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The fact that an aircraft touches down in another state, without more, does not mean that the other state has acquired situs over the aircraft under the traditional due process test for situs, such that California may no longer tax the full value of the aircraft. In this case, the County sought to impose property tax on the full value of six jets used to operate an on-demand "air taxi" service. The Court of Appeal held that substantial evidence supported the Board's ruling that JetSuite failed to prove that any other state acquired situs over the jets at issue in 2010. View "JetSuite v. County of Los Angeles" on Justia Law

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After plaintiff filed suit against Air Methods for wrongful discharge in violation of public policy, Air Methods removed the case to federal court and moved to dismiss based on the pre-emption provision of the Airline Deregulation Act (ADA), 49 U.S.C. 41713(b)(1). The district court relied on Botz v. Omni Air International, 286 F.3d 488 (8thCir. 2002), and dismissed the complaint. The Eighth Circuit reversed, holding that the ADA did not expressly preempt plaintiff's state-law wrongful-discharge claims involving post hoc reporting of alleged violations of air-safety regulations. To the extent that the court's opinion in Botz held otherwise, the court overruled it. View "Watson v. Air Methods Corp." on Justia Law

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Doe and her daughter flew aboard Etihad Airways from Abu Dhabi to Chicago. During the journey, Doe’s tray table remained open because a knob had fallen off. Doe’s daughter found the knob on the floor; Doe placed it in a seatback pocket. When a flight attendant reminded Doe to place her tray in the locked position for landing, Doe attempted to explain by reaching into the seatback pocket to retrieve the knob. She was pricked by a hypodermic needle that lay hidden within, which drew blood. Doe sought damages from Etihad for her physical injury and her “mental distress, shock, mortification, sickness and illness, outrage and embarrassment from natural sequela of possible exposure to” various diseases. Her husband claimed loss of consortium. The court granted Etihad partial summary judgment, citing the Montreal Convention of 1999, an international treaty, which imposes capped strict liability “for damage sustained in case of death or bodily injury of a passenger upon condition only that the accident which caused the death or injury took place on board the aircraft.” The Sixth Circuit reversed. The district court erred in reading an additional “caused by” requirement into the treaty and concluding that Doe’s bodily injury did not cause her emotional and mental injuries. The Convention allows Doe to recover all her “damage sustained” from the incident. View "Doe v. Etihad Airways, P.J.S.C." on Justia Law

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The City petitioned for review of the FAA's letter, characterizing it as a final order, that addressed the noise complaints stemming from its change of flight routes in and out of Phoenix Sky Harbor International Airport. The DC Circuit held that petitioners had reasonable grounds for their delay in filing and reached the merits of their petitions. The court also held that the FAA's approval of the new flight routes was arbitrary and capricious and violated the National Historic Preservation Act because the FAA's failure to notify and provide documentation to the City of the agency’s finding of no adverse impact denied the City its right to participate in the process and object to the findings. The FAA also violated the National Environmental Policy Act, the Department of Transportation Act; and the FAA's Order 1050.1E. Accordingly, the court granted the petitions for review, vacated the FAA's September 18, 2014 order implementing the new flight routes and procedures, and remanded. View "Phoenix v. Huerta" on Justia Law

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Petitioner sought review of the FAA's finding that a new runway project at Hillsboro Airport would have no significant impact on the environment. The Ninth Circuit denied the petition for review, holding that, in adopting the supplemental environmental assessment, issuing the finding of no significant impact, and concluding that the project at the Hillsboro Airport complied with the requirements of the Airport and Airway Improvement Act, the FAA did not act in a manner that was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. View "Barnes v. FAA" on Justia Law

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Paul Hudson and the Flyers Rights group petitioned the FAA to promulgate rules governing size limitations for aircraft seats to ensure, among other things, that passengers can safely and quickly evacuate a plane in an emergency. The Administration denied the petition, asserting that seat spacing did not affect the safety or speed of passenger evacuations. The DC Circuit granted the petition for review in part and agreed with Flyers Rights that the Administration failed to provide a plausible evidentiary basis for concluding that decreased seat sizes combined with increased passenger sizes have no effect on emergency egress. However, the court disagreed with Flyers Rights' challenge to the Administration's declination to regulate matters of physical comfort and routine health. In this case, the Administration decided that it should not address those issues at this time, making the very type of regulatory-effort and resource-allocation judgments that fell squarely within the agency's province. The court remanded to the Administration for a properly reasoned disposition of the petition's safety concerns about the adverse impact of decreased seat dimensions and increased passenger size on aircraft emergency egress. View "Flyers Rights Education Fund v. FAA" on Justia Law

