Justia Transportation Law Opinion Summaries

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Beck filed suit against its franchisor, GM, for claims arising under the Motor Vehicle Dealer Act, N.Y. Vehicle & Traffic Law 460-473, and state contract law. The court certified the following questions to the New York Court of Appeals: (1) Is a performance standard that requires ʺaverageʺ performance based on statewide sales data in order for an automobile dealer to retain its dealership ʺunreasonable, arbitrary, or unfairʺ under New York Vehicle & Traffic Law section 463(2)(gg) because it does not account for local variations beyond adjusting for the local popularity of general vehicle types? and (2) Does a change to a franchiseeʹs Area of Primary Responsibility or AGSSA constitute a prohibited ʺmodificationʺ to the franchise under section 463(2)(ff), even though the standard terms of the Dealer Agreement reserve the franchisorʹs right to alter the Area of Primary Responsibility or AGSSA in its sole discretion?  Further, the court concluded that the district court did not err in dismissing plaintiffʹs vehicle allocation claim, denying plaintiffʹs request for attorneyʹs fees, or dismissing defendantʹs counterclaim for rescission. View "Beck Chevrolet v. General Motors" on Justia Law

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The New Hampshire Motor Vehicle Road Toll Law imposed a road toll “upon the sale of each gallon of motor fuel sold by distributors thereof.” On multiple occasions between June 2008 and March 2011, Marco Petroleum Industries, Inc., contracted with Irving Oil Terminals, Inc. (Irving) for the purchase of diesel fuel. These purchases totaled 603,138 gallons. Each purchase included the transfer of fuel by Irving, at its facility located in Revere, Massachusetts, into trucks operated by P.S. Marston, LLC (Marston). Marston and Marco shared a business address in North Hampton. Marston transported the fuel from Revere to Marco’s facility in North Hampton; Marston invoiced Marco for the deliveries; and Marco paid those bills. The bill of lading issued by Irving for each sale was identical except for the date of sale, amount of fuel purchased, and the invoice amount. Also in connection with each purchase, Marco paid the Massachusetts fuel tax to Irving, and Irving then forwarded the funds to Massachusetts. In 2012, the Department of Safety (DOS) audited Marco’s “Motor Fuel Distributor” account and concluded that Marco imported motor fuel into New Hampshire without a license and therefore failed to report and pay the required New Hampshire road toll on the 603,138 gallons of fuel purchased from Irving. The DOS calculated that Marco owed the State $155,070.71. Marco challenged the DOS audit, arguing that the DOS and the trial court erred by finding that Marco was required to pay the road toll because: (1) it was not a “distributor” of motor fuels under RSA 259:21 (2014); (2) it did not “sell” motor fuel under RSA 260:32 (2014) (amended 2014); and (3) it would be unfair to require Marco to pay the New Hampshire road toll because it had already paid the Massachusetts fuel tax. Finding no reversible error, the Supreme Court affirmed. View "Marco Petroleum Industries, Inc. v. Comm'r, New Hamp. Dept. of Safety" on Justia Law

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KCI’s Transit Division provides bus and shuttle services on 32 set routes, four of which cross state lines. From 2009 through 2012, its revenue generated by interstate routes fluctuated between 1.0% and 9.7%. KCI trains drivers on multiple interstate and intrastate routes. KCI may assign a driver to any route on which he has been trained, including interstate routes, and may discipline a driver who refuses to drive an assigned route. As a “common carrier by motor vehicle” authorized to engage in interstate commerce, KCI is subject to Federal Motor Carrier Safety Administration (FMCSA) regulations and possesses a U.S. Department of Transportation registration number. KCI provides each driver with a “Federal Motor Carrier Safety Regulations Pocketbook” detailing the driver’s responsibilities under DOT regulations. Plaintiffs were drivers who, during the relevant period, worked more than 40 hours in a week without receiving overtime pay; 1.3% of their trips required them to cross state lines. Resch filed a purported collective action to recover unpaid overtime. The district court conditionally certified a class. The Third Circuit affirmed summary judgment in favor of KCI, holding that Plaintiffs are ineligible for overtime under the Motor Carrier Act exemption to the Fair Labor Standards Act, 29 U.S.C. 213(b)(1), and Pennsylvania Minimum Wage Act. View "Resch v. Krapf's Coaches Inc" on Justia Law

