Justia Transportation Law Opinion Summaries

Two pilots, Luis F. Bonnet and Carlos R. Benítez Maldonado, were employed by Benítez Aviation, Inc. (BAI), which managed a Cessna aircraft. In April and May 2019, Bonnet and Benítez piloted several flights without the required certificates for commercial operations. The FAA suspended their Airline Transport Pilot (ATP) certificates for 270 days, alleging they operated the flights as air carriers or commercial operators without proper certification. The pilots received their regular salaries but no additional compensation for these flights.The FAA issued a Notice of Proposed Certificate Action, which the pilots appealed to the National Transportation Safety Board (NTSB). An administrative law judge (ALJ) upheld the FAA's suspension order, finding that the flights were conducted for compensation and hire, thus requiring compliance with Part 135 regulations. The NTSB affirmed the ALJ's decision, concluding that the flights were subject to air carrier or commercial operator requirements and that the pilots violated multiple FAA regulations. The NTSB also found that the ALJ did not exhibit bias and that the 270-day suspension was appropriate.The United States Court of Appeals for the First Circuit reviewed the case. The court held that substantial evidence supported the NTSB's findings that the flights were operated as common carriers for compensation, thus requiring Part 135 certification. The court also found that the pilots were responsible for ensuring compliance with FAA regulations, regardless of BAI's role in booking the flights. The court upheld the NTSB's decision, including the 270-day suspension of the pilots' certificates, finding it justified based on the pilots' regulatory violations and the potential risk to passenger safety. The petition for review was denied. View "Bonnet v. Whitaker" on Justia Law

Mendocino Railway, a California corporation, owns and operates a railroad line known as the "Skunk Train" between Fort Bragg and Willits, California. The City of Fort Bragg and the California Coastal Commission sought to regulate the use and maintenance of the Railway's properties within the City, which the Railway resisted, claiming federal preemption under the Interstate Commerce Commission Termination Act (ICCTA). The City filed a state court action seeking declaratory and injunctive relief to compel the Railway to comply with local regulations. The Railway argued that federal law preempted these local regulations. Subsequently, the Railway filed a federal lawsuit seeking a declaration that the City's and Commission's regulatory actions were preempted by federal law and an injunction to prevent interference with its operations.The Mendocino County Superior Court overruled the Railway's demurrer, which argued that federal law preempted all local regulations. The Railway's subsequent petitions to the California Court of Appeal and the California Supreme Court were unsuccessful. The Railway then filed an answer in the state court, asserting federal preemption as an affirmative defense. Meanwhile, the Commission intervened in the state court action, seeking a declaration that the Coastal Act and local coastal program applied to the Railway's activities and were not preempted by federal law. The Railway also attempted to remove the state action to federal court, but the district court remanded it back to state court.The United States Court of Appeals for the Ninth Circuit reviewed the district court's dismissal of the Railway's federal lawsuit under the Colorado River doctrine, which allows federal courts to abstain from exercising jurisdiction in favor of parallel state court proceedings. The Ninth Circuit affirmed the district court's dismissal, finding that the state court proceedings were sufficiently parallel to the federal action and that considerations of avoiding piecemeal litigation, forum shopping, and the order in which the forums obtained jurisdiction supported the dismissal. The court held that the state court could adequately protect the Railway's rights and that the federal preemption issue could be resolved in the state court proceedings. View "MENDOCINO RAILWAY V. AINSWORTH" on Justia Law

Union Pacific Railroad Company and the Association of American Railroads challenged the Surface Transportation Board's (Board) adoption of the Final Offer Rate Review (FORR) procedure for determining the reasonableness of rail carrier rates in smaller cases. Under FORR, the Board selects either the shipper’s or the rail carrier’s final offer without modification. The petitioners argued that the Board lacked statutory authority to implement FORR, that FORR was unconstitutionally vague, and that it was arbitrary and capricious.The Board is tasked with resolving rate disputes between rail carriers and shippers when rates are not set by private contract. The Board must hold a "full hearing" and give due consideration to specific statutory factors before determining the reasonableness of a rate. The Board adopted FORR to streamline the process for smaller disputes, allowing it to choose between the final offers submitted by the parties.The United States Court of Appeals for the Eighth Circuit reviewed whether the Board had statutory authority to implement FORR. The court concluded that FORR conflicted with the Board’s statutory duties. The court held that the Board must hold a "full hearing" and that the shipper must bear the burden of proof on the final offer, which FORR did not require. Additionally, the court found that FORR improperly limited the Board’s ability to prescribe the maximum rate, as required by statute, by forcing the Board to choose between the parties' final offers without modification.The Eighth Circuit granted the petitions for review and vacated the final rule, holding that the Board lacked statutory authority to implement FORR. View "Union Pacific Railroad Co. v. STB" on Justia Law

