American Trucking Association V. City of Los Angeles Irac Case Study Analysis

American Trucking Association v. City of Los Angeles IRAC Case Study Analysis

Learning Team A

LAW/531 - Business Law

April 27, 2015

Denise Brown

American Trucking Association v. City of Los Angeles IRAC Case Study Analysis

IRAC Brief

Case: American Trucking Associations, Inc. v. City Of Los Angeles, California, ET AL. Certiorari - No. 11–798. (To The United States Court Of Appeals for the Ninth Circuit - Argued April 16, 2013—Decided June 13, 2013)

        Argued April 16, 2013 before the United States Court of Appeals for the Ninth Circuit was the case involving the Port of Los Angeles (a segment of the City of Los Angeles operated by the Board of Harbor Commissioners) regarding a city statute recognized as a levy.

Marine terminal facilities are leased by the Port to operators for the purpose of loading and unloading cargo onto and from the docked ships. Drayage trucks that are federally licensed short-haul trucks help in these operations by transporting cargo to and from the Port (American Trucking Association, Inc. v. City of Los Angeles, California, Et Al, 2013).   

According to American Trucking Association, Inc. v. City of Los Angeles, California, Et Al. (2013), "In 2007, in response to community concerns over the impact of a proposed port expansion on traffic, the environment, and safety, the Board implemented a Clean Truck Program. As part of that program, the Board devised a standard-form "concession agreement" to govern the relationship between the Port and drayage companies" (p. 1). The concession bargain calls for an organization to fasten a banner on every truck with a phone contact to report issues, and to present a proposal specifying the off-road parking whereabouts of every transport vehicle. Also included in the arrangement are access to a company's economic scope, upkeep of its trucks, and enlistment of its drivers (American Trucking Association, Inc. v. City of Los Angeles, California, Et Al, 2013).

If a major violation of the agreement is found, penalties involving probable interruption or cancelation of the privilege to conduct ground freight activities may be enforced by the Port.  If found in minor violation of the agreement a warning letter or demand that corrective action be taken may be issued by the Port. However, the agreement does not specify which violations are considered "major" or which are considered "minor"(American Trucking Association, Inc. v. City of Los Angeles, California, Et Al, 2013).

In addition, the Port's tax was amended by the Board to help guarantee that every ground freight association joins into the arrangement. Under the revised tax, if a terminal operator grants entry to any drayage truck outside of the agreement, he or she is subject to a criminal offense that is punishable by fine or imprisonment (American Trucking Association, Inc. v. City of Los Angeles, California, Et Al, 2013). According to American Trucking Association, Inc. v. City of Los Angeles, California, Et Al. (2013), "Petitioner American Trucking Associations, Inc. (ATA), whose members include many of the drayage companies at the Port, sued the Port and City, seeking an injunction against the concession agreement’s requirements. ATA principally contended that the requirements are expressly preempted by the Federal Aviation Administration Authorization Act of 1994 (FAAAA), see 49 U. S. C. §14501(c)(1)" (p. 1).