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Cuahutemoc Gonzalez contracted with several companies, including a company owned by Robert Garcia, to transport silage from a farm. Garcia brought to the farm a tandem truck and a new driver, Raymond Ramierz. During the tandem truck’s first trip, Ramirez collided with a car in which a mother and daughter were traveling. The collision killed all three. Samuel Jackson, the daughter’s father and mother’s former husband, filed suit against Gonzalez, seeking to hold him vicariously liable for the actions of Garcia and Ramirez based on Gonzalez’s alleged status as a motor carrier under both the Federal Motor Carrier Safety Regulations (Federal Regulations) and their Texas counterparts (Texas Regulations). Ramirez’s family (the Ramirezes) intervened and asserted negligence claims against Gonzalez under common-law theories of retained control over an independent contract and joint enterprise. The trial court granted Gonzalez’s no-evidence motions for summary judgment as to both the Ramirezes’ and Jackson’s claims. The court of appeals reversed as to the no-evidence summary judgment on Jackson’s claim under the Texas Regulations and on the Ramirezes’ negligence claims based on retained control. The Supreme Court reversed, holding (1) Gonzalez cannot be held liable as a motor carrier under either the Federal Regulations or the Texas Regulations; and (2) the evidence was legally insufficient to show that the same party retained sufficient control over the transportation in which the truck was engaged to owe Ramirez a common-law duty. View "Gonzalez v. Ramirez" on Justia Law

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Plaintiffs brought a putative class action against Union Pacific Railway, and Stickle, alleging that failure to properly build and maintain railway bridges over the Cedar River caused or exacerbated the 2008 flood and that the decision to attempt to stabilize the bridges by weighing them down with railcars filled with ballast caused or exacerbated the flooding of their properties, either because bridges collapsed and effectively dammed the river and blocked drainage, or because railcars on bridges that did not collapse blocked the free flow of the river and diverted water into low-lying areas. Union Pacific filed Notice of Removal that asserted federal question jurisdiction and stated that attorneys for the co-defendants had no objection to removal, accompanied by a local rule certification that: “co-defendants have given their consent to the removal.” Stickle did not file notice of consent to removal until more than 30 days after Union Pacific was served. By that time, Plaintiffs had moved to remand, arguing that their claims were not completely preempted and that not all defendants had timely consented. The district court denied remand. The Eighth Circuit vacated, finding the consent adequate, but that the state claims were not completely preempted by the Interstate Commerce Commission Termination Act, 49 U.S.C. 701. View "Griffioen v. Cedar Rapids & Iowa City Ry. Co." on Justia Law

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The Transportation Security Administration (TSA) prohibited Ege, a pilot for Emirates Airlines, from flying to, from, or over the United States. Ege had experienced travel problems and had submitted an online inquiry to the DHS’s Traveler Redress Inquiry Program. He believes the TSA’s prohibition is based on his alleged inclusion on the “No-Fly List,” a subset of the Terrorist Screening Database (TSDB) used by the TSA to “deny boarding of individuals on commercial aircraft operated by U.S. carriers or flying to, from, or over the United States.” He sought removal from the No-Fly List or, at a minimum, a “meaningful opportunity to be heard.” The D.C. Circuit dismissed his petition for lack of standing and lack of jurisdiction. Neither the TSA nor the Department of Homeland Security (DHS), the only two rnamed agencies, has “authority to decide whose name goes on the No-Fly List.” The Terrorist Screening Center, which is administered by the Federal Bureau of Investigation), is “the sole entity with both the classified intelligence information” Ege wants and “the authority to remove” names from the No-Fly List/TSDB. View "Ege v. Dep't of Homeland Sec." on Justia Law

