Sabre Travel International, Ltd. v. Deutsche Lufthansa Ag, Austrian Airlines Ag, Brussels Airlines, nv/sa, and Swiss International Air Lines, Ltd.

567 S.W.3d 725
CourtTexas Supreme Court
DecidedFebruary 1, 2019
DocketNO. 17-0538
StatusPublished
Cited by99 cases

This text of 567 S.W.3d 725 (Sabre Travel International, Ltd. v. Deutsche Lufthansa Ag, Austrian Airlines Ag, Brussels Airlines, nv/sa, and Swiss International Air Lines, Ltd.) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sabre Travel International, Ltd. v. Deutsche Lufthansa Ag, Austrian Airlines Ag, Brussels Airlines, nv/sa, and Swiss International Air Lines, Ltd., 567 S.W.3d 725 (Tex. 2019).

Opinion

Paul W. Green Justice

In this case, we consider whether an appellate court's denial of a permissive interlocutory appeal prevents this Court from reviewing the merits of the underlying interlocutory order. We hold that it does not under the plain language of former Texas Government Code section 22.225(d). In addition, we consider whether the federal Airline Deregulation Act (ADA) preempts an airline's claim for tortious *728 interference with contract brought under state law. We hold that no preemption occurs because the tortious interference claim does not relate to the airline's prices, routes, or services. Nor does the claim amount to the enforcement of a state law, rule, regulation, standard, or other provision having the force and effect of law that is within the ADA's preemptive reach. Accordingly, we affirm the trial court's denial of the motion to dismiss based on preemption.

I. Background

Direct connections in the airline industry refer to methods used to market airfare directly to travel agents. Once travel agents gain access to an airline's reservation system through a direct-connect method, they can review the airline's inventory, check flight availability, price flight options, and book flights for passengers. Airlines also use indirect methods, such as intermediaries, to market and sell airfare. Sabre Travel International, Ltd., has long served as an intermediary in the travel industry. Through a computerized system known as a Global Distribution System (GDS), Sabre connects airlines with consumers by aggregating travel offerings of multiple airlines for comparison shopping by travel agents. Sabre's GDS is one of the largest on the market, aggregating content for over 400 airlines.

Deutsche Lufthansa Airline Group owns multiple subsidiary airlines. Four of those airlines (collectively, Lufthansa) contracted with Sabre to market and sell tickets through Sabre's GDS. Under the contracts, Sabre received a booking fee when travel agents booked flights on Lufthansa. The contracts also contained non-discrimination provisions, preventing Lufthansa from disadvantaging travel agents who use Sabre's GDS instead of a competing GDS.

Concerned with the expense of GDS services, Lufthansa calculated that it cost the airlines approximately $ 18 more for every ticket booked through a GDS. To allocate this cost, increase transparency, and offset the high fees of GDS services, Lufthansa introduced an $ 18 surcharge to airline tickets sold through GDSs. The surcharge does not apply to tickets booked through non-GDS channels, such as direct connections and Lufthansa's own websites.

Sabre protested that the surcharge violated the contracts' non-discrimination provisions because Lufthansa did not impose the same surcharge equally across all GDSs. Lufthansa maintains otherwise, arguing that its surcharge complies with the parties' contracts. This dispute became the subject of Lufthansa's declaratory judgment suit against Sabre, and Sabre's corresponding counterclaim for breach of contract.

Sabre, in response to the surcharge, allegedly began encouraging travel agents to breach their contracts with Lufthansa by directing them to book travel through Lufthansa's direct connections, where there is no surcharge, and then enter the itineraries into Sabre's GDS so that travel agents could avoid the surcharge and Sabre could collect its booking fee. Because of Sabre's alleged actions, Lufthansa amended its petition to include a claim for tortious interference with contract between Lufthansa and its travel agents. Lufthansa also added a breach of contract action against Sabre for charging Lufthansa for non-billable administrative bookings-in other words, passive bookings.

Sabre promptly filed a motion to dismiss Lufthansa's tortious interference claim under Texas Rule of Civil Procedure 91a, arguing that the federal ADA preempts claims for tortious interference with contract. See 49 U.S.C. § 41713 (b)(1) (providing a federal mandate that preempts any *729 state "law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier"); TEX. R. CIV. P. 91a (providing for dismissal of a cause of action that has no basis in law or fact). The trial court denied Sabre's Rule 91a motion but certified the legal question under Texas Civil Practice and Remedies Code section 51.014(d) -providing for permissive interlocutory appeals. In its order, the court stated that the applicable Texas case law, while persuasive, "is factually different in ways which could be construed to make it distinguishable as controlling authority" regarding whether the ADA preempts tortious interference claims by airlines, and that "an immediate appeal may materially advance the termination of litigation." See Frequent Flyer Depot, Inc. v. Am. Airlines, Inc. , 281 S.W.3d 215 , 221-22 (Tex. App.-Fort Worth 2009, pet. denied) (holding that the ADA did not preempt American Airlines' tortious interference claim brought to protect against a black-market reseller brokering American Airlines' frequent-flyer miles). The interlocutory order also noted that because holdings from other jurisdictions concluded that ADA preemption applies to claims against GDSs, the question "is ripe for consideration, especially from the Second Court of Appeals which authored the Frequent Flyer Depot opinion and, ultimately, the Texas Supreme Court."

The court of appeals denied the permissive appeal in a single-sentence memorandum opinion without explanation but noted in a footnote that "courts strictly construe the interlocutory appeals statute." 549 S.W.3d 600 , 601 n.3 (Tex. App.-Fort Worth 2017, pet. granted) (mem. op.) (citing Blakenergy, Ltd. v. Oncor Elec. Delivery Co. , No. 02-14-00241-CV, 2014 WL 4771736 , at *1 & n.2 (Tex. App.-Fort Worth Sept. 25, 2014, no pet.) (mem. op.) (per curiam) ).

Sabre filed a petition for review in this Court, asserting that the court of appeals abused its discretion in denying the permissive interlocutory appeal and that the ADA preempts Lufthansa's tortious interference claim. Lufthansa, on the other hand, argues that there is no preemption under the ADA, and even if there is, this Court has no jurisdiction to hear the case because the court of appeals denied the permissive interlocutory appeal. We granted the petition. 61 Tex. Sup. Ct. J. 1420 (June 15, 2018).

II. Jurisdiction

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Cite This Page — Counsel Stack

Bluebook (online)
567 S.W.3d 725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sabre-travel-international-ltd-v-deutsche-lufthansa-ag-austrian-tex-2019.