Lead Opinion
OPINION OF THE COURT
Although Maher Terminals, LLC (“Maher”) challenges the rent it must pay under its lease agreement (“the Lease”) with the Port Authority of New York and New Jersey (“the Port Authority”), this case is not a typical landlord-tenant dispute. Maher, a landside marine terminal operator, asserts that the rent due under the Lease violates the U.S. Constitution’s Tonnage Clause, U.S. Const, art. I, § 10, cl. 3, as well as two related federal statutes, all of which historically have concerned taxes and fees imposed on vessels, their owners, and their passengers and crews. The District Court dismissed Maher’s complaint in its entirety, reasoning that Maher’s rent obligations did not violate the Tonnage Clause or its related statutes, and that Maher failed to establish admiralty jurisdiction for its remaining tort claim. We agree and hold that land-side service providers like Maher are not within the class of plaintiffs that the Tonnage Clause or its related federal statutes were intended to protect, that is, they are outside each law’s zone of interests. Accordingly, we will affirm.
I.
Maher is a marine terminal operator with its principal place of business in Elizabeth, New Jersey. Maher’s primary business is to load and unload cargo on vessels' — also known as stevedoring — and to berth vessels at its terminal. The Port Authority is an entity created by a compact between New York and New Jersey with the consent of Congress. The Port Authority oversees various transportation systems and, of most relevance to this appeal, the Port of New York and New Jersey, the third largest seaport in North America and the largest maritime cargo center on the eastern seaboard.
The Port Authority leases many of its marine terminal facilities at the Port of New York and New Jersey to private companies like Maher, which in turn directly manage the terminals and provide steve-doring services to ships using those terminals. In October 2000, Maher signed a thirty-year lease with the Port Authority to rent the largest marine terminal at Port Elizabeth, consisting of 445 acres of improved land including structures and a berthing area.
The Lease divides Maher’s rent into two categories. First, the “Basic Rental” charges Maher a fixed rate per acre of the terminal. When the' complaint was filed in 2012, the Basic Rental was $50,413 per acre, totaling $22,433,612 for the year. The second form of rent — and this is the crux of the case — is the “Container Throughput Rental” (“Throughput Rental”), which is a variable charge based on the type and volume of cargo that is loaded and unloaded at Maher’s terminal. For the first eight years of the Lease’s term, Maher was exempted from paying any
In addition, Maher must load and unload a minimum amount of cargo annually as a condition of maintaining the Lease (420,-000 containers when the complaint was filed, which is subject to increase to 900,-000 containers upon completion of certain harbor improvements), and Maher must pay an annual guaranteed minimum Throughput Rental equivalent to loading and unloading 775,000 containers (subject to the exemption for the first 356,000 containers), regardless of the number of containers Maher actually handles. All told, Maher paid roughly $12.5 million in Throughput Rental in 2010, and it expected the 2012 Throughput Rental to increase to $14 million.
According to Maher, the Port Authority profits from the Lease. The Port Authority also allegedly uses revenue from the Lease to fund harbor-improvement projects as well as projects wholly unrelated to the services that the Port Authority provides to Maher or vessels using the port.
In September 2012 — nearly twelve years after the Lease’s effective date — Maher sued the Port Authority in the U.S. District Court for the District of New Jersey. Maher’s complaint alleged violations of the U.S. Constitution’s Tonnage Clause, U.S. Const, art. I, § 10, cl. 3; the Rivers and Harbors Appropriation Act (“RHA”), 33 U.S.C. § 5(b); and the Water Resources Development Act (“WRDA”), 33 U.S.C. § 2236. Maher also asserted a negligence claim against the Port Authority for the way it established and collected fees.
The Port Authority moved to dismiss the complaint under Rules 12(b)(1) and 12(b)(6) of the Federal Rules of Civil Procedure, and in July 2014, the District Court granted the motion. The District Court reasoned that Maher lacked standing to bring its Tonnage Clause and RHA claims because it was not a protected vessel. Even if Maher had standing, the Tonnage Clause and RHA claims still failed, the District Court held, because Maher did not adequately plead that any fees imposed on vessels were not for services rendered. The District Court also dismissed Maher’s WRDA claim because Maher had not shown that the Port Authority imposed fees on vessels or cargo and because the WRDA did not prohibit the Port Authority from using revenue from the Lease to finance harbor-improvement projects. Finally, the District Court decided that it lacked admiralty jurisdiction over Maher’s negligence claim and declined to exercise supplemental jurisdiction over the claim. Maher filed this timely appeal.
