City of Milwaukee, Wis. v. Block

634 F. Supp. 760, 1986 U.S. Dist. LEXIS 26132
CourtDistrict Court, E.D. Wisconsin
DecidedApril 30, 1986
Docket85-C-1509
StatusPublished
Cited by4 cases

This text of 634 F. Supp. 760 (City of Milwaukee, Wis. v. Block) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Milwaukee, Wis. v. Block, 634 F. Supp. 760, 1986 U.S. Dist. LEXIS 26132 (E.D. Wis. 1986).

Opinion

DECISION AND ORDER

WARREN, District Judge.

Plaintiffs commenced this action on October 28, 1985, seeking declaratory judgment and injunctive relief against the government defendants’ allegedly unlawful and unconstitutional interpretation and application of the Cargo Preference Act of 1954, as amended, 46 U.S.C. § 1241(b) (West Supp.1985) (“the CPA”), and their failure to follow their own regulations, rules and policies governing the CPA’s application to Title II of the Agricultural Trade Development and Assistance Act of 1954, as amended, 7 U.S.C. §§ 1721-1726 (1970 West Supp.1985) (“Title II” or “Title II, P.L. 480”). Pursuant to the requests of all parties, the Court on December 13, 1985, established an expedited schedule for the briefing and argument of the parties’ cross motions for summary judgment. Finally, on February 7, 1986, after hearing argument and over the plaintiffs’ objection, the Court granted the motion to intervene as defendants submitted by five parties asserting interests in the U.S. maritime industry (“Defendant-Intervenors”).

Rule 56(c) of the Federal Rules of Civil Procedure provides for the granting of summary judgment where there exists “no genuine issue as to any material fact and ... the moving party is entitled to judgment as a matter of law.” As more fully described below, the Court hereby finds that there exists no factual issue regarding plaintiffs’ lack of standing to bring this action thereby entitling defendants to judgment as a matter of law.

BACKGROUND

I. The Parties.

The eighteen plaintiffs in this action include four operators of Great Lakes ports, six labor unions representing longshore *761 men working the harbor facilities of various Great Lakes ports, four stevedoring service and terminal operating companies servicing various Great Lakes ports and one trade association representing ports, stevedores, terminal and warehousing companies, and steamship lines and agents involved in commercial ocean shipping in the Great Lakes.

The nine government defendants are officials of various federal agencies, sued in their official capacities, responsible for administering the provisions of Title II at issue in this case.

The five defendant-intervenors consist of four companies operating United States-flag vessels or organizations with member companies operating such vessels, and one labor union representing seamen working aboard United States-flag vessels engaged in the United States foreign and domestic shipping trade.

II. Statutory and Regulatory Background.

A. The Cargo Preference Act.

This lawsuit stems primarily from the parties’ differing positions regarding the proper interpretation of the CPA. The CPA was enacted to foster and preserve a strong United States merchant marine by aiding United States-flag operators in their competition with lower cost foreign-flag vessels. 1 H.R.Rep. No. 2329, 83 Cong., 2d Sess. 1 (1954), U.S.Code Cong. & Admin. News, 1954 p. 3173. The CPA seeks to achieve this purpose by requiring as follows:

Whenever the United States shall procure, contract for, or otherwise obtain for its own account, or shall furnish to or for the account of any foreign nation without provision for reimbursement, any ... commodities, within or without the United States, or shall advance funds or credits or guarantee the convertibility of foreign currencies in connection with the furnishing of such ... commodities, the appropriate agencies shall take such steps as may be necessary and practicable to assure that at least 50 percentum of the gross tonnage of such ... commodities ... which may be transported on ocean vessels shall be transported on privately owned United States-flag commercial vessels, to the extent such vessels are available at fair and reasonable rates for United States-flag commercial vessels, in such manner as will insure a fair and reasonable participation of United States-flag commercial vessels in such cargoes by geographic areas____

46 U.S.C. § 1241(b)(1).

The CPA remained substantially unchanged for 30 years following its enactment until December 23, 1985 — seven weeks after this lawsuit’s commencement — when the President of the United States signed legislation, formally known as the “Food Security Act of 1985”, amending the CPA. Pub.L. 99-198 (1985). Four provisions in this legislation pertain to this litigation. Specifically, in summarized fashion, these four provisions are as follows:

i) The U.S.-flag participation goal for donated agricultural commodities is increased from 50 to 75 percent. The increase is to be phased in over a period of three years. Sec. 901(b)(a)(2).
ii) The required level of U.S.-flag participation must be achieved in each 12-month period beginning April 1, 1986. Thus, the compliance year now begins when the Great Lakes’ shipping season begins. Sec. 901(b)(c)(2)(A); Complaint ¶ 59.
iii) The Secretary of Transportation is required, during the period 1986-1989, to take “such steps as may be necessary and practicable without detriment to any port range” to preserve the percentage share or metric tonnage of donated commodities exported from Great Lakes ports in 1984. Sec. 901(b)(G)(2)(B).
iv) Congress has established a detailed scheme for financing the increased ocean *762 freight charges which may result from the increased utilization of relatively expensive U.S.-flag vessels mandated by the CPA. Sec. 901(b)(d)-(f).

Title XI, Subtitle C of Pub.L. 99-198 (1985) (“The 1985 Amendments”).

B. Title II, P.L. 480.

Title II, P.L. 480 embodies a foreign food donation program by which the United States donates agricultural commodities overseas to curb famine, combat malnutrition, and promote economic and community development in friendly developing countries. See 7 U.S.C. § 1721(a). The President of the United States is authorized to carry out the Title II, P.L. 480 program. Id. Section 1-201 of Executive Order 12220 delegates the Title II, P.L. 480 functions vested in the President to the Director of the United States International Development Cooperation Agency (“IDCA”). 45 Fed.Reg. 44245 (June 27, 1980). The IDCA has internally redelegated these functions to the Agency for International Development (“AID”) who, in conjunction with the Commodity Credit Corporation (“CCC”), 2 administers the Title II, P.L. 480 program. In the Title II, P.L.

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634 F. Supp. 760, 1986 U.S. Dist. LEXIS 26132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-milwaukee-wis-v-block-wied-1986.