Ginsberg initially filed suit on January 8, 2009, he
asserted four causes of action: (1) breach of contract;
(2) breach of the implied covenant of good faith and
fair dealing; (3) negligent misrepresentation; and (4)
intentional misrepresentation. Northwest
moved to dismiss the complaint pursuant to Federal Rules
of Civil Procedure (FRCP) 12(b)(6), (rule 12(b)(6)
motion, which replaced the common law demurrer, is how
lawsuits with insufficient legal theories underlying
their cause of action are dismissed from court) arguing
that the
Airline Deregulation Act (ADA) preempted the claims.
The Airline Deregulation Act is a 1978 United States
federal law intended to remove government control over
fares, routes and market entry (of new airlines) from
commercial aviation. The Civil Aeronautics Board's
powers of regulation were phased out, eventually
allowing passengers to be exposed to market forces in
the airline industry. The Act, however, did not remove
or diminish the regulatory powers of the Federal
Aviation Administration (FAA) over all aspects of air
safety.
The district court dismissed Ginsberg’s claims for
breach of the implied covenant of good faith and fair
dealing, negligent misrepresentation, and intentional
misrepresentation, concluding that the ADA preempted
them because they relate to airline prices and services.
The district court also dismissed the general breach of
contract claim, finding that the claim was not
preempted, but that Ginsberg had failed to allege facts
sufficient to show a material breach. On June 9, 2011,
Ginsberg filed an appeal with Court Of Appeals for the
Ninth Circuit. On August 5, 2011, the court ruled in
favor of Ginsberg.
Northwest stated Ginsberg had complained 24 times in
eight months about the carrier’s service. “You have
continually asked for compensation over and above our
guidelines... We have awarded you $1,925 in travel
credit vouchers, 78,500 WorldPerks bonus miles, a
voucher extension for your son, and $491 in cash
reimbursements. Due to our past generosity, we must
respectfully advise that we will no longer be awarding
you compensation each time you contact us.”
Northwest and its parent corporation, Delta Air Lines,
seek review, contending the lower court’s decision is
“in conflict with the decisions of other Circuit Court
rulings and that the Supreme Court should reverse the
appeals court decision. On May 20, 2013, the U.S.
Supreme Court agreed to her the case.
The case, Northwest, Inc. v. Ginsberg (12-462) will
make its way to the Supreme Court in the fall term,
which begins this October. The court will decide how
much freedom airlines have to set their own policies
under the Airline Deregulation Act of 1978.
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