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Law Alert: AB 5 Temporary Restraining Order Granted

by Kelli M. Block, Shannon M. Cohen, Gregory M. Feary, Christopher C. McNatt Jr.

January 1, 2020

Law Alert: AB 5 Temporary Restraining Order Granted


On December 31, 2019, California Federal District Judge Roger Benitez granted a temporary restraining order in California Trucking Association v. Beccera. The TRO enjoins the State from enforcing AB 5 as to any motor carrier operating in California. This TRO will remain in place pending resolution of CTA’s motion for a preliminary injunction scheduled for a hearing January 13, 2020.

The Court found that the CTA has standing to bring the legal challenge despite arguments to the contrary by the Government and Teamsters. The City of Los Angeles also filed an amicus brief supporting the Government’s and Teamsters’ coordinated effort to block the CTA’s legal challenge.

The Court based its ruling on the likelihood that AB 5's Prong B is preempted by the FAAAA. Two other federal district courts made similar rulings on FAAAA preemption in 2018 and 2019. For purposes of the TRO, the Court declined to address the CTA’s Dormant Commerce Clause argument.

In a related lawsuit filed as Western States Trucking Association v. Beccera on December 20, 2019, the WSTA is challenging specific construction trucking services provisions of AB 5, including a provision seemingly requiring brokers providing construction trucking services to licensed construction contractors to only use employee truck drivers. 

The Firm is monitoring legal challenges to AB 5 closely to advise its clients. Any questions can be directed to Partners Greg Feary, Shannon Cohen, Chris McNatt, and Kelli Block.

 


News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

© Scopelitis, Garvin, Light, Hanson & Feary, P.C. 2020. All rights reserved. 

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