Justia Transportation Law Opinion Summaries

Articles Posted in Government & Administrative Law
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The case concerns injuries suffered by two individuals, one in New York and one in Pennsylvania, each struck by buses operated by New Jersey Transit Corporation (NJ Transit), a public transportation entity created by the New Jersey Legislature. NJ Transit operates as a “body corporate and politic” with significant powers such as suing and being sued, entering contracts, and raising funds. Its founding statute specifies that debts or liabilities of NJ Transit are not debts of the State of New Jersey, and all expenses must be paid from NJ Transit’s own funds. The State retains substantial control over NJ Transit through board appointments and removal powers, veto authority, and some legislative oversight, but the statute also stresses NJ Transit’s operational independence.After the incidents, the injured parties filed negligence lawsuits against NJ Transit in their home state courts. NJ Transit moved to dismiss both suits, arguing it was an arm of New Jersey and thus entitled to sovereign immunity. The Court of Appeals of New York concluded that NJ Transit is not an arm of New Jersey, allowing the New York suit to proceed. Conversely, the Supreme Court of Pennsylvania found that NJ Transit is an arm of New Jersey and dismissed the Pennsylvania suit.The Supreme Court of the United States reviewed both cases to resolve the conflict. It held that NJ Transit is not an arm of the State of New Jersey and therefore does not share in New Jersey’s interstate sovereign immunity. The Court emphasized that NJ Transit’s status as a legally separate corporation, responsible for its own debts and judgments, and the absence of formal state liability for its obligations, are decisive. The Court affirmed the New York decision, reversed the Pennsylvania decision, and remanded both cases for further proceedings. View "Galette v. New Jersey Transit Corp." on Justia Law

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A commercial air tour operator, who had previously conducted flights over Bandelier National Monument under interim authority, challenged a final order issued by the Federal Aviation Administration and the National Park Service. This order established an Air Tour Management Plan (ATMP) for Bandelier National Monument, prohibiting all commercial air tours over the site. The agencies’ process included public comment, environmental assessment, and extensive consultation with Native American tribes, who strongly objected to air tours due to cultural and privacy concerns. The operator argued that his flights were minimally intrusive, carefully routed, and brief, and that banning them would negatively impact safety and his business.The agencies initially considered various alternatives, including allowing limited air tours or maintaining previous operations, but ultimately concluded that any commercial air tour flights would create unacceptable impacts to Bandelier’s natural and cultural resources and visitor experience. The agencies’ environmental assessment under the National Environmental Policy Act (NEPA) found no significant impacts for NEPA purposes, but their record of decision emphasized significant adverse impacts to tribal cultural resources under the National Parks Air Tour Management Act (NPATMA).Upon petition for review, the United States Court of Appeals for the Tenth Circuit reviewed the agency action under the Administrative Procedure Act’s “arbitrary and capricious” standard and de novo for statutory interpretation, as required by recent Supreme Court precedent. The court held that NPATMA and NEPA use different significance standards, and that the agency’s path to finding significant adverse impacts under NPATMA was reasonably discernible in the record. The court also rejected the petitioner’s additional statutory and constitutional challenges, finding them either unexhausted or inadequately briefed. The Tenth Circuit denied the petition for review. View "Adams v. FAA" on Justia Law

