DAN‘S CITY USED CARS, INC., DBA DAN‘S CITY AUTO BODY v. PELKEY
No. 12-52
SUPREME COURT OF THE UNITED STATES
May 13, 2013
569 U. S. ____ (2013)
JUSTICE GINSBURG delivered the opinion of the Court.
OCTOBER TERM, 2012
Syllabus
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.
SUPREME COURT OF THE UNITED STATES
Syllabus
DAN‘S CITY USED CARS, INC., DBA DAN‘S CITY AUTO BODY v. PELKEY
CERTIORARI TO THE SUPREME COURT OF NEW HAMPSHIRE
No. 12–52. Argued March 20, 2013—Decided May 13, 2013
The Federal Aviation Administration Authorization Act of 1994 (FAAAA) preempts state laws “related to a price, route, or service of any motor carrier . . . with respect to the transportation of property.”
Plaintiff-respondent Pelkey brought suit in New Hampshire Superior Court, alleging that defendant-petitioner Dan‘s City Used Cars (Dan‘s City), a towing company, took custody of his car after towing it from his landlord‘s parking lot without Pelkey‘s knowledge, failed to notify him of its plan to auction the car, held an auction despite Pelkey‘s notice that he wanted to reclaim the car, and eventually traded the car away without compensating Pelkey for the loss of his vehicle. In disposing of his car, Pelkey further alleged, Dan‘s City did not meet the requirements contained in chapter 262 of the New Hampshire Revised Statutes Annotated, which regulates the disposal of abandoned vehicles by a “storage company.” Dan‘s City‘s misconduct, Pelkey charged, both violated New Hampshire‘s Consumer Protection Act and breached the towing company‘s statutory and common-law duties as a bailee to use reasonable care while in possession of a bailor‘s property. The court granted summary judgment to Dan‘s City, concluding that the FAAAA preempted Pelkey‘s claims. The New Hampshire Supreme Court reversed. It held the FAAAA‘s preemption clause inapplicable because Pelkey‘s claims related to Dan‘s City‘s conduct in disposing of his car post-storage, not to conduct concerning “the transportation of property,” or a towing company‘s “service.”
(a) Where Congress has superseded state legislation by statute, this Court‘s task is to “identify the domain expressly pre-empted,” Lorillard Tobacco Co. v. Reilly, 533 U. S. 525, 541, focusing first on the statutory language, CSX Transp., Inc. v. Easterwood, 507 U. S. 658, 664. In Rowe v. New Hampshire Motor Transp. Assn., 552 U. S. 364, 370, this Court‘s reading of
(b) Pelkey‘s state-law claims escape preemption because they are “related to” neither the “transportation of property” nor the “service” of a motor carrier. Although
Pelkey‘s claims are also unrelated to a “service” a motor carrier
The conclusion that state-law claims regarding disposal of towed vehicles are not preempted is in full accord with Congress’ purpose in enacting
(c) Dan‘s City‘s additional arguments in favor of preemption are not persuasive. Dan‘s City contends that because none of Pelkey‘s claims fit within the exceptions to preemption detailed in
Dan‘s City also maintains that Pelkey‘s claims are “related to” its towing service because selling Pelkey‘s car was the means by which Dan‘s City obtained payment for the tow. If such state-law claims were preempted, no law would govern resolution of a non-contract-based dispute arising from a towing company‘s disposal of a vehicle previously towed or afford a remedy for wrongful disposal. No such design can be attributed to a rational Congress. See Silkwood v. Kerr-McGee Corp., 464 U. S. 238, 251. Pp. 11–13.
163 N. H. 483, 44 A. 3d 480, affirmed.
GINSBURG, J., delivered the opinion for a unanimous Court.
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. 12–52
DAN‘S CITY USED CARS, INC., DBA DAN‘S CITY AUTO BODY, PETITIONER v. ROBERT PELKEY
ON WRIT OF CERTIORARI TO THE SUPREME COURT OF NEW HAMPSHIRE
[May 13, 2013]
JUSTICE GINSBURG delivered the opinion of the Court.
This case concerns the preemptive scope of a provision of the Federal Aviation Administration Authorization Act of 1994 (FAAAA or Act) applicable to motor carriers. Codified at
“[A] State . . . 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.”
Plaintiff-respondent Robert Pelkey brought suit under New Hampshire law against defendant-petitioner Dan‘s City Used Cars (Dan‘s City), a towing company. Pelkey alleged that Dan‘s City took custody of his car after towing it without Pelkey‘s knowledge, failed to notify him of its plan to auction the car, held an auction despite Pelkey‘s communication that he wanted to arrange for the car‘s return, and eventually traded the car away without compensating Pelkey for the loss of his vehicle.
Disposal of abandoned vehicles by a “storage company” is regulated by chapter 262 of the New Hampshire Revised
We hold, in accord with the New Hampshire Supreme Court, that state-law claims stemming from the storage and disposal of a car, once towing has ended, are not sufficiently connected to a motor carrier‘s service with respect to the transportation of property to warrant preemption under
I
A
The Airline Deregulation Act of 1978 (ADA), 92 Stat. 1705, largely deregulated the domestic airline industry. In keeping with the statute‘s aim to achieve “maximum reliance on competitive market forces,” id., at 1706, Congress sought to “ensure that the States would not undo federal deregulation with regulation of their own.” Morales v. Trans World Airlines, Inc., 504 U. S. 374, 378 (1992). Congress therefore included a preemption provision, now codified at
Two years later, the Motor Carrier Act of 1980, 94 Stat. 793, extended deregulation to the trucking industry. Congress completed the deregulation 14 years thereafter, in 1994, by expressly preempting state trucking regulation. Congress did so upon finding that state governance of intrastate transportation of property had become “unreasonably burden[some]” to “free trade, interstate commerce, and American consumers.” Columbus v. Ours Garage & Wrecker Service, Inc., 536 U. S. 424, 440 (2002) (citing FAAAA §601(a)(1), 108 Stat. 1605). Borrowing from the ADA‘s preemption clause, but adding a new qualification, §601(c) of the FAAAA supersedes state laws “related to a price, route, or service of any motor carrier . . . with respect to the transportation of property.” 108 Stat. 1606, now codified at
This case involves the interaction between the FAAAA‘s preemption clause and the State of New Hampshire‘s regulation of the removal, storage, and disposal of abandoned motor vehicles. Chapter 262 of the New Hampshire Revised Statutes Annotated establishes procedures by
Under chapter 262, the custodian of a car that remains unclaimed for 30 days following a tow may dispose of the vehicle upon compliance with notice requirements.