II.
The District Court exercised jurisdiction only under 28 U.S.C. § 1331, concluding
Regardless of whether the District Court dismissed Maher’s complaint for failure to state a claim or for lack of jurisdiction, our standard of review is the same: we exercise plenary review over the District Court’s order. Kaymark v. Bank of Am., N.A.,
With respect to Maher’s negligence claim, we review the District Court’s determination of its own admiralty jurisdiction de novo, Sinclair v. Soniform, Inc.,
III.
The central question on appeal is whether fees imposed on landside entities like Maher can support claims under the Tonnage Clause, the RHA, and the WRDA. A secondary question is whether the District Court correctly decided that it lacked admiralty jurisdiction, and declined to exercise supplemental jurisdiction over Maher’s negligence claim. We address these issues in turn.
A.
The U.S. Constitution prohibits states from “layfing] any Duty of Tonnage” without the consent of Congress. U.S. Const, art. I, § 10, cl. 3. Maher alleges that several fees imposed by the Lease, but principally the Throughput Rental, violate the Tonnage Clause.
Standing involves “constitutional limitations on federal-court jurisdiction” on the one hand and “prudential limitations” on the other. Warth v. Seldin, 422 U.S.
We have previously categorized the zone-of-interests requirement as one of three components of prudential standing. E.g., Freeman v. Corzine,
' In applying the zone-of-interests test, we must discern the meaning and purpose of the Tonnage Clause using traditional methods of interpretation and ask whether it extends to Maher’s claim. Cf. id. at 1388-89 (analyzing the meaning and purposes of the Lanham Act to determine the interests protected by the Act). We have applied the zone-of-interests test “liberally]” and have noted “that it is not meant to be especially demanding.” Oxford Assocs. v. Waste Sys. Auth. of E. Montgomery Cnty.,
Turning to the Tonnage Clause’s meaning, “we are guided by the principle that the Constitution was written to be understood by the voters; its words and phrases were used in their normal and ordinary as distinguished from technical meaning.” District of Columbia v. Heller,
To the Framers, the Tonnage Clause supported and shared a purpose with the Import-Export Clause, U.S. Const. art. I, § 10, cl. 2, which generally prohibits states from taxing imports and exports. See Clyde Mallory Lines,
To effectuate these purposes, the Supreme Court has interpreted the Tonnage Clause to prohibit more than only classic tonnage duties, i.e., taxes on a ship based on the ship’s capacity; the Court has also said that a state cannot “ ‘do that indirectly which she is forbidden ... to do directly.’ ” Id. at 8,
Consistent with the original understanding of tonnage duties, the Tonnage Clause does not prohibit states from charging vessels “for services rendered to and enjoyed by the vessel, such as pilot-age, or wharfage, or charges for the use of locks on a navigable river, or fees for medical inspection.” Id. at 266,
Of course, a state may not escape the Tonnage Clause’s reach merely by labelling a tax as a charge for services. Keokuk,
From this discussion, we conclude that the Tonnage Clause was meant to protect vessels as vehicles of commerce. See Keokuk,
Our conclusion does not conflict with the Supreme Court’s admonition that the Tonnage Clause prohibits indirect tonnage duties and, consequently, extends to taxes imposed not only on a vessel, but also on an owner, ship captain, supercargo, or the passengers; to the contrary, the two are very much consistent. Though these people are obviously not ships, the Tonnage Clause prohibits taxes imposed on them because they are representatives of ships. See Passenger Cases,
As a landside marine terminal operator challenging the rent it owes under the Lease, Maher is not a member of the class of plaintiffs that can state a claim under the Tonnage Clause. Maher’s injury is not an injury to a vessel or its representative. Unlike a fee imposed on a vessel or the people on board, a fee imposed on Maher does not in and of itself impact a vessel’s ability to freely navigate in commerce. Fees imposed on Maher affect vessels only if Maher passes on such fees to vessels that use its terminal for stevedoring services. That it is not enough for Maher to satisfy the zone-of-interests test. A party may not contract its way into a law’s zone of interests if that party does not itself have any protected interests under the law. Cf. Freeman,
We are unpersuaded by Maher’s argument that it satisfies the zone-of-interests test because it is “engaged in interstate commerce” and “seek[s] to vindicate interests related to the protection of interstate commerce.” Maher Br. 32 (alteration in original) (internal quotation marks omitted). For support, Maher relies on cases applying the zone-of-interests test in the context of the dormant Commerce Clause. See Freeman,
Nor is Maher within the Tonnage Clause’s zone of interests because it pays fees that vary according to the volume of cargo moving through its port. In Polar Tankers, the Supreme Court said that the tax at issue there was “at the heart of what the Tonnage Clause forbids.”
