25 F.4th 843
11th Cir.2022Background
- Plaintiffs bought Avior tickets from Miami to Venezuela and allege tickets (at least Hung’s receipt) represented the price "including taxes and fees." At airport check-in Avior required an additional $80 "Exit Fee."
- Plaintiffs filed a putative nationwide breach-of-contract class action claiming the Exit Fee was not disclosed in the Contract of Carriage and thus breached the agreed ticket price.
- The district court dismissed with prejudice, holding the Airline Deregulation Act (ADA) preempted the claim as relating to airline pricing and that Wolens did not save the claim.
- On appeal the Eleventh Circuit (per curiam) reversed: it found the complaint plausibly alleges a voluntary contractual undertaking (ticket price inclusive of fees) and that Wolens permits state-law breach-of-contract adjudication of such private commitments.
- The court also permitted amendment to allege CAFA minimal diversity via unnamed class members and held the pleadings sufficiently alleged jurisdictional thresholds at this stage.
- The panel declined to resolve contested contract-interpretation issues (e.g., incorporation of website disclosures) and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| ADA preemption / Wolens exception | Claim enforces the parties' private bargain (ticket price inclusive); Wolens protects breach-of-contract suits enforcing voluntary commitments | ADA preempts because the claim relates to price and no voluntary undertaking to exclude the fee was pled | Reversed: Wolens applies; ADA does not preempt this private breach-of-contract claim |
| Federal jurisdiction (CAFA minimal diversity) | At least one unnamed class member is a U.S. citizen, class exceeds 100 members and $5M; thus minimal diversity plausible | Named plaintiffs are foreign; no diversity if relying on named plaintiffs | Allowed amendment to plead an unnamed U.S. class member; CAFA minimal diversity plausibly alleged at pleading stage |
| Sufficiency of breach pleading | Complaint alleges contract = Contract of Carriage + issued ticket; alleges fee was undisclosed and breach occurred | Complaint fails to identify specific contractual term; Avior points to website disclosures and incorporation by reference | Complaint plausibly states a breach claim; dismissal for failure to state a claim not warranted at this stage |
| Incorporation by reference / website disclosures | Web pages described as "of interest" were not clearly incorporated; ticket representations control | Contract of Carriage incorporates web pages that disclose additional charges | Court declined to resolve incorporation/interpretation issues on appeal; left for district court on remand |
Key Cases Cited
- American Airlines, Inc. v. Wolens, 513 U.S. 219 (state-law breach claims enforcing voluntary carrier commitments are not preempted by the ADA)
- Morales v. Trans World Airlines, Inc., 504 U.S. 374 (ADA preemption broadly bars state regulation related to airline price, route, or service)
- Bailey v. Rocky Mountain Holdings, LLC, 889 F.3d 1259 (11th Cir. 2018) (discusses Wolens exception and ADA preemption analysis)
- Sanchez v. Aerovias De Mexico, S.A. De C.V., 590 F.3d 1027 (9th Cir. 2010) (distinguished: no contractual promise found regarding the challenged charge)
- Nw., Inc. v. Ginsberg, 572 U.S. 273 (if carrier voluntarily agrees to a fee schedule, enforcement of that agreement is not preempted)
- Lowery v. Alabama Power Co., 483 F.3d 1184 (11th Cir. 2007) (CAFA minimal diversity principles)
