Understanding the Clean Truck Litigation Part VI: Teamster a Teamster and worker nd worker misclassificati misclassification on up upda date. te. Pres Presented ented by by Cameron Cameron W. W. Roberts Roberts Sea Sean n Brew Brew Rob Roberts erts & Keha & Kehagiaras giaras LLP LLP
“This is going to go on for years.” Ju Judg dge e Har Harry ry Pre Prege gers rson on, Ninth Ninth Cir Cir . www.tradeandcargo.com 11 11/13 13/20 2013 13
IN IN THE THE BEGINN BEGINNING NG . . . . . In Nove In N ovembe mber r 20 2006 06, , the the Ports voted Ports voted t to o ap appro prove ve the the Sa San n Pe Pedro dro Bay Bay Po Ports rts Cl Clea ean Ai n Air r Acti Action on P Plan lan (“CAAP”). The CAAP’s general goal is to reduce pollution in the the Ports an Ports and su d surroun rrounding ding are areas, there as, thereby by reduc red ucing ing the the atten attenda dant h nt hea ealth ri lth risk sks. s. One co One compo mpone nent nt of the CA of the CAAP AP is the is the C Clean lean T Truc ruck k Program (“CTP”). www.tradeandcargo.com 11 11/13 13/20 2013 13
THE THE CONCE CONCESSIO SSION N AGREE AGREEMENT MENT MAYOR VILLARAIGOSA LAUNCHES LANDMARK CLEAN TRUCK PROGRAM TO CLEAN LOS ANGELES' AIR Bans over 10% of port trucks or 2000 “dirty - diesel” trucks, removing over 350 tons of harmful port-related emissions from Los Angeles' air. When fully implemented in 2012, the ,Clean Truck Program takes over 16,000 dirty-diesel trucks off the road, slashing harmful truck emissions by 80 percent. www.tradeandcargo.com 11 11/13 13/20 2013 13
THE THE CONCE CONCESSIO SSION N AGREE AGREEMENT MENT Th The e Po Ports rts of Lo of Long ng Beach an Beac h and d Lo Los Ange s Angeles les ha have ve ea each ch ad adop opted ted a a CTP an CTP and d a Conc a Concess ession ion Agreem Agre emen ent (t t (the he “Agreements”). Th The e Agree Agreemen ments ts req required uired motor carriers motor carriers to c to com omply with ply with a a nu numbe mber r of prov of provisi ision ons. s. Fa Fail ilure ure t to o co comply mply wou would r ld resu esult lt in ba in barri rring ng the the motor motor ca carri rrier er from from en entry. T try. The he ATA ATA fil filed ed a a lega legal l ch challeng allenge e to the to the Agree Agreemen ments. ts. www.tradeandcargo.com 11 11/13 13/20 2013 13
KEY KEY ISSUES ISSUES Certain Certain pro provisions visions a are N re Not ot su subjec bject t to prices, to prices, rou routes an tes and se d services rvices i in n the the FAA FAAA A Act: Act: Mainten Maintenan ance ce pro provision; vision; Plac Placard ard pro provision; vision; Fina Financ ncial ial ca capa pabili bility; ty; Subject to the “Safety” Exception: Main Mainten tenan ance ce pro provision vision; Plac Placard ard pro provision; vision; NO NOT su T subjec bject t to to FAAA FAAA Act b Act bec ecau ause se the the Port of Port of Lo Los Ang s Angele eles is s is ac acting ting as a as a mark market p et particip articipan ant: t: Emp Employe loyee e man manda date te Pa Parking rking www.tradeandcargo.com 11 11/13 13/20 2013 13
PRICE, ROUTE PRICE, ROUTE, OR , OR SERVICE SERVICE Fe Fede dera ral l Aviat Aviation ion Administ Administra ration tion Aut Autho horization rization Act Act Pre Preemp emption tion is is th the ge e gene nera ral l ru rule. le. 49 49 U.S.C. U.S.C. § 14501(c)(1): A State “may not en enac act t or or en enforc force a e a law, law, re regu gulation lation, , or or ot othe her r pr prov ovision ision ha having ving th the forc e force e an and effect d effect of l of law aw relate re lated d to to a pr a price, ice, ro rout ute, e, or or se serv rvice ice or or an any y mo moto tor r ca carr rrier ier . . . . . . with with re resp spec ect t to to th the e transportation of property.” www.tradeandcargo.com 11 11/13 13/20 2013 13
MARKE MARKET T PART PARTICIPATI ICIPATION ON If state action is proprietary, rather than regulatory, such action is not generally subject to statutory preemption. The mark The market et part participant icipant test test does does not t not turn urn on whether on whether the stat the state e or local or local government government is is a purcha a purchaser ser or seller or seller of of the good the goods s and services and services at at issue. issue. The Port’s participation in the port services market is sufficient sufficient. Concession Agreement was a “business necessity,” in order order to eliminate to eliminate evident evident obstacles obstacles to PO to POLA LA growth. growth. www.tradeandcargo.com 11 11/13 13/20 2013 13
