Sabre Travel International, Ltd. v. Deutsche Lufthansa Ag, Austrian Airlines Ag, Brussels Airlines, nv/sa, and Swiss International Air Lines, Ltd.
567 S.W.3d 725
Tex.2019Background
- Sabre operates a Global Distribution System (GDS) that aggregates airline inventory for travel agents; Lufthansa contracted with Sabre and other GDSs and agreed to non‑discrimination provisions.
- Lufthansa implemented an $18 surcharge for tickets sold through GDSs (not applied to direct bookings) to offset GDS fees; Sabre disputed the surcharge as breaching contract terms.
- Sabre allegedly encouraged travel agents to use Lufthansa direct‑connect channels and then make “passive bookings” in Sabre’s GDS so agents could avoid the surcharge while Sabre still collected booking fees; Lufthansa sued Sabre for tortious interference and breach of contract.
- Sabre moved to dismiss the tortious interference claim under Texas Rule 91a, arguing the federal Airline Deregulation Act (ADA) preempts the claim; the trial court denied dismissal and certified the order under Tex. Civ. Prac. & Rem. Code § 51.014(d) for permissive interlocutory appeal.
- The court of appeals declined to accept the permissive interlocutory appeal; Sabre petitioned the Texas Supreme Court, which granted review of jurisdiction and the ADA preemption question.
Issues
| Issue | Plaintiff's Argument (Lufthansa) | Defendant's Argument (Sabre) | Held |
|---|---|---|---|
| Whether the Texas Supreme Court has jurisdiction to review an interlocutory order after a court of appeals denies a § 51.014(d) permissive appeal | Trial court certification under § 51.014(d) suffices to invoke Supreme Court review under former Gov’t Code § 22.225(d) | Court of appeals’ denial of permissive appeal means no appeal exists for Supreme Court review | Court has jurisdiction: certification by trial court under § 51.014(d) is the jurisdictional predicate for § 22.225(d) review regardless of the court of appeals’ denial |
| Whether the ADA preempts Lufthansa’s tortious‑interference claim | Claim protects airline’s private contracts with agents and thus does not regulate prices, routes, or services or enforce state law having regulatory effect | Claim relates to airline pricing/distribution and would impermissibly regulate airline prices/routes/services, so ADA preempts it | ADA does not preempt the tortious‑interference claim: the claim does not sufficiently "relate to" prices/routes/services nor impose state‑law regulation within ADA’s preemptive scope |
Key Cases Cited
- Morales v. Trans World Airlines, 504 U.S. 374 (holding ADA preemption clause is broad and preempts state actions that have a connection with airline prices, routes, or services)
- American Airlines, Inc. v. Wolens, 513 U.S. 219 (distinguishing state consumer‑protection enforcement from private contract claims under ADA preemption)
- Northwest, Inc. v. Ginsberg, 572 U.S. 273 (ADA can preempt state common‑law claims that effectively impose state‑imposed obligations beyond parties’ contract)
- Continental Airlines, Inc. v. Kiefer, 920 S.W.2d 274 (Tex.) (analyzing ADA preemption of common‑law torts vs contract claims)
- Delta Air Lines, Inc. v. Black, 116 S.W.3d 745 (Tex.) (applying two‑part ADA preemption test in Texas)
- Lehmann v. Har‑Con Corp., 39 S.W.3d 191 (Tex.) (final‑judgment rule background)
- Phillips Petroleum Co. v. Yarbrough, 405 S.W.3d 70 (Tex.) (Texas Supreme Court review appropriate despite intermediate appellate dismissal)