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A pilot employed by a cargo airline was on a personal trip abroad when his employer, Amerijet International, selected him for a random drug test and requested that he appear for testing in Seattle on the same day. The pilot was unable to comply due to his location and a medical issue. The airline determined that he had refused the test, reported this to the Federal Aviation Administration (FAA), and subsequently terminated his employment. The FAA corresponded with the pilot, initially investigating the matter and ultimately informing him that, while it was not taking enforcement action against his certificates, he would be subject to return-to-duty requirements because of the refusal determination, and the test refusal would be reported to the Pilot Records Database.The pilot challenged these consequences, arguing that the FAA had not independently reviewed the employer’s determination that he refused the test. The FAA responded that test-refusal determinations were made solely by the employer, not by the agency, and that the FAA did not review such determinations. The case came before the United States Court of Appeals for the District of Columbia Circuit on the pilot’s petition for review of the FAA’s actions.The Court of Appeals held that the FAA’s internal guidance, specifically its Drug and Alcohol Compliance and Enforcement Surveillance Handbook, plausibly requires the FAA to independently review an employer’s test-refusal determination. The court interpreted the Handbook to require such review, partly to avoid serious constitutional concerns that would arise if the FAA entirely delegated this authority to private employers without oversight. Because the FAA conceded that it did not conduct any review, the court found the agency’s actions to be arbitrary and capricious for departing from its own procedures. The court granted the petition in part, remanding the case to the FAA for further review consistent with its opinion. View "Paul v. FAA" on Justia Law

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This case concerns the Transportation Security Administration’s issuance of an emergency amendment that required certain airport operators to incorporate specific cybersecurity measures and controls into their airport security programs. The amendment, issued in March 2023, responded to increasing cyber threats to the aviation sector, including ransomware and foreign cyberattacks. Under the amendment, airports were required to identify critical systems, submit a cybersecurity implementation plan, and assess their effectiveness annually. The Spokane Airport Board, which operates Spokane International Airport, objected to the amendment on both procedural and substantive grounds.After the amendment was issued, the Spokane Airport Board petitioned the TSA for reconsideration, raising various objections. The TSA denied these petitions, upholding the emergency amendment. Spokane then filed a timely petition for review with the United States Court of Appeals for the District of Columbia Circuit, as provided by statute.The United States Court of Appeals for the District of Columbia Circuit reviewed the TSA’s order under the standards of the Administrative Procedure Act, specifically considering whether it was arbitrary, capricious, or contrary to law. The court held that it lacked jurisdiction to review arguments not properly raised before the TSA, as required by statute. The court found that the objections Spokane did properly exhaust were meritless. It concluded that the TSA possesses broad statutory authority to regulate aviation security—including cybersecurity—in response to threats. The court also found that the emergency amendment was consistent with TSA regulations and was not arbitrary or capricious. Accordingly, the court denied Spokane’s petition for review, leaving the TSA’s emergency cybersecurity amendment in effect. View "Spokane Airport Board v. TSA" on Justia Law

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Parker Noland operated a construction debris removal business in Flathead County, Montana, but was ordered by the Montana Public Service Commission to cease operations due to lacking a required Class D motor carrier certificate. Noland formed PBN LLC and applied for the certificate, but withdrew his application after finding the administrative process—including requests for sensitive financial information by competitors—too burdensome. He then limited his business to activities not requiring the certificate. Subsequently, Noland filed suit in the Eleventh Judicial District Court of Flathead County, seeking a declaratory judgment that two provisions of the Montana Motor Carrier law, known as the public convenience and necessity (PCN) provisions, were unconstitutional under both the Montana and United States Constitutions.The District Court granted summary judgment in favor of the State of Montana and Evergreen Disposal, Inc., which had intervened. The court held that Noland lacked standing to bring an as-applied constitutional challenge, reasoning he sought to vindicate only a future injury and had not shown how the statutes would be unconstitutionally applied to him. However, the court found Noland had standing to bring a facial challenge, but ruled against him, concluding the provisions were not facially unconstitutional because some applicants had previously received Class D certificates.On appeal, the Supreme Court of the State of Montana reviewed the District Court’s rulings de novo. The Montana Supreme Court affirmed the District Court’s decision that Noland lacked standing for an as-applied challenge, holding that he failed to demonstrate a concrete injury or how the statutes were applied to him. The Court reversed the District Court’s denial of Noland’s facial challenge, holding that he had standing to challenge the statute’s constitutionality on its face, since the procedural requirements themselves could constitute injury regardless of outcome. The case was remanded for further consideration of the facial constitutional challenges. View "Noland v. State" on Justia Law

