Lead Opinion
The opinion of the Court was delivered by
This аppeal raises two issues. The first is whether the New Jersey courts have jurisdiction over a Congressionally approved interstate (“CAI”) compact, specifically the compact between the states of New Jersey and Delaware (“the Compact”) creating the Delaware River and Bay Authority (the “DRBA”). If so, the second issue is whether the laws of New Jersey and Delaware are substantially similar concerning the right of public employees to negotiate collectively.
I.
The DRBA is a bi-state agency created by the Compact between New Jersey and Delaware and approved by Congress. N.J.S.A. 32:11E-1; Del.Code Ann. tit. 17, § 1701; Pub.L. 87-678, 76 Stat. 560 (1962). New Jersey and Delaware created the DRBA to advance their economic development and to improve the flow of traffic between the two states. N.J.S.A. 32:11E-1. Toward that end, the DRBA operates crossings between the two states including the Delaware Memorial Bridge and the Cape May-Lewes Ferry. Delaware River and Bay Authority v. International Org., etc., 45 N.J. 138, 140,
Among the many powers of the DRBA is the power in Article VII, Section (e) to:
[Alppoint, or employ, such other officers, agents, attorneys, engineers and employees as it may require for the performance of its duties and to fix and determine their qualifications, duties, compensation, pensions, terms of office and all other conditions and terms of employment and retention.
When the DRBA hires employees, it provides them with a copy of its Personnel Manual. Article XIV of the Manual states:
Upon accepting a position ... with the Authority, an individual becomes a public or governmental employee ... [i]n this connection, Authority employees have no right to incite, organize, conduct or participate in any strike, slowdown, or impediment to work against the Authority ... and neither does the Authority have the obligation to engage in collective bargaining with its employees or their chosen representative as may be unusual [sic] and legally done in private individual employment.
Although the DRBA refuses to recognize any obligation to bargain collectively with International Union of Operating Engineers, Local 68, AFL-CIO (“Local 68”), it recognizes that its employees may join labor unions. Thus, Article XV of the Manual provides:
The Authority fully recognizes the right of its employees to join a labor union of their own choosing and to organize, present and make known to the Authority any complaint or grievance which an employee might have in connection with employment____
On August 25, 1993, the D.R.B.A. Employee Association (“the Association”), representing ninety-eight DRBA employеes, voted to affiliate with Local 68, a labor organization. On August 7,1993, Local 68 submitted a written request to the DRBA, seeking-recognition as the collective-negotiation representative for those employees previously represented by the Association. The DRBA denied that request. Between July 19 and September 9, 1993, a majority of DRBA employees signed authorization cards designating Local 68 as their exclusive representative. On October 7, 1993, Local 68 requested recognition as the collective-negotiation representative. The DRBA did not respond.
The Appellate Division reversed, holding that the Chancery Division had jurisdiction and that it could grant the requested relief. Essential to that holding was the Appellate Division’s conclusion that the labor laws of New Jersey and Delaware were complementary and parallel. We granted certification, 143 N.J. 311,
II.
Article I, Section 10, Clause 3 of the United States Constitution (the “Compact Clause”) empowers states to enter into interstate compacts. U.S. Const, art. I, § 10, cl. 3. The Compact Clause provides “[n]o State shall, without the consent of Congress, ... enter into any Agreement or Compact with another state.... ” Ibid. That language is broad enough to prohibit interstate compacts entered without the consent of Congress. In practice, the clause applies only to those compacts that might alter the political power of the affected states, and thus interfere with the supremacy of the United States. Cuyler v. Adams, 449 U.S. 433, 440, 101 S.Ct. 703, 707,
Through interstate compacts, states can establish bi-state agencies. On receiving the consent of Congress, the agency becomes a
Once sanctioned by Congress, a compact becomes a “law of the Union.” Pennsylvania v. Wheeling & Belmont Bridge Co., 54 U.S. (13 How.) 518, 566, 14 L.Ed. 249, 269 (1851). “Because congressional consent transforms an interstate compact within [the Compact Clause] into a law of the United States, ... the construction of an interstate agreement sanctioned by Congress under the Compact Clause presents a federal question.” Cuyler, supra, 449 U.S. at 438, 101 S.Ct. at 707,
The DRBA argues that its Compact is a federal law and that only federal courts have jurisdiction to construe the compact. We must first determine therefore whether the compact is a federal law. If so, the next question is whether compacts deemed federal laws are subject to the jurisdiction only of the federal courts or to the concurrent jurisdiction of state courts.
One of the primary goals of the Compact is to improve the flow of traffic between Delaware and New Jersey. N.J.S.A. 32:11E-1. Congress’s interest in regulating interstate commerce renders the subject matter of the Compact appropriate for congressional legislation. U.S. Const, art. I, § 8, cl. 3. Thus, the Compact qualifies as a “cоngressionally sanctioned interstate compact the interpretation of which presents a question of federal law.” Cuyler, supra, 449 U.S. at 442, 101 S.Ct. at 709.
