Deerskin Trading Post, Inc. v. United Parcel Service of America, Inc.

972 F. Supp. 665, 1997 U.S. Dist. LEXIS 5405, 1997 WL 404264
CourtDistrict Court, N.D. Georgia
DecidedJanuary 29, 1997
Docket1:96-cv-01346
StatusPublished
Cited by54 cases

This text of 972 F. Supp. 665 (Deerskin Trading Post, Inc. v. United Parcel Service of America, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deerskin Trading Post, Inc. v. United Parcel Service of America, Inc., 972 F. Supp. 665, 1997 U.S. Dist. LEXIS 5405, 1997 WL 404264 (N.D. Ga. 1997).

Opinion

ORDER

HULL, District Judge.

Plaintiff Deerskin Trading Post, Inc. brings this action against Defendant United Parcel Service of America (“UPS”) alleging, inter alia, that Defendant UPS overcharged Plaintiff for shipping services. This matter is before the Court on Defendant’s Motion to Dismiss [12-1] counts two, three, four, five, and six of Plaintiffs Complaint and portions of count one of Plaintiffs Complaint. Plaintiffs Complaint alleges numerous causes of action under state law which Defendant’s Motion asserts are preempted by federal law and should be dismissed.

I. FACTS

Defendant UPS and its subsidiaries transport parcels by air and ground throughout the United States and the world. Plaintiff alleges that Defendant overcharged Plaintiff for Defendant’s services in shipping packages to Plaintiffs customers. Specifically, Plaintiff claims that Defendant inappropriately charged Plaintiff based on the “dimensional weight” of certain packages. Ordinarily, the rate a customer pays is determined by the actual weight of the package, the destination of the package, and the desired speed of *667 delivery. In certain circumstances, however, Defendant’s rate is based upon the “dimensional weight” as defined in Defendant’s regulations. Defendant’s rate typically is based on the dimensional weight of the package only when the package is greater than one cubic foot in volume and when the package’s dimensional weight exceeds its actual weight. All of Defendant’s rates, however, are governed by Defendant’s contracts with its customers.

Under Plaintiffs contract, Defendant, in line with its normal practice, is permitted to charge Plaintiff based on the dimensional weight of a package only if the package exceeds one cubic foot in volume. Plaintiff alleges, however, that Defendant charged Plaintiff based on the dimensional weight of packages that were less than one cubic foot in volume. As Plaintiff puts it, “Defendant ... systematically imposed improper ‘dimensional weight’ charges on packages [UPS] ... contracted to ship.” Plain. Brief, at 2.

On May 29, 1996, Plaintiff brought this action alleging breach of contract, statutory fraud, common law fraud, negligence, gross negligence, unjust enrichment and imposition of constructive trust. On September 9, 1996, Defendant filed a Motion to Dismiss all of Plaintiffs claims except a limited portion of Plaintiffs breach of contract claim. According to Defendant, the relevant sections of the Federal Aviation Administration Authorization Act of 1994, namely 49 U.S.C. §§ 14501(c)(1) and 41713(a), (b)(4), preempt all of Plaintiffs state law claims except for a portion of Plaintiffs breach of contract claim. Defendant admits that Plaintiffs breach of contract claim is not preempted by federal law, but Defendant contends that Plaintiff cannot obtain any punitive damages or injunctive relief on its breach of contract claim.

II. DISCUSSION

A. Legislative History Of The Federal Aviation Administration Atithorization Act

In 1994, Congress passed the Federal Aviation Administration Authorization Act (“FAAAA”), effective on January 1, 1995. As part of the FAAAA, Congress enacted (1) the predecessor to § 14501(c)(1) (which was codified at 49 U.S.C. § 11501(h)(1)) 1 and (2) § 41713(b)(4). Sections 14501(c)(1) and 41713(b)(4) are preemption statutes which remove the states’ regulatory power over motor and intermodal carriers, such as Defendant.

1. The Words of the Federal Statutes Imply a Broad Preemptive Scope

In construing a federal statute, the Court is compelled to effectuate Congresses intentions in enacting the statute. FMC Corp. v. Holliday, 498 U.S. 52, 57, 111 S.Ct. 403, 407, 112 L.Ed.2d 356 (1990). The Court’s analysis begins, and usually ends, with the language of the statute. Estate of Cowart v. Nicklos Drilling Co., 505 U.S. 469, 475, 112 S.Ct. 2589, 2594, 120 L.Ed.2d 379 (1992). The Court proceeds with “the assumption that the ordinary meaning of [the words employed in the statute] accurately expresses the legislative purpose.” Holliday, 498 U.S. at 57, 111 S.Ct. at 407 (internal quotation marks omitted).

Section 14501(c)(1) provides that no state shall enact or enforce any law, regulation, or any other provision having the force and effect of law related to a price, route, or service of any motor carrier, as follows:

(c) Motor carriers of property.—
(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 ... or any motor private carrier, broker, or freight forwarder with respect to the transportation of property.

49 U.S.C. § 14501(c)(1) (emphasis supplied). Similarly, § 41713(b)(4) provides that no state shall enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier, as follows:

*668 (4) Transportation by air carrier or carrier affiliated with a direct air carrier.—
(A) General rule. — Except as provided in subparagraph (B), 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 an air carrier through common controlling ownership when such carrier is transporting property by aircraft or by motor vehicle (whether or not such property has had or will have a prior or subsequent air movement).

49 U.S.C. § 41713(b)(4)(A) (emphasis supplied).

The operative phrase in the above statutes is “related to.” “The ordinary meaning of these words is a broad one — ‘to stand in some relation; to have bearing or concern; to pertain; refer; to bring into association with or connection with.’ ” Morales v. Trans World Airlines, Inc., 504 U.S. 374, 383, 112 S.Ct. 2031, 2037, 119 L.Ed.2d 157 (1992) (quoting Black’s Law Dictionary 1158 (5th ed.1979)). The words “thus express a broad pre-emptive purpose.” Id.

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972 F. Supp. 665, 1997 U.S. Dist. LEXIS 5405, 1997 WL 404264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deerskin-trading-post-inc-v-united-parcel-service-of-america-inc-gand-1997.