Justia U.S. 6th Circuit Court of Appeals Opinion Summaries
Articles Posted in Transportation Law
Edwards v. CSX Transp., Inc.
Edwards worked as a CSX train engineer for 31 years. He arrived at work on May 28, 2012, with an upset stomach. The bathroom in the lead locomotive was “nasty,” Edwards saw and smelled:“[U]rine, human waste, . . . [and] blue chemical” splattered all over the toilet and floor. Edwards sprayed disinfectant, closed the door, and started the trip. During a stop, about 80 miles and six hours later, Edwards’ nausea escalated. Unwilling to use a foul bathroom, he sprinted to a catwalk, outside of the locomotive. He threw up over the side. Then he vomited a second time and, in the process, fell over the handrail onto the ground below. He broke two of his vertebrae and cracked a rib, ending his career with CSX. Edwards sought damages under Federal Employers’ Liability Act, 45 U.S.C. 51; its regulations required CSX to keep its locomotive bathroom sanitary. On remand, CSX again obtained summary judgment. The Sixth Circuit affirmed. CSX complied with the rules the day before Edwards’ injury, when it inspected and cleaned the bathroom; the regulations do not require railroads to ensure that the toilets are clean at any given moment between inspections. Edwards had abandoned his other negligence claims. View "Edwards v. CSX Transp., Inc." on Justia Law
Solo v. United Parcel Serv. Co.
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
Posted in:
Contracts, Transportation Law
Haines v. Fed. Motor Carrier Safety Admin.
Haines operates a tour bus company. In 2000, he modified the luggage compartment in a bus to become a sleeper area, designed to comply with Federal Motor Carrier Safety Administration (FMCSA) regulations. In May, 2011, FMCSA informed Haines that he could use the luggage compartment as a sleeper area without additional approval if he complied with 49 C.F.R. 393.76. On May 29, 2011, Haines permitted family members to ride in the sleeper area while the bus was in motion. An unidentified individual notified authorities. On June 10, FMCSA placed all of Haines’ busses, including three without sleeper areas, out of service, and identified Haines Tours as an “imminent hazard” to public safety based on its finding that the “unauthorized transportation of passengers in the cargo area . . . substantially increase[d] the likelihood of serious injury or death.” The suspension lasted five days. Haines sued, alleging that the handling of the temporary suspension violated his due process and equal protection rights and gave rise to a claim under the Administrative Procedures Act. The Sixth Circuit affirmed dismissal without leave to amend; “Bivens” claims were time-barred by Michigan’s three-year statute of limitations and a Bivens remedy was not available because Haines had an adequate, alternative remedy. View "Haines v. Fed. Motor Carrier Safety Admin." on Justia Law
Exel, Inc. v. S. Refrigerated Transp., Inc.
