AMERICAN TRUCKING ASSOCIATIONS, INC. v. CITY OF LOS ANGELES, CALIFORNIA, ET AL.
No. 11-798
SUPREME COURT OF THE UNITED STATES
June 13, 2013
569 U. S. ____ (2013)
KAGAN, J.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.
Syllabus
AMERICAN TRUCKING ASSOCIATIONS, INC. v. CITY OF LOS ANGELES, CALIFORNIA, ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
No. 11-798. Argued April 16, 2013—Decided June 13, 2013
The Port of Los Angeles, a division of the City of Los Angeles, is run by a Board of Harbor Commissioners pursuant to a municipal ordinance known as a tariff. The Port leases marine terminal facilities to operators that load cargo onto and unload it from docking ships. Federally licensed short-haul trucks, called “drayage trucks,” assist in those operations by moving cargo into and out of the Port. In 2007, in response to community concerns over the impact of a proposed port expansion on traffic, the environment, and safety, the Board implemented a Clean Truck Program. As part of that program, the Board devised a standard-form “concession agreement” to govern the relationship between the Port and drayage companies. The agreement requires a company to affix a placard on each truck with a phone number for reporting concerns, and to submit a plan listing off-street parking locations for each truck. Other requirements relate to a company‘s financial capacity, its maintenance of trucks, and its employment of drivers. The concession agreement sets out penalties for violations, including possible suspension or revocation of the right to provide drayage services. The Board also amended the Port‘s tariff to ensure that every drayage company would enter into the agreement. The amended tariff makes it a misdemeanor, punishable by fine or imprisonment, for a terminal operator to grant access to an unregistered drayage truck.
Petitioner American Trucking Associations, Inc. (ATA), whose members include many of the drayage companies at the Port, sued the Port and City, seeking an injunction against the concession agreement‘s requirements. ATA principally contended that the requirements are expressly preempted by the Federal Aviation Admin
Held:
1. The FAAAA expressly preempts the concession agreement‘s placard and parking requirements. Section 14501(c)(1) preempts a state “law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier . . . with respect to the transportation of property.”
The Port‘s primary argument to the contrary focuses on motives rather than means. But the Port‘s proprietary intentions do not control. When the government employs a coercive mechanism, available to no private party, it acts with the force and effect of law, whether or not it does so to turn a profit. Only if it forgoes the (distinctively governmental) exercise of legal authority may it escape
2. This Court declines to decide in the case‘s present, pre-enforcement posture whether Castle limits the way the Port can enforce the financial-capacity and truck-maintenance requirements upheld by the Ninth Circuit. Castle rebuffed a State‘s attempt to bar a
660 F. 3d 384, reversed in part and remanded.
KAGAN, J., delivered the opinion for a unanimous Court. THOMAS, J., filed a concurring opinion.
NOTICE: This opinion is subject to formal revision before publication in the preliminary print of the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, of any typographical or other formal errors, in order that corrections may be made before the preliminary print goes to press.
SUPREME COURT OF THE UNITED STATES
No. 11-798
AMERICAN TRUCKING ASSOCIATIONS, INC., PETITIONER v. CITY OF LOS ANGELES, CALIFORNIA, ET AL.
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
[June 13, 2013]
JUSTICE KAGAN delivered the opinion of the Court.
In this case, we consider whether federal law preempts certain provisions of an agreement that trucking companies must sign before they can transport cargo at the Port of Los Angeles. We hold that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) expressly preempts two of the contract‘s provisions, which require such a company to develop an off-street parking plan and display designated placards on its vehicles. We decline to decide in the case‘s present, pre-enforcement posture whether, under Castle v. Hayes Freight Lines, Inc., 348 U. S. 61 (1954), federal law governing licenses for interstate motor carriers prevents the Port from using the agreement‘s penalty clause to punish violations of other, non-preempted provisions.