On compliance with the statutory requirements, the custodian of a stored vehicle may sell the vehicle by public auction at its place of business.
B
The landlord of the apartment complex in which Pelkey lived required tenants to remove their cars from the parking lot in the event of a snowstorm, so that the snow could be cleared. Pelkey‘s 2004 Honda Civic remained in the lot during and after a February 2007 snowstorm. At the landlord‘s request, Dan‘s City towed and stored the vehicle. Confined to his bed with a serious medical condition, Pelkey did not know his car had been towed. Soon after removal of his car, Pelkey was admitted to the hospital for a procedure to amputate his left foot, during which he suffered a heart attack. He remained under hospital care until his discharge on April 9, 2007.
Unaware of Pelkey‘s identity or illness, Dan‘s City sought permission from New Hampshire‘s Department of Public Safety to sell the Honda at auction without notice. In response, the department identified Pelkey as the last known owner of the vehicle. Dan‘s City wrote to Pelkey, notifying him that it had towed and was storing his car. When the post office returned the letter, checking the box “moved, left no address,” Dan‘s City scheduled an auction for April 19. Meanwhile, in the days following Pelkey‘s discharge from the hospital, his attorney learned from counsel for the apartment complex that the car had been towed by Dan‘s City and was scheduled to be sold at public auction. On April 17, Pelkey‘s attorney informed Dan‘s City that Pelkey wanted to pay any charges owed and reclaim his vehicle. Dan‘s City nevertheless proceeded with the auction. Attracting no bidders, Dan‘s City later disposed of the car by trading it to a third party. Pelkey was not notified in advance of the trade, and has received no proceeds from the sale.
The New Hampshire Supreme Court reversed. It held the FAAAA‘s preemption clause,
We granted certiorari to resolve a division of opinion in state supreme courts on whether
II
A
Where, as in this case, Congress has superseded state legislation by statute, our task is to “identify the domain expressly pre-empted.” Lorillard Tobacco Co. v. Reilly, 533 U. S. 525, 541 (2001). To do so, we focus first on the statutory language, “which necessarily contains the best evidence of Congress’ pre-emptive intent.” CSX Transp., Inc. v. Easterwood, 507 U. S. 658, 664 (1993).
The FAAAA‘s preemption clause prohibits enforcement of state laws “related to a price, route, or service of any motor carrier . . . with respect to the transportation of property.”
At the same time, the breadth of the words “related to” does not mean the sky is the limit. We have refused to read the preemption clause of the Employee Retirement Income Security Act of 1974,
B
The New Hampshire Supreme Court concluded that Pelkey‘s state-law claims are “related to” neither the “transportation of property” nor the “service” of a motor carrier. We agree.
Pelkey‘s claims escape preemption, we hold, because they are not “related to” the service of a motor carrier “with respect to the transportation of property.”
Title 49 defines “transportation,” in relevant part, as “services related to th[e] movement” of property, “including arranging for, receipt, delivery, elevation, transfer in transit, refrigeration, icing, ventilation, storage, handling,
Dan‘s City maintains that because
Pelkey‘s claims also survive preemption under
Our conclusion that state-law claims regarding disposal of towed vehicles are not preempted is in full accord with Congress’ purpose in enacting
Pelkey‘s claims are far removed from Congress’ driving
C
Dan‘s City advances two further arguments in favor of preemption. First, Dan‘s City contends that Congress’ enumeration of exceptions to preemption, detailed in
An example may clarify the point. Section 14501(c) does not exempt zoning regulations. Such laws, however, “are peculiarly within the province of state and local legislative authorities.” Warth v. Seldin, 422 U. S. 490, 508, n. 18 (1975). It is hardly doubtful that state or local regulation of the physical location of motor-carrier operations falls outside the preemptive sweep of
Dan‘s City, in a second argument, urges otherwise. Pelkey‘s claims, Dan‘s City maintains, are “related to” the towing service it rendered because selling Pelkey‘s car was the means by which Dan‘s City obtained payment for the tow. But if such state-law claims were preempted, no law would govern resolution of a non-contract-based dispute arising from a towing company‘s disposal of a vehicle previously towed or afford a remedy for wrongful disposal. Federal law does not speak to these issues. Thus, not only would the preemption urged by Dan‘s City leave vehicle owners without any recourse for damages, it would eliminate the sole legal authorization for a towing company‘s disposal of stored vehicles that go unclaimed. No such design can be attributed to a rational Congress. See Silkwood v. Kerr-McGee Corp., 464 U. S. 238, 251 (1984) (“It is difficult to believe that Congress would, without comment, remove all means of judicial recourse for those injured by illegal conduct.“).
In sum, Dan‘s City cannot have it both ways. It cannot rely on New Hampshire‘s regulatory framework as authorization for the sale of Pelkey‘s car, yet argue that Pelkey‘s claims, invoking the same state-law regime, are preempted.6
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For the reasons stated, we hold that
It is so ordered.
