Hicks v. Airborne Express, Inc.

858 N.E.2d 48, 306 Ill. Dec. 603
CourtAppellate Court of Illinois
DecidedJuly 25, 2006
Docket5-04-0793
StatusPublished
Cited by4 cases

This text of 858 N.E.2d 48 (Hicks v. Airborne Express, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hicks v. Airborne Express, Inc., 858 N.E.2d 48, 306 Ill. Dec. 603 (Ill. Ct. App. 2006).

Opinion

858 N.E.2d 48 (2006)
306 Ill.Dec. 603

A. Jeffrey HICKS, d/b/a Financial Planning Advisors, Inc., Individually and on Behalf of All Others Similarly Situated, Plaintiff-Appellant,
v.
AIRBORNE EXPRESS, INC., Defendant-Appellee.

No. 5-04-0793.

Appellate Court of Illinois, Fifth District.

July 25, 2006.

*50 Gail G. Renshaw, Gary E. Peel, Gerald Walters, The Lakin Law Firm, P.C., Wood River; Paul M. Weiss, Tod A. Lewis, Freed & Weiss, LLC, Chicago; Malik R. Diab, Phillip A. Bock, Diab & Bock, Chicago; Timothy Campbell, The Campbell Law Offices, Godfrey, for Appellant.

Karen L. Kendall, Craig L. Unrath, Heyl, Royster, Voelker & Allen, Peoria; Robert H. Shultz, Jr., Joseph P. Whyte, Deborah A. Hawkins, Heyl, Royster, Voelker & Allen, Edwardsville; Edwin V. Woodsome, Jr., D. Barclay Edmundson, William W. Oxley, T. Jason White, Orrick, Herrington & Sutcliffe LLP, Los Angeles, CA, for Appellee.

Stephen A. Alterman, Cargo Airline Association, Washington, DC; Robert K. Spotswood, Kenneth D. Sansom, Michael T. Sansbury, John R. Parker, Jr., Spotswood LLC, Birmingham, AL, for Amicus Curiae.

Justice HOPKINS delivered the opinion of the court:

The plaintiff, A. Jeffrey Hicks (Hicks), doing business as Financial Planning Advisors, Inc., individually and on behalf of all others similarly situated, appeals the circuit court's order granting a summary judgment in favor of the defendant, Airborne Express, Inc. (Airborne). On appeal, Hicks argues that the circuit court erred in holding that the parties' contract limited Hicks's remedy. We affirm.

FACTS

Hicks filed a class-action complaint against Airborne, a courier service that provides package transportation and delivery services. In his complaint, Hicks alleged that Airborne breached its shipping contract by charging customers higher rates for express delivery and failing to deliver the packages by the agreed delivery time. Hicks sought compensation for the difference in value between the service customers requested and the service they received.

Hicks shipped packages using Airborne's Flight-Ready prepaid shipping service. Pursuant to this service, Hicks purchased the Flight-Ready shipment envelope used to package his shipment. Airborne guaranteed that Hicks's Flight-Ready shipment envelope would be delivered by noon the next day. When Hicks's delivery was delayed, Airborne provided Hicks with a free Flight-Ready envelope pursuant to the Flight-Ready guarantee.

*51 Airborne's Flight-Ready order form, used to order Flight-Ready envelopes, stated:

"THE FLIGHT-READY GUARANTEE: Airborne Express guarantees that your pre[]purchased domestic Flight-Ready shipment will arrive on time (as stated in the current Service Guide)—or Airborne will give you another Flight-Ready domestic express envelope free of charge."

Airborne's Flight-Ready envelope stated, in pertinent part:

"Service Conditions
* * * Use of Flight-Ready constitutes your agreement to the service conditions stated here [and] in our published tariffs and current Service Guide (available on request). No one is authorized to alter or modify those terms.
Limitations of Liability
* * * We shall not be liable in any event for special, incidental[,] or consequential damages, including but not limited to loss of profits or income.
* * *
Claims
Filing claims for delayed, lost[,] or damaged shipments is subject to time limits. Consult the Service Guide for full details."

On March 22, 2004, Airborne filed a motion for a summary judgment, arguing that Airborne provided Hicks with the only contractual remedy to which he was entitled, a prepaid Flight-Ready envelope. On November 23, 2004, after hearing arguments, the circuit court entered a summary judgment in favor of Airborne, finding that the parties had agreed to an exclusive remedy, i.e., another Flight-Ready envelope, for Airborne's breach of the contract to deliver Hicks's package by noon the next day. On December 15, 2004, Hicks filed a notice of appeal.

ANALYSIS

Airline Deregulation Act Preemption

Initially, we address whether Hicks's breach-of-contract action is preempted by the Airline Deregulation Act of 1978 (Airline Deregulation Act) (49 U.S.C. § 41713(b)(1) (2000)), an argument raised in Airborne's brief on appeal. Hicks argues that Airborne waived this argument by failing to raise it as an affirmative defense in the circuit court. However, the waiver rule is a limitation on the parties and not the jurisdiction of this court. Michigan Avenue National Bank v. County of Cook, 191 Ill.2d 493, 518, 247 Ill.Dec. 473, 732 N.E.2d 528 (2000). We choose to address the issue.

Pursuant to the preemption doctrine, which arises from the supremacy clause of the United States Constitution (U.S. Const., art. VI, cl.2), we examine whether Congress intended for federal law to preempt state law in a given case. Fidelity Federal Savings & Loan Ass'n v. de la Cuesta, 458 U.S. 141, 152, 102 S.Ct. 3014, 3022, 73 L.Ed.2d 664, 674-75 (1982); Cohen v. McDonald's Corp., 347 Ill.App.3d 627, 633, 283 Ill.Dec. 451, 808 N.E.2d 1 (2004).

Section 41713(b)(1) of the Airline Deregulation Act expressly preempts the States from "enact[ing] or enforc[ing] a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier that may provide air transportation." 49 U.S.C. § 41713(b)(1) (2000). State common law is considered an "other provision having the force and effect of law" for purposes of this statute. United Airlines, Inc. v. Mesa Airlines, Inc., 219 F.3d 605, 607 (7th Cir.2000). Congress enacted the *52 express-preemption provision in the Airline Deregulation Act "[t]o ensure that the States would not undo federal deregulation with regulation of their own." Morales v. Trans World Airlines, Inc., 504 U.S. 374, 378, 119 L.Ed.2d 157, 164 (1992).

The Supreme Court first considered the scope of preemption under the Airline Deregulation Act in Morales, 504 U.S. 374, 119 L.Ed.2d 157. In holding that the Airline Deregulation Act preempted the application of state consumer protection statutes to airline advertisements, the Court stated that the statutory phrase "relating to"[1] expressed a broad preemptive purpose so that any claim that has "a connection with[] or reference to" an airline's prices, routes, or services is preempted under the statute. Morales, 504 U.S. at 384, 119 L.Ed.2d at 167-68, However, the Court noted that state actions affecting airline prices, routes, or services "`in too tenuous, remote, or peripheral a manner'" would not be preempted. Morales, 504 U.S. at 390, 112 S.Ct. at 2040, 119 L.Ed.2d at 172 (quoting Shaw v.

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