The Supreme Court unanimously held that the federal law expressly preempts two of the local program’s provisions that require a trucking company to develop an off-street parking plan and to display designated placards on its vehicles.
Justice Kagan delivered the opinion for the Court; Justice Thomas filed a separate concurring opinion.
Read the Court’s decision [PDF 121 KB]
The Port of Los Angeles leases marine terminal facilities to operators that load cargo onto and unload it from docking ships. Federally licensed short-haul trucks, called “drayage trucks,” assist in those operations by moving cargo into and out of the Port.
In 2007, in response to community concerns over the impact of a proposed port expansion on traffic, the environment, and safety, the Port of Los Angeles implemented a program that included a standard-form “concession agreement” to govern the relationship between the Port and drayage companies. The agreement requires a company to affix a placard on each truck with a phone number for reporting concerns, and to submit a plan listing off-street parking locations for each truck. Other requirements relate to a company’s financial capacity, its maintenance of trucks, and its employment of drivers.
The American Trucking Associations, Inc. (ATA), whose members include many of the drayage companies at the Port, challenged the program in federal court. The federal district court and subsequently the Ninth Circuit held that federal law does not prevent the Port from proceeding with its program.
Today, the Supreme Court reversed and remanded the case.
For more information, contact a professional with KPMG’s Trade & Customs practice:
John L. McLoughlin
Todd R. Smith
Luis A. Abad
Or your local KPMG Trade & Customs professional.