Holt Cargo Systems, Inc. v. Delaware River Port Authority
| Decision Date | 23 March 1998 |
| Docket Number | No. CIV. A. 94-7778.,CIV. A. 94-7778. |
| Citation | 20 F.Supp.2d 803 |
| Parties | HOLT CARGO SYSTEMS, INC., et al. v. DELAWARE RIVER PORT AUTHORITY, et al. |
| Court | U.S. District Court — Eastern District of Pennsylvania |
Paul R Rosen, Bruce S. Marks, Jeffrey M. Goldstein, Richard J. Perr, Jonathan M. Peterson, Spector, Gadon & Rosen, P.C., Philadelphia, PA, John A Evans, Philadelphia, PA, for Plaintiffs.
Henry F. Siedzikowski, John M. Elliott, Timothy T Myers, Michael P. Walsh, Elliott, Reihner, Siedzikowsky and Egan, P.C., Blue Bell, PA, for Defendant Delaware River Port Authority.
Tracy Mooney Schaeffer, Sprague, Creamer & Sprague, Philadelphia, PA, Richard Sprague, Denise Pallante, Deborah B. Miller, Sprague & Sprague, Philadelphia, PA, Charles Hardy, Philadelphia, PA, Geoffrey C. Jarvis, Sprague and Sprague, Philadelphia, PA, for DefendantPorts of Philadelphia and Camden.
Patrick J. O'Connor, Karl L. Prior, Cozen & O'Connor, Philadelphia, PA, Richard M. Rosenbleeth, William H. Roberts, Lisa A. Rosenblatt, Francis X. Crowley, Blank Rome Comisky & McCauley, Philadelphia, PA, for Defendant Philadelphia Regional Port Authority.
Richard J. Campbell, Pepper, Hamilton & Scheetz, LLP, Philadelphia, PA, for Respondent Jose Diaz.
Jacqueline V. Guynn, Richar J. Campbell, Pepper, Hamilton & Sheetz, Ph8iladelphia, PA, for Respondents Tioga Fruit Terminal, Inc., Chilean Line, Inc.
John W. Butler, Anne E. Mickey, Sher and Blackwell, Washington, DC, for Respondent Delaware River Stevedores Inc.
Steven L. Friedman, Patrick M. Northern, Dilworth, Paxson, Kalish & Kauffman, LLP, Philadelphia, PA, for Respondent Crowley American Transport, Inc.
Alan A. Turner, Turner and McDonald, Philadelphia, PA, for Respondents Joseph Balzano, Al Castagnola, South Jersey Port Corp. Matthew H. Alder, Jacqueline V. Guynn, Pepper, Hamilton & Scheetz, Philadelphia, PA, for Respondent Barwil Wightman Shipping.
Richard W. Foltz, Jr., Pepper, Hamilton & Scheetz, Philadelphia, PA, for Respondent Penn Warehousing and Distribution Co.
William C. Miller, Hepburn, Willcox, Hamilton and Putnam, Philadelphia, PA, for Respondents John A. Lord, William C. Miller, Hepburn Willcox Hamilton & Putnam.
Plaintiffs Holt Cargo Systems, Inc. ("Holt Cargo"), Holt Hauling & Warehousing, Inc. ("Holt Hauling") and Astro Holdings, Inc. ("Astro") (collectively the "plaintiffs"), alleging violations of their substantive due process and equal protection rights under 42 U.S.C. § 1983, filed this action against defendants the Delaware River Port Authority ("DRPA"), the Port of Philadelphia & Camden, Inc. ("PPC") and Philadelphia Regional Port Authority ("PRPA") (collectively the "defendants"). Defendants move for summary judgment on both counts or, in the alternative, for summary judgment on damages. For the reasons stated below, defendants' motions will be granted.
Plaintiffs filed their initial Complaint on December 28, 1994; they then filed an Amended Complaint. Defendants moved to dismiss the Amended Complaint. By Memorandum and Order dated April 19, 1996, the court granted the motion as to plaintiffs' admiralty claim but denied the motion as to plaintiffs' claims under § 1983. See Holt Cargo Sys., Inc. v. Delaware River Port Auth., No. 94-7778, 1996 WL 195390 (E.D.Pa. Apr. 19, 1996) ["Holt I"]. Certain other claims were severed and stayed pending a determination of this court's jurisdiction under federal maritime law and the Shipping Acts of 1984. The court inquired of the Federal Maritime Commission ("FMC") whether it wished to participate as amicus curiae. The FMC moved for leave to appear and filed a Statement of Points and Authorities. The court gave the parties leave to respond but on May 16, 1996, plaintiffs dismissed all claims before the court other than those under § 1983 and filed similar claims with the FMC. The antitrust and contract claims have been voluntarily dismissed without prejudice by the plaintiffs. Defendant PRPA's counterclaim, alleging violations of the Amended Packer Lease, was also dismissed without prejudice. The action before the FMC, assigned to Administrative Law Judge Frederick M. Dolan, Jr. ("Judge Dolan"), remains pending.
