62 A.3d 321
N.J. Super. Ct. App. Div.2013Background
- Continental implemented a cashless cabin policy on December 1, 2009 for accounting and security purposes.
- Continental announced the policy nationwide via press releases and pre-boarding announcements.
- On January 6, 2011, Rosen attempted to purchase a headset and a cocktail with cash but Continental accepted only debit or credit cards.
- Rosen previously paid for a headset with a credit card on an earlier Continental flight, but had no card on the return flight to Newark.
- Rosen filed suit October 4, 2010 in the Law Division alleging CFA, discrimination against low income individuals, and in-flight-service-related distress; breach-of-contract claim later dismissed; case later removed and remanded; court dismissed counts 2–4 and denied class certification.
- Court held the CFA and common law claims are preempted by the ADA; class standing issues render class certification improper; breach-of-contract issue was already dismissed and not appealable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are CFA and common-law claims preempted by the ADA? | Rosen contends state claims may proceed; not preempted. | Continental argues ADA preempts for claims relating to airline rates, routes, or services. | Preempted; CFA and tort claims dismissed. |
| Does Rosen have standing to represent a putative class? | Named plaintiff represents low-income individuals and unaccompanied minors. | Named plaintiff lacks class standing; must have individualized standing. | Rosen lacks standing; class certification inappropriate. |
| What scope of ADA preemption applies to headset/beverage sales? | Morales cautions against broad preemption for peripheral service aspects. | ADA preempts actions relating to airline services, including headsets and in-flight sales. | Preemption applies; headset and beverages fall within service-related claims. |
| Is the breach-of-contract dismissal appealable after Rosen voluntarily dismissed it? | Dismissal of contract claim should be reviewable on appeal. | Wolens allows routine contract claims but plaintiff voluntarily dismissed; not appealable. | Affirmed; breach-of-contract dismissal not appealable. |
Key Cases Cited
- Morales v. Trans World Airlines, Inc., 504 U.S. 374 (U.S. 1992) (broad ADA preemption of state enforcement actions relating to rates, routes, or services)
- American Airlines v. Wolens, 513 U.S. 219 (U.S. 1995) (preemption; breach-of-contract claims may survive preemption)
- Vail v. Pan Am Corp., 260 N.J. Super. 292 (App.Div.1992) (preemption where ticket surcharges relate to airline regulation)
- Hodges v. Delta Airlines, Inc., 44 F.3d 334 (5th Cir.1995) (definition of 'service' under preemption doctrine)
- Rowe v. N.H. Motor Transp. Ass’n, 552 U.S. 364 (U.S. 2008) (preemption scope; connection to rates, routes, or services)
- Chicago N.W. Transp. Co. v. Kalo Brick & Tile Co., 450 U.S. 311 (U.S. 1981) (statutory preemption principles)