Skip to main content

preemption

American Trucking Ass’ns v. City of Los Angeles

Oral argument: 
April 16, 2013

Starting in 2008, one of the busiest ports in the United States, the Port of Los Angeles (POLA), entered into “concession agreements” with motor carriers doing business at the port. POLA enforced the agreements through a system of tariffs levied against noncompliant carriers and remedial provisions that empowered it to revoke noncompliant carriers’ access to the port. The American Trucking Association (ATA) sued POLA, arguing that the agreements were barred under the Federal Aviation Administration Authorization Act of 1994 (FAAAA) and the Supreme Court’s decision in Castle v. Hayes Freight Lines, Inc. The Central District of California and Ninth Circuit found that multiple provisions of the concession agreements were exempted from the FAAAA’s preemption clause under the market-participant doctrine and held that Castle did not bar suspension of carriers’ port access because of the FAAAA’s express safety exemption. In resolving the questions presented, the Supreme Court will determine the scope of the market-participant exemption to FAAAA preemption and whether Castle bars POLA from enforcing its concession agreements through revocation or suspension of port access. The case directly affects local and state governments’ power to regulate and contract under the FAAAA and similar Congressional legislation and has broad regulatory implications for motor carriers and other regulated actors in interstate commerce.

Questions Presented: 

Title 49 U.S.C. § 14501(c)(1), originally enacted as a provision of the Federal Aviation Administration Authorization Act of 1994, provides that “a State [or] political subdivision . . . may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier ... with respect to the transportation of property.” It contains an exception providing that the express preemption clause “shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” Id. § 14501(c)(2)(A). The questions presented are:

  1. Whether an unexpressed “market participant” exception exists in Section 14501(c)(1) and permits a municipal governmental entity to take action that conflicts with the express preemption clause, occurs in a market in which the municipal entity does not participate, and is unconnected with any interest in the efficient procurement of services.
  2. Whether permitting a municipal governmental entity to bar federally licensed motor carriers from access to a port operates as a partial suspension of the motor carriers’ federal registration, in violation of Castle v. Hayes Freight Lines, Inc., 348 U.S. 61 (1954).

top

Issue

Does federal law prevent enforcement of certain aspects of motor carrier-related contracts used by the Port of Los Angeles?

top

Edited by: 
Additional Resources: 

top

Dan’s City Used Cars, Inc. v. Pelkey

Oral argument: 
March 20, 2013

Robert Pelkey's car was towed from his apartment complex for failure to move it during a snowstorm. At the time, Mr. Pelkey was quite ill and eventually was sent to the hospital to have his left foot amputated. When he returned home and was made aware that his car was towed, he had his attorney track down the car at Dan’s City towing and ask for it back. When they disposed of the car, Mr. Pelkey sued for violations of New Hampshire’s consumer protection laws and common law negligence. Dan’s City claimed that the Federal Aviation Administration Authorization Act ("FAAAA") controlled motor carriers and preempted any state law claims. The New Hampshire Supreme Court reversed the lower court and agreed with Mr. Pelkey that his state law remedies were not preempted because they dealt with the disposal of property and debt collection on a lien, rather than the "services" of the towing company. Dan's City contends these actions are incidental to their towing and storage of the vehicle and therefore are properly construed as services of their company. The Supreme Court granted certiorari to resolve a circuit split on the scope of preemption under the FAAAA. How the Court rules in this case will have great significance for both vehicle owners and the towing industry.

Questions Presented: 

Whether state statutory, common law negligence, and consumer protection act enforcement actions against a tow-motor carrier based on state law regulating the sale and disposal of a towed vehicle are related to a transportation service provided by the carrier and are thus preempted by 49 U.S.C. § 14501(c)(1).

Issue(s)

Are state law claims of negligence and consumer fraud against a towing company for having a car towed and eventually disposed of to pay towing and storage fees preempted by the Federal Aviation Administration Authorization Act (“FAAAA”)?