The Department of Transportation (DOT) issued a Rule on April 30, 2024, requiring airlines to disclose ancillary service fees, such as baggage and change fees, during the booking process. The Rule aims to protect consumers from surprise charges and is expected to provide significant societal and consumer benefits. The Rule took effect on July 1, 2024, with compliance deadlines for airlines and third-party ticket agents set for later dates. Various airlines and airline associations challenged the Rule, arguing it exceeds DOT’s authority, is arbitrary and capricious, and bypassed the required notice and comment process.The airlines and associations first sought a stay from the DOT, which was denied. They then petitioned the United States Court of Appeals for the Fifth Circuit for a stay pending review. The petitioners argued that the Rule exceeds DOT’s statutory authority under 49 U.S.C. § 41712(a), which allows the DOT Secretary to investigate and adjudicate unfair or deceptive practices but does not authorize the creation of detailed legislative rules. The petitioners also claimed that the Rule imposes significant compliance costs that would cause irreparable harm.The United States Court of Appeals for the Fifth Circuit granted the stay, finding that the petitioners made a strong showing that the Rule likely exceeds DOT’s authority. The court noted that the Rule mandates specific disclosure practices without the adjudicatory process required by the statute. The court also found that the petitioners would suffer irreparable harm due to the nonrecoverable compliance costs. The court concluded that there is no public interest in perpetuating unlawful agency action and expedited the petition for review to the next available oral argument panel. View "Airlines for America v. Department of Transportation" on Justia Law

The case involves the Western Coal Traffic League (the League), a coalition of coal shippers, petitioning for a writ of mandamus to compel the Surface Transportation Board (the Board) to take action on a proceeding related to the concept of "revenue adequacy" in freight rail shipping rates. The Board had opened an informational docket in April 2014 to gather public comments on how it calculates and applies revenue adequacy in rate cases. Over the next six years, the Board collected information through written comments and public hearings but had not issued a decision since February 2020. The League participated in the hearings and submitted comments advocating for changes to the Board's framework.The League filed a petition for a writ of mandamus in May 2023, arguing that the Board's delay in responding to the comments was unreasonable and requesting the court to compel the Board to publish a notice of proposed rulemaking or issue a final decision within 90 days. The League relied on the Administrative Procedure Act (APA) to argue that the Board's inaction was a clear violation of its duty to act promptly.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court noted that mandamus is an extraordinary remedy reserved for clear violations of a duty to act. The court found that it lacked jurisdiction to issue the writ because the Board's management of the Revenue Adequacy docket did not constitute a "final order" subject to judicial review under the Hobbs Act. The Board had convened the proceeding solely to gather public comments without any statutory duty or plans to undertake a rulemaking or specific regulatory action. Consequently, the court dismissed the League's petition for mandamus for lack of jurisdiction. View "In re: Western Coal Traffic League" on Justia Law

The plaintiffs, five Muslim U.S. citizens, allege they have been placed on the Terrorist Screening Dataset, commonly known as the "terrorist watchlist." This list includes the No-Fly List, which prevents individuals from boarding flights, and the Selectee List, which subjects individuals to enhanced security screening. Four plaintiffs claim they are on the Selectee List due to repeated enhanced screenings, while one plaintiff, Adis Kovac, claims he is on both the No-Fly List and the Selectee List. Each plaintiff sought redress through the Department of Homeland Security’s Traveler Redress Inquiry Program (TRIP), but only Kovac received confirmation of his No-Fly List status.The plaintiffs filed a lawsuit in the U.S. District Court for the Northern District of Texas against various federal agency heads, alleging violations of their constitutional rights and unlawful agency action under the Administrative Procedure Act (APA). The district court dismissed several claims, including due process and equal protection claims, and later dismissed Kovac’s No-Fly List claims as moot after he was removed from the list. The remaining APA claims were addressed at summary judgment, where the district court ruled that the agencies had statutory authority to maintain the watchlist and that the TRIP procedures were not arbitrary and capricious.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. The court affirmed the district court’s decision, holding that the relevant federal agencies have clear statutory authority to create, maintain, and use the watchlist for screening airline passengers. The court found that the statutory framework, including the Aviation and Transportation Security Act, the Homeland Security Act, and subsequent legislation, provided unambiguous authority for the watchlist. The court did not address whether the major questions doctrine applied, as the statutory authority was clear. The court also concluded that the plaintiffs lacked standing to challenge the watchlist’s use in contexts unrelated to airport security. View "Kovac v. Wray" on Justia Law

