US Supreme Court unanimously reverses Ninth Circuit in Northwest Inc v Ginsberg

12th June 2014 by Judy Nemsick

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In Northwest, Inc. v. Ginsberg, a 9-0 decision issued on April 2, 2014, the US Supreme Court held that the Airline Deregulation Act of 1978 (ADA) pre-empts a frequent flyer member’s implied covenant of good faith and fair dealing claim when such a claim is state-imposed and “seek[s] to enlarge the contractual obligations that the parties voluntarily adopt.” The decision, authored by Justice Alito, follows the sound reasoning in American Airlines, Inc. v Wolens and reaffirms the broad reach of the ADA’s pre-emption clause.

About the Author

Judy Nemsick is a partner in the Litigation Practice Group of Holland & Knight’s New York office.

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