Angus Partners LLC v. Walder
| Decision Date | 16 September 2014 |
| Docket Number | No. 11 Civ. 0039AT.,11 Civ. 0039AT. |
| Parties | ANGUS PARTNERS LLC d/b/a Angus Energy and White Crane Martial Arts, Inc., individually and on behalf of all others similarly situated, Plaintiffs, v. Jay WALDER, individually and in his official capacity, James Ferrara, individually and in his official capacity, Metropolitan Transportation Authority and Triborough Bridge and Tunnel Authority d/b/a Metropolitan Transportation Authority Bridges & Tunnels, Defendants. |
| Court | U.S. District Court — Southern District of New York |
Brian Lewis Bromberg, Bromberg Law Office, P.C., Harley Jay Schnall, Law Office of Harley J. Schnall, New York, NY, for Plaintiffs.
Leslie Gordon Fagen, Steven Craig Herzog, Walter Rieman, Joshua David Kaye, Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, NY, for Defendants.
Plaintiffs, Angus Partners LLC d/b/a Angus Energy (“Angus Energy”) and White Crane Martial Arts, Inc. (“White Crane”) bring this action under 42 U.S.C. § 1983 against Defendants, the Metropolitan Transportation Authority (the “MTA”), the Triborough Bridge and Tunnel Authority (the “TBTA”), Jay Walder, the Chairman and CEO of the MTA, and James Ferrara, the Acting President of the TBTA, alleging that their bridge and tunnel tolls violate the constitutionally-protected right to travel and the dormant Commerce Clause.1 Plaintiffs also assert common law claims under New York law for unjust enrichment and for money had and received. Defendants move and Plaintiffs cross-move for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. For the following reasons, Defendants' motion is GRANTED, and Plaintiffs' cross-motion is DENIED.
N.Y. Pub. Auth. Law § 1264 (emphasis added). The MTA has the power, among other things, to set tolls and fares, modify programs and operations, and issue debt to balance its budget and execute capital plans. See id. at §§ 1265, 1266; Schnall Decl. Ex. M (MTA Board Approves 2009 Budget), ECF No. 77–13.
The MTA transportation network includes the following subsidiaries and affiliates: (1) the MTA Bus Company (“MTA Bus”), a subsidiary of the MTA, which was created in 2004 and provides bus service in areas formerly served by seven private bus companies; (2) the Long Island Railroad (the “LIRR”), a subsidiary of the MTA and a commuter railroad with eleven rail lines; (3) the Metro–North Railroad (the “MNR”), a subsidiary of the MTA and a commuter railroad with three major lines serving New York City's northern suburbs; (4) the MTA Capital Construction Company (the “MTACC”), a subsidiary of the MTA, which manages “mega-projects, including major system expansions and Lower Manhattan transit projects”; (5) the NYCTA, an affiliate of the MTA, which operates the New York City subways, the Staten Island Rapid Transit Operating Authority (the “SIRTOA”), and more than 200 bus routes not operated by MTA Bus;2 and (6) the TBTA, an affiliate of the MTA, which owns and oversees the operation of nine toll bridges and tunnels within the City. Herzog Decl. Ex. 1 (The MTA Network); Herzog Decl. Ex. 2 (Expert Report of Mitchell L. Moss, Ph.D. (the “Moss Report”)) at 6, 31, ECF No. 50–2. In addition, prior to 2012, the Long Island Bus Company (the “LIB”), which provides bus service primarily within Nassau County, was operated by the MTA pursuant to an agreement with Nassau County. Herzog Decl. Ex. 3 (Deposition Transcript of Hilary Ring (“Ring Tr.”)) at 44, ECF No. 50–3. The MTA also operates the “Arts for Transit” program, which displays artwork throughout the MTA network, and the NYCTA operates a “Student MetroCard” program, which provides free and discount bus and subway fares to students. See id. at 8; Herzog Decl. Ex. 4 (Deposition Transcript of Douglas Johnson (“Johnson Tr.”)) at 23–25, 69–70, 104–06, ECF No. 50–4. Together, the transportation services provided by the MTA transportation network extend across a portion of twelve counties in southeastern New York and two counties in southern Connecticut. Def. Resp. Pl. 56.1 ¶ 1, ECF No. 83.