The case involves Trenton Palmer, an experienced private pilot, who was charged by the Federal Aviation Administration (FAA) for flying his plane at an altitude of less than 100 feet above ground level and within 500 feet of people, a house, and other structures. The FAA claimed that Palmer violated a regulation establishing minimum safe altitudes. An administrative law judge (ALJ) found Palmer guilty of the violation, and the National Transportation Safety Board (NTSB) affirmed the decision. Palmer appealed, arguing that the ALJ committed multiple prejudicial errors and that the complaint against him should have been dismissed.Previously, the ALJ had denied Palmer's motion to dismiss the FAA’s complaint on the ground that the complaint failed to give fair notice of the charges. The ALJ found that Palmer violated Sections 91.119(a), (c), and 91.13(a) of the FAA regulations. The ALJ mitigated Palmer’s suspension from 120 days to 60 days. Palmer appealed the ALJ’s decision to the Board and the FAA cross-appealed the ALJ’s mitigation of Palmer’s suspension. On de novo review, the Board affirmed the ALJ’s order and reversed the ALJ’s mitigation of the Administrator’s sanction because the Administrator’s selected sanction was supported by a reasonable explanation and there were no mitigating circumstances.The United States Court of Appeals for the District of Columbia Circuit upheld the decision from the NTSB. The court found that Palmer's arguments on appeal as to the Section 91.119 violations turn on whether he proved his defense that the low flight was necessary for takeoff or landing. The court rejected Palmer's claim of inadequate notice as legally unsupported and facially implausible. The court also found no error in the ALJ’s reliance on expert witness testimony and the Board’s subsequent affirmance. The court denied Palmer’s petition for review. View "Palmer v. FAA" on Justia Law

The case involves MCR Oil Tools, L.L.C., who filed a petition for review against the United States Department of Transportation, its Secretary Pete Buttigieg, the Pipeline and Hazardous Materials Safety Administration, and William S. Schoonover in his official capacity as Associate Administrator of Hazardous Materials Safety. The petition was filed in response to an order from the Department of Transportation.The case was brought before the United States Court of Appeals for the Fifth Circuit. Prior to this, the case had been reviewed by the Department of Transportation, but the details of the lower court's proceedings and decisions are not provided in the document.The United States Court of Appeals for the Fifth Circuit granted the petition for review. The court decided to expedite the matter to the next available randomly designated regular oral argument panel. Additionally, the court ruled that the motions for stay pending review and for administrative stay should be decided by the argument panel. The court carried these motions with the case, consistent with their panel practice. However, the court did not express any opinion on the disposition of these motions. View "MCR Oil Tools v. United States Department of Transportation" on Justia Law

The case involves James Fejes, a pilot who held a certificate issued by the Federal Aviation Administration (FAA) under 49 U.S.C. § 44703. Fejes used his aircraft to transport and distribute marijuana to retail stores within Alaska, an activity that is legal under state law but illegal under federal law. After an investigation, the FAA revoked Fejes's pilot certificate under 49 U.S.C. § 44710(b)(2), which mandates revocation when a pilot knowingly uses an aircraft for an activity punishable by more than a year's imprisonment under a federal or state controlled substance law.Fejes appealed the FAA's decision to an Administrative Law Judge (ALJ), who affirmed the revocation. He then appealed the ALJ's decision to the National Transportation Safety Board (NTSB), which also affirmed the ALJ. Throughout the agency proceedings, Fejes admitted that he piloted an aircraft to distribute marijuana within Alaska, but argued that his conduct fell outside of § 44710(b)(2)'s reach.The United States Court of Appeals for the Ninth Circuit denied Fejes's petition for review of the NTSB's order affirming the FAA's revocation of his pilot certificate. The court rejected Fejes's argument that the FAA lacked jurisdiction to revoke his pilot certificate because Congress cannot authorize an administrative agency to regulate purely intrastate commerce like marijuana delivery within Alaska. The court held that airspace is a channel of commerce squarely within congressional authority, and therefore, Congress can regulate Fejes's conduct. The court also rejected Fejes's argument that his conduct was exempt under FAA regulation 14 C.F.R. § 91.19, and that the FAA misinterpreted § 44710(b)(2). The court concluded that the FAA's revocation of Fejes's pilot certificate was not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. View "FEJES V. FAA" on Justia Law

The case involves Salt Lake County's challenge to the constitutionality of the Aircraft Valuation Law, which provides a preferred method for determining the fair market value of aircraft for tax purposes. The County argued that the application of the law to Delta Air Lines' aircraft resulted in an assessment below fair market value, violating the Utah Constitution. The County also contended that the law, on its face, violated the Utah Constitution by divesting the Utah State Tax Commission of its power to assess airline property.The Utah State Tax Commission had previously upheld the 2017 assessment of Delta's property, which was calculated according to the Aircraft Valuation Law. The Commission found that the County did not provide clear and convincing evidence that the legislature's preferred method of valuation did not reasonably reflect fair market value.The Supreme Court of the State of Utah rejected the County's arguments. The court held that the County failed to fully utilize the statutory safety valve, which allows the Commission to use an alternative valuation method if the preferred method does not reasonably reflect fair market value. The court also rejected the County's facial challenge to the Aircraft Valuation Law, concluding that the County did not show that the law prohibits the legislature from prescribing a preferred method for valuing aircraft. Therefore, the court affirmed the Commission's decision. View "Salt Lake Co v. Tax Commission" on Justia Law