Federal Express Corp. v. California Public Utilities Commission

MEMORANDUM AND ORDER

Plaintiff, which provides a nationwide small package express delivery service, brought this action seeking a declaration that California Public Utilities Code §§ 486-496 are unconstitutional as an impermissible burden on interstate commerce under the Commerce Clause and as preempted by the Airline Deregulation Act (“the Act”), 49 U.S.C.App. § 1305. Plaintiff also seeks an injunction preventing defendants from enforcing regulations promulgated pursuant to state statutory authority. The case is now before the court on cross-motions for summary judgment. Having considered the submissions of the parties, for the following reasons, the court grants defendants’ motion for summary judgment on the preemption issue only. The court denies both motions for summary judgment on the burden on interstate commerce issue and orders the parties to submit supplemental pleadings on that issue.

BACKGROUND

Federal Express operates an interstate package air delivery system nationwide under a grant of authority pursuant to the Federal Aviation Act, 49 U.S.C.App. § 1371. Plaintiff charges all customers throughout the country the same rates for service. Plaintiff claims that it does…