If we unmoor the Tonnage Clause from taxes on vessels and allow landside entities to bring Tonnage Clause claims, we would transform the Tonnage Clause into a broad “Maritime Commerce Clause.” Landside entities having some relationship to maritime commerce would be able to challenge not only volumetric charges like the one here, but any unreasonable state-imposed fees for the privilege of being in a port. See Portwardens,
In sum, while we hold that the District Court should not have couched its conclusion in terms of standing after Lexmark, we agree with the District Court’s essential holding: Maher, as a landside entity, is outside the Tonnage Clause’s zone of interests. This is not, as Maher contends, to elevate ' form over substance. Anchoring the Tonnage Clause to taxes on vessels and their representatives is the only way to preserve the Clause’s meaning. Accordingly, Maher failed to state a Tonnage Clause claim.
B.
Maher next challenges the District Court’s dismissal of its RHA claim. Under the RHA, taxes and fees from non-Federal interests (like the Port Authority) cannot be “levied upon or collected from any vessel or other water craft, or from its passengers or crew,” except for, inter alia, “reasonable fees charged on a fair and equitable basis that — (A) are used solely to pay the cost of a service to the vessel or water craft; (B) enhance the safety and efficiency of interstate and foreign commerce; and (C) do not impose more than a small burden on interstate or foreign commerce.” 33 U.S.C. § 5(b).
By its terms, the RHA only applies to taxes and fees imposed on or collected from vessels, their passengers, or their crews. As a landside terminal, Maher is none of these and therefore cannot
C.
We also reject Maher’s argument that the District Court incorrectly dismissed its WRDA claim. The WRDA grants the consent of Congress to certain tonnage duties and cargo fees to finance harbor-improvement projects provided that such fees are imposed in accordance with the WRDA’s requirements. 33 U.S.C. § 2236(a). Among other things, the WRDA permits the collection of fees only after the project has been completed. Id. § 2236(a)(1). Before fees may be imposed under the WRDA, there must be notice and a public hearing on the proposed fees, id. § 2236(a)(5), and the non-Federal interest must publicly file a schedule of harbor fees with the Federal Maritime Commission, id. § 2236(a)(6)(A). The WRDA allows “[a]ny person who ... is ... aggrieved by ... a proposed scheme or schedule of port or harbor dues under this section ... to seek judicial review of that proposed scheme or schedule,” provided that the action is brought within 180 days of the hearing required by § 2236(a)(5). Id. § 2236(b)(2).
Maher’s WRDA claim fails for two reasons. First, the WRDA expressly applies only to fees imposed on vessels and on cargo. Here Maher is challenging neither. Granted, the Lease calculates Maher’s rent based in part on the amount of cargo moving through Maher’s terminal, but Maher’s rent is not a fee on the cargo itself. Nor is it a tonnage duty, as explained above.
Second, we agree with the Port Authority that Maher has no WRDA claim because the Port Authority never even purported to impose rent on Maher pursuant to the WRDA. The WRDA provides a limited private right of action to persons “aggrieved by ... a proposed scheme or schedule of port or harbor dues under this section” and only allows for “judicial review of that proposed scheme or schedule.” Id. § 2236(b)(2) (emphasis added). Additionally, the 180-day time limit for bringing a WRDA claim is tied to the date of the public hearing required by the WRDA. Id. Because there is no WRDA schedule of fees for us to review, Maher has no WRDA claim.
Maher argues that such a reading of the WRDA is “preposterous,” Maher Reply Br. 21, but we disagree. Nothing in the WRDA prohibits non-Federal interests from raising revenue in ways other than tonnage duties and cargo fees to finance harbor-improvement projects, as the Port Authority is allegedly doing in this case. Moreover, the WRDA merely provides congressional consent to tonnage duties and cargo fees that meet the WRDA’s other requirements. In other words, it is a safe harbor for what would otherwise be unconstitutional duties. If a non-Federal interest imposes tonnage duties or cargo fees that do not comport with the WRDA’s requirements, those duties and fees would not have the consent of Congress, and the remedy would be a direct challenge under the Tonnage Clause or the Import-Export Clause.
Therefore, we hold that Maher cannot state a claim under the WRDA.
D.
