Justia Transportation Law Opinion Summaries

Decker Truck Lines, Inc. was a for-hire motor carrier, regulated by the U.S. Department of Transportation (USDOT) and the Secretary of Transportation, with its principal office in Fort Dodge, Iowa. Decker signed a transportation contract with New Belgium Brewing Company (New Belgium) to make two classes of shipments: (1) outbound shipments of beer from New Belgium’s brewery to its warehouse (known as the “Rez”), and (2) backhaul shipments of empty kegs, pallets, hops, and other materials from the Rez to the brewery. These two facilities are located approximately five miles apart in Fort Collins, Colorado. And Decker employed Plaintiffs (all of whom are commercial truck drivers) to transport both categories of shipments. This case involved a dispute over the scope of the Motor Carrier Act exemption from the overtime pay requirements of the Fair Labor Standards Act (FLSA) and the Colorado Minimum Wage Order (Wage Order). Joe Deherrera and several other complainants (Plaintiffs), who were commercial truck drivers for Decker, claimed Decker failed to pay them proper overtime wages. Decker contended Plaintiffs were exempt employees under both the FLSA and the Wage Order. The district court granted summary judgment to Decker, and after review, the Tenth Circuit affirmed: "By driving an intrastate leg of shipments in interstate commerce, Plaintiffs became subject to the authority of the Secretary of Transportation and were thus exempt from the overtime pay requirements of the FLSA and the Wage Order." View "Deherrera v. Decker Truck Line" on Justia Law

WI buys furniture wholesale. OEC provided WI with non-vessel-operating common carrier transportation services. WI signed an Application for Credit that granted a security interest in WI property in OEC’s possession, custody or control or en route. As required by federal law, OEC also publishes a tariff with the Federal Maritime Commission, which provides for a Carrier’s lien. WI filed voluntary Chapter 11 bankruptcy petitions. OEC sought relief from the automatic stay, arguing that it was a secured creditor with a possessory maritime lien. OEC documented debts of $458,251 for freight and related charges due on containers in OEC’s possession and $994,705 for freight and related charges on goods for which OEC had previously provided services. The estimated value of WIs’ goods in OEC’s possession was $1,926,363. WI filed an adversary proceeding, seeking release of the goods. The bankruptcy court ruled in favor of WI, citing 11 U.S.C. 542. The district court affirmed, holding that OEC did not possess a valid maritime lien on Pre-petition Goods. The Third Circuit reversed, noting the strong presumption that OEC did not waive its maritime liens on the Prepetition Goods, the clear documentation that the parties intended such liens to survive delivery, the familiar principle that a maritime lien may attach to property substituted for the original object of the lien, and the parties’ general freedom to modify or extend existing liens by contract. View "In re: World Imports LTD" on Justia Law

The City of Morgantown passed an ordinance seeking to regulate the weight and size of certain vehicles using a portion of West Virginia State Route 7 that passes through Morgantown. Plaintiffs filed a complaint arguing that the ordinance was preempted by state law. The circuit court granted Plaintiffs’ motion for summary judgment. The Supreme Court affirmed, holding that a municipality is not statutorily authorized to prohibit the operation of trucks or to impose limitations on the size or weight thereof on a connecting part of the state road system, and therefore, Morgantown was not authorized to regulate the size or weight of trucks traveling on the portion of W. Va. Route 7 that lies within the city. View "City of Morgantown v. Nuzum Trucking Co." on Justia Law

Darling’s Auto Mall is a franchisee of General Motors LLC (GM) and and authorized dealer. Darling’s filed two small claims actions in district court alleging that it had been underpaid by GM for certain warranty repairs in violation of the Business Practices Between Motor Vehicle Manufacturers, Distributors and Dealers Act (Dealers Act). The district court ruled in favor of Darling’s on both small claims. GM appealed and requested a jury trial de novo. The superior court granted GM’s request. After a jury trial, the superior court entered a judgment in favor of GM. The Supreme Judicial Court affirmed, holding (1) the superior court’s decision to grant a jury trial de novo was not an appealable determination; (2) the trial court did not err in denying Darling’s motion for judgment as a matter of law; and (3) the trial court properly rejected Darling’s proposed jury instructions. View "Darling's Auto Mall v. General Motors LLC" on Justia Law

BN applied for an exemption permitting expeditious abandonment of a railroad line. The STB granted but then revoked an exemption prior to completion of the abandonment and instead authorized BN to enter into an “interim trail use/rail banking agreement” in accordance with the National Trails System Act (Trails Act), 16 U.S.C. 1247(d), as implemented by the STB in 49 C.F.R. 1152.29. In 2014, plaintiffs, ranchers who own properties underlying and surrounding the railway right-of-way easement, filed two separate actions against the State and the Department, seeking a declaration quieting title to the right-of-way because the easement terminated by operation of law when BN ceased railroad operations. The district court consolidated the two cases and concluded that plaintiffs' claims fall within the exclusive jurisdiction of the STB, and granted Fed. R. Civ. P. 12(b)(1) dismissals for lack of subject matter jurisdiction. The court concluded that plaintiffs' claims are not within the STB’s exclusive jurisdiction, but that the Amended Complaints - alleging that defendants “stand in the shoes” of the BN, and therefore defendants cannot impose non-railroad restrictions on plaintiffs’ rights as servient landowners,- failed to state a claim upon which relief can be granted. Accordingly, the court modified part of the district court judgment and otherwise affirmed. View "Trevarton v. South Dakota" on Justia Law

