Casas v. American Airlines, Inc.

304 F.3d 517, 2002 U.S. App. LEXIS 19107, 2002 WL 2002686
Court of Appeals for the Fifth Circuit·Decided September 17, 2002·No. 00-41137, 00-41270·Published·Cited by 41 cases

Opinion

EDITH H. JONES, Circuit Judge:

In 1996, Hector Casas lost a video camera worth over $1000 after he entrusted it to American Airlines as checked baggage on a flight from Texas to Florida. Casas sued American under state and federal law for the loss of the camera and sought certification of a class of similarly situated plaintiffs under Fed. R. Civ. Proc. 23. The district court granted class certification after holding that Casas could bring a private cause of action against American based on a federal regulation governing airline carriers. See 14 C.F.R. § 254.4. The court also held that federal law rendered void certain provisions of American’s contract of carriage that held American harmless from liability for loss to valuable items such as cameras. 1 In its order, the district court enjoined American from enforcing these provisions. Both parties appealed.

The main issues presented in this appeal are (1) whether Casas has a cause of action for the loss of his camera under the Air Deregulation Act (ADA) of 1978, 92 Stat. 1705, Pub.L. No. 95-504; under 14 C.F.R. § 254.4, a regulation that was adopted pursuant to the ADA; or under federal common law; (2) if so, whether the provisions of American’s contract of carriage excluding liability for cameras and other valuable goods prevent Casas from recovering on his claim; (3) whether Casas’s state-law claims for the loss of his camera are preempted; and (4) whether the district court properly certified a class of plaintiffs under Rule 23. We hold as follows. Casas has no private right of action under the ADA or § 254.4, and the ADA preempts his state law claims. Casas has a claim *520 against American under federal common law, but he cannot prevail on this claim because it is barred by American’s liability exclusion provisions. Because Casas is not entitled to relief, the class certification order must be vacated.

BACKGROUND

At the time Casas allegedly lost his camera, 14 C.F.R. § 254.4 provided, in relevant part, that “an air carrier shall not limit its liability for provable direct or consequential damages resulting from the disappearance of, damage to, or delay in delivery of a passenger’s personal property, including baggage, in its custody to an amount less than $1250 for each passenger.” 2

In February 1998, after both parties moved for summary judgment, a magistrate judge issued a report and recommendation concluding that (1) Casas’s state law claims were pre-empted by federal law; (2) 14 C.F.R. § 254 rendered American’s exclusion-of-liability provisions unenforceable; and (3) pursuant to 14 C.F.R. § 254, American’s liability for Casas’s loss of his camera was limited to $1,250. The district court adopted the report and recommendation and entered judgment in favor of Ca-sas for $1,029, exclusive of costs, on his individual claim. In September 2000, the district court issued an order granting class certification under Fed. R. Civ. Proc. 23 and reaffirming its earlier conclusions. The order also enjoined American from relying on the liability exclusion provisions to deny compensation to passengers for their losses.

American appealed; the injunction may be appealed pursuant to 28 U.S.C. § 1292(a)(1), as may Casas’s cross-appeal of the district court’s pre-emption ruling. 3 This court granted American’s petition for permission to appeal the class certification decision. Fed. R. Civ. Proc. 23(f); Fed. R.App. P. 5.

DISCUSSION

I.

The district court predicated American’s liability on the conclusion that 14 C.F.R. § 254.4 creates a private right of action. The proper inquiry, however, is whether the ADA created a private cause of action or authorized the FAA to do so. Alexander v. Sandoval, 532 U.S. 275, 121 S.Ct. 1511, 149 L.Ed.2d 517 (2001). “Language in a regulation may invoke a private right of action that Congress through statutory text created, but it may not create a right that Congress has not.... [I]t is most certainly incorrect to say that language in a regulation can conjure up a private cause of action that has not been authorized by Congress.” Sandoval, 532 U.S. at 291, 121 S.Ct. at 1522. See Stewart v. Bernstein, 769 F.2d 1088, 1092 n. 6 (5th Cir.1985); Angelastro u Prudential-Bache Securities, Inc., 764 F.2d 939, 947 (3d Cir.1985). We review this issue of law de novo and conclude that neither the ADA nor 14 C.F.R. § 254.4 creates a private cause of action.

In Sam L. Majors Jewelers v. ABX, Inc., 117 F.3d 922 (5th Cir.1997), this court *521 held, inter alia, that while the ADA did not create a private right of action “to recover the value of damaged or lost cargo,” id. at 925, a cause of action for such a loss exists under . federal common law. 4 The ADA’s savings clause, which preserves “other remedies provided by law,” 49 U.S.C. § 40120(c), “had the effect of preserving the clearly established federal common law cause of action against air carriers for lost shipments.” 117 F.3d at 928. See id. & n. 13 (citing § 40120(c)).

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Casas v. American Airlines, Inc., 304 F.3d 517, 2002 U.S. App. LEXIS 19107, 2002 WL 2002686 (5th Cir. 2002).

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