Finally, we address Maher’s negligence claim. The District Court concluded that it lacked federal admiralty jurisdiction
A proponent of admiralty jurisdiction for “a tort claim must satisfy conditions both of location, and of connection with maritime activity.” Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co.,
Maher’s claim of negligence is that the Port Authority “negligently estab-' lish[ed] and collected] charges and fees for the use of Maher’s terminal ... upon such bases and in such amounts as are unlawful.” J.A. 49. Put simply, any negligence by the Port Authority occurred on land. Maher and the Port Authority are land-based entities. The Lease was negotiated on land, and payments were made on land. Accordingly, Maher cannot satisfy the location test for admiralty jurisdiction, so its claim arises not under federal law but state law.
And because the District Court correctly dismissed all of Maher’s federal claims over which it possessed original jurisdiction, the District Court did not abuse its discretion when it declined to exercise supplemental jurisdiction over Maher’s state-law negligence claim. See Hedges v. Musco,
IV.
For the reasons set forth above, we will affirm the order of the District Court.
Notes
. Individual appellee Patrick Foye is the Port Authority’s Executive Director.
. While Maher has been litigating this case, it has also been disputing the Lease’s terms before the Federal Maritime Commission. See Maher Terminals, LLC v. Port Auth. of N.Y. & N.J., No. 08-03,
. On appeal, Maher also challenges the Cargo Facility Charge ("CFC”), which requires "a user of cargo handling services” to pay a fee • "to the Port Authority, which will be collected by the terminal operator handling the user’s cargo [i.e., Maher] for remittance to the Port Authority.” J.A. 345. The Port Authority correctly points out that Maher's complaint only obliquely refers to the CFC, and that Maher did not raise the CFC before the District Court. At oral argument, counsel for Maher argued that the minimum volumetric guarantee, which we understand to be part of the Throughput Rental, also violates the Tonnage Clause. As explained below, however, the categories of fees challenged by Maher are ultimately unimportant because they do not change the fact that Maher is not a vessel or its representative and therefore cannot state a claim under the Tonnage Clause, the RHA, or the WRDA.
. In any event, we have no trouble concluding that Maher has constitutional standing' to bring its claims. “Constitutional standing has three elements: injury in fact, causation, and redressability.” Shalom Pentecostal Church v. Acting Sec'y U.S. Dep’t of Homeland Sec.,
. The other two components of prudential standing are that a plaintiff first must "assert his or her own legal interests rather than those of third parties,’-' and second must not assert "generalized grievances” that require courts to "adjudicate] abstract questions.” Freeman,
. We do not hold that vessels or their representatives could never challenge tonnage duties that are passed through a private entity like Maher.
. Although third-party standing — standing to assert the legal interests of third parties — is allowed in "exceptional” circumstances, Amato v. Wilentz,
. State, Department of Natural Resources v. Alaska Riverways, Inc.,
. Based on our resolution of the case on the above-stated grounds, we do not reach the Port Authority’s alternative arguments that Maher’s claims are untimely.
Concurrence Opinion
concurring in part and dissenting in part:
Although I concur in my colleagues’ resolution of Maher’s statutory and tort claims, I respectfully dissent from their conclusion that Maher has not stated a constitutional claim. The Majority Opinion runs contrary to a long line of Supreme Court precedent interpreting the Tonnage Clause. Most recently, in Polar Tankers, Inc. v. City of Valdez, Alaska,
The Constitution declares that “No State shall, without the Consent of Congress, lay any Duty of Tonnage.... ” U.S.
The purposes meant to be accomplished by constitutional provisions, however, may not come easily or naturally. Self-interest is a powerful countervailing force. In the context of maritime commerce, that has manifested itself in repeated efforts by state and local authorities to circumvent the Tonnage Clause, often by merely calling a tax something else or moving the aim of it from a ship to a related target. The Supreme Court has been vigilant in recognizing and rejecting such creativity. “A State cannot take what would otherwise amount to a tax on the ship’s capacity and evade the Clause by calling that tax ‘a charge on the owner or supercargo,’[
In levying its assessment upon the land-side marine terminal operator rather than the vessel or its representatives, the Port Authority is playing the exact labeling game that the Framers of our Constitution intended to foreclose by adopting the Tonnage Clause. The Port Authority is indirectly taxing vessels, and thus the goods on those vessels, by moving the locus of its assessments somewhere else, in this instance, to the water’s edge. We ought not permit this. My colleagues accept the argument that “the Tonnage Clause was meant to protect vessels” (Majority at 15), which is true, as far as it goes. But the Clause was never meant simply to protect vessels as such. The Framers were not worried about boats. They were worried about provincialism and protecting national control of commercial activity so that there would be a free flow of goods between the states and with other nations.
