JOHEL VALIENTE V. SWIFT TRANSP. CO. OF ARIZ.

Court of Appeals for the Ninth Circuit·Decided November 23, 2022·No. 21-55456·Published

Opinion

FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS NOV 23 2022 MOLLY C. DWYER, CLERK

U.S. COURT OF APPEALS

FOR THE NINTH CIRCUIT

JOHEL VALIENTE; ASHRAF AIAD, on No. 21-55456 behalf of themselves and all others similarly situated, D.C. No.

2:19-cv-04217-VAP-KK

Plaintiffs-Appellants,

v. OPINION

SWIFT TRANSPORTATION CO. OF ARIZONA, LLC, a Delaware limited liability company,

Defendant-Appellee.

Appeal from the United States District Court for the Central District of California Virginia A. Phillips, District Judge, Presiding

Argued and Submitted August 4, 2022 Pasadena, California

Before: Consuelo M. Callahan and Holly A. Thomas, Circuit Judges, and Diane J. Humetewa, * District Judge.

Opinion by Judge H.A. Thomas;

Dissent by Judge Humetewa

*

The Honorable Diane J. Humetewa, United States District Judge for the District of Arizona, sitting by designation.

SUMMARY **

Preemption / Motor Carrier Safety Act

The panel affirmed the district court’s summary judgment in favor of Swift Transportation Co. of Arizona, LLC in a class action brought by former hourly truck drivers for Swift Transportation (“Plaintiffs”) alleging violations of California’s meal and rest break (“MRB”) rules and derivative state-law claims.

In 2018, the Federal Motor Carrier Safety Administration (FMCSA) decided to preempt California’s MRB rules with respect to truck drivers subject to federal regulations. In International Brotherhood of Teamsters, Local 2785 v. Federal Motor Carrier Safety Administration, 986 F.3d 841, 846 (9th Cir. 2021), this Court held that the agency’s decision was a lawful exercise of its power under the Motor Carrier Safety Act of 1984. Here, the panel addressed the question left open by International Brotherhood and held that the preemption decision also barred plaintiffs from proceeding with lawsuits that commenced before the decision was made.

Plaintiffs argued that the presumption against retroactive application of laws operates here to allow their lawsuit to proceed despite the FMSCA’s preemption of California’s MRB rules. The panel applied the retroactivity test set forth in Landgraf v. USI FilmProducts, 511 U.S. 244, 263-64, 280 (1994). Under step one of the two- step test, the panel held that because Congress clearly intended for the FMSCA to have the power to halt enforcement of state laws, and because the FMSCA intended for this particular preemption determination to apply to pending lawsuits, the FMSCA’s decision prohibits present enforcement of California’s MRB rules regardless of when the underlying conduct occurred. The panel held that it need not reach the second step of the Landgraf analysis.

Dissenting, District Judge Humetewa agreed with the majority that resolution of the issue required an analysis under the Landgraf retroactivity test, but she disagreed as to the conclusions reached in applying the framework to the question raised here. Unlike the majority, she did not find any language in the Motor Carrier Safety

**

This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader.

Act of 1984 showing Congress’s express intent to grant the FMCSA authority to promulgate rules that apply retroactively. Judge Humetewa also disagreed with the majority’s holding that it was unnecessary to reach Landgraf’s second step. She would reverse the district court’s order granting summary judgment for Swift Transportation and allow Plaintiffs’ MRB claims arising prior to the date of the preemption decision to proceed.

COUNSEL

Deepak Gupta (argued) and Gregory A. Beck, Gupta Wessler PLLC, Washington, D.C.; James R. Hawkins and Gregory Mauro, James Hawkins APLC, Irvine, California; Stanley D. Saltzman, Marlin & Saltzman LLP, Agoura Hill, California; Louis M. Benowitz, Smith & Benowitz, Sherman Oaks, California; Joshua Cohen Slatkin, Law Offices for Joshua Cohen Slatkin, Los Angeles, California; for Plaintiffs-Appellants. Paul S. Cowie (argued), Robert E. Mussig, and John D. Ellis, Sheppard Mullin Richter & Hampton LLP, San Francisco, California, for Defendant-Appellee. Richard Pianka, ATA Litigation Center, Arlington, Virginia, for Amici Curiae American Trucking Associations Inc. and California Trucking Association.

