Bridgeport & Port Jefferson Steamboat Co. v. Bridgeport Port Authority

335 F. Supp. 2d 275, 2004 U.S. Dist. LEXIS 18301, 2004 WL 2049319
CourtDistrict Court, D. Connecticut
DecidedSeptember 8, 2004
DocketCiv.A. 3:03CV599(CFD)
StatusPublished
Cited by3 cases

This text of 335 F. Supp. 2d 275 (Bridgeport & Port Jefferson Steamboat Co. v. Bridgeport Port Authority) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bridgeport & Port Jefferson Steamboat Co. v. Bridgeport Port Authority, 335 F. Supp. 2d 275, 2004 U.S. Dist. LEXIS 18301, 2004 WL 2049319 (D. Conn. 2004).

Opinion

RULING

DRONEY, District Judge.

This action was brought by the Bridgeport and Port Jefferson Steamboat Company (the “Ferry Company”), a corporation that provides a public ferry service for passengers and vehicles between Bridgeport, Connecticut and Port Jefferson, New York, and by two of its frequent passengers (collectively the “plaintiffs”), 1 against the Bridgeport Port Authority (the “Port Authority”). The Ferry Company leases dock facilities for its ferry boat operation from the Port Authority. The subject of this action is the validity of a passenger wharfage fee (“Passenger Fee”) that the Port Authority imposes on all ferry passengers. This Passenger Fee-which has been in effect since 1993-is collected by the Ferry Company and then turned over to the Port Authority. 2

The plaintiffs’ amended complaint challenges the legality of the Passenger Fee, claiming that it violates the Rivers and Harbors Appropriation Act of 1884, the Commerce Clause of the U.S. Constitution, the right to travel under the U.S. Constitution, the Tonnage Clause of the U.S. Constitution, and several Connecticut Statutes. The basis for those claims by the Ferry Company is its contention that the Port Authority uses only a portion of the Passenger Fee proceeds to support activities related to ferry operations, and “spends the great bulk of such proceeds mostly for its own purposes, unrelated to the ferry.” The Amended Complaint also asserts a claim for unjust enrichment.

Pending are the defendant’s Renewed Motion to Dismiss or Stay [Doc. # 23] and Motion for Partial' Summary Judgment [Doc. #28]. For the following reasons, the motions are DENIED.

I. Background 3

The Port Authority is a' quasi-public entity created pursuant to Connecticut General Statutes §§ 7-329a to 7-329u. These enabling statutes give the Port Authority jurisdiction over the entire Port of Bridgeport Harbor. The Port Authority owns and operates the Water Street Dock in the harbor. The Ferry Company ferries are berthed at the Water Street Dock. Bridgeport Harbor also has several marine cargo terminals, which receive international shipments of consumer goods, that are under the regulatory jurisdiction of the Port Authority. However, the only terminal facility that is owned and operated by the Port Authority is at the Water Street Dock, which is used exclusively by the Ferry Company. The other terminal facilities are owned and operated by private entities.

The Ferry Company, which dates back to 1883, provides year-round public ferry transportation between Bridgeport, Connecticut and Port Jefferson,. New York. Beginning in the 1960s, the Ferry Company began leasing its docking facilities in *278 Bridgeport Harbor from the City of Bridgeport and later from the Port Authority. Currently, the Ferry Company leases the Water Street Dock facilities under a lease agreement with the Port Authority dated December 1, 1998 and supplemented by an amendment dated July 29, 2002 (collectively, the “Lease”). In addition to the docking facilities, the Lease also provides that the Ferry Company is permitted to use part of a two-story terminal building built in 1995 by the Port Authority (“Terminal”). The Lease entitles the Ferry Company to operate a food concession in the Terminal, (the concession is the subject of a separate lease), occupy office and waiting room space “as the Port Authority may from time to time provide,” and make use of four parking spaces for Ferry Company employees. Under the terms of the Lease, the Ferry Company pays annual rent of $100,000 for the first year, increasing to $158,956 through the final year, 2011.

A. The Passenger Fee

In 1993, the Port Authority instituted the Passenger Fee. 4 As of March 1, 2003, it ranged from sixty cents (for senior citizens and children) to $2.75 (for cars with unlimited passengers). The Amended Complaint alleges that income from the Passenger Fee and rent paid by the Ferry Company comprised over ninety percent of the Port Authority’s total operating revenues for fiscal years 1997 through 1999 and that “significant portions” of the Passenger Fee are allocated to activities that are not related to, and do not provide any benefit to, the Ferry Company or the passengers who pay it. 5

B. Claims

Count one of the Amended Complaint alleges that the Passenger Fee violates the Rivers and Harbors Appropriation Act of 1884, as Amended, 33 U.S.C. § 5(b), which provides, in relevant part, that:

[n]o taxes, tolls, operating charges, fees or any other impositions whatever shall be levied upon or collected from any vessel or other water craft, or from its passengers, by any non-Federal interest, if the vessel or water craft is operating on any navigable waters, subject to the authority of the United States, or under the right to freedom of navigation on those waters, except for—
(2) reasonable fees charged on a fair and equitable basis that-
(A) are used solely to pay the cost of a service to the vessel or water craft;
(B) enhance the safety and efficiency of interstate and foreign commerce; and
(C) do not impose more than a small burden on interstate or foreign commerce.

The Ferry Company claims that its ferries operate on navigable waters and that none of the exceptions in the act would permit the Passenger Fee. Count two alleges that the Passenger Fee violates the Commerce Clause of the United States Constitution because it discriminates against interstate commerce. Count three asserts that the *279 Passenger Fee violates the right to travel as guaranteed by the United States Constitution. 6 Count four alleges that the Passenger Fee violates the Tonnage Clause of the United States Constitution. 7 Count five claims that the Port Authority has been unjustly enriched by the Passenger Fee. Count six alleges that the Port Authority has exceeded the authority granted to it by Conn. Gen.Stat. §§ 7-329a through 7-329u (the Port Authority enabling statutes), and count seven claims that the Passenger Fee constitutes an unfair tax or user fee under Connecticut law. Finally, count eight alleges violations of the Connecticut Unfair Trade Practices Act (“CUTPA”).

II. Discussion

A. Motion to Dismiss or Stay
1. Standard

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Bluebook (online)
335 F. Supp. 2d 275, 2004 U.S. Dist. LEXIS 18301, 2004 WL 2049319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bridgeport-port-jefferson-steamboat-co-v-bridgeport-port-authority-ctd-2004.