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The DC Circuit upheld the Department's final rule defining e-cigarette use as "smoking" for purposes of airplane travel under 49 U.S.C. 41706. The Department rested its authority for the regulation on two sections authorizing past aircraft smoking regulations, 49 U.S.C. 41706 (prohibition on "smoking" on scheduled passenger flights within, to, or from the United States) and 49 U.S.C. 41702 ("air carrier shall provide safe and adequate interstate air transportation"). The court held that a "smoking prohibition" reasonably applies to products intended to enable users to inhale and exhale nicotine; the regulation was not arbitrary; the Department acknowledged petitioners' contrary evidence and explained why the regulation was still warranted; and the Department did not impermissibly rely on new studies in the final rule, but instead included new supplementary information that expands on and confirms data in the rulemaking record. Because the court upheld the regulation under section 41706, the court need not address section 41702. View "Competitive Enterprise Institute v. DOT" on Justia Law

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National manufactures battery packs, including the lithium battery packs at issue (Batteries), which were regulated as hazardous materials. A Federal Aviation Administration agent inspected National’s Chicago facility and discovered that National made 11 air shipments of the Batteries to customers in California and Canada that did not comply with multiple hazardous material regulations (HMRs). The FAA filed a complaint. National’s vice president testified that he believed, without supporting evidence, the Batteries were exempt from testing because they were similar to previously tested batteries. The shipping papers indicated that each shipments conformed tp the International Civil Aviation Organization’s Technical Instructions for the Safe Transport of Dangerous Goods. National’s office manager, certified each shipment, but her hazardous materials training was Department of Transportation specific and did not include training on the ICAO Technical Instructions. Because the Batteries were untested lithium batteries, they should have been packed according to the more stringent standards. An ALJ found that National knowingly violated the HMRs. The FAA assessed a civil penalty of $66,000 based on 49 U.S.C. 5123(c). The Seventh Circuit denied a petition for review. A reasonable person in National’s position would have been aware of its violations; the penalty was within statutory limits, and rationally related to National’s multiple offenses View "National Power Corp. v. Federal Aviation Administration" on Justia Law

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Gary Jet began operating as a Fixed Base Operator (FBO) at the Authority's Gary/Chicago International Airport in 1991. The 2006 “Minimum Standards,” regulations governing FBOs, contained a 1.5% charge on gross revenue for commercial FBO services beginning in 2001, “pending the expiration of existing leases which do not incorporate these terms.” Gary Jet’s lease did not contain this provision. During negotiations for a new lease, the parties agreed that Gary Jet would instead pay “supplemental rent” of 10% of certain fees. A January 2007 “First Amended Lease” with a 39-year term, required Gary Jet to pay base rent plus supplemental rent and stated Gary Jet “shall abide by” the Minimum Standards, except when they conflict with the 2007 Lease. The lease stated that the Minimum Standards “shall be … made applicable to” subsequent lease agreements. In 2013, Gary Jet sued for breach of contract. The parties entered settled in 2014. Gary Jet agreed that New Minimum Standards controlled any conflict with its lease. A 2014 revised lease stated that the Minimum Standards controlled any conflicts. The initial draft of new Minimum Standards did not require Gary Jet to pay a percentage of gross revenue. In 2015, the Authority stated that it intended require that each FBO pay a percentage of gross revenues. Gary Jet objected, but the Authority approved the New Minimum Standards with the provision. The Seventh Circuit affirmed dismissal of Gary Jet’s suit under the Contracts Clause. Gary Jet cannot plausibly demonstrate that it is without a remedy for any violation of its contractual rights, which is essential to a Contracts-Clause claim. View "Gary Jet Center, Inc. v. AFCO AvPORTS Management, LLC" on Justia Law

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The Aviation and Transportation Security Act, 49 U.S.C. 44935 note, commits the termination of the employment of TSA screeners to the unreviewable discretion of the TSA Administrator. The Second Circuit held that the district court lacked subject matter jurisdiction to review the termination decisions pursuant to the Administrative Procedure Act (APA), 5 U.S.C. 701(a). Therefore, the court affirmed the dismissal of the complaint in this case seeking judicial review of the employment termination of a screening officer employed by the TSA. View "Connors v. United States" on Justia Law