The Second Circuit affirmed the district court's dismissal of a claim alleging that the New York State Thruway Authority violated the Dormant Commerce Clause when it used surplus revenue from highway tolls to fund the State of New York's canal system. The court held that Congress evinced an "unmistakably clear" intent to authorize the Thruway Authority to depart from the strictures of the Dormant Commerce Clause by allocating surplus highway toll revenues to New York's Canal System. The court explained that Congress placed no limits on the amount of such surplus highway toll revenue that the Thruway Authority could allocate to the Canal System. Finally, the court held that the district court had discretion to reach the merits of the Thruway Authority's defense that Congress had authorized it to devote surplus highway toll revenues to the Canal System. View "American Trucking Ass'ns, Inc. v. N.Y. State Thruway Authority" on Justia Law

Philadelphia taxicabs were required to have a medallion and a certificate of public convenience, which required that vehicles be insured and in proper condition, and mandated that drivers be paid the prevailing minimum wage, be proficient in English, and have appropriate drivers’ licenses. In 2014, 1610 medallions were each worth about $545,000. Uber began operating in Philadelphia without securing medallions or certificates, providing an app to schedule and pay for a ride. Uber does not own or assume responsibility for the vehicles, nor does it hire drivers. A 2016 Pennsylvania law approved Transportation Network Companies (TNCs) using digital apps. TNCs must obtain licenses and comply with insurance and safety standards but set their own fares. Medallion taxicab companies comply with established rates, minimum wages, and have a limited number of vehicles. Nearly 1200 Philadelphia medallion taxicab drivers left their companies to drive for Uber. Medallion taxi rides reduced by about 30 percent. The value of each medallion dropped to approximately $80,000. Taxicab drivers sued under the Sherman Act, 15 U.S.C. 2. The Third Circuit affirmed the dismissal of the complaint. Inundating the market with Uber vehicles, even if it eliminated competitors, was not anticompetitive; it bolstered competition by offering customers lower prices, more availability, and a high-tech alternative to customary practices. Uber’s ability to operate at a lower cost is not anticompetitive. Uber’s business model does not reflect specific intent to monopolize. Plaintiffs also failed to allege antitrust standing. View "Philadelphia Taxi Association, Inc. v. Uber Technologies Inc" on Justia Law

The Railroad Revitalization and Regulatory Reform Act prohibits states from imposing a tax that discriminates against a rail carrier. 49 U.S.C. 11501(b)(4). The Eleventh Circuit held that Alabama's tax scheme, which imposes either a sales or use tax on rail carriers when they buy or consume diesel fuel but exempts competing motor and water carriers from those taxes, violates the Act as to water carriers, but not to motor carriers. The court held that the district court correctly concluded that the excise tax was roughly equivalent to the sales and use tax and thus the excise tax justified the motor carrier sales-tax exemption. However, unlike the motor carrier exemption, the State could offer no rough equivalency justification for the water carrier exemption because water carriers pay no state taxes at all when they buy or consume diesel. View "CSX Transportation, Inc. v. Alabama Department of Revenue" on Justia Law

The Eleventh Circuit reversed the district court's grant of summary judgment against two transportation companies, Barrett and Landstar, in an action by Nationwide and its insurer, Essex, seeking to recover loss of an MRI under the Carmack Amendment, 49 U.S.C. 14706 et seq. The court held that the Magistrate Judge applied the correct standard for distinguishing brokers from carriers, but that there was a genuine factual dispute as to whether Barrett accepted legal responsibility to transport the magnet or communicated to Nationwide that it was brokering the shipment of the magnet to a third party. The court applied the holding in Werner Enterprises, Inc. v. Westwind Maritime International, Inc., 554 F.3d 1319 (11th Cir. 2009), to this case, and held that Landstar was entitled to rely on the Broker-Carrier Agreement's (BCA) limitation of liability, because the BCA satisfied the Carmack Amendment's requirements. In this case, Landstar was entitled to the $1.00 per pound liability limitation in the bill of lading. Therefore, the court remanded for further proceedings. View "Essex Insurance Co. v. Barrett Moving & Storage, Inc." on Justia Law

