426 Bloomfield Avenue Corp. v. City of Newark

904 F. Supp. 364, 1995 U.S. Dist. LEXIS 16358, 1995 WL 645984
CourtDistrict Court, D. New Jersey
DecidedNovember 2, 1995
DocketCiv. A. 95-1974 (MTB)
StatusPublished
Cited by6 cases

This text of 904 F. Supp. 364 (426 Bloomfield Avenue Corp. v. City of Newark) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
426 Bloomfield Avenue Corp. v. City of Newark, 904 F. Supp. 364, 1995 U.S. Dist. LEXIS 16358, 1995 WL 645984 (D.N.J. 1995).

Opinion

OPINION

BARRY, District Judge.

This matter has come before the court on plaintiffs’ motion and defendant’s cross-motion for summary judgment pursuant to Fed. R.Civ.P. 56(c). For the reasons set forth below, plaintiffs’ motion will be denied and defendant’s cross-motion will be granted as to Count One of plaintiffs’ complaint. Also for the reasons set forth below, this court will abstain from ruling with respect to the remainder of plaintiffs’ claims, and those claims will be dismissed.

I. STATEMENT OF THE CASE

As a municipal corporation, the City of Newark (“the City”) is authorized by the State of New Jersey to provide towing and storage services necessary and appropriate to the performance of municipal functions by contracting for such services with private towing and storage companies.' Traditionally, the City had secured its towing and storage services through a system of public bidding. Towing contracts were awarded to the successful bidders in each of the four towing districts within the City limits. 1 In return for being awarded a towing contract, the recipient was obligated to make certain payments to the City. Between 1991 and January 1995, however, the City awarded no towing contracts and, instead, entered into a series of “emergency arrangements” with towers, including plaintiffs, for the provision of towing services.

On January 4, 1995, the Newark City Council adopted Ordinance No. 6S & FA010495 (“the Ordinance”). The Ordinance eliminated the bidding system, and established a new rotational system for the provision of the City’s towing and storage needs. 2 The Ordinance mandates the licensing of participating towers, and imposes minimum personnel, equipment and insurance requirements. In addition, it sets maximum fees which participating towers may charge for services including towing, winching, mileage, storage, and cancellation. The Ordinance regulates only non-eonsensual towing activity — that is, the towing of privately owned vehicles (typically damaged, illegally parked, or found stolen and abandoned) performed at the request of the City and eventually paid for by the owner of the vehicle. 3 Towers found in violation of the Ordinance are subject to a $1,000 fine and the revocation of their “Official Tower’s” license.

On January 1, 1995, the Federal Aviation Administration Authorization Act (“the Act”) of 1994 became effective, and was codified at 49 U.S.C. § 11501(h) as part of the Interstate Commerce Act. The Act provides that,

a State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation or other provision having the force and effect of law related to a price, route, or service of any motor carrier ... or any motor private carrier with respect to the transportation of property.

49 U.S.C. § 11501(h)(1).

Plaintiffs are three towing companies that regularly have provided non-consensual towing services for the City. They bring this action to enjoin enforcement of the Ordinance, and for a declaration of its illegality. Specifically, plaintiffs contend, in Count One *367 of their complaint, that the Ordinance is preempted by the federal Act. In Count Two, plaintiffs claim that the Ordinance is unfairly excessive in the requirements imposed on towers, is excessively burdensome on the public interest, is vague and over-broad, is arbitrary and capricious, and is unrelated to a legitimate government interest. In Count Three, plaintiffs allege that the Ordinance was adopted for the unlawful purpose of retaliating against plaintiffs for their refusal to pay allegedly unlawful fees imposed upon them by the City under the old bidding system. 4

In response to Count One, the City alleges that the Act does not apply to municipal non-consensual towing operations and, thus, does not preempt the Ordinance. 5 In answering Counts Two and Three of plaintiffs’ complaint, the City contends that the Ordinance was adopted as a rational response to endemic abuses under the prior bidding system including the overcharging of customers and the towers’ refusal to honor the lawful terms of their municipal contracts. All parties have stipulated that no material facts are in dispute and have moved for summary judgment.

II. JURISDICTION AND STANDING

This court has jurisdiction under 28 U.S.C. § 1381. “A plaintiff who seeks injunctive relief from state regulation, on the ground that such regulation is preempted by a federal statute which, by virtue of the Supremacy Clause of the Constitution, must prevail, thus presents a federal question which the federal courts have jurisdiction under 28 U.S.C. § 1331 to resolve.” Shaw v. Delta Air Lines, Inc., 463 U.S. 85, 96 n. 14, 103 S.Ct. 2890, 2899 n. 14, 77 L.Ed.2d 490 (1983) (exercising jurisdiction over plaintiffs claims for both injunctive and declaratory relief).

In order to have standing to sue, plaintiffs must show the existence of injury-in-fact that is caused by the defendant’s actions, and that is redressable by this court. Sammon v. New Jersey Bd. of Med. Examiners, 66 F.3d 639 (3d Cir.1995) (quoting standard enunciated in Lujan v. Defenders of Wildlife, 504 U.S. 555, 560-61, 112 S.Ct. 2130, 2136-37, 119 L.Ed.2d 351 (1992)). Because the Ordinance currently is in effect, plaintiffs are suffering injury-in-fact by being compelled under the Ordinance to charge lower prices than they allege they are entitled to charge under the federal Act. In addition, plaintiffs meet the redressability requirement in that plaintiffs’ injury obviously would be redressed by a favorable decision. Plaintiffs have standing to sue.

III. DISCUSSION

Because this case deals with express, rather than implied, federal preemption, the only issue for consideration is whether the Act prohibits the type of towing regulated by the Ordinance. The scope of the Act’s preemptive force is strikingly broad. Subject to limited exceptions, the Act is a blanket prohibition on state and local regulation of trucking prices, routes, and services.

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Bluebook (online)
904 F. Supp. 364, 1995 U.S. Dist. LEXIS 16358, 1995 WL 645984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/426-bloomfield-avenue-corp-v-city-of-newark-njd-1995.