Justia Transportation Law Opinion Summaries

Susan Hardy, a resident of Louisiana, flew from Newark, New Jersey, to Oslo, Norway, on Scandinavian Airlines System (SAS). Upon disembarking in Oslo, she fell and fractured her leg. Hardy sued SAS in the Eastern District of Louisiana, claiming that Article 33 of the Montreal Convention provided both subject matter and personal jurisdiction over SAS. The district court dismissed her case, ruling that the Montreal Convention only granted subject matter jurisdiction and not personal jurisdiction. Additionally, the court found that SAS’s waiver of service did not establish personal jurisdiction under Federal Rule of Civil Procedure 4(k)(2).The United States District Court for the Eastern District of Louisiana dismissed Hardy’s complaint without prejudice. The court concluded that Article 33 of the Montreal Convention did not create personal jurisdiction over SAS. It also rejected Hardy’s argument that SAS’s waiver of service under Federal Rule of Civil Procedure 4(k)(2) established personal jurisdiction, reasoning that SAS did not have sufficient contacts with Louisiana to warrant such jurisdiction.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that Article 33 of the Montreal Convention does not independently create personal jurisdiction over a defendant airline, as it only prescribes venue. However, the court found that the district court erred in its analysis under Rule 4(k)(2). The correct analysis should have considered SAS’s contacts with the United States as a whole, not just Louisiana. The Fifth Circuit concluded that SAS had sufficient minimum contacts with the United States to establish personal jurisdiction under Rule 4(k)(2). Consequently, the court reversed the district court’s dismissal and remanded the case for further proceedings. View "Hardy v. Scandinavian Airline System" on Justia Law

The plaintiffs, former employees of Alpine Site Services, Inc., filed a lawsuit alleging that the company violated the Fair Labor Standards Act (FLSA) by failing to pay them the required overtime wages. Alpine contended that the Motor Carrier Act (MCA) exemption applied, which would exempt them from paying overtime. The plaintiffs argued that they were not properly classified under the MCA exemption.The United States District Court for the Southern District of Texas reviewed the case and agreed with Alpine, finding that the plaintiffs were classified as "loaders" under the MCA exemption. The court found that the plaintiffs' job duties included loading vehicles, which directly affected the safety of operation of motor vehicles in interstate commerce. The district court dismissed the suit with prejudice, concluding that the plaintiffs fell under the MCA exemption and were not entitled to overtime pay.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The appellate court held that the district court did not err in classifying the plaintiffs as "loaders" under the MCA exemption. The court noted that the plaintiffs' duties included loading vehicles, which required the exercise of judgment and discretion, and that this work directly affected the safety of operation of motor vehicles. The court also found that the plaintiffs regularly engaged in loading activities, which constituted a substantial part of their job responsibilities. The appellate court concluded that the MCA exemption applied to the plaintiffs in all workweeks, even those in which they performed only non-safety-affecting duties. The court also dismissed the plaintiffs' claim that the district court abused its discretion in denying their motion to amend the court's factual findings, as the plaintiffs failed to provide meaningful analysis or supporting authority for this argument. The decision of the district court was affirmed. View "Kelley v. Alpine Site Services" on Justia Law

In 2021, Shannon Carson was injured in an automobile accident in Louisiana while driving an 18-wheeler truck owned by his employer. The accident was caused by another driver, Jamarcea Washington, who was insured by GEICO and died in the collision. Carson's employer's truck was insured by American Millenium Insurance Company, which provided $75,000 in underinsured motorist (UIM) coverage. Carson also had a personal automobile insurance policy with USAA, which provided $50,000 in UIM coverage. Carson settled with GEICO and American Millenium for their policy limits and then sought additional UIM benefits from his USAA policy.The case was initially filed in Louisiana state court and then removed to the United States District Court for the Western District of Louisiana based on diversity jurisdiction. The district court granted summary judgment in favor of USAA, concluding that Carson, as a Class II insured under South Carolina law, was prohibited from stacking his personal UIM insurance on top of the American Millenium UIM coverage. Carson filed a Rule 59(e) motion, arguing that he was entitled to "port" his personal UIM coverage under South Carolina law. The district court denied the motion, maintaining that the case involved stacking, not portability, and that Carson had already received the statutory limit for UIM coverage.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. The court concluded that South Carolina law does not prevent Carson from recovering UIM benefits under his personal automobile insurance policy with USAA. The court distinguished between stacking and portability, noting that while stacking is prohibited for Class II insureds, portability allows an insured to recover under their personal UIM policy when their vehicle is not involved in the accident. The court vacated the district court's summary judgment and remanded the case for further proceedings consistent with its opinion. View "Carson v. USAA Casualty Insurance" 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 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 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

