In Re Air Cargo Shipping Services Antitrust Litigation

697 F.3d 154, 2012 WL 4820732, 2012 U.S. App. LEXIS 21091
CourtCourt of Appeals for the Second Circuit
DecidedOctober 11, 2012
DocketDocket 11-5464-cv
StatusPublished
Cited by18 cases

This text of 697 F.3d 154 (In Re Air Cargo Shipping Services Antitrust Litigation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Air Cargo Shipping Services Antitrust Litigation, 697 F.3d 154, 2012 WL 4820732, 2012 U.S. App. LEXIS 21091 (2d Cir. 2012).

Opinion

DENNIS JACOBS, Chief Judge:

Plaintiffs (indirect purchasers of air freight shipping services) brought suit against numerous foreign airlines (“Defendants”), alleging a conspiracy to fix prices in violation of state antitrust, consumer protection, and unfair competition laws. The United States District Court for the Eastern District of New York (Gleeson, J.) dismissed those claims as expressly preempted by federal law. The Federal Aviation Act preempts state-law claims “related to a price, route, or service of an air carrier.” 49 U.S.C. § 41713(b)(1). The question is whether “air carrier” in that provision applies to foreign air carriers. We conclude that it does, and affirm.

BACKGROUND

At least 22 foreign air carriers have been subject to federal criminal charges in the United States in connection with a global price-fixing conspiracy. Some have settled, agreeing to pay fines and penalties totaling almost $2 billion.

Plaintiffs bring this civil suit alleging that they paid excessive prices when Defendants entered into that conspiracy, beginning in 2000, and began levying a number of surcharges, including a fuel surcharge, a war-risk-insurance surcharge, a security surcharge, and a United States customs surcharge. Plaintiffs, as indirect purchasers of air freight shipping, dealt with the defendant airlines through intermediaries, such as freight forwarders. They bring their claims under state law because indirect purchasers are unable to obtain money damages under federal antitrust law. See Ill. Brick Co. v. Illinois, 431 U.S. 720, 729, 97 S.Ct. 2061, 52 L.Ed.2d 707 (1977). Additional claims were brought by other plaintiffs who were direct purchasers. The claims of those direct-purchaser plaintiffs remain in district court and are not before us.

Below, the district court accepted, in relevant part, Magistrate Judge Pohorelsk/s recommendation to dismiss Plaintiffs’ state claims on the ground that it was expressly preempted by federal law. The district court then entered partial final judgment under Rule 54(b) of the Federal Rules of Civil Procedure, so Plaintiffs could immediately appeal the dismissal decision. This appeal followed.

DISCUSSION

We review de novo a dismissal for failure to state a claim upon which relief can be granted. Harris v. Mills, 572 F.3d 66, 71 (2d Cir.2009). We also review de novo questions of statutory interpretation, Bodansky v. Fifth on the Park Condo, LLC, 635 F.3d 75, 82 (2d Cir.2011), and questions of preemption, New York SMSA Ltd. Partnership v. Town of Clarkstown, 612 F.3d 97, 103 (2d Cir.2010).

The relevant provision of the Federal Aviation Act is as follows:

Except as provided in this subsection, a State, political subdivision of a State, or political authority of at least 2 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 that may provide air transportation under this subpart.

*158 49 U.S.C. § 41713(b)(1). Plaintiffs’ claims undoubtedly arise under state law and are related to “price.” Id. The dispositive question, then, is whether foreign air carriers (such as Defendants) are “air carrier[s]” under § 41713(b)(1) (the “preemption provision”).

I

We begin “ ‘with the language employed by Congress and the assumption that the ordinary meaning of that language accurately expresses the legislative purpose.’ ” United States v. Aleynikov, 676 F.3d 71, 76 (2d Cir.2012) (quoting United States v. Albertini, 472 U.S. 675, 680, 105 S.Ct. 2897, 86 L.Ed.2d 536 (1985)). The ordinary, everyday meaning of “air carrier” includes both domestic and foreign air carriers.

That would usually end the analysis, but “[w]hen a statute includes an explicit definition,” we generally follow that definition, “even if it varies from that term’s ordinary meaning.” Stenberg v. Carhart, 530 U.S. 914, 942, 120 S.Ct. 2597, 147 L.Ed.2d 743 (2000). “ ‘Statutory definitions control the meaning of statutory words, of course, in the usual case.’ ” Nw. Austin Mun. Util. Dist. No. One v. Holder, 557 U.S. 193, 206, 129 S.Ct. 2504, 174 L.Ed.2d 140 (2009) (quoting Lawson v. Suwannee Fruit & S.S. Co., 336 U.S. 198, 201, 69 S.Ct. 503, 93 L.Ed. 611 (1949)). The Federal Aviation Act defines an “air carrier” as “a citizen of the United States undertaking by any means, directly or indirectly, to provide air transportation.” 49 U.S.C. § 40102(a)(2). A “foreign air carrier” is separately defined as “a person, not a citizen of the United States, undertaking by any means, directly or indirectly, to provide foreign air transportation.” Id. § 40102(a)(21).

Plaintiffs contend that this is the “usual case” where the statutory definitions should control. The statutory definitions are consistent with this Court’s authority that the terms “air carrier” and “foreign air carrier” are “mutually exclusive” because an entity cannot be both a citizen and not a citizen of the United States. United States v. Keuylian, 602 F.2d 1033, 1040 (2d Cir.1979). That observation is sound as far as it goes; ■ but there are occasions when statutory definitions yield to context and the development of the statutory wording over time. In any event, while an entity cannot be both an air carrier and a foreign air carrier (i.e., the terms are mutually exclusive), nothing in the statutory definitions prevents the statutory preemption provision from applying to both domestic air carriers and foreign air carriers, which is the matter at issue here.

To demonstrate that Congress has been careful to distinguish between the two terms, Plaintiffs cite 51 places in the Federal Aviation Act where Congress distinguished between an “air carrier” and a “foreign air carrier” by using both terms.

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697 F.3d 154, 2012 WL 4820732, 2012 U.S. App. LEXIS 21091, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-air-cargo-shipping-services-antitrust-litigation-ca2-2012.