U.S. District Judge Susan Wigenton

A  U.S. District Court judge in Newark, New Jersey, has shut down an effort by New Jersey to withdraw from the Waterfront Commission of New York Harbor. The judge granted summary judgment to the commission in its suit seeking to prevent New Jersey's unilateral departure  from the bistate agency, which was formed by New Jersey and New York to combat criminal activity in the port.

Legislation calling for New Jersey to withdraw from the interstate compact that formed the commission, signed by Gov. Chris Christie on his last day in office in 2018, conflicts with a requirement that any changes to the commission be made jointly by New York and New Jersey, U.S. District Judge Susan Wigenton of the District of New Jersey said when she granted the commission's motion for summary judgment on Wednesday. She found it “particularly troubling” that the New Jersey legislation sought to distribute properties and assets that were jointly held by the two states under the compact.

The ruling says that any effort to sever the agency would need to be approved by lawmakers in both New York and New Jersey, or by an act of Congress.

The Waterfront Commission filed the suit on Jan. 16, 2018, naming Christie's successor, Gov. Phil Murphy, as defendant. Senate President Stephen Sweeney, D-Gloucester, and Assembly Speaker Craig Coughlin, D-Middlesex, later intervened in the case on the side of the defendants.

Sweeney and Coughlin claimed that the Waterfront Commission's lawsuit was unauthorized because it was commenced without the express prior approval of the commission's representatives from both New York and New Jersey. Wigenton said that based on the plain text of the compact, its bylaws, and certifications and declarations annexed to the parties' briefs, she found the commission's general counsel had the capacity to bring the suit.

Murphy argued in court papers that a decision on the commission's motion for summary judgment should not be made before discovery. But Wigenton said the defendants “have failed to set forth a genuine need” for the discovery they requested, which included an investigation of the commission's procedures for retaining outside counsel, cross-examining witnesses about customs and practices, and determining whether commission staff have ever filed affirmative litigation without prior notice to the commissioners.

The governor also argued in court papers that New Jersey has the authority to withdraw from the compact as a matter of law. Wigenton acknowledged that states do not easily cede their sovereign powers but found that “a review of the compact's legislative history, the parties' course of performance through the actions of their executive and legislative bodies, and the customary practices employed in other interstate compacts, strongly supports a finding that the drafters did not intend to permit a state's unilateral withdrawal or termination.”

The act signed by Christie would turn over many of the Waterfront Commission's law enforcement duties on the New Jersey side of the port to the New Jersey State Police and local law enforcement agencies.

The act notes that the Waterfront Commission “has itself been tainted by corruption in recent years and, moreover, has exercised powers that do not exist within the authorizing compact, by dictating the terms of collective bargaining agreements of organized labor, and by requiring stevedoring companies to hire and retain independent inspectors to examine company operations in order for those companies to continue to operate in the port. Further, the commission, despite changes in the industry to drive out organized crime's influence, has over-regulated the businesses at the port in an effort to justify its existence as the only waterfront commission in any port in the United States. As a result, the commission has become an impediment to future job growth and prosperity at the port.”

The bill also states that marine terminals on the New Jersey side of the port have grown significantly in comparison to the New York terminals, to the point that 82 percent of cargo handled by the port is on the New Jersey side.

The Waterfront Commission said in a statement that it was “very pleased with the Court's decision. This significant victory safeguards the Waterfront Commission's ability to continue its critical mission of combating corruption and ensuring fair hiring practices in the Port of New York-New Jersey. Notwithstanding this lawsuit, we have worked closely with Governor Murphy's administration to enhance port productivity and promote fair hiring, and we look forward to continuing to work together for the good of the port and the citizens of New Jersey and New York.”

The Waterfront Commission was represented by Alychia Lynn Buchan and Lawrence Sandak of Proskauer Rose in Newark, New Jersey.

A spokeswoman for Murphy referred a reporter's question about the litigation to the Attorney General's Office, where spokesman Lee Moore said the ruling “is under review.”

Sweeney said he intends to appeal the ruling.

“This is an outdated commission that was doing little more than hindering economic growth and costing us jobs in the state's shipping industry,” said Sweeney, “We should not be held hostage to an ancient compact that outlived its purpose long ago. New Jersey should challenge the court ruling and get it reversed.”

He was represented by Leon Sokol of Cullen and Dykman in Hackensack, New Jersey.

The creation of the commission was the inspiration behind the 1954 film “On the Waterfront,” which won eight Academy Awards, including best actor for Marlon Brando. The commission was created in 1953 by a joint legislative enactment of New York and New Jersey, and approved by Congress and the administration of President Dwight Eisenhower. The states moved to create the commission after a series of Pulitzer Prize-winning articles in the New York Sun describing how organized crime controlled nearly all aspects of operations at the region's ports.