In 2012, the total ridership on MTA public transportation was 2.6 billion, and more than more than 282 million vehicles used TBTA bridges and tunnels. Herzog Decl. Ex. 1 (The MTA Network). The 2012 total operating budget of the MTA was approximately $12.6 billion, Herzog Decl. Ex. 20, ECF No. 50–20, and the total operating budget for 2013 was $13.2 billion. Herzog Decl. Ex. 1 (The MTA Network). In 2012, MTA Bus had an annual ridership of approximately 120.9 million with an average weekday ridership of 390,685, and its 2013 operating budget was $661.8 million. Id. In 2012, the LIRR had an annual ridership of approximately 81.8 million with an average weekday ridership of 285,082, and its 2013 operating budget was $1.7 billion. Id. In 2012, the MNR had an annual ridership of approximately 83 million and average weekday ridership of 281,331, and its 2013 operating budget was $1.4 billion. Id. The 2013 operating budget of the MTACC was $35.2 million. Moss Report 32. In 2012, NYCTA subway and buses had an annual ridership of 2.3 billion with an average weekday ridership of 7,579,555, and the 2013 operating budget of NYCTA's subways and buses was $9.9 billion. Herzog Decl. Ex. 1 (The MTA Network). The SIRTOA, which is also operated by the NYCTA, has an annual ridership of 4.4 million with an average weekday ridership of 15,993, and its 2013 operating budget was $53.7. Id. In 2012, TBTA saw more than 282 million vehicle crossings over its bridges and tunnels with average weekday crossings of 798,117, and its 2013 operating budget was $586.5 million. Id. “[Four] of every [five] rush-hour commuters to New York's central business districts (CBDs)3 take mass transit.” Moss Report 5.
In addition to the MTA, a number of other state and local public entities provide transportation services and maintain bridges, roads, and tunnels in the greater New York metropolitan area. See Schnall Decl. Exs. C–K, ECF Nos. 77–3–77–11. The New York City Department of Transportation, for example, operates the Staten Island Ferry and a number of bridges and tunnels connecting Manhattan with the surrounding boroughs.See Schnall Decl. Exs. B, D, ECF Nos. 2, 4. There are other public authorities, such as the New York State Thruway Authority and the New York Bridge Authority, which operate bridges and tunnels in the City. See Schnall Decl. Exs. G, H, ECF Nos. 77–7, 77–8. Across the larger New York metropolitan area, the majority of bridges and highways, both tolled and non-tolled, are operated by public entities with no affiliation or subsidiary relationship to the MTA or TBTA. See Schnall Decl. Schnall Decl. Exs. D, I–K, ECF Nos. 77–4, 77–9–77–11.
The TBTA, also referred to as MTA Bridges & Tunnels, was created by New York State in 1933 as a public-benefit corporation to construct the Triborough Bridge. Moss Report 25; Herzog Decl. Ex. 1 (The MTA Network). Originally chaired by Robert Moses, the TBTA was authorized to collect tolls, which allowed it to be self-supporting and to finance the bridge's construction. Moss Report 25. Under Moses' control, the TBTA had considerable autonomy to finance additional capital projects and to construct bridges, tunnels, roads, and other infrastructure in the City. Id. at 25–26. Moses, who created several other authorities (including the Henry Hudson Parkway Authority, the Marine Parkway Authority, and the New York City Parkway Authority) and oversaw numerous construction projects, consolidated these authorities into the TBTA in 1940. Id. In 1946, the TBTA merged with the New York City Tunnel Authority. Id. at 25. Following this merger, all of New York's bridge and tunnel authorities were consolidated into a single entity under Moses' control. Id.
In 1968, the New York State Legislature passed legislation converting the TBTA into an MTA affiliate and placing the TBTA under the common control of the MTA Board, “effectively ending Robert Moses' reign.” Id. at 26; see also N.Y. Pub. Auth. Law § 1264. This legislation granted the MTA the authority to use the TBTA's surplus revenues in furtherance of the MTA's mission to “develop and implement a unified mass transportation policy for [the metropolitan commuter transportation district].” Id.; see also Moss Report 26. Subsequent legislation required the transfer of “twenty-four million dollars plus fifty percentum of the balance of [the TBTA's] operating surplus to the [NYCTA]” and specified that “the remainder shall be allocable to [the MTA] on behalf of the commuter railroads operated by it, by its subsidiary corporations or by others under joint...
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