State v. Port Authority of New York

376 A.2d 591, 151 N.J. Super. 127, 1977 N.J. Super. LEXIS 990
CourtNew Jersey Superior Court Appellate Division
DecidedJune 7, 1977
StatusPublished
Cited by2 cases

This text of 376 A.2d 591 (State v. Port Authority of New York) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Port Authority of New York, 376 A.2d 591, 151 N.J. Super. 127, 1977 N.J. Super. LEXIS 990 (N.J. Ct. App. 1977).

Opinion

Osborne, J. S. C.

This case was originally presented to the court on á motion for summary judgment by plaintiffs, [129]*129New Jersey Department of Transportation (DOT) and New Jersey Turnpike Authority (Turnpike). The parties thereafter agreed at the hearing to have the matter resolved on cross-motions for summary judgment.

The complaint seeks a declaratory judgment that (1) the Port Authority has authority to commit funds to the Route 81 project under existing bi-state legislation; (2) additional bi-state legislative approval is not required to permit the Authority to pay a part of the cost of said project, and (3) existing statutory authority renders the design agreement for the project and the resolution of the Board of Commissioners of the Port Authority dated May 26, 1975, a valid and unconditional obligation by the Authority to assume 50% of the costs of said project upon formal ratification by the Authority of a written agreement to that effect.

The parties agree that the primary issue is whether the Authority is authorized under existing legislation to participate in the construction costs of the project. The history behind this lawsuit is relevant to a determination of this question.

On May 6, 1976 plaintiffs and defendant entered into an agreement for professional engineering services with respect to the design of the project. Pursuant to this agreement the parties were to share the total project cost1 of $50 million as follows ■— 50% by the Authority, 25% by the Turnpike, and 25% by DOT.

A brief description of the project is essential. The “Environmental Impact Assessment” prepared by DOT indicates that it will consist of the construction of Turnpike Interchange 13A, approximately %y2 miles north of the existing Interchange 13, and the construction of a new highway interchange connecting the new Turnpike interchange with North Avenue and Routes 1 and 9 in Elizabeth.

[130]*130The purpose of the project as set forth in the “Environmental Impact Assessment” is to:

“significantly improve the access to Newark Airport, Ports Elizabeth and Newark, and the extensive industrial/warehouse development in the northeastern portion of Elizabeth.”

All parties agree that the project would indeed provide improved access to existing authority facilities as well as benefit the New Jersey Turnpike, the State Highway system and, in particular, the City of Elizabeth.

A close reading of the design agreement indicates that none of the parties contemplated that this would be the final expression of their joint venture. Paragraph 3 supports this conclusion in stating:

WHEREAS, the State of New Jersey, the Port Authority of New York and New Jersey and the New Jersey Turnpike Authority, upon being duly authorized, contemplate entering into a comprehensive Tri-Party Agreement providing for the construction of said Interchange I3A-Route 81, Project ;’*’**'

Throughout the agreement there are also additional references to the parties’ intent to enter into other contracts for final design and construction.

The initial controversy arose upon the authority’s being advised by its general counsel and bond counsel that bi-state legislative authorization was required for Port Authority participation in the actual construction of the project. Pursuant to this advice a meeting of the Board of Commissioners of the Authority was held on May 26, 1976, at which the following resolution was passed:

RESOLVED, that the Executive Director be and he hereby is authorized to enter into a definitive project agreement on behalf of the Port Authority with the New Jersey Department of Transportation and the New Jersey Turnpike Authority in connection with work to be performed by each agency for the New Jersey Route 81 and New Jersey Turnpike Interchange 13A Project in the vicinity of Newark International Airport, and providing for all project costs, estimated to total $50 million, to be assumed — 50%
[131]*131by the Port Authority, 25% by the New Jersey Department of Transportation and 25% by the New Jersey Turnpike Authority provided that appropriate legislative authorization for Port Authority participation shall be adopted by the states of New York and New Jersey; * * *
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Plaintiffs argue that the resolution is not a bar to Port Authority participation in the construction of the project because such participation is authorized under N. J. S. A. 32: 1-7, 32 :l-26 and 32 :l-33. Plaintiffs wish this court to construe these sections liberally because, they argue, the Legislatures intended that the Port Newark and Port Elizabeth areas be developed to benefit the surrounding communities. Plaintiffs assert, therefore, that the project is in the public interest and within the broad powers conferred upon the Port Authority.

Defendant is willing to proceed with the construction of the project if the court grants summary judgment in favor of plaintiffs.2 Defendant, however, contends that bi-state legislative approval is required for the following reasons: (1) the project would not be part of any existing Port Authority facility nor would it be an exclusive connection to any facility; (2) the project would only incidentally benefit the marine and airport terminals since it is without the terminals proper, and existing legislation permits road construction only within the terminals proper, and (3) similar access projects such as the Eoute 80 access road to the George Washington Bridge and construction of the third tube of the Lincoln Tunnel were of such magnitude as to require bi-state enabling legislation. The Eoute 81 project, being of equal magnitude, requires bi-state legislative ap[132]*132proval irrespective of any benefit to the public through its construction.

The court is thus faced with the task of construing the relevant statutes to determine if there is any support for plaintiffs’ position. In construing a statute the initial task of the court is to seek the legislative intent, and to that end it must consider any history which may be of aid. Lloyd v. Vermeulen, 22 N. J. 200, 206 (1956); Dept. of Health v. Sol Schnoll Dressed Poultry Co., 102 N. J. Super. 172, 176 (App. Div. 1968); Raybestos-Manhattan, Inc., v. Glaser, 144 N. J. Super. 152, 168 (Ch. Div. 1976).

In 1921 the States of New York and New Jersey entered into a compact whereby the Port Authority3 was created. N. J. S. A. 32:1-4. This compact envisioned a plan for the comprehensive development of the Port Authority district. N. J. S. A. 32:1-11. In accordance with said plan, the Port Authority was granted power to make recommendations to the Legislatures of New York and New Jersey “for the better conduct of the commerce passing in and through the Port of New York, the increase and improvement of transportation and terminal facilities therein, and the more economical and expeditious handling of such commerce.” N. J. S. A. 32:1-13. Clearly, the Port Authority’s involvement in constructing means of transportation4 was contemplated by the very language of N. J. S. A. 32:1-7, which provides, where pertinent:

[133]

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Related

State v. Port Authority of New York
387 A.2d 367 (New Jersey Superior Court App Division, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
376 A.2d 591, 151 N.J. Super. 127, 1977 N.J. Super. LEXIS 990, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-port-authority-of-new-york-njsuperctappdiv-1977.