In 2012, Bryan Harrell was driving his pickup truck at more than 50 miles per hour when he rear-ended the 1999 Jeep in which four-year-old Remington Walden was a rear-seat passenger, with his aunt behind the wheel. The impact left Harrell and Remington’s aunt unhurt, but fractured Remington’s femur. The impact also caused the Jeep’s rear-mounted gas tank to rupture and catch fire. Remington burned to death trying to escape; he lived for up to a minute as he burned, and witnesses heard him screaming. Remington’s parents (“Appellees”) sued both Chrysler and Harrell for wrongful death. At trial, in March and April of 2015, Appellees challenged the Jeep’s vehicle design, arguing that Chrysler should not have used a rear-mounted fuel tank. When questioning Chrysler Chief Operating Officer Mark Chernoby at trial, Appellees’ counsel asked about the CEO’s salary, bonus, and benefits; Marchionne himself was never questioned about his income and benefits. The trial court overruled Chrysler’s repeated relevance and wealth-of-a-party objections to this line of questioning. Appellees’ counsel referenced Marchionne’s compensation testimony again in closing, arguing, “what [Chrysler’s counsel] said Remi’s life was worth, Marchionne made 43 times as much in one year.” The jury determined that Chrysler acted with a reckless or wanton disregard for human life and failed to warn of the hazard that killed Remington. In affirming the trial court, the Court of Appeal discussed admission of CEO compensation, holding “evidence of a witness’s relationship to a party is always admissible” and that the CEO’s compensation “made the existence of [the CEO’s] bias in favor of Chrysler more probable.” The Georgia Supreme Court held not that compensation evidence is always admissible to show the bias of an employee witness, or that it is never admissible, but that such evidence is subject to the Rule 403 analysis weighing the evidence’s unfair prejudice against its probative value. Because Chrysler did not raise a Rule 403 objection to the compensation evidence at issue in this appeal, the Supreme Court considered the question not under the ordinary abuse-of-discretion standard, but as a question of plain error. The Court concluded that under the particular circumstances of this case, it could not say that the prejudicial effect of the evidence so far outweighed its probative value that its admission was clear and obvious reversible error. Accordingly, although the Supreme Court disagreed with the rationale of the Court of Appeals, it ultimately affirmed its judgment. View "Chrysler Group, LLC v. Walden" on Justia Law

An officer responding to a midnight single-vehicle collision saw an SUV on the edge of the road moving forward and backward; one tire was missing and the wheel’s rim and brake system were extensively damaged. Munro got out of the driver’s seat. The officer noticed he was “extremely unsteady,” that his breath smelled like alcohol, his eyes were red, and his speech was slurred. The officer asked Munro to lean against the patrol car. Munro refused, denied being the driver, and denied consuming alcohol. The officer attempted to conduct a field sobriety test, asking Munro to follow his pen with his eyes. Munro closed his eyes and stated that he would not take a chemical test. The officer arrested Munro on suspicion of driving under the influence of alcohol. Before the Department of Motor Vehicles may suspend a driver’s license for refusal to submit to a chemical test to determine the alcohol content of his blood, the driver “shall be told [by the arresting officer] that ... failure to submit ... will result in ... the suspension of the person’s privilege to operate a motor vehicle" for one year. (Veh. Code 23612(a)(1)(D). The officer intended to read Munro the Admonition but Munro began kicking and trying to slip out of his handcuffs. Three officers placed Munro into a restraint The officer never read the Admonition. The court of appeal reversed Munro's suspension. An officer is not relieved of the duty to at least attempt to provide the Admonition when the suspected drunk driver engages in disruptive behavior. View "Munro v. Department of Motor Vehicles" on Justia Law

