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Law Alert: Ninth Circuit Grants Stay; Injunction Against Enforcement of AB-5 Against Motor Carriers Remains in Place

by Shannon M. Cohen, Gregory M. Feary, James H. Hanson, Prasad Sharma, Adam C. Smedstad

June 23, 2021

Today, the United States Court of Appeals for the Ninth Circuit granted California Trucking Association’s request for a stay of the mandate in order to allow CTA to petition the Supreme Court for review of the Ninth Circuit’s holding in CTA v. Bonta that the restrictive ABC test in AB-5 is not preempted by the Federal Aviation Administration Authorization Act of 1994. As a result, the existing injunction that the district court had put in place against enforcement of AB-5 against motor carriers will remain in place pending the Supreme Court’s disposition of CTA’s expected petition. If the Supreme Court refuses to consider the case, the mandate will issue immediately and the injunction will be dissolved by the district court. If the Supreme Court grants certiorari, the injunction will remain in place pending disposition on the merits.

Although the Supreme Court only reviews a very small percentage of cases, the Ninth Circuit’s stay suggests agreement that the case fits within the criteria for cases to be heard by the Supreme Court.

 


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