Maher vs. Port Authority

On April 25, 2014, Federal Maritime Commission Administrative Law Judge Erin M. Wirth dismissed with prejudice claims that our client, The Port Authority of New York and New Jersey (“PANYNJ”), committed multiple violations of the Shipping Act of 1984. Complainant Maher Terminals (“Maher”) alleged that PANYNJ’s lease agreement with APM Terminals (“APMT”) violates the Shipping Act of 1984 because it unreasonably provides more favorable terms than were provided to Maher in PANYNJ’s lease agreement with Maher. Compass Lexecon’s President Professor Daniel R. Fischel submitted a report and supplemental report and testified at deposition opining that, among other things, complainant’s expert failed to account for key economic differences between the Maher and APMT leases and did not establish that Maher was discriminated against. Compass Lexecon Executive Vice President Fredrick Flyer also submitted a report and testified at deposition opining that, among other things, PANYNJ gained shipping business as a result of its lease agreement with APMT and that Maher benefited from that incremental business. In ruling for respondent PANYNJ, Judge Wirth noted that while there were differences in the leases that PANYNJ negotiated with APMT and Maher, “those differences were based on different risks presented and benefits received by each entity” and that “economic realities justify PANYNJ not offering the same terms to Maher”. PANYNJ was successfully represented by Richard Rothman and Alex Levine of Weil, Gotshal & Manges LLP. Professor Fischel was supported by a team in the Chicago office lead by George Hickey and Dr. Flyer was supported by a team in the Chicago office lead by Kirupa Ramaiah.