I
A
The Port of Los Angeles, a division of the City of Los Angeles, is the largest port in the country. The Port owns marine terminal facilities, which it leases to “terminal
The City‘s Board of Harbor Commissioners runs the Port pursuant to a municipal ordinance known as a tariff, which sets out various regulations and charges. In the late 1990‘s, the Board decided to enlarge the Port‘s facilities to accommodate more ships. Neighborhood and environmental groups objected to the proposed expansion, arguing that it would increase congestion and air pollution and decrease safety in the surrounding area. A lawsuit they brought, and another they threatened, stymied the Board‘s development project for almost 10 years.
To address the community‘s concerns, the Board implemented a Clean Truck Program beginning in 2007. Among other actions, the Board devised a standard-form “concession agreement” to govern the relationship between the Port and any trucking company seeking to operate on the premises. Under that contract, a company may transport cargo at the Port in exchange for complying with various requirements. The two directly at issue here compel the company to (1) affix a placard on each truck with a phone number for reporting environmental or safety concerns (You‘ve seen the type: “How am I driving? 213-867-5309“) and (2) submit a plan listing off-street parking locations for each truck when not in service. Three other provisions in the agreement, formerly disputed in this litigation, relate to the company‘s financial capacity, its maintenance of trucks, and its employment of drivers.
The concession agreement itself spells out penalties for any signatory trucking company that violates its requirements. When a company commits a “Minor Default,” the Port may issue a warning letter or order the company to undertake “corrective action,” complete a “course of training,” or pay the costs of the Port‘s investigation. Id., at 81-82. When a company commits a “Major Default,” the Port may also suspend or revoke the company‘s right to provide drayage services at the Port. Id., at 82. The agreement, however, does not specify which breaches of the contract qualify as “Major,” rather than “Minor.” And the parties agree that the Port has never suspended or revoked a trucking company‘s license to operate at the Port for a prior violation of one of the contract provisions involved in this case. See Tr. of Oral Arg. 42-43, 49-51.
B
Petitioner American Trucking Associations, Inc. (ATA), is a national trade association representing the trucking industry, including drayage companies that operate at the Port. ATA filed suit against the Port and City, seeking an injunction against the five provisions of the concession agreement discussed above. The complaint principally
“[A] State [or local government] may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier . . . with respect to the transportation of property.”
49 U. S. C. §14501(c)(1) .1
ATA also offered a back-up argument: Even if the requirements are valid, ATA claimed, the Port may not enforce them by withdrawing a defaulting company‘s right to operate at the Port. That argument rested on Castle v. Hayes Freight Lines, Inc., 348 U. S. 61 (1954), which held that Illinois could not bar a federally licensed motor carrier from its highways for prior violations of state safety regulations. We reasoned in Castle that the State‘s action conflicted with federal law providing for certification of motor carriers; and ATA argued here that a similar conflict would inhere in applying the concession agreement to suspend or revoke a trucking company‘s privileges. Following a bench trial, the District Court held that neither
The Court of Appeals for the Ninth Circuit mainly affirmed. Most important for our purposes, the court held that
We granted certiorari to resolve two questions: first, whether
II
Section 14501(c)(1), once again, preempts a state “law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier . . . with respect to the transportation of property.” All parties agree that the Port‘s placard and parking requirements relate to a motor carrier‘s price, route, or service with respect to transporting property. The only disputed question is whether those requirements “hav[e] the force and effect of law.” The Port claims that they do not, because the “concession contract is just [like] a private agreement,” made to advance the Port‘s commercial and “proprietary interests.” Brief for Respondent City of Los Angeles et al. 19 (Brief for City of Los Angeles) (internal quotation marks omitted).4
