How Federal Preemption May–Or May Not–Impact A Breach Of Contract Lawsuit
The federal nature of our legal system means there are situations where a federal law may override or “preempt” a state law. This can, in turn, significantly affect the rights of private parties to civil litigation whose disputes are covered by such laws. Indeed, the question of whether preemption applies can itself lead to litigation. Airline Faces Customer Class Action Over “Exit Fees” A recent decision from the U.S. 11th Circuit Court of Appeals, Cavalieri v. Avior Airlines CA, provides a case in point. This case arose from a dispute over an extra fee added to an airline ticket. The defendant airline argued that federal law preempted any state breach-of-contract claim arising from the sale of said tickets. Here is some additional background. The defendant operated flights from Miami to Venezuela. The tickets sold for said flights are a legal type of contract known as a “contract of carriage.” Here, the plaintiffs said they purchased their tickets for a certain price, only to be later told they needed to pay an additional $80 “exit fee” before boarding their flights. The plaintiffs alleged this exit fee was an “extra-contractual” charge and filed a class action against the defendant in Miami federal court. The lawsuit specifically alleged breach of contract by charging a fee that fell outside the price terms specified in the contract of carriage. In response, the defendant moved to dismiss the lawsuit on a number of grounds. As relevant here, the defense asserted that the federal Airline Deregulation Act (ADA) preempted any breach-of-contract claims. The ADA is a 1978 law that eliminated government regulation of airline ticket prices. The ADA expressly preempted any state or local law “related to a price, route, or service of an air carrier.” A federal district court agreed with the defense that this preemption rule barred the plaintiffs’ lawsuit. The 11th Circuit disagreed. While the alleged illegal fee was “related to” the price of an airline ticket, the ADA preemption did not apply here. The reason, the 11th Circuit said, was that the lawsuit alleged that the defendant’s “own, self-imposed undertaking regarding the price charged for transport” breached the contract it entered into with the plaintiffs. The plaintiffs did not invoke any state law or regulation that would otherwise alter the terms of their contract of carriage, which would be preempted under the ADA. Instead, the plaintiffs merely seek to enforce their contractual rights. More to the point, the 11th Circuit said the plaintiffs did allege a “plausible action for breach of contract.” Without deciding the issue on its merits, the Court observed that if the plaintiffs can prove the exit fee was not disclosed on their contract of carriage, a jury could find there was a breach of contract. Speak with an HD Law Partners Attorney Today Seemingly simple business disputes often do not have simple answers. That is why you should always work with a qualified Tampa business and corporate attorney when dealing with any type of contractual issue. Contact HD Law Partners today to schedule a consultation. Source: scholar.google.com/scholar_case?case=813-253-5333507050100 Posted in Business Corporate | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us