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After the Supreme Court’s 2007 decision in Massachusetts v. EPA, that Clean Air Act (42 U.S.C. 7521(a))requires regulation of greenhouse gases emitted from vehicles, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) issued coordinated rules governing the greenhouse gas emissions and fuel economy of cars and trucks. In 2012 the D.C. Circuit upheld EPA’s car emission standards. Opponents, including purchasers of new vehicles and POP, a business that makes after-market modifications to diesel engines enabling them to run on vegetable oil, then challenged the car rules on procedural grounds; challenged EPA’s truck standards on procedural grounds; and challenged both agencies’ regulations concerning trucks as arbitrary and capricious. The D.C. Circuit declined to reach the merits. The purchasers of new vehicles, arguing that EPA neglected to comply with a nondiscretionary statutory duty to provide its emission standards to the Science Advisory Board prior to issuing them, lacked standing, having failed to identify a discrete injury that a favorable decision by the court would remedy. POP’s interest in promoting alternative fuel does not fall within the zone of interests protected by 42 U.S.C. 7521, the provision of the Clean Air Act governing emissions standards for motor vehicles. View "Delta Constr. Co. v. Envtl. Prot. Agency" on Justia Law

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Illinois requires that motor carriers of property, conducting intrastate operations, obtain a license from the Illinois Commerce Commission, which requires appropriate insurance or surety coverage. A carrier complies by submitting proof of insurance or bond coverage and is then issued a public carrier certificate, stating that the holder “certifies to the Commission that it will perform transportation activities only with the lawful amount of liability insurance in accordance with 92 Ill. Admin. Code 1425.” Drivers must have a copy of the license with them at all times. It is a Class C misdemeanor offense for an operator not to produce proof of registration upon request. Three carriers were cited by the ICC police for conducting regulated activity without a license. During a follow-up investigation, the carriers refused to comply, reasoning that documents sought by the ICC would reveal their rates, routes, and services, so the requirement was preempted by the Federal Aviation Administration Authorization Act, 49 U.S.C. 14501(c). The ICC rejected the argument. The Seventh Circuit affirmed summary judgment in favor of the ICC, concluding that the document requests had no significant economic impact on rates, routes or services and, alternatively, that efforts to enforce the licensing requirement are exempted from preemption. View "Nationwide Freight Sys., Inc. v. Ill. Commerce Comm'n" on Justia Law

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Plaintiff, a towing company, filed a complaint and requested a declaratory judgment, a temporary restraining order, and both a preliminary and permanent injunction against the State and other governmental entities, alleging that two towing statutes enacted by the General Assembly in 2012 - Md. Code Ann., Transp. 21-10A-04(a)(3) and (a)(7) - are arbitrary, oppressive, and unreasonable, as well as unconstitutional. The trial judge granted Plaintiff’s requests for declaratory and injunctive relief. The State appealed, and the Court of Special Appeals certified to the Supreme Court three questions of law. The Court of Appeals answered the first question in the negative, thereby eliminating the need to address the remaining questions, holding that there was not a justiciable controversy where Plaintiff had not been prosecuted under the statutes, nor did Plaintiff allege or prove that there was a credible threat of prosecution for the acts proscribed by the statutes. Remanded with instructions to dismiss. View "State v. G & C Gulf" on Justia Law

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Plaintiff submitted an application to the Department of Transportation (Department) for authority to operate two motor vehicles in a new intrastate livery service. The Department denied Plaintiff’s application, finding that Plaintiff failed to satisfy his burden of proving the statutory requirement that his livery service would improve present or future “public convenience and necessity.” The trial court affirmed the Department’s decision. The Supreme Court reversed the dismissal of Plaintiff’s appeal from the Department’s denial of his permit application, holding that the Department improperly interpreted the “public convenience and necessity” provision of Conn. Gen. Stat. 13b-103(a). Remanded for a new hearing. View "Martorelli v. Dep’t of Transp." on Justia Law