The Class Action Fairness Act ("CAFA"), enacted in 2005, expanded federal jurisdiction over class actions. However, CAFA contains some exceptions, or instances when a federal court may not exercise jurisdiction.
Double Trouble: Navigating Claims for Personal Injury Based on Double-Brokering Violations americanbar.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from americanbar.org Daily Mail and Mail on Sunday newspapers.
To embed, copy and paste the code into your website or blog:
For decades, the practice of motor carriers arranging for freight to be transported by independent owner-operators i.e., independent contractors who drive their own trucks has been ubiquitous. However, this practice is now under threat in California because of a recent court decision.
On April 28, 2021, in
CTA v. Bonta”), the United States Court of Appeals for the Ninth Circuit addressed whether the broad preemption language of the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”) precludes enforcement of California’s Assembly Bill 5 (“AB-5”) against motor carriers operating in California. (AB-5 is discussed here.) In a split 2-to-1 decision that may have enormous (adverse) implications for motor carriers operating in California, the Ninth Circuit held that the California Trucking Association (“CTA”) was unlikely to succeed on the merits of its lawsuit challenging AB-5 because it conclu
Motor carriers arranging for freight to be transported by independent owner-operators i.e., independent contractors who drive their own trucks has been ubiquitous. However, this practice is now under threat in California because of decision in California Trucking Ass’n v. Bonta,
Julius Young
Workers have won a big victory in the Federal courts, as the 9th Circuit Court of Appeals has ruled that AB-5 can be enforced against the California trucking industry, and is not “pre-empted” by a Federal law known as the Federal Aviation Authorization Act of 1994.
The California Trucking Association and two independent owner-operators had filed a lawsuit alleging that the “F4A” law precluded application of AB-5. AB-5, passed in 2019, codifies the “ABC test” adopted to define employment status in the California Supreme Court case known as Dynamex. They obtained an injunction at the Federal District Court level, preventing AB-5 from being enforced against any motor carrier doing business in California. But on appeal, the trucking companies have lost, and the Teamsters and owner operators who believe they were misclassified have won.