Supreme Court Rules Against NY In Fight To Keep Anti-Racketeering Commission

By Christian Wade | The Center Square contributor, The Center Square New Jersey

April 18, 2023

(The Center Square) — New Jersey can withdraw from an anti-racketeering commission it created with New York 70 years ago to rout out organized crime and corruption along New York Harbor's docks, the U.S. Supreme Court has ruled.

The unanimous decision issued Tuesday sided with New Jersey's claims the Waterfront Commission of New York Harbor, created in 1953, was never intended to be a permanent regulatory body that couldn't be dissolved.

"We hold that New Jersey may unilaterally withdraw from the Waterfront Commission Compact notwithstanding New York’s opposition," Justice Brett Kavanaugh wrote for the court in the 11-page ruling.

New York Gov. Kathy Hochul and Attorney General Leticia James issued a joint statement saying they were "disappointed" by the high court's ruling.

"For decades, the Waterfront Commission has been a vital law enforcement agency, protecting essential industries at the port and cracking down on organized crime," they wrote. "We will continue to do everything in our power to combat corruption and crime, protect the health of our economy, and ensure the safety of New Yorkers."

On the other side of New York, Harbor, New Jersey Gov. Phil Murphy said he was "thrilled" that the five-year-long federal battle was decided in his state's favor.

"Since the first hours of our time in office, my administration has steadfastly pursued the dissolution of the waterfront commission because it was the right thing to do," he said in a statement. "New Jersey’s sovereign right to govern our ports has been vindicated."

New Jersey argues that the commission is no longer relevant, pointing out that much of New York Harbor's cargo activity has shifted from New York City piers to major terminals in Newark and other cities.

In court filings, they argue the regulatory body creates an unnecessary red tape that drives up the cost of doing business on the docks.

But New York argued that New Jersey couldn't unilaterally walk away from the pact and say the commission remains relevant with organized crime still looking to get a piece of the action.

Last March, New York officials filed a lawsuit asking the Supreme Court to block New Jersey's "illegal" attempt to withdraw and dissolve the commission.

But justices were critical of the idea that New Jersey -- as a sovereign state -- couldn't unilaterally walk away from the commission.

In short, New York identifies no clear historical practice in support of its view that compacts calling for ongoing and indefinite performance and that were silent on withdrawal were understood as of 1953 to prohibit unilateral withdrawal," Kavanaugh wrote in the ruling.

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