We can agree with the Port on this premise: Section 14501(c)(1) draws a rough line between a government‘s exercise of regulatory authority and its own contract-based participation in a market. We recognized that distinction in American Airlines, Inc. v. Wolens, 513 U. S. 219 (1995), when we construed another statute‘s near-identical “force and effect of law” language. That phrase, we stated, “connotes official, government-imposed policies” prescribing “binding standards of conduct.” Id., at 229, n. 5 (internal quotation marks omitted). And we contrasted that quintessential regulatory action to “contractual commitment[s] voluntarily undertaken.” Id., at 229 (internal quotation marks omitted). In Wolens, we addressed a State‘s enforcement of an agreement between two private parties. But the same reasoning holds if the government enters into a contract just as a private party would—for example, if a State (or City or Port) signs an agreement with a trucking company to transport goods at a specified price. See, e.g., Building & Constr. Trades Council v. Associated Builders & Contractors of Mass./R. I., Inc., 507 U. S. 218, 233 (1993) (When a State acts as a purchaser of services, “it does not ‘regulate’ the workings of the market . . . ; it exemplifies them” (some internal quotation marks omitted)). The “force and effect of law” language in
But that statutory reading gets the Port nothing, because it exercised classic regulatory authority—complete
That counts as action “having the force and effect of law” if anything does. The Port here has not acted as a private party, contracting in a way that the owner of an ordinary commercial enterprise could mimic. Rather, it has forced terminal operators—and through them, trucking companies—to alter their conduct by implementing a criminal prohibition punishable by time in prison. In some cases, the question whether governmental action has the force of law may pose difficulties; the line between regulatory and proprietary conduct has soft edges. But this case takes us nowhere near those uncertain boundaries. Contractual commitments resulting not from ordinary bargaining (as in Wolens), but instead from the threat of criminal sanctions manifest the government qua government, performing its prototypical regulatory role.
The Port also tries another tack, reminding us that the criminal sanctions here fall on terminal operators alone, not on the trucking companies subject to the agreement‘s requirements; hence, the Port maintains, the matter of “criminal penalties is a red herring.” Tr. of Oral Arg. 31; see Brief for City of Los Angeles 39-40. But we fail to see why the target of the sanctions makes any difference. The Port selected an indirect but wholly effective means of “requir[ing] parties . . . providing drayage services” to display placards and submit parking plans: To wit, the Port required terminal operators, on pain of criminal penalties, to insist that the truckers make those commit-
III
Our rejection of the concession agreement‘s placard and parking requirements does not conclude this case. Two other provisions of the agreement are now in effect: As noted earlier, the Ninth Circuit upheld the financial-capacity and truck-maintenance requirements, and that part of its decision has become final. See supra, at 5, and n. 2. ATA argues that our holding in Castle limits the way the Port can enforce those remaining requirements. According to ATA, the Port may not rely on the agreement‘s penalty provision to suspend or revoke the right of non-complying trucking companies to operate on the premises.
As we have described, Castle rebuffed a State‘s attempt to bar a federally licensed motor carrier from its highways for past infringements of state safety regulations. A federal statute, we explained, gave a federal agency the authority to license interstate motor carriers, as well as a carefully circumscribed power to suspend or terminate those licenses for violations of law. That statute, we held,
The parties here dispute whether Castle restricts the Port‘s remedial authority. The Port echoes the Ninth Circuit‘s view that banning a truck from “all of a State‘s freeways” is meaningfully different from denying it “access to a single Port.” 660 F. 3d, at 403; see Brief for City of Los Angeles 49. ATA responds that because the Port is a “crucial channel of interstate commerce,” Castle applies to it just as much as to roads. Brief for Petitioner 18.