In this case, Glen Pace, a Mississippi resident, appealed the dismissal of his claims against multiple corporate defendants over personal injuries he suffered in a Texas airplane crash. The United States District Court for the Southern District of Mississippi dismissed the claims against the out-of-state defendants for lack of personal jurisdiction and held that the two Mississippi defendants were improperly joined, which allowed removal to federal court.Upon review, the United States Court of Appeals for the Fifth Circuit affirmed the district court’s ruling. The appellate court agreed that Pace failed to state a claim against either in-state defendant, and thus, they were improperly joined. As for the out-of-state defendants, the court found that the district court lacked personal jurisdiction over them. The court reasoned that the aircraft crash, any equipment failure, and the injuries all occurred in Texas, and Pace's subsequent medical treatment and damages in Mississippi did not constitute an actual injury felt in the state for the purpose of establishing personal jurisdiction. The court held that Pace's injuries from the crash occurred in Texas and his subsequent medical treatment in Mississippi were "consequences stemming from the actual tort injury," which do not confer personal jurisdiction.The court also denied Pace's request for jurisdictional discovery, stating that Pace failed to present specific facts or reasonable particularity regarding jurisdictional facts. The court stressed that its decision should not be interpreted as implying a view on the merits of Pace’s claims. View "Pace v. Cirrus Design Corp" on Justia Law

The Jackson-Medgar Wiley Evers International Airport is a major airport located in Jackson, Mississippi. Since 1960, the airport has been operated by the Jackson Municipal Airport Authority, whose five commissioners are selected by the city government. In 2016, the Mississippi legislature passed, and the governor signed into law SB 2162, which abolishes the Jackson Municipal Airport Authority and replaces it with a regional authority composed of nine commissioners, only two of whom are selected by Jackson city government.   A Jackson citizen filed a suit seeking to enjoin the law. The mayor, the city council, the Jackson Municipal Airport Authority, its board of commissioners, and the commissioners in their individual capacities intervened in that lawsuit. The intervenors contend that SB 2162 violates the Equal Protection rights of the citizens of Jackson by eliminating the locally controlled Jackson Municipal Airport Authority for racially discriminatory reasons. The intervenors served subpoenas on eight nonparty state legislators who participated in SB 2162’s drafting and passage. The Legislators refused to comply with Request #3 in the subpoena, which sought documents and communications related to SB 2162, asserting that any responsive discovery would either be irrelevant or protected by legislative privilege. The magistrate judge, and later the district court, rejected this position.   The Fifth Circuit affirmed in part, reversed in part, and remanded. The court held that the district court did not abuse its discretion in ordering the Legislators to produce a privilege log. But the district court erred in broadly holding that legislative privilege was automatically waived for any documents that have been shared with third parties. View "Jackson Muni Airport v. Harkins" on Justia Law

Two years after an unfortunate single-boat accident, one of the boat’s two occupants died as a result of his injuries. The boat in which he was a passenger had struck a warning sign that was totally submerged at the time of the allision between the boat and sign. His estate and survivors sued the companies responsible for the sign in question. The district court granted summary judgment to the Defendants on the ground that the incident occurred on water governed by Louisiana law rather than federal. The parties agree that if Louisiana law governs, the claims are barred. At issue in this appeal is whether or not the allision occurred in “navigable” waters such that federal law governs.   The Fifth Circuit affirmed, holding that the allision occurred on non-navigable waters. The first ground on which the Plaintiffs claim that the allision took place on navigable water is that the “navigational servitude” for the Refuge is alleged to be 65 feet above the mean sea level (“MSL”). The court explained that the parties agree that the Corps has not in fact permanently flooded the refuge; the water may not be said to be navigable under this theory. Further, the unvegetated channel establishes the ordinary high-water mark of the Bayou; water outside of that channel is not navigable. Finally, the court held that Plaintiffs here fail to present even slight evidence concerning a commercial purpose for the channel in question. View "Newbold v. Kinder Morgan SNG Operator" on Justia Law

BNSF Railway Co. (“BNSF”) petitions for review, contending that the refusal of the Federal Railroad Administration (“FRA”) to grant a waiver of standard track-inspection regulations so that BNSF could test a new technology was arbitrary and capricious.   The Fifth Circuit granted review, vacated, and remanded for reconsideration. The court explained that “Agency action must be reasonable and reasonably explained.” The agency must “articulate a satisfactory explanation for its action, including a rational connection between the facts found and the choice made. Here, the court found that the FRA’s letter lacking in this regard. Therefore, on limited remand, the court directed the FRA to enter its decision no later than one hundred days from the announcement of the court’s opinion. View "BNSF Railway v. FRA" on Justia Law