City of Los Angeles v. AECOM Services, Inc.

854 F.3d 1149, 2017 WL 1431084, 2017 U.S. App. LEXIS 7111
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 24, 2017
Docket15-56606
StatusPublished
Cited by24 cases

This text of 854 F.3d 1149 (City of Los Angeles v. AECOM Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Los Angeles v. AECOM Services, Inc., 854 F.3d 1149, 2017 WL 1431084, 2017 U.S. App. LEXIS 7111 (9th Cir. 2017).

Opinion

*1152 OPINION

M. SMITH, Circuit Judge:

This appeal presents a single legal question that has not yet been addressed by our court: Do Title' II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973 (§ 504) preempt a city’s state-law claims for breach of contract and de facto contribution against contractors who breach their contractual duty to perform services in compliance with federal disability regulations? For the reasons set forth in this opinion, we hold that neither Title II nor § 504 preempts such claims.

FACTUAL AND PROCEDURAL BACKGROUND

Two disabled individuals filed suit against Appellant City of Los Angeles (the City), alleging that the City’s FlyAway bus facility and service — a bus system that provides transportation between Los An-geles International Airport and various locations — failed to meet the accessibility standards set forth in Title II of the ADA, 42 U.S.C. §§ 12131 et seq.; § 504 of the Rehabilitation Act, 29 U.S.C. §§ 701 et seq.; and various California statutes. The complaint specifically alleged that the FlyAway bus facility in Van Nuys, California, had been constructed in such a manner that it was inaccessible by disabled individuals. Plaintiffs sought damages, attorneys’ fees, and an injunction requiring the City to modify its Van Nuys FlyAway facility so that it would become compliant with state and federal disability access standards.

The City subsequently filed a third-party complaint against Appellees AECOM Services, Inc. (AECOM) and Tutor Perini Corporation (Tutor). 1 The City’s third-party complaint alleged that pursuant to the contract entered into by the City and the company hired to design and construct the Van Nuys FlyAway facility (which was AECOM’s predecessor-in-interest), AE-COM was obligated “to defend, indemnify, and hold harmless the City against all suits, claims, losses, demands, and expenses to the extent that any such claim results from the negligent and/or intentional wrongful acts or omissions of [AE-COM], its subcontractors, officers, agents, servants, [or] employees.” (emphasis added). The complaint also tracked the language of the contract, pursuant to which AECOM’s predecessor-in-interest agreed

to defend, indemnify and hold City ... harmless from and against all suits and causes of action, claims, losses, demands and, expenses ... to the extent that any claim for personal injury and/or for property damage results from the negligent and/or the intentional wrongful acts or omissions of Consultant, its subcontractors of any tier, and its or their officers, agents, servants, or employees, successors or assigns.

(emphasis added).

The City further alleged that Tutor, the successor-in-interest to another company retained by the City to construct the Van Nuys FlyAway facility, was contractually obligated “to defend, indemnify, and hold harmless the City against all costs, liability, damage or expense ... sustained as a proximate result of the acts or omissions of [Tutor] or relating to acts or events pertaining to, or arising out of, the contract.” The contract between the City and Tutor’s predeeessor-in-interest also required that the contractor, in performing its contractual obligations, “comply with all applicable present and/or future local, ... State and Federal Laws, statutes, ordinances, rules, *1153 regulations, restrictions and/or orders, including ... the Americans with Disabilities Act of 1990,” and stated that “Contractor shall be solely responsible for any and all damages caused, and/or penalties levied, as the result of Contractor’s noncompliance with such enactments.” The contract also stated that

[e]xcept for the City’s sole negligence or willful misconduct, Contractor expressly agrees to ... defend, indemnify, keep and hold City ... harmless from any and all costs, liability, damage or expense ... sustained as a proximate result of the acts or omissions of Contractor, its agents, servants, subcontractors, employees or invitees; or [ ] relating to acts or events pertaining to, or arising from or out of, this Contract.

Based on the foregoing contractual provisions between the City and Appellees’ respective predecessors-in-interest, the City’s third-party complaint against Appel-lees sought damages for breach of contract, express contractual indemnity, and declaratory relief establishing Appellees’ obligations to defend and indemnify the City.

Tutor moved to dismiss the City’s claims pursuant to Federal Rule' of Civil Procedure 12(b)(6), on the theory that Title II and § 504 preempt the City’s claims for indemnification. The district court granted Tutor’s motion to dismiss on preemption grounds. The district court also denied the City’s request for leave to amend its complaint, because it believed that any potential amendment would be futile. The City and AECOM then stipulated that the district court could rule on the viability of the City’s claims against AECOM on the same basis as it did on Tutor’s motion to dismiss because AECOM had asserted an identical preemption defense. The district court subsequently dismissed the City’s claims against AECOM in an order substantively identical to the order previously issued in regard to Tutor’s motion to dismiss. The City now appeals the district court’s dismissal of its third-party claims against Ap-pellees.

JURISDICTION AND STANDARD OF REVIEW

The district court entered a final judgment as to all parties in this appeal on October 8, 2015. We have jurisdiction over final judgments of the district court pursuant to 28 U.S.C. § 1291. We review de novo a district court’s dismissal for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). In re Apple iPhone Antitrust Litig., 846 F.3d 313, 317 (9th Cir. 2017). We similarly review de novo questions of preemption under the Supremacy Clause. Kroske v. U.S. Bank Corp., 432 F.3d 976, 980 (9th Cir. 2005).

ANALYSIS

I. The Americans with Disabilities Act and the Rehabilitation Act of 1973

Title II of the ADA states that “no qualified individual with a disability shall, by reason of such disability, be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any such entity.” 42 U.S.C. § 12132.

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Bluebook (online)
854 F.3d 1149, 2017 WL 1431084, 2017 U.S. App. LEXIS 7111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-los-angeles-v-aecom-services-inc-ca9-2017.