April 28, 2014
On April 2, 2014, the Supreme Court issued its decision in Northwest, Inc. v. Ginsberg. The question here is whether the Airline Deregulation Act of 1978 (the “ADA”) preempts Ginsburg’s claim that Northwest Air Lines breached an implied covenant of good faith and fair dealing when it unilaterally terminated his membership in Northwest’s frequent-flier program.
In an opinion delivered by Justice Alito, the Court unanimously held that the Airline Deregulation Act preempts a state-law claim for breach of the implied covenant of good faith and fair dealing if it seeks to enlarge the contractual obligation that the parties voluntarily adopt. The opinion of the Ninth Circuit was reversed and remanded for further proceedings.
To discuss the case, we have Lee Strang, who is a Professor of Law at the University of Toledo College of Law.