For years, moreover, both federal and state courts have construed the terms of interstate compacts. See e.g., NYSA-ILA Vacation & Holiday Fund v. Waterfront Comm’n of New York Harbor,
In Hess, supra, moreover, the United States Supreme Court recognized that bi-state agencies are creatures of both the creator states and the federal government. 513 U.S. at-, 115 S.Ct. at 400,
This ease presents a controversy between the DRBA and its employees, not one between two states. The case, therefore, does not invite the United States Supreme Court to exercise its original and exclusive jurisdiction. No express statutory provision prohibits the courts of Delaware or New Jersey from exercising jurisdiction over the DRBA. Unless a case involves a dispute between two states or an express statutory prohibition against the exercise of jurisdiction by the courts of either state, those courts may construe compacts concerning bi-state agencies.
III.
When a state signs a compact, a court of that state may not construe the compact absent the compact’s recognition of that state’s jurisdiction. Ampro Fisheries, Inc. v. Yaskin, 127 N.J. 602, 610,
Here, the Compact provides, in pertinent part:
Judicial proceedings to review any ... action of the authority ..., may be brought in such court of each state, and pursuant to such law or rules thereof, as a similar proceeding with respect to any agency of such state might be brought.
[N.J.S.A 32.-11E-1 (art. XV).]
Thus, the Compact’s plain language makes clear that the courts of New Jersey and Delaware have concurrent jurisdiction to review any action taken by the DRBA.
Over the last thirty years, the New Jersey courts have resolved many disputes, including labor disputes involving the DRBA. See International Org., supra, 45 N.J. 138,
IV.
The next question is whether the courts of New Jersey may grant the relief that Local 68 seeks, including issuance of an order requiring, among other things, that the DRBA recognize
Consistent with that premise, the Public Employment Relations Commission does not have jurisdiction to certify a union as the exclusive negotiating representative for DRBA employees. PERC, supra, 112 N.J.Super. at 166,
Consequently, we have declined to subject the Delaware River and Port Authority (“DRPA”) to the requirements of New Jersey’s Tort Claims Act (“Act”), N.J.S.A. 59:1-1 to 12-3. Bell, supra, 83 N.J. at 425,
More recently, we have construed the DRPA compact to mean that substantially similar statutes adopted by Delaware and New Jersey could constitute complementary legislation. Eastern, supra, 111 N.J. at 400,
A bi-state agency, although subject to unilateral jurisdiction of a single creator state only when the compact recognizes the state’s jurisdiction, “may be subject to complementary or parallel state legislation that does not intrude on the mission of the agency.” Ampro, supra, 127 N.J. at 610,
In Bunk v. Port Auth. of New York & New Jersey, 144 N.J. 176, 180,
The Delaware courts follow a similar practice. In Delaware River and Bay Auth. v. Carello, 43 Del.Ch. 213,
From the foregoing, we conclude that a bi-state agency, such as the DRBA, is subject to the law of New Jersey when the agency’s compact expressly provides for unilateral action, both states have adopted complementary or parallel legislation, or the agency has impliedly consented to the exercise of single-state jurisdiction.
V.
The final issue is whether the laws of New Jersey and Delaware are complementary and parallel with regard to collective
The dissent would deny DRBA employees the right of collective negotiation that the New Jersey and Delaware Legislatures have conferred on all public employees. In denying that right, the dissent misperceives judicial recognition of the legislative enactments in both New Jersey and Delaware as an attempt by the judiciary to amend the compact contrary to the will of the legislature. (Post at 448,
Nor do we share the dissent’s lack of confidence in the ability of the Chancery Division to interpret labor law. (Post at 454-55,
The judgment of the Appellate Division is affirmed, and the matter is remanded to the Chancery Division.
Dissenting Opinion
dissenting.
The Court has done what the Legislatures of New Jersey and Delaware have not — amend the congressionally-approved Interstate Compact (the Compact) between Delaware and New Jersey to require the Delaware River and Bay Authority (the DRBA) to negotiate collectively with its employees. I believe that the Court does not have the power to amend the Compact unilaterally or to impose additional duties and obligations, arising under New Jersey law, on the DRBA without Delaware’s consent.
The majority finds that New Jersey has the power to amend Articles VII(e) and VIII of the Compact because the labor laws of
I
The Court’s ruling directly contravenes Article VII(e) of the Compact, giving the DRBA the power to
[a]ppoint, or employ, such other officers, agents, attorneys, engineers and employees as it may require for the performance of its duties and to fix and determine their qualifications, duties, compensation, pensions, terms of office and all other conditions and terns of employment and retention.
[N.J.S.A. 32:11E-1, art. VII(e) (emphasis added).]
That provision is intended to keep matters concerning labor relations and collective negotiations in the hands of the DRBA.
The Court’s opinion also directly сontravenes Article VIII of the Compact that establishes additional powers that may be granted to the DRBA but limits the duties that may be imposed on it. That Article provides:
For the purpose of effectuating the authorized purposes of the authority, additional powers may be granted to the authority by legislation of either State without concurrence of the other, and may be exercised within such State; or may be granted to the authority by Congress and exercised by it; but no additional duties or obligations shall be undertaken by the authority under the law of either State or of Congress zoithout authorization by the lazo of both States.
