Phil Kerpen v. Metropolitan Washington, 907 F.3d 152

Background

Dulles and National Airports were transferred from federal to regional control via a 1985 interstate compact creating the Metropolitan Washington Airports Authority (MWAA); MWAA leases the airports under the Transfer Act (49 U.S.C. §§ 49101–49112) and must use property for “airport purposes.”
MWAA is governed by a multi‑member board appointed by Virginia, D.C., Maryland, and the U.S. President; a prior federally controlled Board of Review was invalidated in the 1990s.
In 2006 Virginia transferred operation of a Dulles toll road to MWAA; MWAA used toll revenues to help finance the Silver Line metro extension to Dulles, and the Secretary of Transportation certified the arrangement in 2008.
Plaintiffs (toll users) sued, alleging MWAA is a federal instrumentality and that its structure and funding of the Silver Line violate the Appointments Clause, non‑delegation doctrine, Guarantee Clause, APA, and the Transfer Act/Lease terms.
The district court dismissed all claims; the Fourth Circuit affirmed, holding MWAA is not a federal entity, delegated powers are permissible, the Guarantee Clause claim fails, and the Secretary’s Lease/Transfer Act interpretation allowing use of tolls for the Silver Line is reasonable.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Is MWAA a federal instrumentality?	MWAA was effectively created/controlled by the federal government and thus subject to constitutional constraints.	MWAA was created by Virginia and D.C. as an interstate compact and federal appointees are a minority; federal control is absent.	MWAA is not a federal entity under Lebron; creation and control prongs fail.
Do MWAA’s powers violate the non‑delegation doctrine (legislative or federal power)?	MWAA exercises delegated federal/legislative power improperly, including airport regulation and use of tolls.	MWAA exercises state‑conferred powers; any discretion is constrained by Congress’s Transfer Act intelligible principle.	No unconstitutional delegation; Transfer Act provides adequate standards and MWAA’s functions are not inherently federal legislative power.
Does MWAA violate the Guarantee Clause?	MWAA’s structure undermines state republican governance and accountability.	MWAA is subject to its member states’ legislatures and appointed by accountable officials; republican government remains intact.	Claim fails on the merits; MWAA does not deny any state a republican form of government.
May MWAA use toll revenues to fund the Silver Line under the Transfer Act/Lease?	Using toll revenues for off‑site metro construction exceeds permitted “capital and operating costs of the Metropolitan Washington Airports.”	The Secretary’s 2008 certification reasonably interprets the Lease/Transfer Act to include airport access improvements; Master Plan contemplated rail extension.	Court defers to Secretary of Transportation’s reasonable interpretation; use of tolls for Silver Line is permitted.

Key Cases Cited

Lebron v. Nat’l R.R. Passenger Corp., 513 U.S. 374 (federal control/creation test for instrumentality)
Metro. Wash. Airports Auth. v. Citizens for the Abatement of Aircraft Noise, Inc., 501 U.S. 252 (invalidating MWAA’s prior Board of Review)
Rendell‑Baker v. Kohn, 457 U.S. 830 (recipient of federal funds is not necessarily a federal actor)
Buckstaff Bath House Co. v. McKinley, 308 U.S. 358 (leasing federal property does not create federal status)
United States v. New Mexico, 455 U.S. 720 (contractor status does not convert entity to federal actor)
Mistretta v. United States, 488 U.S. 361 (intelligible principle standard for delegation)
J.W. Hampton Jr. & Co. v. United States, 276 U.S. 394 (intelligible principle doctrine)
New York v. United States, 505 U.S. 144 (Guarantee Clause justiciability and standards)
A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495 (limitations on private legislative delegation)
Carter v. Carter Coal Co., 298 U.S. 238 (private entities cannot exercise core governmental regulatory powers)
Pittston Co. v. United States, 368 F.3d 385 (permissible delegation to private parties for ministerial functions)
Meridian Investments v. Fed. Home Loan Mortg. Corp., 855 F.3d 573 (federal oversight alone does not make an entity federal)
Corr v. Metro. Wash. Airports Auth., 702 F.3d 1334 (MWAA not a federal instrumentality)