Nissan North America, Inc., a motor vehicle manufacturer, and Stephen McDaniels, a prospective Nissan dealer (collectively, Defendants), sought to relocate a Nissan dealership to a location 7.6 miles from a dealership operated by Wayzata Nissan, LLC. Wayzata filed an action against Defendants and then moved for a temporary restraining order, challenging the relocation under the Minnesota Motor Vehicle Sale and Distribution Act, Minn. Stat. 80E.01-.17. The district court denied the motion, determining that the exception in section 80E.14(1) for the “relocation of an existing dealer” applied. The court of appeals affirmed. The Supreme Court reversed on the merits, holding (1) even though the relocation at issue has already occurred this appeal is not moot; (2) the notice and good-cause requirements of section 80E.14(1) apply on the date that a manufacturer develops the intention to authorize a relocation, not on the date of the physical relocation of a dealership; and (3) the existing-dealer exception does not apply when the relocation of a dealership is accompanied by a change in the person or entity operating the dealership, and therefore, the existing-dealer exception does not apply in this case. View "Wayzata Nissan, LLC v. Nissan N. Am., Inc." on Justia Law

An individual and a company filed a putative class action suit alleging that United Parcel Service (UPS) overcharges customers for liability coverage against loss or damage for packages with a declared value of $300 or more. The complaint alleged breach of contract; sought declaratory relief (28 U.S.C. 2201); claimed violation of 49 U.S.C. 13708(b) (regulating billing and collecting practices for motor carriers); and, in the alternative, alleged unjust enrichment. The district court dismissed, agreeing with UPS that the language of the shipping contract at issue unambiguously precluded the plaintiffs’ interpretation. The Sixth Circuit affirmed with respect to 49 U.S.C. 13708(b), but reversed the dismissal of the remaining claims. Reasonable minds could differ on the correct interpretation of UPS’s Service Guide provision; the provision is at least ambiguous, so its meaning is a question of fact that is not properly answered by the court at this early stage in the proceedings. An unjust enrichment claim—that a benefit was unjustly conferred on UPS when customers paid an extra charge on packages despite UPS’s representations that it provided a portion of this service for free—is not precluded by his breach of contract claim. View "Solo v. United Parcel Serv. Co." on Justia Law

Study of the I-69 extension between Evansville and Indianapolis began in 1944. The 1991 Intermodal Surface Transportation Act designated a new route from Indianapolis to Memphis,, via Evansville as a “high priority corridor” for development. As the project progressed, the Federal Highway Administration (FHWA) divided the project into two “tiers” for environmental analysis. After the plans were finalized, construction work on the six sections of Tier 2 began; 90 percent of the work on the extension is complete. The FHWA and Indiana Department of Transportation issued a Draft Environmental Impact Statement for Tier 2, Section 4, in 2010. A Final Environmental Impact Statement and a Record of Decision issued in 2011. The agencies selected the final route and construction plan for Section 4 after reviewing 48 options and produced a record reflecting consideration of impact on historic sites, geological formations, and air-quality, among other factors. Pursuant to its obligations under the Endangered Species Act, the U.S. Fish and Wildlife Service engaged in consultation and issued a Biological Opinion regarding the possible impact of tree-clearing on the endangered Indiana bat. Opponents filed suit. After a lengthy period of inactivity by Plaintiffs, including several missed case management deadlines, the district court granted summary judgment upholding the approvals. The Seventh Circuit affirmed. View "Citizens for Appropriate Rural Roads v. Foxx" on Justia Law

Plaintiff, a professional artist, brought suit against the United Parcel Service (UPS) and other defendants, alleging that two of her paintings were unscrupulously removed from their packaging during the interstate shipment process and sold to a third party without her consent or knowledge. The trial court dismissed all of Plaintiff’s claims against UPS, concluding that they were preempted by the federal Carmack Amendment. The Court of Appeal affirmed. The Supreme Court quashed the Court of Appeal’s decision to the extent it was inconsistent with this opinion, holding that Plaintiff’s state law causes of action were not preempted because neither the Carmack Amendment nor public policy supports UPS’s attempt to evade liability arising from its intentional misconduct. View "Mlinar v. United Parcel Serv., Inc." on Justia Law

Under the Urbanized Area Formula Program, 49 U.S.C. 5307, the Federal Transportation Administration (FTA) administers grant funding to urban transit programs for “operating costs of equipment and facilities for use in public transportation.” Recipients must submit “financial, operating, and asset condition information” to the National Transit Database. The agency apportions grants based, in part, on the number of Vehicle Revenue Miles (VRM) that accrue while a vehicle is “in revenue service,” available to the general public. In 2005, the Illinois House of Representatives called for a performance audit of the Chicago Transit Authority (CTA). The audit concluded that the CTA, from possibly as early as 1986, had been overstating its VRM and had received higher than justified UAFP disbursements. Notified of the report, the FTA required that CTA revise its data from 2011 forward. In 2012, a nonprofit watchdog organization contacted the Department of Justice requesting an investigation into the CTA’s reporting practices. The group then filed suit under the qui tam provision of the False Claims Act, 31 U.S.C. 3730. The Seventh Circuit affirmed dismissal, agreeing that the district court lacked subject matter jurisdiction because the allegations of wrongdoing had been publicly disclosed at the time the action was filed. View "Cause of Action v. CTA" on Justia Law