Airports, including Lake Cumberland Regional Airport, must make “standard grant assurances” (49 U.S.C. 47101) to receive federal funds. Assurance 22 requires an airport to “make the airport available . . . without unjust discrimination to all types ... of aeronautical activities.” Assurance 23 prohibits the airport from granting exclusivity to any aeronautical-services provider. Assurance 24 requires the airport to “maintain a fee and rental structure ... which will make the airport as self-sustaining as possible.” SPA’s director, Iverson, is an aircraft maintenance technician. SPA, at the Airport since 1986, leases hangars to store Iverson’s aircraft. SPA formerly provided maintenance services but now only refurbishes and re-sells aircraft. The Airport Board notified SPA of its intent to let SPA’s lease expire. Finding that there was an unmet need for maintenance services, it solicited bids. SPA did not bid. The Board picked Somerset and agreed to pay up to $8000 toward Somerset’s public liability insurance and forgo rent. The regional FAA office determined that the contract violated Assurance 24. The Board then conditioned the incentives on Somerset’s performing at least 10 aircraft inspections annually, making the contract more economically viable for the Airport, and agreed to terminate Somerset's agreement after one year to solicit new bids. The FAA approved. SPA asked to remain at the Airport “on fair and equal terms.” The Board sent SPA proposed agreements with the same terms, including provision of maintenance services, but refused to allow Iverson to personally lease a hangar. SPA refused to vacate. The Sixth Circuit affirmed in favor of the Board. The FAA standard for unjust discrimination is whether similarly situated parties have been treated differently. SPA is not situated similarly to Somerset. View "SPA Rental, LLC v. Somerset-Pulaski County Airport Board" on Justia Law

The Court of Appeals issued an opinion affirming a circuit court’s denial of Illinois Central Railroad’s request for a setoff of a jury verdict awarded to Bennie Oakes through his representative Clara Hagan. As described by Illinois Central, who as appellant framed the issues for appeal, “This case is about whether, once those damages are assessed by a jury, a railroad company under the [Federal Employers’ Liability Act] is entitled to a credit or reduction of that verdict for sums that have already been paid by others to the Plaintiff for the same injuries and damages.” In Illinois Central’s answer, it raised an affirmative defense that it was entitled to apportionment or set off liability and/or damages for any negligence of or damages caused by third parties. However, Illinois Central later clarified its position that it was not attempting to have negligence apportioned, and the circuit court echoed the clarification by stating that Illinois Central had not “tried to use a third, an empty chair for any other defendants.” The Mississippi Supreme Court held that the Court of Appeals misconstrued the primary case it relied upon and ignored other federal precedent; therefore, the Supreme Court reversed the Court of Appeals’ judgment and the circuit court’s denial of Illinois Central’s motion for a setoff. View "Illinois Central Railroad Co. v. Oakes" on Justia Law

Atlas, an authorized interstate transporter of household goods, contracts with agents to perform its shipments. One of its agents, Ace, leases trucks and driving services from owner-operators. In 2009, owner-operator Mervyn entered into a lease agreement with Ace to haul shipments for Atlas. In 2013, Mervyn sued Atlas and Ace in a purported class action, alleging breach of contract and violations of the federal Truth-In-Leasing regulations under 49 C.F.R. 376.12(d). The Seventh Circuit affirmed summary judgment in favor of Atlas and Ace. Mervyn advanced claims that are necessarily inconsistent: that he was not paid according to the plain terms of the lease and that the lease violated the Truth-In-Leasing regulations because the terms were not “clearly stated.” Mervyn never disputed the financial entries he complained of until he filed this lawsuit, in violation of a contract provision allowing a 30-day window to dispute financial entries. Mervyn was compensated according to the plain and ordinary terms of the lease. View "Mervyn v. Atlas Van Lines, Inc." on Justia Law

The bus drivers in this case were not entitled to overtime payment because their employer was licensed and regulated pursuant to the common carrier statute. Plaintiff-bus drivers worked for Eastern Bus Company. Eastern Bus provided charter service, for which it must hold a license under the common carrier statute, and transportation of school students between home and school, which does not constitute charter service. The bus drivers, who performed both of these services, claimed that they were entitled to overtime payment because, among other things, the exemption to the Massachusetts overtime statute (see Mass. Gen. Laws ch. 151, 1A(11)) only applied during the hours Eastern Bus was providing charter service. The superior court concluded that Eastern Bus did not enjoy “a blanket exemption” for all employees, regardless of the particular duties they perform, that the overtime exemption did not apply, and that Plaintiffs were entitled to summary judgment on their claim for overtime wages. The Supreme Judicial Court reversed, holding that the bus drivers were not entitled to overtime payment because their employer was licensed and regulated pursuant to the common carrier statute. View "Casseus v. Eastern Bus Company, Inc." on Justia Law