LITIGATION: LITIGATION: KEY KEY PLAYE PLAYERS RS Por Port t of Lon of Long g Bea Beach ch Por Port t of Los of Los Ang Angeles eles ATA ATA U.S. U.S. Gov Gover ernme nment nt Inte Intere rest sted ed Third Third Par Parties ties/ Amici Amici Cur Curiae iae a. En a. Enviro vironm nmen enta tal l Int Inter eres ests ts b. Shippe b. Shippers rs c. Lab c. Labor or www.tradeandcargo.com 11 11/13 13/20 2013 13
SAMP SAMPLING LING OF AMICI OF AMICI CURIAE CURIAE Nat Nationa ional l Ret Retail ail Federati Federation on Nat Nationa ional l Right Right to to Wor Work k Nat Nationa ional l Indu Indust strial rial Tra Trans nsp. p. Le Leag ague ue U.S. U.S. Gov Gover ernme nment nt Sierr Sierra a Club Club NRDC NRDC www.tradeandcargo.com 11 11/13 13/20 2013 13
NINTH CIRCUIT NINTH CIRCUIT On Sep On Septemb tember er 26 26, , 20 2011 11. . Ni Ninth nth Circuit Circuit Court Court of of Appe Appeals als elimi elimina nated ted t the he employe employee man e manda date te. . Pre Prese serve rved d all o all othe ther po r portions rtions of the of the Conc Conces ession sion Agree Agreemen ment. t. POLA did not fi POLA did not file a le a Pe Peti titi tion on f for a Wri or a Writ t of of Certi Certiora orari ri, , thus allowing thu s allowing the the ruling a ruling adv dvers erse to e to i it t on on the the emp employe loyee e man manda date te to to stan stand. d. www.tradeandcargo.com 11/13 11 13/20 2013 13
SUPREME SUP REME COURT COURT Whether an unexpressed “market participant” ex exce ception ption ex exists ists in S in Sec ecti tion on 14 1450 501(c 1(c)(1) )(1) an and d pe permi rmits a ts a municipa municipal l go gove vernme rnmenta ntal l en enti tity to ty to ta take ke ac acti tion on t tha hat t co confli nflicts wi cts with th the the exp express ress pree preemption mption clau clause se, , oc occu curs rs in a in a marke market t in w in which hich t the he mu municipa nicipal l en enti tity d ty doe oes s no not p t participate, and articipate, and i is un s unco conn nnec ected ted wi with th an any i y inte nterest rest in th in the efficient proc e efficient procure uremen ment t of of se services rvices. Whe Whethe ther r pe permi rmitti tting ng a a municipa municipal l go gove vernme rnmenta ntal l en enti tity to ty to b bar fede ar federall rally l y licen icense sed d moto motor c r carriers arriers from from ac acce cess ss to to a p a port op ort opera erates tes as a as a pa partial s rtial sus uspe pens nsion ion of the motor carriers’ federal registration, in violation violation of of Castle Castle v. Haye v. Hayes Freigh s Freight t Line Lines, s, Inc Inc. , , 34 348 8 U. U.S. 6 S. 61 1 (19 (1954 54). ). www.tradeandcargo.com 11/13 11 13/20 2013 13
SUPREME SUP REME COURT COURT Th The e Su Supre preme me Court Court issue issued it d its s op opinion inion on on Jun June e 13 13, , 2013 20 13. . 9-0 Opin 0 Opinion ion POLA w POLA was as ac acti ting ng as regu as regulator, c lator, coe oercive rcive po power. wer. Ex Exclus clusion ion of ca of carri rriers ers for breac for breach h of the Conc of the Concess ession ion (not (no t ri ripe pe), bu ), but t placa lacarding rding an and d pa parking rking r restrictions estrictions are are pree preempte mpted. d. Castle Castle v. Haye v. Hayes Freigh s Freight t Line Lines, s, Inc Inc. , , 34 348 8 U.S. 6 U.S. 61 (1 1 (195 954). 4). www.tradeandcargo.com 11/13 11 13/20 2013 13
THE GOVE THE GOVERNOR RNOR Teamsters say: Brown “a lifelong public servant . . . “successfully fought to protect wor workin king g families families an and c d con onsu sume mers rs, , inc includ luding ing po port rt dr driver ivers s fi figh ghting ting ag agains ainst t tr truc ucking king co compa mpany ny ab abus uses es .” - Te Teams amster ter pre press ss relea release se. . www.tradeandcargo.com 11/13 11 13/20 2013 13
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