Law Alert: Motion to Stay Order Enjoining Application of AB 5 to Motor Carriers Denied
March 31, 2020
Late yesterday afternoon, the United States Court of Appeals for the Ninth Circuit denied a motion by intervenor-defendant-appellant International Brotherhood of Teamsters (IBT) to stay the federal district court’s preliminary injunction pending appeal in California Trucking Association v. Beccera. The Ninth Circuit also ordered oral argument on the appeal of the preliminary injunction order fast-tracked.
As indicated in an earlier Transportation Law Alert, the January 16, 2020 district court order on appeal enjoins the State of California from enforcing AB 5 as to any motor carrier operating in California. In granting CTA’s motion for a preliminary injunction, the district court found CTA is likely to win on its argument that application of the Dynamex ABC test to motor carriers is preempted by the FAAAA and that motor carriers are likely to suffer irreparable harm if the legislation is enforced as applied to them. The State immediately appealed the district court’s order to the Ninth Circuit.
IBT and various amici curiae asked the Ninth Circuit to stay the injunction—in essence, asked for permission to enforce AB 5—pending the outcome of the appeal. The Ninth Circuit denied IBT’s motion, finding IBT “has not made an adequate showing that it will be irreparably injured absent a stay, that a stay will not substantially injure the other parties, and that a stay would be in the public interest.”
While the Ninth Circuit granted extensions of time on the briefing schedule, yesterday’s Order also expedited oral argument on the appeal of the district court’s preliminary injunction order. As a result, oral arguments could take place as soon as the week of June 1, but will more likely occur the week of July 6.
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.