Justia Transportation Law Opinion SummariesArticles Posted in California Courts of Appeal
Betancourt v. Transportation Brokerage Specialists, Inc.
Plaintiff worked as a delivery driver for TBS, a “last-mile” delivery company whose primary client was Amazon.com. At the start of his employment, he signed an At-Will Employment, Non-Disclosure, Non-Solicitation, Class-Action Waiver and Arbitration Agreement. Plaintiff filed suit asserting violations of the Labor Code, California’s Unfair Competition Law, and the Private Attorneys General Act, unlawful retaliation, and wrongful termination. The trial court denied TBS’s motion to compel the plaintiff to arbitrate his individual claims and to dismiss his class claims. The court found that the plaintiff was exempt from Federal Arbitration Act (9 U.S.C. 1, FAA) coverage because he was a transportation worker engaged in interstate commerce and that the class action waiver was unenforceable, rendering the arbitration agreement unenforceable.The court of appeal affirmed that the plaintiff is exempt from FAA coverage and that the class action waiver is unenforceable under California law. The court reversed the order denying the motion to compel arbitration of the plaintiff’s individual claims; the trial court improperly found the arbitration agreement unenforceable in its entirety rather than severing the class action waiver provision from the remainder of the employment agreement and considering the validity of the arbitration provision with respect to the individual claims for unlawful retaliation and wrongful termination. View "Betancourt v. Transportation Brokerage Specialists, Inc." on Justia Law
Ali v. Daylight Transport, LLC
Daylight, an expedited less-than-truckload carrier, contracts with independent truck drivers. Daylight’s California drivers only provided services within California. The plaintiffs each entered into an “Independent Contractor Service Agreement” before beginning to drive for Daylight and regularly signed materially identical contract extensions while driving for Daylight. All of those Agreements contained an identical arbitration provision. The plaintiffs filed a putative class action, requesting relief from Daylight’s “unlawful misclassification of former and current Daylight delivery drivers as ‘Independent Contractors,’ ” and alleging violations of Labor Code and wage order provisions, and the law against unfair competition.The court of appeal affirmed the denial of Daylight’s motion to compel arbitration, applying California law and finding the agreement procedurally and substantively unconscionable, and that severance of the unconscionable terms is not possible. Daylight was in a superior bargaining position and presented the contracts on a take it or leave it basis. The Agreement’s 120-day limitations period is substantially shorter than the statutory limits. The Agreement permits Daylight to seek a provisional judicial remedy but precludes plaintiffs from equivalent access and requires that the parties split the cost of arbitration, a cost greater than litigation filing fees. Because Daylight had waived its argument, the court did not address preemption under the Federal Arbitration Act, which“provides a limited exemption from FAA coverage to contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce (9 U.S.C. 1). View "Ali v. Daylight Transport, LLC" on Justia Law
Menges v. Dept. of Transportation
Kevyn Menges suffered catastrophic injuries in a motor vehicle accident. Menges, through her guardian ad litem Susan Menges, sued the Department of Transportation (Caltrans) for its negligent construction of an interstate off-ramp. Caltrans moved for summary judgment, asserting design immunity. The trial court granted Caltrans’s motion for summary judgment. On appeal, Menges argued: (1) design immunity should not have applied since the approved plans were unreasonable, and the construction of the interstate off-ramp did not match the previously approved design plans; (2) the trial court erred in denying her oral request for a continuance at the summary judgment hearing; and (3) Caltrans’s Code of Civil Procedure section 998 offer was unreasonable and invalid, and a portion of the cost award for expert witness fees should have been disallowed. The Court of Appeal determined none of Menges’s arguments had merit, and affirmed the judgment. View "Menges v. Dept. of Transportation" on Justia Law
People v. Superior Court (Cal Cartage Transportation Express, LLC)
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
Uber Technologies Pricing Cases
Taxi companies and taxi medallion owners sued Uber, alleging violations of the Unfair Practices Act’s (UPA) prohibition against below-cost sales (Bus & Prof. Code, 17043) and of the Unfair Competition Law (section 17200). The UPA makes it unlawful “for any person engaged in business within this State to sell any article or product at less than the cost thereof to such vendor, or to give away any article or product, for the purpose of injuring competitors or destroying competition” but does not apply “[t]o any service, article or product for which rates are established under the jurisdiction of the [California] Public Utilities Commission [(CPUC)] . . . and sold or furnished by any public utility corporation.” Uber is a “public utility corporation” under section 17024 and is subject to CPUC’s jurisdiction. CPUC has conducted extensive regulatory proceedings in connection with Uber’s business but has not yet established the rates for any Uber service or product.The trial court ruled the exemption applies when the CPUC has jurisdiction to set rates, regardless of whether it has yet done so, and dismissed the case. The court of appeal affirmed, reaching “the same conclusion as to the applicability of section 17024(1) as have three California federal district courts, two within the last year, in cases alleging identical UPA claims against Uber.” View "Uber Technologies Pricing Cases" on Justia Law
Soto v. Union Pacific Railroad Co.
