Rocky Mountain Airways, Inc. v. County of Pitkin

674 F. Supp. 312, 1987 U.S. Dist. LEXIS 11058, 1987 WL 3539
CourtDistrict Court, D. Colorado
DecidedNovember 25, 1987
DocketCiv. A. 87-A-1603
StatusPublished
Cited by10 cases

This text of 674 F. Supp. 312 (Rocky Mountain Airways, Inc. v. County of Pitkin) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rocky Mountain Airways, Inc. v. County of Pitkin, 674 F. Supp. 312, 1987 U.S. Dist. LEXIS 11058, 1987 WL 3539 (D. Colo. 1987).

Opinion

MEMORANDUM OPINION AND ORDER

ARRAJ, District Judge.

Plaintiffs, Rocky Mountain Airways, Inc. and Aspen Airways, Inc. (the “Airlines”) have filed a complaint in this court alleging that certain rates and charges imposed upon them under a resolution adopted by the Pitkin County Board of County Commissioners (“BOCC”) are excessive, unreasonable, and discriminatory in violation of both federal and state law. The matter is now before the court on defendants’ motion to dismiss the complaint. The parties have submitted briefs and other documentation in support of their respective positions, and oral argument was heard on November 19, 1987.

ALLEGATIONS IN THE COMPLAINT 1

Defendant Pitkin County (the “County”) is a political subdivision of the State of Colorado which owns and operates the Aspen/Pitkin County Airport (the “Airport”). The Airport serves the seasonal resort and year-round business needs of the several communities of Pitkin County, including the City of Aspen and the Town of Snow-mass Village. It is the only public airport within approximately 80 miles of Aspen that can accommodate commercial flights of the nature performed by the Airlines.

The plaintiffs in this case each operate air carrier services between Stapleton International Airport, in Denver, and the Aspen/Pitkin County Airport. They are the only regularly scheduled commercial airlines who fly into the Airport. Both of the Airlines occupy terminal space and utilize airfield facilities pursuant to Use and Lease Agreements with Pitkin County.

The County has made a decision to enlarge and remodel the existing terminal at *314 the Airport. The new budget calls for total construction costs of $2,444,198, of which $866,809 is to come from federal grants, $1,342,000 is to be generated from the net proceeds of a new bond issue, and $215,389 is to be paid from operating revenues. In an effort to generate the necessary operating revenues, the BOCC adopted Resolution No. 87-56 on September 14, 1987. This resolution provides that the landing fees for regularly scheduled commercial airlines will be increased from $.65 to $.99 per 1000 pounds of maximum allowable gross landing weight (an increase of 52.3%). It also provides that annual rental charges for the terminal space occupied by the airlines will be increased from $233,417 to $564,488 (an increase of 153%).

The Airlines contend that they only account for 28.7% of annual operations at the Airport. 2 Yet, under Resolution No. 87-56, the rental and landing fees paid by the Airlines will amount to 50.6% of all operating revenues in 1988. In contrast, General Aviation (privately owned aircraft), which generates neither terminal rent nor landing fees, allegedly accounts for 67.7% of annual operations. 3 The County does generate revenue from General Aviation, but it does so indirectly by charging a rental fee to the Fixed Base Operator. The Operator provides services to private aircraft and thereby passes on the cost. Under Resolution No. 87-56, such indirect revenues paid by General Aviation will only amount of 14.7% of the annual operating revenues in 1988.

The Complaint alleges five separate claims for relief. The first claim alleges that the fees and rentals imposed upon the Airlines under Resolution No. 87-56 are unreasonable and, therefore, in violation of the federal Anti-Head Tax Act, 49 U.S.C. § 1513. The second claim asserts that the Airport holds a monopoly position, and that the fees and rentals are unreasonable and therefore in violation of Section 2 of the Sherman Act, 15 U.S.C. § 2. The third claim is based upon the allegation that the fees and rentals being imposed by the County are discriminatory and therefore deprive the Airlines of their rights under 49 U.S.C. § 2210. The Airlines charge that this alleged discriminatory violation of their rights under federal law gives rise to a cause of action under 42 U.S.C. § 1983. The fourth claim asserts that 49 U.S.C. § 1513 and 49 U.S.C. § 2210 indicate that federal law now preempts the kind of state and local regulation at issue in this case, and that the fees and rentals being imposed are therefore invalid under the supremacy clause of the United States Constitution, U.S.Const. Art. VI, cl. 2. Finally, the fifth claim asserts that the County’s power to charge and collect rentals and fees in connection with the maintenance and operation of the Airport pursuant to Colo.Rev.Stat. § 41-4-106 is limited to rentals and fees that are reasonable. The Airport maintains that the fees and rentals in this case are not reasonable and are therefore in violation of Colo.Rev.Stat. § 41-4-106.

The County has moved to dismiss all five claims for relief. The court will address each of these claims in turn.

DISCUSSION

For purposes of a motion to dismiss for failure to state a claim, the material allegations of the complaint are to be taken as true. Jenkins v. McKeithen, 395 U.S. 411, 421, 89 S.Ct. 1843, 1849, 23 L.Ed.2d 404 (1969); Bryan v. Stillwater Bd. of Realtors, 578 F.2d 1319, 1321 (10th Cir.1977). The complaint should be liberally construed in favor of the plaintiff. It is “the accepted rule that a complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 101-102, 2 L.Ed.2d 80 (1957).

I. The First Claim for Relief

The first claim for relief in the Complaint alleges that the fees and rental charges imposed upon the airlines constitutes a violation of the Anti-Head Tax Act, *315 49 U.S.C. § 1513. A two-step analysis is necessary to determine whether this cause of action should survive defendants’ motion to dismiss. First, the facts alleged, taken as true, must indicate that the County’s actions constitute a violation of this provision. Second, an implied private right of action for such a violation must be recognized.

With regard to the first question, 49 U.S.C. § 1513 provides, in relevant part, that

(a) No State (or political subdivision thereof ...) shall levy or collect a tax, fee, head charge, or other charge, directly or indirectly,

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674 F. Supp. 312, 1987 U.S. Dist. LEXIS 11058, 1987 WL 3539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rocky-mountain-airways-inc-v-county-of-pitkin-cod-1987.