Exel, a shipping broker, sued SRT, an interstate motor carrier, after SRT lost a shipment of pharmaceutical products it had agreed to transport for Exel on behalf of Exel’s client, Sandoz. On summary judgment, the district court awarded Exel the replacement value of the lost goods pursuant to the transportation contract between Exel and SRT, rejecting SRT’s argument that its liability was limited under the Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. 14706. The Sixth Circuit reversed. Whether SRT had limited its liability was a question of fact for a jury. To limit its liability under the Carmack Amendment, a carrier must: provide the shipper with a fair opportunity to choose between two or more levels of liability obtain the shipper’s written agreement as to its choice of liability; and issue a receipt or bill of lading prior to moving the shipment. SRT did not meet its burden on summary judgment of establishing that it provided Sandoz with the opportunity to choose between two or more levels of liability. SRT did not explain what “classification or tariff . . . govern[ed]” the shipment, nor indicate whether it made this information available to Sandoz. View "Exel, Inc. v. S. Refrigerated Transp., Inc." on Justia Law
Mokdad v. Lynch
Mokdad, a naturalized U.S. citizen, alleges that he has been denied boarding on commercial airline flights between the U.S. and his native country, Lebanon because he was on the No Fly List. Mokdad applied for redress under the Department of Homeland Security Traveler Redress Inquiry Program (TRIP). Mokdad received a letter that did not confirm or deny whether he was on the List but informed him that “we have conducted a review of any applicable records in consultation with other federal agencies ... no changes or corrections are warranted at this time.” The letter notified him of his right to file administrative appeal with the Transportation Security Administration (TSA) within 30 days, that the TRIP determination would become final if he did not, and that final determinations are reviewable by the Court of Appeals under 49 U.S.C. 46110. Mokdad did not file a TSA administrative appeal or a petition with the Court of Appeals but filed a complaint in the Eastern District of Michigan against the Attorney General, the FBI, and the Director of the Terrorist Screening Center. Mokdad did not name TSA or any TSA officer. The Sixth Circuit reversed dismissal, finding that the district court had jurisdiction, but declined to address the challenge to the adequacy of procedures to contest inclusion on the No Fly List, for failure to join a necessary party. View "Mokdad v. Lynch" on Justia Law
CSX Transp., Inc. v. Tenn. Dep’t of Revenue
The 1976 Railroad Revitalization and Regulatory Reform Act prohibits states from imposing taxes that “discriminat[e] against a rail carrier,” 49 U.S.C. 11501(b)(4)A, including: Assessing rail transportation property at a value with a higher ratio to the true market value of the property than the ratio applied to other commercial and industrial property; levying or collecting an ad valorem property tax on rail transportation property at a tax rate that exceeds the rate applicable to commercial and industrial property in the same jurisdiction; or imposing “another tax that discriminates against a rail carrier providing transportation.” Railroads sued, claiming that Tennessee sales and use tax assessments were discriminatory. The district court agreed, holding that imposition of those taxes on railroad purchases and use of diesel fuel was discriminatory. In response, in 2014, Tennessee enacted a Transportation Fuel Equity Act that repeals the sales and use tax on railroad diesel fuel, but subjects railroads to the same per-gallon tax imposed on motor carriers under the Highway User Fuel Tax. Previously railroads, like other carriers using diesel fuel for off-highway purposes, were exempt from a “diesel tax.” The Railroads contend the Act is discriminatory because it now subjects only railroads to taxation of diesel fuel used off-highway. The Sixth Circuit affirmed denial of the Railroads’ motion for a preliminary injunction on its targeted or singling-out approach and the functional approach, but remanded for consideration of the Railroads’ argument under the competitive approach. View "CSX Transp., Inc. v. Tenn. Dep't of Revenue" on Justia Law
Wheeling & Lake Erie Ry. Co. v. Bhd. of Locomotive Eng’rs
BLET, a labor union under the Railway Labor Act, 45 U.S.C. 151, represents locomotive engineers and trainmen, including conductors and brakemen, who work for the railroad, a regional common carrier with 840 miles of track in Ohio, Pennsylvania, West Virginia, and Maryland. In 2003, the railroad served notice, seeking to eliminate the “crew consist” of the Trainmen Agreement, so that it would not have to assign a union conductor to each train. BLET refused this proposed change. After several years of failed efforts at negotiation, the railroad began substituting management employees for contract conductors. BLET went on strike. The district court entered a preliminary injunction barring BLET from taking economic action against the railroad, finding that the parties were engaged in a minor dispute. The Sixth Circuit vacated and remanded for dismissal of the railroad’s complaint, finding that the dispute is major, not minor. Under the status quo requirement of the Act, the railroad was not free to implement at will the very change it sought to accomplish when it served the Section 6 notice on BLET. It did so anyway and prematurely resorted to self-help before the conclusion of the major dispute process. View "Wheeling & Lake Erie Ry. Co. v. Bhd. of Locomotive Eng'rs" on Justia Law