Edited by: 

Mutual Pharmaceutical Co. v. Bartlett

Oral argument: 
March 19, 2013

After receiving a prescription for sulindac, the generic version of Clinoril, Karen Bartlett developed Stevens-Johnson Syndrome and toxic epidermal necrolysis, rare skin disorders that causes the sufferer’s skin to deteriorate by either being burned off or by turning into an open wound. Bartlett subsequently suffered painful, permanent injuries, including near-blindness, esophageal burns, and lung damage. A New Hampshire federal jury awarded Bartlett $21.06 million for her injuries based on a New Hampshire products liability claim for defective design. Mutual Pharmaceutical Company, a sulindac manufacturer, now challenges that decision by arguing that federal law regulating generic drugs preempts New Hampshire's design-defect law. The United States Court of Appeals for the First Circuit upheld the lower court design, finding no preemption, despite Supreme Court precedent finding preemption in similar contexts. Mutual Pharmaceutical argues that the Food, Drug, and Cosmetic Act preempts the state design-defect law because the Act requires generic drug manufacturers to produce generic medications that are bioequivalent to the corresponding name brand version of the drug. Bartlett responds that the state law does not conflict with federal law because the state law imposes no duty for sellers to change their product from the name brand version. 

Questions Presented: 

Whether the First Circuit erred when it created a circuit split and held-in clear conflict with this Court's decisions in PLIVA, Inc. v. Mensing, 131 S. Ct. 2567 (2011); Riegel v. Medtronic, Inc., 552 U.S. 312 (2008); and Cipollone v. Liggett Group, Inc., 505 U.S. 504 (1992)-that federal law does not preempt state law design-defect claims targeting generic pharmaceutical products because the conceded conflict between such claims and the federal laws governing generic pharmaceutical design allegedly can be avoided if the makers of generic pharmaceuticals simply stop making their products. 

Issue

Does federal law governing claims against generic pharmaceutical products preempt state law design-defect claims against the makers of those products?

top

Edited by: 
Additional Resources: 

Arizona v. United States (11-182)

Oral argument: Apr. 25, 2012

Appealed from: United States Court of Appeals for the Ninth Circuit (Apr. 11, 2011)

In 2010, Arizona enacted the Support Our Law Enforcement and Safe Neighborhoods Act, which creates state immigration offenses and expands local police officers’ immigration law enforcement authority. The United States sued Arizona in federal district court, arguing the state law was preempted by federal law, and sought a preliminary injunction to prevent the state law from taking effect. The district court granted a preliminary injunction with respect to four provisions of the Arizona law and the Ninth Circuit affirmed. Petitioners, the State of Arizona and the Governor of Arizona, Janice K. Brewer, argue that federal law does not preempt its statute because Arizona’s statute merely creates a formal cooperative relationship between federal and state officers to implement federal laws. Respondent, the United States, asserts that implementation of the statute would infringe upon the Executive Branch’s exclusive authority to regulate immigration, and is therefore invalid.

National Meat Association v. Harris (10-224)

Oral argument: Nov. 9, 2011

Appealed from: United States Court of Appeals for the Ninth Circuit (Mar. 31, 2010)

In response to the largest beef recall in United States history, California amended its Penal Code to ban the slaughtering of nonambulatory animals and require that slaughterhouses euthanize any such animals on their premises. The National Meat Association filed suit arguing that the Federal Meat Inspection Act expressly preempts California’s ban on the slaughter of nonambulatory animals, and that the Federal Meat Inspection Act’s historical context demonstrates Congress’s intent to exercise exclusive authority over the meatpacking industry. Attorney General of California Kamala Harris and animal protection organizations (including the Humane Society of the United States) propose a narrow understanding of slaughterhouse “operations” and argue that the California ban does not undermine the Federal Meat Inspection Act’s purpose. The outcome of this case will affect the slaughterhouses’ ability to examine animals for disease before euthanizing them and states’ ability to regulate areas where general federal law already exists.

Douglas v. Independent Living Center of Southern California (09-958); Douglas v. California Pharmacist Association (09-1158); Douglas v. Santa Rosa Memorial Hospital (10-283)

Oral argument: October 3, 2011

Appealed from: United States Court of Appeals for the Ninth Circuit (July 9, 2009)

A series of reforms passed by the California Assembly in 2008 and 2009 reduced the state’s payments made to California Medicaid providers. Respondents Independent Living Center of Southern California, the California Pharmacists Association, and Santa Rosa Memorial Hospital brought suit in the U.S. District Court for the Central District of California, claiming that the payment reductions violated 42 U.S.C. § 1396a(a)(30)(A), which requires that state Medicaid plans comply with federal law or lose federal funding. Petitioner Toby Douglas, the Director of the Department of Health Care Services for the State of California, argues that health care providers cannot sue to enforce § 30(A) because the statute does not grant any enforceable rights, and Congress did not intend for private parties to sue to enforce the statute. Conversely, the health care providers argue that the Supremacy Clause permits private parties to sue if they have suffered an injury from state action, and they assert that Congress did not explicitly disallow private lawsuits in § 30(A). The Supreme Court’s decision will affect the predictability of federal law, the ability of private parties to bring lawsuits to enforce federal law, and the availability of health care to Medicaid beneficiaries.

