FEDERALCourt of Appeals for the Fifth Circuit
2001

Stucky v. City of San Antonio

260 F.3d 424Court of Appeals for the Fifth Circuit • Decided 2001Remanded

HOLDING

San Antonio passed an ordinance requiring all towing services to go through a single city-approved contractor. Two towing company owners sued, arguing federal law blocked the city from doing this. The appeals court agreed and reversed the lower court's decision, ruling that federal transportation law preempts the city's monopoly ordinance. This matters to construction subcontractors because cities sometimes try to restrict which vendors can provide services—this case shows federal law can block those restrictions.

KEY FINDINGS

Insurance Requirements

Cities cannot use local ordinances to force all business through a single contractor if federal law applies to that industry—federal law wins

FULL COURT OPINION