End of an era: California Trucking Association dropping appeal against AB5

The California Trucking Association is ending its legal battle against California’s AB5 independent contractor law, but its co-plaintiff, the Owner-Operator Independent Drivers Association, will continue the fight.

Robert Roginson, a partner with the law firm of Ogletree Deakins Nash Smoak & Stewart, which has represented the CTA in its long legal fight, confirmed that the association will withdraw its appeal before the 9th U.S. Circuit Court of Appeals. He declined further comment, and a formal withdrawal brief has not yet been filed with the court.

Separately, a spokeswoman for OOIDA said the group will continue the appeal.

The decision by CTA brings to an end for the association a saga that began with the filing of its initial lawsuit in late 2019 challenging the legality of AB5’s implementation in trucking. CTA argued that the Federal Aviation Administration Authorization Act (F4A), enacted in 1994, should be interpreted as stopping a state from implementing a law like AB5 because it may impact a “price, route, or service,” which F4A specifically bars.

The high-water mark of CTA’s fight came on New Year’s Eve 2019 when Judge Roger Benitez of the U.S. District Court for the Southern District of California handed down an injunction blocking AB5’s enforcement against trucking in the state.

But from that point, the CTA suffered a series of losses. An appellate court in a 2-1 decision overturned the injunction in April 2021. The CTA took the appeal to the Supreme Court, which denied review in June 2022 and kicked the case back to the District Court.

Before oral arguments in November 2023, OOIDA joined as a co-plaintiff.

Source: freightwaves.com