City of Columbus v. Ours Garage & Wrecker Service, Inc.

536 U.S. 424, 122 S. Ct. 2226, 153 L. Ed. 2d 430, 15 Fla. L. Weekly Fed. S 447, 2002 Cal. Daily Op. Serv. 5452, 2002 Daily Journal DAR 6867, 70 U.S.L.W. 4620, 2002 U.S. LEXIS 4643
Supreme Court of the United States·Decided June 20, 2002·No. 01-419·Published·Cited by 268 cases

Opinions

[428]*428Justice Ginsburg

delivered the opinion of the Court.

Federal preemption prescriptions relating to motor carriers, contained in 49 U. S. C. § 14501(c) (1994 ed., Supp. V), specifically save to States “safety regulatory authority . . . with respect to motor vehicles,” § 14501(c)(2)(A). This case presents the question whether the state power preserved in § 14501(c)(2)(A) may be delegated to municipalities, permitting them to exercise safety regulatory authority over local tow-truck operations.

The federal legislation preempts provisions by “a State [or] political subdivision of a State . . . related to a price, route, or service of any motor carrier ... with respect to the transportation of property.” § 14501(c)(1). As an exception to this general rule, Congress provided that the preemption directive “shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” § 14501(c)(2)(A). Section 14501(c)(l)’s statement of the general rule explicitly includes “State[s]” and their “political subdivision^].” The exception for safety regulation, however, specifies only “State[s]” and does not mention “political subdivision^].” § 14501(c)(2)(A).

We hold that § 14501(c) does not bar a State from delegating to municipalities and other local units the State’s authority to establish safety regulations governing motor carriers of property, including tow trucks. A locality, as § 14501(c) recognizes, is a “political subdivision” of the State. Ordinarily, a political subdivision may exercise whatever portion [429]*429of state power the State, under its own constitution and laws, chooses to delegate to the subdivision. Absent a clear statement to the contrary, Congress’ reference to the “regulatory authority of a State” should be read to preserve, not preempt, the traditional prerogative of the States to delegate their authority to their constituent parts.

I

The Interstate Commerce Act, as amended by the Federal Aviation Administration Authorization Act of 1994,108 Stat. 1606, and the ICC Termination Act of 1995, 109 Stat. 899, generally preempts state and local regulation “related to a price, route, or service of any motor carrier ... with respect to the transportation of property”; enumerated matters, however, are not covered by the preemption provision. The Act prescribes:

“(1) General Rule. — Except as provided in paragraphs (2) and (3), a State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier . . . with respect to the transportation of property.
“(2) Matters not covered — Paragraph (1)—
“(A) shall not restrict the safety regulatory authority of a State with respect to motor vehicles ... or the authority of a State to regulate motor carriers with regard to minimum amounts of financial responsibility relating to insurance requirements and self-insurance authorization;
“(B) does not apply to the transportation of household goods; and
“(C) does not apply to the authority of a State or a political subdivision of a State to enact or enforce a law, regulation, or other provision relating to the price of for-hire motor vehicle transportation by a tow truck, [430]*430if such transportation is performed without the prior consent or authorization of the owner or operator of the motor vehicle.
“(3) State standard transportation PRACTICES —
“(A) Continuation. — [Section 14501(c)(1)] shall not affect any authority of a State, political subdivision of a State, or political authority of 2 or more States to enact or enforce a law, regulation, or other provision, with respect to the intrastate transportation of property by motor carriers, related to — [inter alia] uniform cargo liability rules ... if such law, regulation, or provision meets [various enumerated] requirements.” 49 U. S. C. § 14501(c).

Tow trucks, all parties to this case agree, are “motor carrier[s] of property” falling within § 14501(c)’s compass. This reading is corroborated by § 14501(c)(2)(C), which relates to nonconsensual tows, e. g., of illegally parked or abandoned vehicles. That provision plainly indicates that tow trucks qualify as “motor carrier[s] of property”; it exempts from federal preemption state and local regulation of “the price of for-hire motor vehicle transportation by a tow truck” when the towing “is performed without the prior consent ... of the [towed vehicle’s] owner or operator.”

Petitioner, the City of Columbus, Ohio (City), extensively regulates the operation of any tow truck that seeks to pick up vehicles within city limits. Columbus’ regulations require tow-truck operators to obtain city licenses, submit to city inspections, meet city standards for insurance and rec-ordkeeping, and conform their vehicles to the City’s detailed equipment requirements. See Columbus, Ohio, City Code §§ 549.02-549.06 (1991); App. to Pet. for Cert. 37a-52a.

Plaintiff-respondent Ours Garage and Wrecker Service, Inc., joined by a trade association of tow-truck operators, the Towing and Recovery Association of Ohio (TRAO), brought suit in Federal District Court against the City of Columbus [431]*431and two city officials to enjoin enforcement of the City’s tow-truck regulations. The complaint alleged that Columbus' regulations were preempted by § 14501(c)(1). On cross-motions for summary judgment, the District Court ruled for the plaintiffs; the court declared the City’s tow-truck regulations preempted and enjoined their enforcement. Columbus and its officials appealed to the United States Court of Appeals for the Sixth Circuit.

During the pendency of Columbus’ appeal, the Sixth Circuit decided Petrey v. Toledo, 246 F. 3d 548 (2001). Petrey held that city of Toledo tow-truck regulations, resembling those of Columbus, were preempted by § 14501(c).1 The court observed first that § 14501(c)(l)’s preemption rule explicitly applies to “a State [or] political subdivision of a State,” while the exception for safety regulations, § 14501(c)(2)(A), refers only to the “authority of a State.” The contrast in statutory language indicated to the court that Congress meant to limit the safety exception to States alone. Id., at 563. This reading, the court further reasoned, was consistent with Congress’ deregulatory purpose. “Congress intended to encourage market forces ... through the elimination of a myriad of complicated and potentially conflicting state regulations,” the court observed; “yet another level of regulation at the local level,” the court inferred, “would be disfavored.” Ibid.

Eleven weeks after rendering its judgment in Petrey, the Sixth Circuit decided this case. Holding Petrey dispositive, the appeals court affirmed the District Court’s injunction against enforcement of Columbus’ tow-truck regulations. 257 F. 3d 506, 507-508 (2001).

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City of Columbus v. Ours Garage & Wrecker Service, Inc., 536 U.S. 424, 122 S. Ct. 2226, 153 L. Ed. 2d 430, 15 Fla. L. Weekly Fed. S 447, 2002 Cal. Daily Op. Serv. 5452, 2002 Daily Journal DAR 6867, 70 U.S.L.W. 4620, 2002 U.S. LEXIS 4643 (2002).

536 U.S. 424 (City of Columbus v. Ours Garage & Wrecker Service, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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