Justia Government & Administrative Law Opinion Summaries

Petitioner Air Wisconsin Airlines Corporation employed Respondent William Hoeper as a pilot. The Transportation Security Administration (TSA) issued Respondent a firearm under the federal statute that authorizes the TSA to deputize pilots as law enforcement officers to defend the aircraft should the need arise. After discontinuing its use of the type of aircraft Respondent had piloted for many years, Air Wisconsin required Respondent to undertake training and pass a proficiency test for a new aircraft. Respondent failed three proficiency tests, knowing that if he failed a fourth test, he would be fired. During the last test, Respondent became angry with the test administrators because he believed they were deliberately sabotaging his testing. Test administrators reported Respondent's angry outbursts during testing to the TSA that Respondent was "a disgruntled employee (an FFDO [Federal Flight Deck Officer] who may be armed)" and was "concerned about the whereabouts of [Respondents] firearm." Respondent brought suit against Air Wisconsin in Colorado for defamation under Virginia law. Air Wisconsin argued it was immune from defamation suits as this under the Aviation and Transportation Security Act (ATSA), and unsuccessfully moved for summary judgment. The jury found clear and convincing evidence that statements made by the airline test administrator were defamatory. Air Wisconsin appealed and the court of appeals affirmed. The court of appeals determined that the question of whether the judge or jury decided immunity under the ATSA was a procedural issue determined by Colorado law, and concluded that the trial court properly allowed the jury to decide the immunity question. Air Wisconsin appealed. Upon review, the Supreme Court affirmed the court of appeals, adding that the airline was not immune from suit or defamation under the ATSA. Furthermore, the Court held that the record supported the jury's finding of clear and convincing evidence of actual malice.

This case arose from the FAA's decision to suspend the airworthiness certification of a helicopter leased by plaintiff for his flight instruction business. Plaintiff brought suit against the United States under the Federal Tort Claims Act (FTCA), 28 U.S.C. 2671, et seq., alleging that he suffered financial harm as a result of the FAA's negligence in first issuing an airworthiness certificate to the helicopter. The court affirmed the district court's dismissal of the complaint, finding that the FAA inspector's original certification of the aircraft fell under the discretionary function exception to the FTCA. In view of the fact that the discretionary function exception required the dismissal of plaintiff's action, the court need not reach the government's contention that the misrepresentation exception to the FTCA applied as well. Accordingly, the court affirmed the judgment.

Airlines, users of airports owned by the City of Chicago, have use agreements that make they city responsible for runway clearing. The airlines pay a per-landing fee, based on the city's actual expenses. In 1999 and 2000 the airports were crippled by severe snowstorms. The city obtained $6,000,000 in reimbursement from FEMA under the Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121. Years later FEMA ordered the city to return the money, based on a provision of the Act concerning duplicate benefits. FEMA asserted that the use agreements entitled the city to reimbursement of costs from the airlines. After exhausting administrative remedies the city filed suit. The district court denied the airlines' motion to intervene. The Seventh Circuit reversed. Finding that the airlines have standing, the court stated that t would not be as "efficient to litigate this three-cornered dispute in two lawsuits rather than one."

The City Council of Tulsa decided to encourage the initiation of new direct nonstop airline service to business centers on the East and West coasts, and voted to approve a Memorandum between the Tulsa Industrial Authority (TIA) and the City which would convey certain real property (Property) for that purpose. The transfer would allow TIA to mortgage the Property to the Bank of Oklahoma (BOK) in support of a non-recourse loan so that TIA could, in turn, make an aggregate loan (Great Plains Loan) to Great Plains Airlines, Inc. (Great Plains). This transfer would allow the Tulsa Airports Improvement Trust (TAIT) to enter into a Support Agreement, pursuant to which TIA, in the event of a default would have the option of selling the Property to TAIT under the direction of the BOK. Upon exercise of such option, the TIA would sell, transfer and convey the property to TAIT to satisfy the outstanding loan balance. Great Plains subsequently defaulted under the terms of the Great Plains Loan, and left a balance owed to the Bank. Ultimately TAIT did not purchase the Property. TIA and the Bank sued TAIT. TAIT alleged the Support Agreement was unlawful and an unenforceable contract because TAIT could not purchase the Great Plains Loan and Property by reason that all of TAIT's funds were airport revenues and such purchases would violate the FAA Revenue Use Policy. To resolve the matter, the parties executed a Settlement Agreement which provided the City would pay BOK. The City and its Mayor asked the trial court to determine that the settlement agreement was a lawful contract executed by the City, and the settlement payment made pursuant to the settlement agreement was a lawful expenditure of public funds. Taxpayers intervened, and asked the trial court to determine that the payment of money to the Bank of Oklahoma pursuant to the settlement agreement was an illegal transfer of public funds made pursuant to an unlawful settlement agreement. In granting the City's motion for summary judgment, the trial court found the settlement agreement was a lawful and the settlement payment was a lawful expenditure of funds. Upon its review, the Supreme Court concluded the settlement was not based on a contract, but rather under the equitable theory of unjust enrichment to the City of Tulsa, and as such, the City had authority to enter into the Settlement Agreement. However, the Court found that the unjust enrichment claim was unviable and the Statute of Limitations would have barred the unjust enrichment claim against the City. The Court remanded the matter back to the District Court to direct the repayment of the settlement funds from BOK back to the City of Tulsa.

