Waterfront Commission of New York Harbor v. Farid Amado

New Jersey Superior Court Appellate Division·Decided November 22, 2024·No. A-2255-21·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-2255-21

WATERFRONT COMMISSION OF NEW YORK HARBOR,

Plaintiff-Respondent,

v. FARID AMADO,

Defendant-Appellant.

Submitted March 13, 2024 – Decided November 22, 2024 Before Judges Vernoia and Gummer.

On appeal from the Waterfront Commission of New York Harbor, RL-5395.

Peter W. Till, attorney for appellant.

Waterfront Commission of New York Harbor, attorneys for respondent (Phoebe S. Sorial, General Counsel, on the brief).

The opinion of the court was delivered by VERNOIA, J.A.D.

Farid Amado appeals from the Waterfront Commission of New York Harbor's final agency decision revoking his longshoreman registration. Amado contends: the evidence does not support the Commission's determination that his relationship with two known members of an organized crime group is inimical to the policies of the Waterfront Commission Act (the Act), N.J.S.A. 32:23-1 to -230; the administrative law judge (ALJ) made arbitrary, capricious, and unreasonable findings that the Commission erroneously adopted; and the Commission erred by relying on the concept of "willful blindness" to support its revocation of Amado's registration. 1 Unpersuaded by Amado's arguments, we affirm.

1 The Act was repealed in part and amended in 2018, L. 2017, c. 324. Despite the changes to the Act under the 2018 repeal and amendments, the ALJ, the Commission, and the parties have relied on and cite to the applicable preamendment provisions of the Act. We do so as well. As the ALJ explained in his December 19, 2021 decision, the revisions to the Act under L. 2017, c. 324, were not effective until Governor Phil Murphy took certain actions specified in the revised Act. Those actions were not complete prior to the issuance of the Commission's final agency decision. See generally New York v. New Jersey, 598 U.S. 218, 220-23 (2023) (describing the adoption of L. 2017, c. 324, New Jersey's efforts to withdraw from the Commission, and the delays attendant to New Jersey's withdrawal from the Commission). We therefore apply the pre- 2018 version of the Act in our disposition of the issues presented on appeal. The parties do not argue we should do otherwise.

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I.

In 1953, New York and New Jersey created the Commission "to deal with sundry evils of the waterfront of the New York Harbor." Knoble v. Waterfront Comm'n of N.Y. Harbor, 67 N.J. 427, 430 (1975) (quoting State v. Murphy, 36 N.J. 172, 185 (1961)). "One of the principal purposes of the . . . Commission was to get rid of" "an unwholesome concentration of criminals on the waterfront." In re Application of Kaiser, 94 N.J. Super. 95, 99 (App. Div. 1967). Accordingly, at all times pertinent to this appeal, the Commission was tasked with enforcing the Act "to combat corruption and organized crime on the New Jersey and New York waterfronts." In re Pontoriero, 439 N.J. Super. 24, 29 (App. Div. 2015) (citing N.J.S.A. 32:23-2; Knoble, 67 N.J. at 430).

Amado began his career at the waterfront in 1991 as a checker 2 but left the position after four years. During a 1998 meeting at which Amado sought a longshoreman position, Albert Cernadas "walked in." Amado knew Cernadas because they lived "500 feet apart," and he also knew Cernadas's family. Amado

2 "'Checker' shall mean a longshoreman who is employed to engage in direct and immediate checking of waterborne freight or of the custodial accounting therefor or in the recording or tabulation of the hours worked at piers or other waterfront terminals . . . ." Kaiser, 94 N.J. Super. at 98 (quoting N.J.S.A. 32:23- 85(5)).

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told Cernadas he was interested in a longshoreman position, Cernadas asked for Amado's information, and Amado obtained temporary registration as a longshoreman on December 23, 1998, and permanent registration on April 5, 2006.3 On February 20, 2020, the Commission's senior counsel interviewed Amado. Following the administration of an oath to Amado, counsel advised Amado the interview concerned "potential violations . . . of the" Act. Counsel also advised that if Adamo "commit[ted] fraud, deceit, or misrepresentation in connection with the interview [his] [longshoreman] registration may be revoked[.]" Counsel then questioned Amado extensively about issues pertaining to his employment as a registered longshoreman.

The following month, the Commission issued to Amado a notice of hearing that included nine counts of alleged misconduct and explained the purpose of the hearing was to consider "whether the Commission, in the exercise of its discretion, should revoke, cancel, or suspend [Amado's] registration as a

3 A longshoreman "shall also include" in addition to the definition of a checker, "a natural person, other than a hiring agent, who is employed for work at a pier or other waterfront terminal" to perform labor, move waterborne freight, or other "services involving, or incidental to, the movement of freight at a waterfront terminal." N.J.S.A. 32:23-85(6).

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longshoreman." The notice stated the Commission would consider at the hearing whether Amado had associated with Cernadas and Manual Rodriguez, "under circumstances where such association create[d] a reasonable belief that [Amado's] participation in" the activities for which he was "required to be licensed or registered under" the Act "would be inimical to the policies of the Act. The notice alleged Cernadas and Rodriguez were members of the Genovese organized-crime family, "career offenders," and had been convicted of "racketeering activity."

The notice further explained the Commission would consider at the hearing whether Amado had provided false testimony during his interview with the Commission's senior counsel by stating he had "no clue" why Rodriguez had gone to prison. The notice also stated the Commission would consider whether Amado's prior disciplinary history during his employment as a longshoreman, combined with his ongoing associations with Cernadas and Rodriguez, rendered his "presence at the piers or other waterfront terminals in the Port of New York a danger to the public peace or safety" such that it would have "permitted [his] disqualification from inclusion in the" registry of longshoreman "upon original application."

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An administrative law judge held a hearing at which the Commission introduced ninety-three exhibits in evidence and presented the testimony of a Commission licensing manager, who also served as an intelligence analyst. At the hearing, Amado called his wife, Sylvia Amado, as a witness, and he testified on his own behalf.

The evidence presented at the hearing established that in 2005 Cernadas pleaded guilty in the United States District Court for the District of New York to two counts of conspiracy to commit mail and wire fraud. The court sentenced Cernadas to a two-year probationary term.

In a related civil case brought by the United States against Cernadas and multiple codefendants, Cernadas agreed to entry of a consent judgment. The judgment ordered Cernadas, who had served as president of Local 1235 of the International Longshoremen's Association, AFL-CIO (ILA) at the New York Harbor, to forfeit and resign from any position he held with the ILA. The order further permanently enjoined him "from engaging in conduct which constitutes or furthers an act of racketeering activity," participating in the affairs of any labor organization or pension or welfare fund, and "knowingly associating, directly or indirectly, with any member or associate of any criminal group, including "'La Cosa Nostra.'"

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