Airline Service Providers Assoc. v. L.A. World Airports, No. 15-55571 (9th Cir. 2017)
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The Ninth Circuit filed an order granting petitions for panel rehearing, denied petitions for rehearing en banc, withdrawing the opinion, and directing the filing of a new opinion.
The panel also filed a new opinion, holding that the City of Los Angeles, which operates LAX, can require businesses at the airport to accept certain contractual conditions aimed at preventing service disruptions. One such condition, section 25, requires service providers to enter a "labor peace agreement" with any employee organization that requests one. The panel reasoned that the City was acting as a market participant when it added section 25 to its LAX licensing contract, and the preemption provisions of the National Labor Relations Act (NLRA), the Railway Labor Act (RLA), and the Airline Deregulation Act (ADA), did not apply to state and local governmental actions taken as a market participant. Accordingly, the panel affirmed the dismissal of plaintiffs' preemption claim for failure to state a claim on which relief could be granted. Furthermore, the district court did not err by denying leave to amend.
Court Description: Labor Law The panel filed (1) an order (a) granting petitions for panel rehearing with respect to the request that the court amend its opinion to affirm the district court’s denial of leave to amend but denying the petitions for panel rehearing in all other respects, (b) denying petitions for rehearing en banc, (c) withdrawing the opinion, and (d) directing the filing of a new opinion; and (2) a new opinion affirming the district court’s dismissal of an action brought by two air transport trade associations asserting that the City of Los Angeles, in its capacity as proprietor of Los Angeles International Airport, may not require businesses at the airport to accept a contractual condition concerning labor agreements. In its new opinion, the panel wrote that airlines that operate out of LAX hire third-party businesses to refuel and load planes, take baggage and tickets, help disabled passengers, and provide similar services. The City licenses those service providers using a contract that imposes certain conditions. One such condition, section 25, requires service providers to enter a “labor peace agreement” with any employee organization that requests one. The trade
This opinion or order relates to an opinion or order originally issued on August 23, 2017.
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