[.N.J.S.A. 32:11E-1, art VIII (emphasis added).]
Requiring the DRBA to negotiate collectively with its employees most certainly will impose “additional duties or obligations” on it.
Unless both states agree, it is well-established that a single-creator state may not unilaterally impose additional duties upon a bi-state agency when to do so would contravene the terms of the Compact. Eastern, supra, 111 N.J. at 398,
The court further explained that because a bi-state agency is a single agency of the governments of both creator-states, neither creator-state may enact laws involving and regulating the agency unless both states agree. Id. at 165-66,
In Eastern, we also found that the DRPA’s Compact did “not contemplate single-state jurisdiction in general.” Id. at 400,
In addressing the Eastern Paralyzed Veterans Association’s contention that the public policy of New Jersey mandated that the DRPA install elevators at its transit facility in Camden, the Court stated:
This State lacks the sovereign authority to direct the DRPA to cede jurisdiction to New Jersey____ [S]o too a single state cannot dictate the policy of a bi-state agency.
[Id at 407,545 A.2d 127 (citations omitted).]
Accordingly, the Court held that the State of New Jersey could not exercise unilateral jurisdiction over the DRPA, stating that compacting states may only be subjected to single-state jurisdiction when the compact itself recognizes such jurisdiction. Id. at
Remanding the matter to the trial court, the Court, in dicta, suggested, however, that “the theories of complementary regulations and implied consent, given a fuller exposition, may yield a just resolution of the dispute.” Id. at 400-01,
In Ampro Fisheries, Inc. v. Yaskin, 127 N.J. 602,
The Compact does not expressly give the compacting states the power to impose their labor laws on the DRBA, and the DRBA did not consent to the exercise of single-state jurisdiction in the area of collective negotiations with its employees. In fact, the evidence
Upon accepting a position ... with the Authority, an individual becomes a public or governmental employee---- In this connection, Authority employees have no right to incite, organize, conduct or participate in any strike, slowdown, or impediment to work against the Authority ... and neither does the Authoiity have the obligation to engage in collective bargaining with its employees or their chosen representative as may be unusual [sic] and legally done in private individual employment.
[Emphasis added.]
In view of the language of Article VII(e) and VIII of the Compact, something more than mere complementary or parallel statutes is needed to repeal specific language in the Compact, or stated differently, to act as an implied repeal of the Compact’s language. Similar public policy in two states is not sufficient to render one state’s legislation applicable to a bi-state agency’s employment practice. Malverty v. Waterfront Comm’n of N. Y. Harbor,
Permitting similar legislative acts of compacting states to amend a compact completely disregards the long-standing precedents requiring legislatures to agree expressly before a state can impose duties and obligations on a bi-state agency. The majority’s reasoning ignores the fact that when the Legislatures of New Jersey and Delaware sought to impose unilaterally-enacted state legislation on their bi-state agency, they expressly provided for. it in the Compact. Eastern, supra, 111 N.J. at 401-02,
Ill
Moreover, as explained in PERC, supra, 112 N.J.Super. at 166,
[t]he States of New Jersey and Delaware ... amend the compact and agree upon the issue of whether [the DRBA’s] employees may organize and engage in collective negotiations, what procedure should be utilized to implement this result, and where and how it should be accomplished. Unless, such is done, Delaware and New Jersey could each claim jurisdiction since both states have legislation permitting public employees to organize and negotiate. The confusion and conflicts which would follow if one state assumed jurisdiction, makes it clear that such was never intended by the compact.
[Id. at 166,270 A.2d 704 (emphasis added).]
The same problem will result from the majority’s remand to the Chancery Division to effectuate the implementation of the two laws. Although the labor laws of New Jersey and Delaware are based on similar public policies, they differ in the following manner: (1) each States’ statute describes a different procedure fоr determining the employee-bargaining unit (N.J.S.A. 34:13A-5.3; DeLCode Ann. tit. 19, § 1310); (2) the provisions for determining unfair labor practices and enforcing the statutes are different (N.J.S.A. 34:13A-5.4; Del.Code Ann. tit. 19, § 1308); (3) the New Jersey statute provides for arbitration of disputes whereas the Delaware statute does not (N.J.S.A 34:13A-7); and (4) neither statute indicates in its declaration or purpose that it intended for the statute to apply to the DRBA.
Inevitably, the Court’s decision will create uncertainty as to which state’s law and administrative procedures apply to a given situation. Rather than acting as a court, the Chancery Division will be acting as an administrative agency interpreting labor law; a role for which the Chancery Court was not intendеd and for which it is not well suited.
IV
In conclusion, I find that complementary or parallel state laws cannot repeal the language of the Compact. The Legislatures of both States could readily enact concurrent legislation requiring
I would reverse the judgment of the Appellate Division.
For affirmance and remandment — Chief Justice PORITZ, and Justices HANDLER, POLLOCK, O’HERN, STEIN and COLEMAN — 6.
For reversal — -Justice GARIBALDI — 1.