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Ronald B. Panting, an independent contractor serving as a Designated Pilot Examiner (DPE) for the FAA, was conducting a pilot certification checkride for Michael Trubilla in a plane rented from the LeMay Aero Club, a government-affiliated organization. Both men died when the plane crashed during the checkride. Five days prior to the accident, Ronald signed a covenant not to sue the government for injuries sustained while participating in Aero Club activities, applicable to himself and his estate. His spouse, Lynne D. Panting, sued the United States under the Federal Tort Claims Act, alleging negligent maintenance of the aircraft.The United States District Court for the District of Nebraska denied the government’s motion for summary judgment, ruling the covenant not to sue was void as against public policy under Nebraska law. The court did not address Lynne’s alternative argument that the covenant did not apply to Ronald’s activities as a DPE on the day of the crash. Following a bench trial, the district court found the government negligent and entered judgment for Lynne, awarding damages. The government appealed, challenging the district court’s decision regarding the covenant’s validity.The United States Court of Appeals for the Eighth Circuit held that it had jurisdiction to review the denial of summary judgment because the enforceability of the covenant was a purely legal issue. Applying Nebraska law, the appellate court determined the covenant was neither clearly repugnant to public policy nor the product of disparate bargaining power, and that the Aero Club did not provide a public or essential service. The Eighth Circuit reversed the district court’s judgment and remanded for consideration of whether the covenant covered Ronald’s activities as a DPE, and for further proceedings as appropriate. View "Panting v. United States" on Justia Law

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Pedro Castaneda died in a traffic accident at an intersection on State Highway 249 that was under construction. At the time, the intersection’s traffic lights were installed but not yet operational, and there was a dispute about whether they were properly covered to indicate their status. Castaneda’s family sued the contractors involved in the project, SpawGlass Civil Construction, Inc. and Third Coast Services, LLC, alleging that negligence in the construction and installation of the traffic signals contributed to the fatal accident. The construction project was governed by an agreement between the Texas Department of Transportation (TxDOT) and Montgomery County, with the County responsible for the project’s design and construction, but with TxDOT retaining authority over the adjacent frontage roads and final approval of plans.The trial court denied the contractors’ motions for summary judgment that sought dismissal under Texas Civil Practice and Remedies Code Section 97.002, which grants immunity to contractors under certain conditions. The contractors appealed. The Fourteenth Court of Appeals affirmed, concluding that Section 97.002 applies only to contractors who are in direct contractual privity with TxDOT, and since neither contractor had a direct contract with TxDOT, they could not invoke the statute’s protection.The Supreme Court of Texas reversed the court of appeals. It held that Section 97.002 does not require direct contractual privity with TxDOT for a contractor to qualify for statutory immunity. The court determined that, based on the summary judgment record, SpawGlass and Third Coast performed work "for" TxDOT within the meaning of the statute, as their activities directly related to frontage roads that TxDOT would own and maintain. The court remanded the case to the court of appeals to determine whether the contractors met the remaining requirements of Section 97.002. View "THIRD COAST SERVICES, LLC v. CASTANEDA" on Justia Law

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A commuter airline that had provided federally subsidized air service to a small community in West Virginia for several years sought to continue serving that community under the Essential Air Service (EAS) program. In 2024, the U.S. Department of Transportation (DOT) solicited bids for a new three-year EAS contract. Four airlines, including the incumbent, submitted proposals. The DOT evaluated the applications based on five statutory factors: reliability, agreements with larger carriers, community preferences, marketing plans, and total compensation requested. After reviewing the proposals and soliciting input from the local community, which favored a different airline, the DOT selected a new carrier that offered larger aircraft, a codeshare agreement with a major airline, and a subsidy request within the competitive range.The incumbent airline challenged the DOT’s selection in the United States Court of Appeals for the District of Columbia Circuit, arguing that the agency’s decision was arbitrary and capricious, unsupported by substantial evidence, and exceeded its statutory authority. The petitioner contended that the DOT failed to meaningfully analyze the statutory factors and improperly chose a more expensive proposal.The United States Court of Appeals for the District of Columbia Circuit held that it had jurisdiction to review the DOT’s order under 49 U.S.C. § 46110(a). On the merits, the court found that the DOT’s findings regarding each statutory factor were supported by substantial evidence and that the agency’s reasoning was adequately explained. The court concluded that the DOT’s selection process was reasonable, not arbitrary or capricious, and that the agency did not exceed its statutory authority. Accordingly, the court denied the petition for review and upheld the DOT’s selection of the new EAS carrier. View "Southern Airways Express, LLC v. DOT" on Justia Law