H.A. THOMAS, Circuit Judge:

In 2018, the Federal Motor Carrier Safety Administration (FMCSA) decided to preempt California’s meal and rest break rules (MRB rules) with respect to truck drivers subject to federal regulations. In International Brotherhood of Teamsters, Local 2785 v. Federal Motor Carrier Safety Administration, we held that the agency’s decision was a lawful exercise of its power under the Motor Carrier Safety Act of 1984 (MCSA). 986 F.3d 841, 846 (9th Cir. 2021). We left open, however, the question whether the preemption decision bars plaintiffs from proceeding with lawsuits that commenced before the decision was made. See id. at 858 n.5 (“We . . . do not consider the retroactivity issue.”). Today we answer that question in the affirmative.

I.

Because we discussed at length the history of the FMCSA’s decision to preempt California’s MRB rules in International Brotherhood, 986 F.3d at 846–48, we only briefly recount that history here. Congress passed the MCSA in 1984 to “promote the safe operation of commercial motor vehicles.” Id. at 846 (quoting Pub. L. No. 98-554, § 202, 98 Stat. 2832 (originally codified at 49 U.S.C. app. 2501)). The Act granted the Secretary of Transportation the authority to decide that “[a] State may not enforce a State law or regulation on commercial motor vehicle

safety.” 49 U.S.C. § 31141(a), (c). Pursuant to statutory criteria, the Secretary can “void any State law or regulation on commercial motor vehicle safety” that “has no safety benefit or would cause an unreasonable burden on interstate commerce.” City of Columbus v. Ours Garage & Wrecker Serv., 536 U.S. 424, 441 (2002) (quoting 49 U.S.C. § 31141(a), (c)). The Secretary delegated this preemption authority to the FMCSA. 49 C.F.R. § 1.87(f).

The FMCSA has twice considered whether to preempt California’s MRB rules in the context of the trucking industry. See Int’l Brotherhood, 986 F.3d at 848. In 2008, the agency rejected a preemption petition from a group of motor carriers because the MRB rules were not related to “commercial motor vehicle safety.” Id. (citing Petition for Preemption of California Regulations on Meal Breaks and Rest Breaks for Commercial Motor Vehicle Drivers; Rejection for Failure to Meet Threshold Requirement, 73 Fed. Reg. 79,204, 79,204–06 (Dec. 24, 2008)). In 2018, two trucking industry groups petitioned the FMCSA to revisit its 2008 decision. Id. This time, the agency granted the petition, deciding on December 28, 2018, that “California may no longer enforce the MRB Rules with respect to drivers . . . subject to [the] FMCSA’s . . . rules.” California’s Meal and Rest Break Rules for Commercial Motor Vehicle Drivers, 83 Fed. Reg. 67,470, 67,480 (Dec. 28, 2018). It is this determination that we ultimately upheld in International Brotherhood.

II.

Plaintiffs Johel Valiente and Ashraf Aiad are former hourly truck drivers for Defendant Swift Transportation Co. On October 16, 2018, before the agency issued the preemption decision, Plaintiffs filed a class action lawsuit against Swift alleging violations of California’s MRB rules and derivative state-law claims. After we issued our decision in International Brotherhood, the district court called for supplemental briefing on whether the preemption decision affected Plaintiffs’ claims. After briefing, the court held that, in the wake of the FMCSA’s determination, it “ha[d] no authority to enforce the regulations upon which Plaintiffs’ meal and rest break claims rest.” Because the entirety of Plaintiffs’ suit depended on the preempted MRB rules, the district court sua sponte granted summary judgment to Swift in all respects and dismissed the suit.

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JOHEL VALIENTE V. SWIFT TRANSP. CO. OF ARIZ., (9th Cir. 2022).

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