Chukwu v. Board of Directors Varig Airline

880 F. Supp. 891, 1995 U.S. Dist. LEXIS 5355, 1995 WL 115622
CourtDistrict Court, D. Massachusetts
DecidedApril 21, 1995
DocketCivil A. 93-12829-WGY
StatusPublished
Cited by10 cases

This text of 880 F. Supp. 891 (Chukwu v. Board of Directors Varig Airline) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chukwu v. Board of Directors Varig Airline, 880 F. Supp. 891, 1995 U.S. Dist. LEXIS 5355, 1995 WL 115622 (D. Mass. 1995).

Opinion

MEMORANDUM AND ORDER ON DEFENDANT, VARIG BRAZILIAN AIRLINES’ MOTION FOR SUMMARY JUDGMENT (# 20, filed 8I25IW

COLLINGS, United States Magistrate Judge.

Construing the pro se Complaint liberally, it can be said to state a breach of contract claim for compensatory damages on account of the defendant’s alleged failure to transport plaintiffs brother from Nigeria to Grand Cayman via Miami pursuant to a ticket which the plaintiff purchased for his brother. Taking the facts in the light most favorable to the plaintiff, the defendant did in fact refuse to allow plaintiffs brother on the plane even though he had a valid ticket purchased by plaintiff. Plaintiff alleges that the defendant’s refusal to board his brother was based on an erroneous understanding that the brother could not land in Miami because he did not have a visa, even though his stopover in Miami was less than eight hours. Plaintiff claims no visa is necessary if the stopover is less than eight hours.

The defendant refunded the full amount of the ticket to the plaintiff; however, plaintiff claims three and one-half million dollars in damages due to an alleged loss of a business opportunity in the Cayman Islands as a result of his brother being prevented from making the trip on the date for which the ticket was issued.

Defendant has filed a motion for summary judgment claiming that plaintiffs claims are preempted by the Airline Deregulation Act (hereinafter ADA), 49 U.S.C. § 1305 (1994), by which Congress amended the Federal Aviation Act (hereinafter FAA) in 1978. Section 1305(a)(1) provides that “no State ... shall enact or enforce any law, rule, regulation, standard or other provision having the force and effect of law relating to rates, routes, or services of any air carrier ... ” 1

While the law as to what claims are and are not preempted by that section has been less than clear, the recent Supreme Court case of American Airlines, Inc. v. Wolens, *893 — U.S.-, 115 S.Ct. 817, 130 L.Ed.2d 715 (1995) is instructive. In that case, plaintiffs who were enrolled in the American Airlines’ frequent flyer program sued the airline for breach of contract for unilaterally changing the rules of the program after the plaintiffs had accumulated a certain number of miles. The changes meant that the plaintiffs would have to earn more miles to obtain rewards promised under the program.

The Supreme Court held that in deciding preemption issues under the ADA, lower courts should look not only to the clause “relating to rates, routes, or services” language of the statute but also to the clause that contains the language that “no state shall enact or enforce any law.” American Airlines, — U.S. at-, 115 S.Ct. at 824. The Court wrote:

We do not read the ADA’s preemption clause ... to shelter airlines from suits alleging no violation of state-imposed obligations, but seeking recovery solely for the airline’s alleged breach of its own, self-imposed undertakings.... [T]erms and conditions airlines offer and passengers accept are privately ordered obligations “and thus do not amount to a State’s ‘en-aet[ment] or enforce[ment] [of] • any law, rule, regulation, standard, or other provision having the force and effect of law5 within the meaning of [§]1305(a)(l).”

Id. (citations and footnote omitted).

The Court found support for its interpretation in other provisions of the FAA and Department of Transportation’s (DOT) regulations promulgated under it.

The FAA’s text, we note, presupposes the vitality of contracts governing transportation by air carriers. Section 411(b), 49 U.S.CApp. § 1381(b), thus authorizes airlines to “incorporate by reference in any ticket or other written instrument any of the terms of the contract of carriage” to the extent authorized by the DOT. And the DOT’s regulations contemplate that, upon the January 1, 1983, termination of domestic tariffs, “ticket contracts” ordinarily would be enforceable under “the contract law of the States.” 47 Fed.Reg. 52129 (1982). Correspondingly, the DOT requires carriers to give passengers -written notice of the time period within which they may “bring an action against the carrier for its acts.” 14 CFR § 253.5(b)(2) (1994).

American Airlines, — U.S. at -, 115 S.Ct. at 825.

Lastly, the Court wrote:

The conclusion that the ADA permits state-law-based court adjudication of routine breach of contract claims also makes sense of Congress’ retention of the FAA’s saving clause, § 1106, 49 U.S.CApp. § 1506 (preserving “the remedies now existing at common law or by statute.”). The ADA’s preemption clause, § 1305(a)(1), read together with the FAA’s saving clause, stops States from imposing their own substantive standards with respect to rates, routes, or services, but not from affording relief to a party who claims and proves that an airline dishonored a term the airline itself stipulated. This distinction between what the State dictates and what the airline itself undertakes confines courts, in breach of contract actions, to the parties’ bargain, with no enlargement or enhancement based on state laws or policies external to the agreement.

American Airlines, — U.S. at -, 115 S.Ct. at 826 (footnote omitted).

In so holding, the Court distinguished its earlier holding in Morales v. Trans World Airlines, Inc., 504 U.S. 374, 381-83, 112 S.Ct. 2031, 2036, 119 L.Ed.2d 157 (1992). In that case, the issue was whether the ADA “preempt[ed] the States from prohibiting allegedly deceptive airline far-e advertisements through enforcement of their general consumer protection statutes.” Id. at 378, 112 S.Ct. at 2034. Several states had attempted to use these statutes to require airlines to adhere to specific “Travel Industry Enforcement Guidelines” composed by the National Association of Attorneys General. Id. at 378-81, 112 S.Ct. at 2034-35. Justice Scalia gave a very broad construction to the meaning of the words in § 1305. 2 He wrote that *894 “[t]he ordinary meaning of these words is a broad one ... and the words thus express a broad pre-emptive purpose.” Morales, 504 U.S. at 383, 112 S.Ct. at 2037. However, the Court stated that the primary operating principle of the preemption provision was economic so that any law having a “significant effect” on airline rates, routes, or services is forbidden. Id. at 385-86, 112 S.Ct. at 2037-38. The Court concluded that the fare advertising provisions were preempted by the federal statute. In the American Airlines case, the Court stated that it was adhering to its holding in Morales. American Airlines, — U.S. at-, 115 S.Ct. at 827.

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