Virgin Islands Port Authority v. Virgin Islands Taxi Ass'n

979 F. Supp. 344, 1997 WL 597484
CourtDistrict Court, Virgin Islands
DecidedSeptember 23, 1997
DocketD.C. Civ App. 97-46, 97-47, 97-48 and 97-49
StatusPublished
Cited by9 cases

This text of 979 F. Supp. 344 (Virgin Islands Port Authority v. Virgin Islands Taxi Ass'n) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virgin Islands Port Authority v. Virgin Islands Taxi Ass'n, 979 F. Supp. 344, 1997 WL 597484 (vid 1997).

Opinion

OPINION

PER CURIAM.

This appeal arises from a dispute over an exclusive airport taxicab transportation franchise granted to the appellee/cross appellant, Virgin Islands Taxi Association [“appellee” or “VITA”] by the Virgin Islands legislature. Appellants have appealed from the order of the Territorial Court granting a preliminary injunction enforcing the exclusive franchise. In deciding whether the preliminary injunction was warranted, this Court must first determine whether the exclusive franchise violates the Commerce Clause of the Constitution, and second, if constitutional, whether the conduct of the appellants as found by the Territorial Court is violative of that exclusive franchise. For the following reasons, we will affirm the trial court’s grant of an injunction.

I. FACTS

On December 29, 1986 the legislature of the Virgin Islands passed Act No. 5231 [“the Act”] which gave VITA the exclusive right to transport all persons, with certain exceptions, from the terminal of the Cyril E. King Airport [“airport”]. The airport is operated by the Virgin Islands Port Authority [“Port Authority”]. Section 1(e) of the Act provides that VITA is authorized to transport all persons

*346 except those departing by foot, privately owned motor vehicle where no fee is charged, by motor vehicle furnished by a concessionaire of a motor vehicle rental (drive yourself) business at the terminal facility or by a motor vehicle owned, operated or utilized by a tour agent in the transportation of passengers traveling on a prepaid or packaged tour, which has a minimum price of $50 and includes either lodging or transportation on an ocean common carrier; provided that transportation from the terminal facility is part of the overall transportation arranged for in the prepaid or packaged tour.

(App. Vol. I at 253.)

VITA brought suit in the Territorial Court seeking enforcement of the exclusive franchise which VITA contended was being violated by the conduct of the Port Authority, Freddy Lettsome, Eastend Taxi Services, Inc., Ritz Carlton Virgin Islands, Inc., and Caneel Bay Resort. VITA sought a preliminary injunction to enjoin the Port Authority from “permitting and facilitating others from operating any type of public taxicab service from the Cyril E. King Airport on St. Thomas,” and to enjoin the remaining appellants from violating VITA’s exclusive franchise granted by the legislature. The trial court granted a temporary restraining order on February 13,1997. The Hotel Association of St. Thomas and St. John, Inc. [“Hotel Association”] was allowed to intervene. A hearing on the preliminary injunction took place, over two days on February 26 and 27,1997.

On March 10, 1997 the trial court granted the preliminary injunction in a written memorandum and order, noting that there were “numerous costly requirements that the Taxi Association had to fulfill in order to maintain this franchise and to ensure that the public’s needs for transportation were met.” Virgin Islands Taxi Ass’n v. Virgin Islands Port Autk, Civ. No. 117/97, memorandum opinion at 3,1997 WL 143960 (Mar. 10,1997) [“Mem. Op.”]. The judge further observed that many months of violation of the franchise has resulted in incalculable losses to VITA. (Mem. Op. at 5.) The erosion of the franchise was a result of hotels and other lodging providers contracting with non-VIFA taxi companies to transport guests directly to their accommodations. Caneel Bay, Inc. and the Ritz Carlton, rather than the guests, generally paid the drivers directly. However, the court noted “many instances ... in which the Ritz Canton’s representative at the airport has openly solicited the hotel’s guests in the terminal area and arranged right there transportation with other non-Taxi Association members.” (Id.) Other hotels and managers of vacation rental homes also contracted with non-VITA taxi companies to transport guests, and those guests paid the drivers directly. One such taxi driver, in addition to picking up designated guests, also had “conspicuously solicited other travelers at the airport, and in fact, [had] distributed his business cards to persons disembarking from flights as they entered the terminal area.” (Id. at 6-7.)

The court described the scene typical at the airport after a large aircraft has landed as chaotic. Although the Port Authority had restricted VITA members from entering the baggage area, non-VITA taxicab drivers freely entered the baggage area without interference from the Port Authority. In addition, those non-VITA drivers “causefd] congestion in the roadway adjacent to the terminal by parking on both sides of the curbs.” (Id. at 7.) Despite VITA’s repeated complaints to the Port Authority, the Port Authority took no legal action to enforce the Act’s provisions besides a stern letter to nine hotels concerning the infractions. (Id. at 8.)

The Port Authority, Ritz Carlton Virgin Islands, Inc., Caneel Bay Resort, and the Hotel Association [“appellants”] have timely appealed the preliminary injunctive order. 1 VITA cross-appealed the court’s apparent finding that “the hotels are permitted to have their own private or courtesy vehicles pick up their guests at the airport.” (Id. at 13.) For the following reasons, we will affirm.

II. DISCUSSION

The Territorial Court had jurisdiction over this matter under 4 V.I.C. § 76(a). We have *347 jurisdiction to review the court’s order pursuant to section 23A of the Revised Organic Act. 2 Preliminary injunctions are appealable interlocutory orders. Accord 28 U.S.C. § 1292(a)(1). Our review of the trial court’s conclusions of law is plenary. Thomas v. Abamar-BB, 35 V.I. 117, 934 F.Supp. 164 (D.V.I.App.Div.1996). Findings of fact are reviewed under a clearly erroneous standard. V.I. Code Ann. tit. 4, § 33. The grant or denial of an injunction is reviewed for abuse of discretion. Joseph v. Henry, 958 F.Supp. 238, 243 (D.V.I.App.Div.1997).

A preliminary injunction is appropriate if: (1) immediate and irreparable injury, loss, or damage will occur unless the injunctive relief is granted; (2) there is a likelihood of success on the merits; (3) that upon balancing the hardships there will be no substantial harm to the opposing party; and (4) it is in the public’s interest to grant the relief. Id.; 11A Charles A. Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure §§ 2948-2948.4 (1995). The trial court did not abuse its discretion when, after weighing the factors, it concluded that VITA was entitled to a preliminary injunction.

A. Likelihood of Success on the Merits

Appellants contend that the trial court erred when it found a likelihood of success on the merits. They argue that Act No. 5231 granting VITA the exclusive franchise is unconstitutional because it violates the Commerce Clause. We conclude that the Act does not violate the Commerce Clause, although for reasons different from the trial court.

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Bluebook (online)
979 F. Supp. 344, 1997 WL 597484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virgin-islands-port-authority-v-virgin-islands-taxi-assn-vid-1997.