NINTH CIRCUIT HOLDS AIRLINE DEREGULATION ACT DOES NOT PREEMPT STATE PUTATIVE CLASS ACTION CLAIMS TO RECOVER $15 BAGGAGE FEES
June 2, 2017
The Ninth Circuit Court of Appeals ruled on May 3, 2017 that the federal Airline Deregulation Act, which preempts state laws “related to a price, route, or service of an air carrier[,]” does not preempt certain putative state-law class action claims stemming from delayed baggage disputes. The named plaintiff sued US Airways in connection with its practice of retaining checked-baggage fees it collected from passengers whose bags had been delayed or lost while in the airline’s care. The plaintiff alleged that the airline breached the terms of its contract by refusing to refund the $15 baggage fee. The Circuit Court held that the passenger’s breach of contract claim was not preempted by the Airline Deregulation Act and remanded the case to federal district court in order to determine the case on the merits. Hon. Howard R. Lloyd, Magistrate Judge from the U.S. District Court of the Northern District of California, had previously granted the airline’s motion to dismiss premised on the theory of federal preemption. The case is Hickcox-Huffman v. US Airways.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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