Irma Yolanda Munoz Soto sued Union Pacific Railroad Company and two of its employees, Scott King and Robert Finch (collectively, Union Pacific), for wrongful death (premises liability and general negligence) after Soto’s 16-year-old daughter was struck and killed by a freight train on an at-grade railroad crossing in Santa Clarita. The court granted Union Pacific’s motion for summary judgment, concluding as to Soto’s premises liability claim Union Pacific had no duty to remedy a dangerous condition because it did not own or control the railroad crossing. As to Soto’s negligence claim, the court ruled Soto could not establish that Union Pacific employees had negligently operated the train. On appeal, Soto argued she raised triable issues of material fact sufficient to defeat summary judgment. After review, of the evidence and governing law applicable to Soto’s claim, the Court of Appeal concurred there were no triable issues of fact, and summary judgment was appropriate. View "Soto v. Union Pacific Railroad Co." on Justia Law
SF Urban Forest Coalition v. City and County of San Francisco
The 1986 Bay Area County Traffic and Transportation Funding Act (Pub. Util. Code 131000) established a framework for counties and cities within the nine-county San Francisco Bay area to collectively develop and implement traffic and transportation projects and authorized the voters in those counties to create a county transportation authority to implement a retail transactions and use tax for funding a local transportation plan. San Francisco voters approved the creation of the San Francisco County Transportation Authority (SFCTA). Urban submitted public records requests to the SFCTA under the California Public Records Act (Gov. Code 6250) and the Sunshine Ordinance. SFCTA claimed it was not subject to the Sunshine Ordinance. Urban filed suit. After the parties resolved the outstanding records request issue, the trial court concluded the request for declaratory relief was not moot “due to the SFCTA’s position that it is not subject to the Sunshine Ordinance, which is sufficient to establish an actual controversy” then concluded the SFCTA is a state agency, exempt from the Ordinance. The court of appeal affirmed. Local public agencies are distinct from the cities and counties they serve. While the SFCTA may be classified as a local agency based on the scope of its functions, it remains an agency of the state. The Sunshine Ordinance indicates that it is limited to city agencies. View "SF Urban Forest Coalition v. City and County of San Francisco" on Justia Law
Cheema v. L.S. Trucking, Inc.
LS, a trucking company, also operates as a broker of construction trucking services. Under a 2009 oral agreement between LS and Cheema, Cheema purchased a Super Dump Truck, with the understanding that LS would purchase the truck’s detachable box from Cheema. As the box owner, LS would give priority to Cheema in dispatching assignments to Cheema as a subhauler. The parties entered a written “Subhauler and Trailer Rental Agreement” under which Cheema would submit to LS completed freight bills for all hauling that he performed for LS; LS would prepare statements showing the amount billed payable to Cheema, less a 7.5 percent brokerage fee and, if the work was performed with a box owned by LS, a 17.5 percent rental fee. Cheema began providing hauling services. Cheema claimed that because LS failed to pay him the $32,835.09 purchase price of the box, it remained his, and LS was not entitled to deduct rental fees from the payments due him. In June 2010, LS began paying Cheema $1,000 a month for nine months, noting on the checks that the payments were repayment of a “loan.” Cheema recovered damages from L.S. for having been underpaid and untimely payments. The court of appeal affirmed but remanded for calculation of prejudgment interest and penalty interest (Civil Code 3287, 3322.1), rejecting LS’s argument that the parties’ oral agreement for Cheema to sell it the box, justifying its deductions for rental, was enforceable. View "Cheema v. L.S. Trucking, Inc." on Justia Law
Churchman v. Bay Area Rapid Transit District
Churchman alleged she bought a train ticket at a station operated by the Bay Area Rapid Transit District, passed through turnstiles, and went to the boarding platform. She claims she was confused by the “opening and closing of doors on opposite side [sic] of the cars,” partially inaudible and confusing instructions broadcast over the public address system, and “abrupt turns and moves” by other passengers. Churchman lost her balance and fall. Churchman sued the District for violating its duty of care as a common carrier (Civ. Code, 2100). The District successfully argued it has no common law negligence liability and its liability as a common carrier applies only to passengers in transit, i.e., aboard the BART train. The court of appeal affirmed the dismissal. Civil Code section 2100, which imposes on common carriers a duty to “use the utmost care and diligence for [passengers’] safe carriage,” does not apply to minor, commonplace hazards in a train station. Because the District is a public agency, it is not liable for personal injuries in the absence of a statute providing for liability (Gov. Code, 815), so there is no statutory basis for liability. View "Churchman v. Bay Area Rapid Transit District" on Justia Law
City and County of San Francisco v. Uber Technologies, Inc.
Uber is a “transportation networking company” (TNC) regulated by the California Public Utility Commission (CPUC). All TNCs must submit annual reports to the CPUC, containing specified data, and file an annual accessibility plan. After receiving numerous complaints from the San Francisco Municipal Transportation Agency regarding illegal parking, traffic congestion, and safety hazards caused by TNC vehicles, the city attorney opened an investigation into possible violations of state and municipal law by TNCs, including Uber. The city attorney issued the administrative subpoenas to Uber, including a request for: Annual Reports filed by Uber with CPUC, 2013-2017 and all of the raw data supporting those reports on providing accessible vehicles, driver violations/suspensions, number of drivers completing training courses, updates on accessibility plans, report on hours/miles logged by drivers, and providing service by zip code. Uber refused to comply, arguing that the CPUC had primary jurisdiction. The court of appeal affirmed a trial court order that Uber produce the reports. It was within the city attorney’s investigative powers to issue the administrative subpoenas. Public Utilities Code section 1759 did not deprive the trial court of jurisdiction and the primary jurisdiction doctrine did not apply to postpone enforcement of the administrative subpoenas. View "City and County of San Francisco v. Uber Technologies, Inc." on Justia Law