The Holt entities' FMC Complaint against defendants and non-party Pasha alleges violations of the Shipping Acts of 1984, 46 U.S.C. §§ 1701 and 1916, and 46 U.S.C. § 801. PRPA, PPC, DRPA and Pasha moved to dismiss the FMC action for lack of jurisdiction and failure to state a claim, or in the alternative for a more definite statement. Judge Dolan denied those motions without prejudice on November 25, 1996 to allow the Holt parties discovery on jurisdictional issues. Issues under the Shipping Acts are not before this court; the constitutional issues are not before the FMC.
Plaintiffs filed a Second Amended Complaint on June 16, 1996; that pleading was stricken by Order entered October 14, 1997. Plaintiffs then filed a revised Second Amended Complaint. Defendants moved to dismiss the revised Second Amended Complaint. By Memorandum and Order dated November 13, 1997, the court granted the motion as to plaintiffs' claim for violation of procedural due process, but denied the motion as to plaintiffs' claims for violation of equal protection and substantive due process. See Holt Cargo Sys., Inc. v. Delaware River Port Auth., No. 94-7778, 1997 WL 714843 (E.D.Pa. Nov. 13, 1997) ["Holt II"]. After more than three years of protracted and contentious discovery,1 the undisputed facts and those viewed in the light most favorable to plaintiffs establish the following.
The Packer Avenue Marine Terminal ("Packer") is a 106 acre marine facility; it is the largest and most modern marine terminal in operation on the Delaware River. (T. Holt, Jr. Dep. at 250-51). Packer is located at the southern end of the port closest to the Atlantic Ocean. . Packer is adjacent to PPC's Ameriport Intermodal Yard, a transfer facility to introduce cargo onto national rail lines; this proximity reduces transfer costs. Holt Hauling has no interest in Packer.
Holt Cargo, a stevedoring company owned by Thomas Holt, Sr. ("Holt, Sr."), operates in the Philadelphia and Camden Port District (the "Port District"). (T. Holt, Sr. Dep. at 23-26). Holt Cargo leased Packer from PRPA on December 30, 1990 (the "Amended Packer Lease"). (Defs.' Appendix at 1-234).
Under the Amended Packer Lease, Holt Cargo has the right to lease Packer and operate it for a ten-year period, with four ten-year renewal options, i.e., a total of fifty years. (Amended Packer Lease at §§ 2.2, 2.3). The Amended Packer Lease requires Holt Cargo to handle all new container business "which it secured for Delaware River Marine Terminal facilities" at Packer. (Id. at § 4.2). Holt Cargo is permitted to operate Packer as a closed facility; that is, Holt Cargo is the sole stevedore for any ships arriving at Packer. The agreement also prohibits Holt Cargo from removing the cranes located at Packer prior to termination of the lease. (Id. at § 7.3(b)). PRPA agreed to buy one of Holt Cargo's cranes, called the PACECO Crane; the price ultimately agreed upon was about $5,500,000. (Defs.' Appendix at 945-46). PRPA also agreed to make capital improvements at Packer in the amount of $16,000,000. (Amended Packer Lease at Art. VII; Ex. H).
The Amended Packer Lease gives Holt Cargo the right to develop other parcels of land known as the "Additional Parcels" subject to PRPA's existing leases with third-parties. (Amended Packer Lease at § 24.2). The Additional Parcels are defined as Piers 96 South, 98 South and 100 South. The Amended Packer Lease gives Holt Cargo the exclusive right to develop the Additional Parcels, subject to existing PRPA leases, during the initial ten year term of the Holt Cargo lease, and non-exclusive development rights during the subsequent renewal terms. (Id.). The Amended Packer Lease permits PRPA to "disapprove any aspect" of a proposed development plan "in its sole discretion." (Id. at § 24.2(d)(iii)). Under the Amended Packer Lease, PRPA agrees to support applications for development permits at the Publicker Terminal ("Publicker"). (Id. at ¶ 26).
On June 14, 1991, Holt Cargo assigned its interests under the Amended Packer Lease to Astro (Compl. ¶¶ 6-7);2 on the same date, Astro sub-leased part of Packer back to Holt Cargo for the amount of rent charged by PRPA, plus approximately 15%. (Amended Packer Lease at 24). Astro has subsequently sub-leased portions of Packer to additional companies, some of which are owned or controlled by Holt, Sr.
Holt Hauling owns the Gloucester Terminal ("Gloucester"), a New Jersey marine terminal across the Delaware River from Packer. Gloucester competes with Packer for refrigerated cargo, steel, break bulk and container shipping. .
Prior to entering into the Amended Packer Lease with PRPA in 1989, Holt Cargo provided stevedoring services at Gloucester. (T. Holt, Sr. Dep. at 39). From then until 1992, Holt Hauling operated Gloucester with International Longshoreman Association ("ILA") labor. At the end of 1992, Holt Hauling temporarily closed Gloucester until late 1993 or early 1994. Holt Hauling now leases this facility to tenants providing stevedoring, warehousing and other terminal services. (Compl. ¶ 10). These tenants, some of whom are owned in whole or in part by Holt family members, operate with non-ILA labor. (W. Curran Dep. at 25-26).
Gloucester is also at the southern end of the port, closest to the Atlantic Ocean; ships berthing there do not need to navigate under the Walt Whitman or Benjamin Franklin Bridges.
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