This case arose when the Port of Los Angeles prohibited motor carriers from operating drayage trucks on port property unless the motor carriers entered into concession agreements with the port. The concession agreements set forth fourteen specific requirements covering, among other things, truck driver employment, truck maintenance, parking, and port security. The agreements were adopted as part of the port's "Clean Truck Program," adopted in response to community opposition that had successfully stymied port growth. Plaintiff challenged the concession agreements, arguing that they were preempted by the Federal Aviation Administration Authorization Act (FAAA Act), 49 U.S.C. 14501 et seq. The court held that the district court meticulously identified and applied the governing law. The court affirmed the district court's holding that the financial capability, maintenance, off-street parking, and placard provisions were not preempted. The court reversed the district court's conclusion that the employee-driver provision was saved from preemption by the market participant doctrine, and remanded for further proceedings.

Thomas E. Clemmons, the former director of operations for Ameristar Airways, Incorporated (Ameristar), filed a complaint with the Secretary of Labor alleging he was discharged in retaliation for reporting air safety issues to the Federal Aviation Administration. The Department of Labor Administrative Review Board (Board) found a violation of the employee protection provision of the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR21), 49 U.S.C. 42121, ordering an award of back pay. The court held that because Clemmons had presented a prima facie case of retaliation and adduced evidence capable of rebutting Ameristar's proffered explanations, substantial evidence supported the Board's finding of liability. The court held, however, that because the question of whether Clemmons' insubordinate email, which was after-acquired evidence, "was of such severity that [he] would have been terminated on these grounds alone" was a question of fact, the court remanded to the agency to make that determination and to adjust the back pay award if necessary.

Petitioner applied for a first-class airman medical certificate pursuant to 49 U.S.C. 44703 and, after a period of evaluation, a Federal Aviation Administration ("FAA") Federal Air Surgeon issued a denial based on the conclusion that petitioner did not meet the medical standards set out in the relevant regulations. At issue was whether the National Transportation Safety Board's ("NTSB") affirmance of the denial of petitioner's medical certificate was supported by substantial evidence. The court affirmed the NTSB's decision and held that the petition for review was denied where there was no doubt that the FAA's submissions provided substantial evidence for the denial and where petitioner failed to show that it was unreasonable for the NTSB to credit the FAA's evidence over his own.

Victor Bravo Aviation is a Connecticut company founded and established by E. Brian Cleary and his wife Vicki in 2002. In 2004, Victor Bravo contracted to purchase an aircraft from Columbia Aircraft Sales in Connecticut. The aircraft was constructed in France. It was flown to the USA with scheduled stops in Maine and Connecticut in 2005. Victor Bravo took possession of the aircraft in Connecticut as its owner. The aircraft was flown its first twelve months in Maine and other surrounding states. The aircraft made thirty-seven flights to Maine. It was stationary in Maine for 156 days with approximately 121 overnight lay-overs. Victor Bravo never had the aircraft registered in Maine. Victor Bravo was assessed with Maine use taxes on the aircraft in February 2007. Victor Bravo appealed this assessment to the Superior Court which was upheld. On appeal, the Supreme Court made the distinction between the facts of this case with those in the "Blue Yonder" case which was decided April 26, 2011. It was determined that the aircraft owned by Victor Bravo was used in a manner that went beyond having a âtemporary, transient presenceâ in Maine. The Court held that under these circumstances, the aircraft should be properly considered to have âcome to restâ in Maine, and therefore subject to the Maine use tax. The Court affirmed the Superior Court and Assessorâs decisions.