Posted in:
Labor & Employment Law, Transportation Law
Norfolk Southern Ry. Co. v. Perez
Kruse, a Norfok train conductor, was injured on the job in March, reported his injury, and took leave until August. Shortly after he returned to work, Kruse was suspended for 30 days without pay for exceeding speed limits. Kruse’s union appealed under the Railway Labor Act, 45 U.S.C. 153. Both the on-property investigation and the arbitration board concluded that Norfolk “was justified,” but reduced the suspension. While his grievance-related appeal was pending before the arbitration board, Kruse filed a Federal Railroad Safety Act (FRSA) complaint with the Department of Labor, claiming that his suspension was in retaliation for reporting his prior work-related injury. The ALJ ruled in favor of Kruse, denying Norfolk’s motion to dismiss based on FRSA, which prohibits a railroad carrier from retaliating against employees who report work-related injuries and potential safety violations, and provides that “[a]n employee may not seek protection under both this section and another provision of law for the same allegedly unlawful act of the railroad carrier,” 49 U.S.C. 20109(f). The Department of Labor’s Administrative Review Board affirmed and the Sixth Circuit denied review, reasoning that prior arbitration of a grievance under the RLA did not trigger the FRSA’s election-of-remedies provision. View "Norfolk Southern Ry. Co. v. Perez" on Justia Law
Burdue v. Fed. Aviation Admin.
The FAA may “delegate to a qualified private person . . . the examination, testing, and inspection necessary to issue a certificate … and … issuing the certificate,” 49 U.S.C. 44702(d)(1), and may rescind delegation “at any time for any reason.” Airworthiness Representative-Maintenance (DAR-T) authorization to conduct aircraft inspections and issue airworthiness certificates has no expiration. Burdue was appointed as a DAR-T in 2001. In 2013, Burdue’s supervisors were informed of issues related to Burdue’s export certifications. The FAA’s Special Emphasis Investigations Team (SEIT) concluded that Burdue performed multiple aircraft inspections out of his assigned geographic area without authorization and had issued export certificates to aircraft owned by his wife, a conflict of interest. After review of Burdue’s response, Burdue’s certificate was revoked, both “for cause,” 14 C.F.R. 183.15(b)(4) and under the discretionary-revocation provision, 14 C.F.R. 183.15(b)(6). An Appeal Panel affirmed. Burdue brought a Bivens action, claiming due process violations and wrongful termination, then filed statutory claims in the Sixth Circuit. The district court stayed the Bivens proceedings. The Sixth Circuit declined to review the statutory claims because the FAA’s decision is committed to agency discretion and declined to review the constitutional claims that belong in the district court View "Burdue v. Fed. Aviation Admin." on Justia Law
CNA Ins. Co. v. Hyundai Merch. Marine Co., Ltd.
Corning hired Hyundai, an ocean shipper, to transport thin glass sheets for use in televisions and computer monitors from the U.S. to Asia. Although it is not clear when the damage occurred, damage was noted when Hyundai unloaded the containers from flatcars operated by its subcontractors (Norfolk Southern Railway and BNSF, another rail carrier). Corning had no role in selecting and no relationship with the subcontractors. There were opinions that the damage was caused by movement of the railcars, not by packing, but the actual cause was not established. Corning’s insurer paid Corning $664,679.88 and filed suit. The district court held that the case would proceed solely under the Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. 11706, apparently reasoning that the damage undisputedly occurred while the cargo was in the possession of a rail carrier. The court found that a Subcontracting Clause did not immunize the rail carriers from suit, but obligated Corning to indemnify Hyundai for any resultant claims by a subcontractor against Hyundai arising out of the same facts. The court held that a $500-per-package limit of liability did not apply to the rail carriers or Hyundai. After a jury trial, the court found Hyundai and the railroads liable, but denied prejudgment interest. The Sixth Circuit affirmed the judgment against Hyundai, reversed and vacated judgments against the railroads, and remanded for reconsideration of prejudgment interest.View "CNA Ins. Co. v. Hyundai Merch. Marine Co., Ltd." on Justia Law