Baran v. Port of Beaumont Navigation District of Jefferson County

57 F.3d 436, 1995 U.S. App. LEXIS 15159, 1995 WL 368416
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 21, 1995
Docket94-40610
StatusPublished
Cited by47 cases

This text of 57 F.3d 436 (Baran v. Port of Beaumont Navigation District of Jefferson County) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baran v. Port of Beaumont Navigation District of Jefferson County, 57 F.3d 436, 1995 U.S. App. LEXIS 15159, 1995 WL 368416 (5th Cir. 1995).

Opinion

WIENER, Circuit Judge:

Defendants-Appellants, the public Ports of Beaumont, Port Arthur, and Orange (“Ports”), and Intervenor-Appellant the State of Texas (“State”), (collectively “Appellants”), appeal a district court order granting summary judgment in favor of Plaintiffs-Appellees the Sabine Pilots Association (“Pilots”), declaring that the second sentence of Article 8267(C)(5) of the Texas Revised Civil Statutes violates the Due Process Clause.

The Phots filed suit against the Ports in federal district court, complaining that Art. 8267(C)(5) violates both the Due Process and Equal Protection clauses of the United States Constitution. The second sentence of that article, which is contained in the statutory framework for authorizing and fixing pi-lotage rates for the Sabine-Neches Waterway (“Waterway”), essentially grants the Ports the power to veto the pilotage rates for the Waterway as set by the Texas State Pilot Commission for the Sabine Bar, Pass and Tributaries (the “Commission”). The Pilots claim that this “veto provision” permits the Ports to veto the pilotage rates at their own rate-approval proceedings after opposing the proposed increases at the Commission hearings, thereby denying the Pilots the right to a fair and impartial tribunal in which to present their rate increase proposals. The Pilots also insist that the authority of the Ports to veto any pilotage rate increase effectively establishes a dual pilotage rate-making system between the public and private ports in the Waterway, in violation of the Equal Protection Clause. The private ports are not parties to this appeal.

Concluding that the district court erred as a matter of law in granting summary judgment in favor of the Pilots on the due process issue, we reverse and vacate that summary judgment and render summary judgment in favor of Appellants.

I

FACTS AND PROCEEDINGS

All ships entering and leaving Texas ports must hire pilots to navigate the passages of the state’s coastal waterways between those ports and the Gulf of Mexico. Each waterway in Texas is under the authority of its own pilot commission, which has jurisdiction over all facets of pilotage on the waterway in question, including the authority to set the fee schedule for pilots that navigate the passages into the waterway for the ships that enter and leave the waterway’s ports. Any party interested in changing the pilotage rates for a waterway (pilots, consignees, owners, or ports) may submit a written application to the cognizant commission requesting a change in the fee schedule. To approve any rate changes, however, that commission must act in compliance with the statutory procedures, which require notice and hearings on the proposal, and must consider the effect of new rates on all legitimately interested parties. 1 Additionally, pursuant to Article 8267(C)(5), “no increase of rates to either the public ports ... shall ever be set, established or granted unless the [boards of the ports] so affected shall approve the same.” 2

The Ports are navigation districts created pursuant to the Texas constitution and acts of the state legislature. The Ports operate in accordance with Chapters 60-62 of the Texas Water Code, and are defined as “governmental agencies and bodies politic and corporate with the powers of government and with the authority to exercise the rights, privileges, and functions which are essential to the accomplishment of those purposes.” 3 Generally, navigation districts are given substantial powers over the improvement, preservation, and conservation of inland and coastal waters *439 and other purposes incidental to the navigation of those waters. 4

In September 1992, the Pilots filed an application requesting a pilotage rate increase with the Commission. In accordance with the prescribed procedures, the Commission held public hearings on the Pilots’ proposal. Representatives of the Ports attended the Commission hearings as parties legitimately interested in — and opposed to — the proposed rate increase. Only the Port of Beaumont, however, presented testimony at the hearing; and although that port’s “evidence” was deemed to be time-barred by the Commission, Beaumont’s materials were included in the reports submitted by the West Gulf Maritime Association, another group opposing the increase. The data from the Port of Beaumont supported the Ports’ concern that the increased rates proposed were too high and would adversely affect the Ports’ competitive positions.

Despite strong opposition to the proposed rate increases, the Commission approved the new rates, which went into effect at all private ports on the Waterway in November 1992. The rate increases did not go into effect at the Ports, however, as Art. 8267(C)(5) establishes that no rate increase affecting public ports can ever be set, established, or granted unless approved by the ports affected. In an effort to obtain such approval, the Pilots presented their proposal to the Ports, which thereafter denied the rate increases in their own proceedings.

After bringing suit against the Ports in federal court, the Pilots filed a motion for a summary judgment declaring that the veto permitted by Art. 8267(C)(5) violated the Due Process and Equal Protection clauses. Important to this appeal is the Pilots’ claim that the second sentence of Art. 8276(C)(5) permits an “interested party” to adjudicate and veto pilotage rate applications, thereby denying the Pilots’ their right to a fair hearing before an impartial tribunal.

The district court granted the Phots’ motion for summary judgment, declaring that the veto sentence does violate the Due Process Clause. In reaching this holding, the court determined that the Ports have a pecuniary interest in the flow of vessels through their ports that is affected by the pilot rates. As such, the court determined that the Ports’ interest, when combined with the their veto power, denies the Pilots their right to a fair and impartial tribunal. The court then proceeded to “sever” the second sentence from Art. 8267(C)(5), declaring that the balance of the statute remained operable. Nevertheless, the court declined to enforce the Commission-approved rate increase at the Ports, leaving the “individual ports with the state court recourse provided by section 62.078 of the Texas Water Code.” The court also declined to address the Pilots’ equal protection claim. The Ports timely filed this appeal.

II

DISCUSSION

A. Standard of Review

We review a grant of summary judgment using the same standards that guide the district court. 5 Summary judgment is appropriate when no issue of material fact exists and the movant is entitled to judgment as a matter of law. 6 Questions of law are reviewed de novo. 7

B. Threshold Issue: Abstention

Appellants argue on appeal that the district court erred in not abstaining from exercising its jurisdiction in what Appellants describe as an “on-going” state law dispute.

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Bluebook (online)
57 F.3d 436, 1995 U.S. App. LEXIS 15159, 1995 WL 368416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baran-v-port-of-beaumont-navigation-district-of-jefferson-county-ca5-1995.