The Waterfront Commission Loses its Case Before the Supreme Court -

In a unanimous decision, the Supreme Court ruled that New Jersey could unilaterally withdraw from the Waterfront Commission without needing the permission of the Commission or the State of New York. Click here to read the decision.

The Supreme Court decided the case of New York v. New Jersey simply and straightforwardly. The opinion, written by Justice Kavanaugh, quickly and simply cuts through all of New York’s arguments with a simple question and answer. Justice Kavanaugh began the opinion by reciting a brief history of the Waterfront Commission and the efforts of New Jersey to withdraw from the Commission after 70 years of participation. Justice Kavanaugh cited that more than 80% of the work hours occur in New Jersey and more than 80% of the cargo flows through New Jersey. More importantly, Justice Kavanaugh noted that New Jersey “came to view the Commission as ill-equipped to handle 21st-century security challenges …” and that it became a bureaucracy “of overregulation that impedes job growth.”

Justice Kavanaugh continued. “The question presented is straightforward: Does the Waterfront Commission Compact allow New Jersey to unilaterally withdraw from the Compact notwithstanding New York’s opposition? The answer is yes.”

Justice Kavanaugh stated that because the Compact’s language does not address whether New Jersey can unilaterally withdraw, the court must look to other background principles of law. The court held that it has long held that interstate compacts “are construed as contracts under principles of contract law.” Under contract law, a contract that “contemplates ‘continuing performance for an indefinite time is to be interpreted as stipulating only for performance terminable at will of either party.”

On top of that, Justice Kavanaugh stated that “principles of state sovereignty likewise support New Jersey’s position. “The background notion that a State does not easily cede its sovereignty has informed our interpretation of interstate compacts.” …

“Here, the Compact involves the delegation of a fundamental aspect of a State’s sovereign power—its ability to protect the people, property, and economic activity within its borders—to a bi-state agency. The nature of that delegation buttresses our conclusion that New York and New Jersey did not permanently give up, absent the States’ joint consent or congressional action to terminate the Compact, their authority to withdraw from the Compact and to exercise those sovereign police powers at the Port as each State sees fit.”

After that, Justice Kavanaugh examined every other additional argument put forward by the Commission and then rejected each one of them outright.

In sum, the Supreme Court rejected each claim of the Waterfront Commission and has opened the door to New Jersey leaving the Commission.

Stay tuned as we find out the details of how and when New Jersey will take over the policing of the waterfront.