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A fatal traffic accident occurred when a tractor trailer, driven by Andre Hill, ran a stop sign and collided with a vehicle driven by Olivia Mendoza, resulting in her death. Prior to the accident, Hill had picked up produce from Irigoyen Farms for delivery to a Walmart distribution center. The transportation of the produce involved several intermediaries: Irigoyen Farms contracted with a freight broker, who in turn contracted with other logistics companies, ultimately resulting in Hill being hired as an independent contractor by the motor carrier. Law enforcement determined that Hill’s extreme fatigue contributed to the crash.The decedent’s mother, Christina Casarez, filed suit in the Superior Court of Fresno County against Irigoyen Farms and Walmart, alleging motor vehicle negligence, general negligence, and wrongful death. She claimed that both defendants were directly negligent in their roles: Walmart for imposing contractual requirements that allegedly incentivized unsafe conduct, and Irigoyen Farms for loading the truck and sending Hill on his way despite knowledge of his fatigue. Both defendants moved for summary judgment, arguing that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) preempted Casarez’s claims. The superior court agreed, granting summary judgment in favor of both defendants.On appeal, the California Court of Appeal, Fifth Appellate District, reviewed the superior court’s decision de novo. The appellate court held that the FAAAA expressly preempts state law negligence claims against parties whose actions relate to the price, route, or service of a motor carrier with respect to the transportation of property, regardless of whether the party is a motor carrier, broker, or shipper. The court further held that the FAAAA’s safety exception did not apply because the claims did not directly concern the safety of the motor vehicle itself. The appellate court affirmed the superior court’s judgments in favor of Irigoyen Farms and Walmart. View "Casarez v. Irigoyen Farms" on Justia Law

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Yazam, Inc., operating as Empower, is a private vehicle-for-hire company that provides a digital app connecting drivers with passengers. Unlike other rideshare platforms, Empower sells monthly subscriptions to drivers, who then set their own fares and retain the full payment from riders. The District of Columbia Department of For-Hire Vehicles (DFHV) ordered Empower to cease operations in the District for failing to register as required by law. Empower requested an expedited hearing before the District of Columbia Office of Administrative Hearings (OAH), which upheld the cease-and-desist order.Previously, DFHV had issued a similar order in 2020, which OAH upheld, but the District of Columbia Court of Appeals reversed, finding insufficient proof of immediate and irreparable harm to the public from Empower’s nonregistration. After that decision, DFHV issued a compliance order requiring Empower to register and provide documentation. When Empower did not respond, DFHV issued another cease-and-desist order, citing specific registration statutes and regulations. OAH found that Empower’s failure to register, along with other statutory violations, posed a substantial risk of immediate and irreparable harm, particularly through the impoundment of vehicles belonging to Empower drivers who were unaware of the risks.The District of Columbia Court of Appeals reviewed the OAH decision, applying a standard that requires affirmance if OAH made findings of fact on each contested issue, those findings are supported by substantial evidence, and the conclusions flow rationally from the findings. The court held that OAH properly upheld the cease-and-desist order based on the immediate and irreparable harm caused by Empower’s nonregistration, specifically the risk of vehicle impoundments. The court also rejected Empower’s due process arguments regarding discovery, hearing scheduling, and the telephonic nature of the hearing, finding no abuse of discretion or reversible error. The order of OAH was affirmed. View "Yazam, Inc. d/b/a Empower v. D.C. Department of For-Hire Vehicles" on Justia Law