American Stevedoring, Inc. v. The Port Authority of New York and New Jersey; Notice of Filing of Complaint and Assignment, 31439-31440 [2010-13390]

Agencies

• Federal Maritime Commission

[Federal Register Volume 75, Number 106 (Thursday, June 3, 2010)]
[Notices]
[Pages 31439-31440]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-13390]


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FEDERAL MARITIME COMMISSION

[Docket No. 10-05]


American Stevedoring, Inc. v. The Port Authority of New York and 
New Jersey; Notice of Filing of Complaint and Assignment

May 28, 2010.
    Notice is given that a complaint has been filed with the Federal 
Maritime Commission (``Commission'') by American Stevedoring, Inc., 
hereinafter ``Complainant,'' against the Port Authority of New York and 
New Jersey, hereinafter ``Respondent.'' Complainant asserts that it is 
a corporation organized and existing pursuant to the laws of the state 
of New York. Complainant asserts that Respondent is a body corporate 
and politic created by Compact between the States of New York and New 
Jersey with the consent of Congress of the United States, and a marine 
terminal operator subject to the jurisdiction of the Commission.
    Complainant asserts that Respondent violated Section 10(b)(10) and 
Section 10(d)(3) of the Shipping Act of 1984, 46 U.S.C. 41106(3), which 
prohibit a marine terminal operator from engaging in unreasonable 
refusal to deal or negotiate. Complainant bases this allegation on the 
Respondent's ``refusal to negotiate the terms and conditions of a lease 
renewal, its haste in forcing American Stevedoring to sign the leases 
on one day's notice, and its ultimatum that the set of leases presented 
on April 23, 2008 ``be signed by noon the following day, if not signed, 
would not be presented again to American Stevedoring, and that no 
leases would be presented.'' Complainant alleges that Respondent 
``exacerbated its refusal by not countersigning the set of leases for 
another ten months'' giving competitors ``at other terminals an unfair 
advantage.'' Complainant further alleges that Respondent ``then 
interfered with American Stevedoring's existing and prospective 
economic relationships by issuing an RFEI and encouraging competitors 
to take over American Stevedoring's piers and operations, and to 
service its customers.'' Complainant asserts that as a result of 
Respondent's unlawful conduct, Complainant ``has suffered and will 
suffer monetary damages in an amount yet to be determined, but 
exceeding $16,000,000.00 per year.''
    Complainant also alleges that Respondent violated Section 
10(d)(4)of the Act, 46 U.S.C. app. Sec.  41106(2), which provides that 
no marine terminal operator may ``give any undue or unreasonable 
preference or advantage or impose any undue or unreasonable prejudice 
or disadvantage with respect to any person,'' in refusing to 
``negotiate the terms and conditions of the set of leases with American 
Stevedoring, unlike its relationships and negotiations with other 
marine terminal operators for lease renewal.'' Specifically Complainant 
alleges that ``[t]he Port Authority's actions have given American 
Stevedoring's competitors at other terminals and unfair advantage in 
that they have been and are able to negotiate the terms and conditions 
of the lease agreements, including the terms of capital investments the 
Port Authority undertakes, such as the provision of truck toll 
replacement payments, on-dock rail connections, highway improvements 
and other transportation connecting services, whereas American 
Stevedoring has been frozen out of negotiations, communications, 
capital investments, ordinary maintenance and repairs, and has suffered 
other kinds of different, discriminatory treatment, not justified by 
transportation factors.'' Complainant asserts that as a result it ``has 
suffered monetary damages and lost business opportunities in an amount 
yet to be determined, but exceeding several million dollars.''
    Complainant requests that the Commission order Respondent ``(i) to 
cease and desist from all actions to terminate Complainant's leasehold 
relationships with Complainant; (ii) to recommence discussions with the 
Complainant in good faith over the terms and conditions of the 
Agreements of the Lease entered into on April 24, 2008 comparable to 
those entered into by the Port Authority for its other marine terminals 
including the recently reduced rent of Maher Terminals; (iii) to order 
the Port Authority to cease interfering in the economic relationships 
of American Stevedoring with its customer and potential

[[Page 31440]]

customers; (iv) to establish and put in force such other practices as 
the Commission determines to be lawful and reasonable governing the 
relationship between the Port Authority and American Stevedoring; and 
(v) to pay the Complainant by way of reparation for the unlawful 
conduct hereinabove described, in an amount yet to be determined, but 
exceeding $16,000,000.00 with interest and attorney's fees, or such 
other sum as the Commission may determine to be proper as an award of 
reparation; and (v) and that such other and further order or orders be 
made as the Commission so determines to be appropriate.''
    This proceeding has been assigned to the Office of Administrative 
Law Judges. Hearing in this matter, if any is held, shall commence 
within the time limitations prescribed in 46 CFR 502.61, and only after 
consideration has been given by the parties and the presiding officer 
to the use of alternative forms of dispute resolution. The hearing 
shall include oral testimony and cross-examination in the discretion of 
the presiding officer only upon proper showing that there are genuine 
issues of material fact that cannot be resolved on the basis of sworn 
statements, affidavits, depositions, or other documents or that the 
nature of the matter in issue is such that an oral hearing and cross-
examination are necessary for the development of an adequate record.
    Pursuant to the further terms of 46 CFR 502.61, the initial 
decision of the presiding officer in this proceeding shall be issued by 
May 31, 2011 and the final decision of the Commission shall be issued 
by September 28, 2011.

Rachel E. Dickon,
Assistant Secretary.
[FR Doc. 2010-13390 Filed 6-2-10; 8:45 am]
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