Airline Service Providers Assoc. v. L.A. World Airports

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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. View "Airline Service Providers Assoc. v. L.A. World Airports" on Justia Law