Chamber of Commerce of the United States v. Whiting (09-115)

Oral argument: Dec. 8, 2010

Appealed from: United States Court of Appeals for the Ninth Circuit (Sept. 17, 2008)

PREEMPTION, EMPLOYMENT DISCRIMINATION, IRCA, LEGAL ARIZONA WORKERS ACT

The state of Arizona passed the Legal Arizona Workers Act in 2007 (“LAWA”). The law authorizes the Arizona Attorney General and county attorneys to sue employers who knowingly or intentionally employed unauthorized workers such as illegal aliens as a means of combating illegal immigration. Congress, however, previously enacted the Immigration Reform and Control Act, which imposes different sanctions on employers for hiring illegal immigrants. The Chamber of Commerce of the United States, along with various business and civil rights organizations, claimed that federal law preempts LAWA, thus making it invalid. In addition, the Chamber of Commerce argued that LAWA fostered employment discrimination against “foreign-looking” individuals and unduly harmed businesses. However, those in support of LAWA claimed that the state has the authority under its “police powers” to enforce the statute and that it was not preempted by federal law. The Supreme Court’s decision in this case will shed light on the extent to which a state may enforce its own laws in an area that is also covered by federal law. Additionally, the Court’s ruling will affect the ability of states to use certain measures to deter employers from hiring illegal immigrants.

AT&T Mobility LLC v. Concepcion (09-893)

Oral argument: Nov. 9, 2010

Appealed from: United States Court of Appeals for the Ninth Circuit (Oct. 27, 2009)

CLASS ACTION, FEDERAL ARBITRATION ACT, PREEMPTION, CONSUMER CLAIMS

Vincent and Liza Concepcion ("the Concepcions") signed a two-year service contract with AT&T Mobility for wireless phone service and received free cell phones from AT&T as a part of their contract. AT&T charged the Concepcions a sales tax on their phones, and the Concepcions subsequently sued AT&T alleging that the company had fraudulently advertised the phones as free. The District Court for the Southern District of California consolidated the Concepcions' claim with a class action suit pending in the District Court on the same issue. The service contract that the Concepcions signed contained a clause requiring that they arbitrate disputes with AT&T directly, thus prohibiting the Concepcions from participating in class action suits. After AT&T moved to compel arbitration, the District Court denied AT&T's motion, and AT&T appealed to the Ninth Circuit Court of Appeals arguing that the Federal Arbitration Act ("FAA") expressly and impliedly preempted state law requiring the enforcement of the arbitration clause. The Ninth Circuit ruled against AT&T on the grounds that the arbitration provision represented an unconscionable exculpatory clause and could not be enforced. The United States Supreme Court will now determine whether the FAA preempts state law requiring the enforcement of the arbitration clause. This decision may affect consumers' ability to participate in class action suits and the extent to which they may arbitrate small claims.

Williamson v. Mazda Motor of America (08-1314)

Oral argument: Nov. 3, 2010

Appealed from: California Court of Appeal, Fourth Appellate District, Division Three (Oct. 22, 2008)

SUPREMACY CLAUSE, PREEMPTION, DEPARTMENT OF TRANSPORTATION, TORT, FEDERAL MOTOR VEHICLE SAFETY STANDARDS

Delbert Williamson sued Mazda Motor of America after his wife died in a car accident while she was riding in their Mazda MPV minivan. Williamson claimed that Mazda was liable under state tort law for installing lap-only seatbelts, as opposed to lap-and-shoulder seatbelts, in the rear aisle seat where his wife sat during the crash. Mazda argues that Williamson’s state law claim is preempted by a federal regulation granting manufacturers the choice between lap-only and lap-and-shoulder seatbelts in rear aisle seats. The California Court of Appeal sided with Mazda and held that federal vehicle safety regulations preempted Williamson’s claim because the regulations conflicted with his state law claim. Williamson, however, contends that the Court should allow his state claim because it does not conflict with federal regulations, but rather furthers federal objectives of vehicle safety. The Supreme Court’s decision in this case will address the extent of preemption of state law claims by on-point federal regulations and in turn affect manufacturer liability under state tort claims.

Syndicate content