Northern Air Cargo v. United States Postal Service

756 F. Supp. 2d 116, 2010 U.S. Dist. LEXIS 135991, 2010 WL 5209340
District Court, District of Columbia·Decided December 23, 2010·No. Civil Action 10-2076 (EGS)·Published·Cited by 12 cases

Opinion

MEMORANDUM OPINION

EMMET G. SULLIVAN, District Judge.

Pending before the Court is a motion for temporary restraining order and preliminary injunction by Plaintiffs Northern Air Cargo (“NAC”), Tatonduk Outfitters Ltd. d/b/a Everts Air Cargo (“Everts”), and Lynden Air Cargo LLC (“Lynden”) (col *119 lectively, “plaintiffs”). Plaintiffs seek to enjoin Defendant United States Postal Service (the “Postal Service”) from tendering nonpriority mainline bypass mail to Defendant-Intervenor Peninsula Airways, Inc. (“PenAir”) on five mainline routes in rural Alaska pursuant to 39 U.S.C. § 5402(g)(5)(C) (“§ 5402(g)(5)(C)”). Specifically, plaintiffs challenge the Postal Service’s purportedly ultra vires determination that PenAir had satisfied the “Prior Service and Capacity Requirement” of 39 U.S.C. § 5402(g)(l)(A)(iv)(II) (“§ 5402(g)(l)(A)(iv)(IR”) as of December 3, 2010. 1 Plaintiffs argue that they will suffer “immediate and irreparable injury in the form of ... substantial non-recoverable economic losses” if an immediate injunction is not granted. Pis.’ Mot. at 1. Upon consideration of the motion, the responses and reply thereto, the applicable law, the arguments of counsel made during the motions hearing held on December 21, 2010, and for the following reasons, the Court hereby DENIES plaintiffs’ motion for temporary restraining order and preliminary injunction.

I. BACKGROUND 2

This is the second action that plaintiffs have filed related to the Postal Service’s purportedly unlawful tender of nonpriority mainline bypass mail to PenAir. The first action came before the Court on November 3, 2009 as a motion for preliminary injunction (hereinafter, the “2009 Action”). See Civil Action No. 09-2065, Docket No. 5. In the 2009 Action, plaintiffs challenged the Postal Service’s August 7, 2009 and September 2, 2009 determinations that PenAir was eligible for the equitable tender of nonpriority mainline bypass mail on five mainline routes: Anchorage-Dillingham, Anchorage-King Salmon, Anchorage-Aniak, Anchorage-McGrath, and AnchorageUnalakleet. With the consent of the parties, plaintiffs’ motion for preliminary injunction was consolidated with a determination on the merits pursuant to Federal Rule of Civil Procedure 65(a)(2), and the parties subsequently filed cross-motions for summary judgment. See Civil Action No. 09-2065, Minute Order dated Nov. 4, 2009.

On September 23, 2010, this Court issued an opinion granting in part and denying in part the parties’ cross-motions for summary judgment. 3 The Court held, among other things, that the Postal Service had exceeded its statutory authority *120 in determining that PenAir was not required to satisfy the Prior Service and Capacity Requirement of § 5402(g)(1)(A)(iv)(II) in order to be tendered nonpriority mainline bypass mail pursuant to § 5402(g)(5)(C). See Northern Air Cargo, 741 F.Supp.2d at 51-54, 2010 WL 3786096, at *9-10, 2010 U.S. Dist. LEXIS 100757, at *29-32. The Court consequently enjoined the Postal Service from tendering nonpriority mainline bypass mail to PenAir until the airline satisfied the Prior Service and Capacity Requirement of § 5402(g)(l)(A)(iv)(II). See Civil Action No. 09-2065, Order at 2. Accordingly, on September 24, 2010, the Postal Service ceased tendering nonpriority mainline bypass mail to PenAir. See Postal Service’s Opp’n at 6.

On October 12, 2010, PenAir submitted a new application to the Postal Service once again requesting the equitable tender of nonpriority mainline bypass mail in the five mainline markets at issue in this case: Dillingham, King Salmon, Aniak, McGrath, and Unalakleet. See Postal Service’s Opp’n at 6-7; Declaration of Steven Deaton (“Deaton Deck”) ¶ 3. By letter dated October 21, 2010, the Postal Service found that PenAir had satisfied the Prior Service and Capacity Requirement. See Ex. B to Deaton Deck; see also Deaton Deck ¶ 4 (“[T]he [Postal Service] confirmed that PenAir had satisfied the Prior Service and Capacity Requirement ... by flying a mainline passenger aircraft between any two points within the State of Alaska for at least 12 months.... ”). The letter also stated, however, that because “[t]he district court did not address whether PenAir should receive credit for the past 13 months in which it has been providing mainline service in Alaska ... the actual tender of mail to PenAir may violate the court’s injunction.” Ex. B to Deaton Deck Prior to tendering nonpriority mainline bypass mail to PenAir, therefore, the Postal Service explained that it needed clarification from the Court regarding whether its proposed equitable tender would violate the Court’s injunction. See Ex. B to Deaton Deck (“[T]he Postal Service will immediately begin tendering mail to PenAir upon the occurrence of either of the following events: (1) the court lifts the injunction; [or] (2) PenAir obtains an appropriate clarification of (or modification to) the injunction, which, in the sole judgment of the Postal Service, makes it clear that tendering mail will not violate the court’s injunction.”).

On November 17, 2010, the Postal Service filed a “Motion for Order to Clarify Judgment” in the 2009 Action. See Civil Action No. 09-2065, Docket No. 38. In its motion, the Postal Service asked the Court to clarify whether it “intended to credit PenAir for the past 13 months during which it has been providing mainline passenger service in Alaska.” Civil Action No. 09-2065, Postal Service’s Mot. for Clarification at 2. On December 2, 2010, the Court denied the Postal Service’s motion. See Civil Action No. 09-2065, Minute Order dated Dec. 2, 2010 (“After careful consideration of defendant’s motion, the Court concludes that the issue on which defendant seeks clarification — ‘whether PenAir should receive credit for the past 13 months during which it has been providing mainline service to Alaskans,’ Def.’s Mot. at 2 — is not properly before the Court. Specifically, the Court finds that the issue presented by defendant would require the Court to entertain new factual and legal issues beyond the scope of the Court’s Memorandum Opinion and Order.”). Following the Court’s issuance of this ruling, the Postal Service concluded that PenAir had satisfied the Prior Service and Capacity Requirement. See Deaton Deck ¶¶ 7-8. Soon thereafter, on December 6, 2010, the Postal Service began ten *121 dering nonpriority mainline bypass mail to PenAir on the five requested mainline routes. See Deaton Decl. ¶ 7.

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Northern Air Cargo v. United States Postal Service, 756 F. Supp. 2d 116, 2010 U.S. Dist. LEXIS 135991, 2010 WL 5209340 (D.D.C. 2010).

756 F. Supp. 2d 116 (Northern Air Cargo v. United States Postal Service) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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