Stone v. Continental Airlines

10 Misc. 3d 811
CourtCivil Court of the City of New York
DecidedNovember 10, 2005
StatusPublished
Cited by3 cases

This text of 10 Misc. 3d 811 (Stone v. Continental Airlines) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stone v. Continental Airlines, 10 Misc. 3d 811 (N.Y. Super. Ct. 2005).

Opinion

[812]*812OPINION OF THE COURT

Diane A. Lebedeff, J.

This matter brings up a bread-and-butter airline issue — the measure of damages governing the claims of passengers “bumped” from domestic airline flights — an issue rarely explored in detail notwithstanding that more than 30,000 passengers a year could raise similar claims, as permitted by federal statute and regulations (Airline Deregulation Act [ADA], 49 USC § 41713; 14 CFR part 250).

This case has simple facts. Claimant Thatcher A. Stone, a partner in a New York law firm and a lecturer in aviation and airline industry law at the University of Virginia School of Law, made arrangements for a Colorado ski trip for himself and his 13-year-old daughter for the 2004 Christmas season, to depart New York on December 25th and return from Telluride on January 1st. Their flights were booked with Continental Airlines. After their baggage was checked and when the father and daughter were at the airline gate, they were “bumped” from the flight. The Continental representative who testified at the trial stated that Continental records reveal claimant was offered an alternate flight two or more days later, but claimant only remembers clearly an offer of a flight departing one day before their scheduled return. Because the airline would not unload their luggage and could give no firm advice regarding how long the airline would take to return the baggage, which included cold-weather sportswear for both and the father’s ski equipment, the father and daughter returned home and were unable to make any firm alternate ski or “getaway” plans. Continental refunded the price of the airline tickets while claimant was in the airline terminal.

Claimant seeks recovery for out-of-pocket losses and deprivation of the use of the contents of luggage, as well as damages under New York’s consumer protection statutes and punitive damages. He testified that his loss included $1,360 for unrecoverable prepaid ski lodge accommodations, lift tickets and his daughter’s equipment rental, and that the entire experience involved inconveniences and stresses upon himself and his daughter because of the “bumping” and the scheduled holiday “that never was.”

“Bumping” Claims and Federal Limitations

As any airline traveler knows, “bumping” of an unlucky passenger occurs when more passengers appear to take a flight [813]*813than the number of seats available on a given flight, and it arises because tickets are sold above and beyond the airplane’s seating capacity. The United States Supreme Court, addressing an instance in which consumer advocate Ralph Nader was “bumped” from a flight, described overbooking as “a common industry practice, designed to ensure that each flight leaves with as few empty seats as possible” (Nader v Allegheny Airlines, Inc., 426 US 290, 293 [1976]).

The claims of “bumped” passengers are governed by federal regulation which require an airline to offer compensation to “bumped” passengers (14 CFR part 250, entitled “Oversales,” the predecessor of which was originally published at 41 Fed Reg 16,478, entitled “Priority Rules, Denied-Boarding Compensation Tariffs and Reports of Unaccommodated Passengers” [Apr. 13, 1976]).1 If a “bumped” passenger rejects an airline’s offer, the passenger is entitled to “seek to recover damages in a court of law or in some other manner” under 14 CFR 250.9 (b), which language is universally regarded as permitting a claim for contract damages which may exceed the amount of compensation offered by an airline.

All tickets for domestic flights embrace these same rights, for every airline’s contract of carriage must be consistent with federal rules (14 CFR 253.4). As described in a comprehensive law review article with an analysis of the economics of overbooking by Elliott Blanchard, Terminal 250: Federal Regulation of Airline Overbooking (79 NYU L Rev 1799, 1800 n 3, 1807-1808 [2004]), since 1990, on average, almost 900,000 domestic passengers are “bumped” annually, and 2003 study data developed by the United States Department of Transportation indicates that 96% of such passengers accept the compensation offered by airlines, leaving approximately 36,000 “bumped” [814]*814passengers per year who refuse such offers and are entitled to raise damages claims.

Amy other claim which a passenger asserts arises from “bumping” must be parsed out and separately assessed. The bulk of other claims are barred by reasons of law, including federal preemption (49 USC § 41713 [b] [1] [local jurisdictions “may not enact or enforce a law . . . related to a price, route, or service of an air carrier”]; see, Anne K. Wooster, Annotation, Construction and Application of § 105 Airline Deregulation Act [49 U.S.C.A. §41713], Pertaining to Preemption of Authority Over Prices, Routes, and Services, 149 ALR Fed 299; see also, Jim Leslie, Passenger Bumping, 3-AUG Nev Law 10 [1995] [review of available claims relating to carriage and luggage, including claims of discrimination]). Under the federal law, an airline may not be sued for many general matters touching upon airline operation (see, e.g., Smith v Comair, Inc., 134 F3d 254 [4th Cir 1998]; Delta Air Lines, Inc. v Black, supra), but an airline may be sued for some contract issues apart from “bumping” claims (see, American Airlines, Inc. v Wolens, 513 US 219 [1995] [frequent flyer program contractually adopted by airline]). Following such a judicial review of the claims asserted in this case, the court is satisfied that New York State’s consumer protection statutes cannot serve as the proper basis for claims against the airline.2 Additionally, a punitive damage claim against an airline is barred by federal preemption, even for a “bumped” passenger.3 Accordingly, the court severs and [815]*815dismisses the consumer protection and punitive damages claims, which leaves only the contract damages claim before the court.

Contract Damages for a “Bumped” Passenger

A “bumped” passenger is entitled to contract damages upon no greater proof than facts establishing (1) ticket purchase, (2) involuntary denial of boarding within the meaning of the federal regulations, (3) nonacceptance of an airline’s offer of compensation, and (4) damages. Such a claim for contract damages is measured under state law.

As to the items to be embraced within contract damages for a passenger “bumped” from a domestic flight, only a handful of cases on point nationwide have granted relief on this issue (see, Smith v Piedmont Aviation, Inc., 567 F2d 290, 292 [5th Cir 1978] [reciting as a factor in damages, inconvenience and a need to make alternate arrangements, including rental of a car to reach destination, $1,051.80 awarded]; Lopez v Eastern Airlines, Inc., supra, 677 F Supp at 183 [“inconvenience, delay and uncertainty are worth something even in the absence of out-of-pocket costs” for passenger arriving at midnight instead of at a mid-evening hour, $450 awarded]; Goranson v Trans World Airlines,

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Bluebook (online)
10 Misc. 3d 811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-v-continental-airlines-nycivct-2005.