Ninth Circuit Denies Rehearing in CTA Case

The United States Court of Appeals for the Ninth Circuit has denied the California Trucking Association’s (CTA) request for an en banc review of the Ninth Circuit’s April 28 decision that found the CTA was unlikely to succeed on its claim that the Federal Aviation Administration Authorization Act of 1994 (F4A) preempts AB-5, the California legislature’s imposition of a restrictive ABC test. 

This denial means that the injunction CTA had obtained from the district court against enforcement of AB-5 against motor carriers will not remain in place and will be dissolved as soon as seven days from today. CTA’s request for rehearing was only the first step in its attempt to preserve the trial court’s preemption determination. 

Under special pandemic timing rules, CTA has 150 days to petition the United States Supreme Court for a writ of certiorari. During this time, CTA may petition for a stay of the Ninth Circuit’s resolution of the injunction until the Supreme Court has ruled on a petition for review. While it is difficult to predict the precise date when the injunction will be lifted and AB-5 can be enforced against motor carriers, this date could be as early as June 28.

To avoid the dissolution of the injunction while petitioning the Supreme Court, the CTA may file a motion to stay the issuance of the Ninth Circuit’s mandate until the Supreme Court decides whether to take the case.

For more information, contact Scopelitis Partners Greg Feary, Jim Hanson, Shannon Cohen, Adam Smedstad, or Prasad Sharma.