with" motor vehicles because it arises out of a motor vehicle accident. Therefore, the negligence claims against brokers, to the extent that they arise out of motor vehicle accidents, have the requisite "connection with" motor vehicles, and thus the safety exception applies to plaintiff's claims against C.H. Robinson. The panel reversed and remanded. View "Miller v. C.H. Robinson Worldwide, Inc." on Justia Law

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Plaintiff filed suit alleging that Section 431 of the Smoot-Hawley Tariff Act of 1930, which requires all vessels arriving in the United States to maintain a manifest on which is recorded information about the just-completed voyage and an account of what is on board, requires aircraft entering the United States to make available for public disclosure such manifests detailing the journey and cargo aboard.The Second Circuit affirmed the district court's dismissal in part of plaintiffs' complaint. The court considered the different tools of statutory interpretation and held that section 431(c)(1) continues to require the government to make available for public disclosure manifests only of vessels, meaning "water craft or other contrivance used, or capable of being used, as a means of transportation in water, but...not...aircraft." The court considered plaintiffs' remaining arguments on appeal and concluded that they are without merit. View "Panjiva, Inc. v. United States Customs and Border Protection" on Justia Law

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The Fourth Circuit dismissed the County's petition to vacate or set aside the FAA's modified air-traffic procedure, or series of flight routes, that governs westbound departing aircraft at Baltimore/Washington International Thurgood Marshall Airport (TERPZ-6). The court agreed with the FAA that the petition is untimely under 49 U.S.C. 46110(a) because it was filed well over sixty days after the issuance of the agency's relevant order. In this case, the County unreasonably waited 110 days to demand voluntary relief from the FAA as a first resort, and six months for the agency to come to the table. Therefore, the County's belated effort to engage the FAA in a voluntary fix to the noise impacts associated with TERPZ-6, together with the FAA's belated offer to pursue such a fix, provides no grounds for not filing by the 60th day. View "Howard County v. Federal Aviation Administration" on Justia Law

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The FAA filed an enforcement action against Pacific before an ALJ, which was then appealed to the Administrator. The ALJ and Administrator held that they had the power to adjudicate the action because the FAA initially sent Pacific two separate notices alleging that Pacific was liable for civil penalties for different violations, with each notice seeking less than $50,000.Because the FAA ultimately pursued those penalties through a single complaint seeking more than $50,000, the Ninth Circuit held that the only tribunal with jurisdiction to adjudicate the complaint was a federal district court under 49 U.S.C. 46301(d)(4). The panel explained that its conclusion is not altered by the fact that the ALJ and Administrator ultimately imposed a total penalty of less than $50,000, because a higher amount was in controversy even though not ultimately awarded. Accordingly, the court vacated the Administrator's decision and remanded with instructions to dismiss. View "Sky-Med, Inc. v. Federal Aviation Administration" on Justia Law

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The DC Circuit dismissed petitions for review of several Federal Aviation Administration actions related to the proposed expansion of the Paulding Northwest Atlanta Airport. The court held that it lacked jurisdiction because none of petitioners' challenges involves an ongoing case or controversy. In this case, petitioners lack standing to pursue their challenge to the FAA's decision to withdraw its concurrence in GDOT's written reevaluation, because petitioners' injuries are not fairly traceable to the challenged action. Furthermore, petitioners' remaining challenges concerning the FAA's concurrence in GDOT's written re-evaluation, the FAA's denial of reconsideration of that concurrence, and the FAA's withdrawal of the airport expansion from the then-pending commercial service environmental assessment are all moot. View "Louie v. Dickson" on Justia Law

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The Great Lakes Pilotage Act requires foreign vessels and American vessels participating in foreign trade to hire an American or Canadian maritime pilot to assist in navigating the difficult waters of the Great Lakes. Shippers challenged the pilot rates for the 2016 commercial shipping season under the Administrative Procedure Act (APA). Shippers claimed that the 2016 Rule set an artificially inflated pilot rate that caused significant harm to the industry.The DC Circuit affirmed the district court's decision upholding parts of the 2016 Rule setting higher compensation targets for the pilots. The court also affirmed the district court's holding that several parts of the rule are unsupported by the administrative record. The court held that, although remand without vacatur is the exception rather than the rule, the district court acted within its discretion here, given the disruption likely to occur from reallocating rates paid several years ago. View "American Great Lakes Ports Ass'n v. Schultz" on Justia Law