S. Ginsberg v. Northwest, Inc.
695 F.3d 873
9th Cir.2012Background
- Ginsberg held WorldPerks Platinum Elite status with Northwest.
- Northwest revoked Ginsberg's WorldPerks membership on June 27, 2008.
- Northwest notified Ginsberg of the revocation via email November 20, 2008.
- Ginsberg filed suit January 8, 2009 alleging breach of contract and related claims including the implied covenant of good faith and fair dealing.
- District court dismissed some claims as preempted by the ADA and denied relief on the remaining contract claim; Ginsberg appeals only the preemption ruling regarding the implied covenant.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the ADA preempts the implied covenant breach claim | Ginsberg: ADA preempts common-law contract claims that affect prices/services | Northwest: ADA preempts state-law claims related to price, route, or service | Not preempted; reverse and remand for merits |
| Scope of ADA preemption and its relation to contract claims | Ginsberg: savings clause preserves common-law contract remedies | Northwest: ADA preempts broader class of state-law claims | ADA does not preempt contract-based claims or their implied covenants |
Key Cases Cited
- Morales v. Trans World Airlines, Inc., 504 U.S. 374 (U.S. 1992) (preemption where state regulation affects fares; narrow scope on pricing-related laws)
- Wolens v. American Airlines, Inc., 513 U.S. 219 (U.S. 1995) (considers breach-of-contract claims vs. consumer fraud preemption; contract enforcement allowed)
- Charas v. Trans World Airlines, Inc., 160 F.3d 1259 (9th Cir. 1998) (savings clause meaning preserves common-law remedies; cautions against broad preemption)
- West v. Northwest Airlines, Inc., 995 F.2d 148 (9th Cir. 1993) (breach-of-contract good-faith claim not preempted)
- Air Transport Ass'n of America v. City & County of San Francisco, 266 F.3d 1064 (9th Cir. 2001) (state antidiscrimination measures not preempted when not directly relating to rates/services)
- Medtronic, Inc. v. Lohr, 518 U.S. 470 (U.S. 1996) (preemption narrowly construed; respect states' police powers)
- Rowe v. New Hampshire Motor Transport Ass'n, 552 U.S. 364 (U.S. 2008) (preemption tied to carrier-regulated activities; tolling on contracts)