United States Federal Circuit

In a company's action against the government alleging, inter alia, that the Aviation and Transportation Security Act's (ATSA) transfer of responsibility for passenger and baggage screening resulted in an unconstitutional taking of its property without just compensation, a judgment against plaintiff is affirmed where: 1) plaintiff could not claim a taking since the ATSA did not regulate plaintiff directly but merely "frustrated" plaintiff's business expectations by reducing the demand for plaintiff's services; and 2) plaintiff was not entitled to compensation under ATSA section 101(g)(2) since it gives the government the power to assume the contracts but does not require it to do so.

Appellate Information

• Decided 05/15/2008
• Published 05/15/2008

Judges

• SCHALL, Circuit Judge., Before NEWMAN, MAYER, and SCHALL, Circuit Judges.

Court

• United States Federal Circuit

Counsel

• For Appellant:
  
• Jonathan J. Lerner, Skadden, Arps, Slate, Meagher & Flom LLP, of New York, NY, argued for plaintiff-appellant.   With him on the brief was Lauren E. Aguiar.


• For Appellees:
  
• Kyle E. Chadwick, Senior Trial Counsel, Commercial Litigation Branch, Civil Division, United States Department of Justice, of Washington, DC, argued for defendant-appellee.   With him on the brief was Jeanne E. Davidson, Director. of counsel on the brief was Janessa Grady Fleming, Senior Counsel, Office of the Chief Counsel, Transportation Security Administration, of Arlington, VA.