But we see another question here: Does the Port‘s enforcement scheme involve curtailing drayage trucks’ operations in the way Castle prohibits, even assuming that decision applies to facilities like this one? As just indicated, Castle puts limits on how a State or locality can punish an interstate motor carrier for prior violations of trucking regulations (like the concession agreement‘s requirements). Nothing we said there, however, prevents a State from taking off the road a vehicle that is contemporaneously out of compliance with such regulations. Indeed, ATA filed an amicus brief in Castle explaining that a vehicle “that fails to comply with the state‘s regulations may be barred from the state‘s highways.” Brief for ATA, O. T. 1954, No. 44, p. 12; see Brief for Respondent, id., p. 23 (A State may “stop and prevent from continuing on the highway any motor vehicle which it finds not to be in compliance“). And ATA reiterates that view here, as does the United States as amicus curiae. See Reply Brief 22; Brief for United States 29-30. So the Port would not violate Castle if it barred a truck from operating at its facilities to prevent an ongoing violation of the agreement‘s requirements.
And at this juncture, we have no basis for finding that the Port will ever use the agreement‘s penalty provision
In these circumstances, we decide not to decide ATA‘s Castle-based challenge. That claim, by its nature, attacks the Port‘s enforcement scheme. But given the pre-enforcement posture of this case, we cannot tell what that scheme entails. It might look like the one forbidden in Castle (as ATA anticipates), or else it might not (as the Port assures us). We see no reason to take a guess now about what the Port will do later. There will be time enough to address the Castle question when, if ever, the Port enforces its agreement in a way arguably violating that decision.
IV
Section 14501(c)(1) of the FAAAA preempts the placard and parking provisions of the Port‘s concession agreement. We decline to decide on the present record ATA‘s separate challenge, based on Castle, to that agreement‘s penalty provision. Accordingly, the judgment of the Ninth Circuit
It is so ordered.
SUPREME COURT OF THE UNITED STATES
No. 11-798
AMERICAN TRUCKING ASSOCIATIONS, INC., PETITIONER v. CITY OF LOS ANGELES, CALIFORNIA, ET AL.
ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
[June 13, 2013]
JUSTICE THOMAS, concurring.
I join the Court‘s opinion in full. I write separately to highlight a constitutional concern regarding §601 of the Federal Aviation Administration Authorization Act of 1994 (FAAAA), 108 Stat. 1606, a statute the Court has now considered twice this Term. See Dan‘s City Used Cars, Inc. v. Pelkey, 569 U. S. ____ (2013).
The Constitution grants Congress authority “[t]o regulate Commerce . . . among the several States.” Art. I, §8, cl. 3 (emphasis added). Section 14501 of Title 49 is titled “Federal authority over intrastate transportation.” (Emphasis added.) The tension between
The Supremacy Clause provides the constitutional basis for the pre-emption of state laws. Art. VI, cl. 2 (“This Constitution, and the Laws of the United States which shall be made in Pursuance thereof . . . shall be the supreme Law of the Land“). Because the Constitution and federal laws are supreme, conflicting state laws are without legal effect. See Crosby v. National Foreign Trade Council, 530 U. S. 363, 372 (2000). However, the constitutional text leaves no doubt that only federal laws made “in Pursuance” of the Constitution are supreme. See Gregory v. Ashcroft, 501 U. S. 452, 460 (1991) (“As long as it is acting within the powers granted it under the Constitution, Congress may impose its will on the States” (emphasis added)); Wyeth v. Levine, 555 U. S. 555, 583-587 (2009) (THOMAS, J., concurring in judgment).
Given this limitation, Congress cannot pre-empt a state law merely by promulgating a conflicting statute—the pre-empting statute must also be constitutional, both on its face and as applied. As relevant here, if Congress lacks authority to enact a law regulating a particular intrastate activity, it follows that Congress also lacks authority to pre-empt state laws regulating that activity. See U. S. Const., Amdt. 10 (“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people“).
In this case, the Court concludes that “[s]ection 14501(c)(1) . . . preempts the placard and parking provisions of the Port‘s concession agreement.” Ante, at 12. Although respondents waived any argument that Congress lacks authority to regulate the placards and parking arrangements of drayage trucks using the port, I doubt that Congress has such authority. The Court has identified three categories of activity that Congress may regulate under the Commerce Clause: (1) the use of the