In the end, they knew, any charge on shipping — whether on the goods themselves, the vessels conveying the goods, or on some other surrogate for the vessels and goods — would be passed on to consumers. The citizens of one state would benefit to the detriment of the citizens of another, and commerce would be impeded. According to Hamilton, “[t]he maxim that the consumer is the payer, is so much oftener true than the reverse of the proposition, -that it is far more equitable that the duties on imports should go into a common stock, than that they should redound to the ex-elusive benefit of the importing States.” The Federalist No. 35. Were such a tax on shipping permitted, whatever its guise, it would be “productive of inequality among the States; which inequality would be increased with the increased extent of the duties.” Id. As a consequence, “the assumption of most founders was that ... an indirect tax is one which the ultimate consumer can generally decide whether to pay by deciding whether to acquire the taxed product” — in other words, the assumption was that indirect taxes will get passed on to consumers in the form of higher prices. Erik M. Jensen, The Apportionment of “Direct Taxes”: Are Consumption Taxes Constitutional, 97 Colum. L.Rev. 2334, 2395 (1997).
For that reason, when an assessment is a revenue-raising tax on the privilege of “entering, trading in, or lying in port,” Clyde Mallory Lines v. Alabama ex rel. State Docks Comm’n,
Unfortunately, the Majority has been misled. The test it offers for distinguishing this case from those in which a Tonnage Clause violation was found is that the non-vessel targets of taxation in those cases — the captain, crew, passengers, etc. — were unlike the stevedores here because those targets were “representatives of ships” who “travel with the ships moving as vehicles in commerce.” (Majority at 108.) According to the Majority, taxes on such people might “indirectly impact a vessel’s decisions” as to how and where to travel. (Id.) But how can it be thought that the Container Throughput Rental assessments at issue here will not — in theory anyway — do the very same thing? Maher alleges that, at public cargo facilities, the Port Authority collects all fees and assessments from the vessels. By contrast, at leased cargo facilities like Maher’s, the “Port Authority collects fees and charges ... from the terminal operators, which in turn collect fees and charges from vessels and cargo using the terminals.” (App. at 3.) In other words, vessels are charged directly at public facilities, and indirectly at leased facilities. According to the Majority, that amounts to a constitutional difference, with the Tonnage Clause acting as a restraint at the former set of facilities but not at the latter.
Of course, the Majority’s distinction places Maher at a disadvantage in comparison with public cargo facilities — -why would a ship avail itself of a Maher terminal subject to indirect taxes,, when it can have access to public terminals where fees can only be charged for services rendered? And the size of Maher’s disadvantage is now at the whim of the Port Authority, itself the owner of the competing public cargo facilities. By my colleagues’ reasoning, though, that is of no moment. All the Port Authority needs to do to avoid the Tonnage Clause is insert a middleman between itself and the vessels to be taxed. If the Port Authority charges Maher fees for the privilege of stevedoring in its port, and Maher passes those fees on to the vessels, the vessels themselves have no Tonnage Clause claim against the Port Authority because their payments, nominally paid to Maher, would not be considered taxes. And the vessels could not sue Maher for a Tonnage Clause violation, as it is' not a sovereign entity. Only Maher can vindicate the Tonnage Clause interests at stake here. But, to the Majority, the Ton
The scope of constitutional protection should not be controlled by the fact that stevedoring services take place on land as well as on vessels. The. Supreme Court has specifically commented on the necessity to maritime commerce of the work done by stevedores:
Transportation of a cargo by water is impossible or futile unless the thing to be transported is put aboard the ship and taken off at destination. A stevedore who in person or by servants does work so indispensable is as much an agency of commerce as shipowner or master. Formerly the work was done by the ship’s crew; but, owing to the exigencies of increasing commerce and the demand for 'rapidity and special skill, it has become a specialized service -devolving upon a class as clearly identified with maritime affairs as are the mariners.
Puget Sound Stevedoring Co. v. Tax Comm’n of Wash.,
The Passenger Cases best bear out the point. One of the cases at issue there involved a two-dollar-per-passenger assessment, levied on the “master, owner,
It has been argued that this is not a tax on the master or the vessel, because in effect it is paid by the passenger having enhanced the price of his passage. Let us test the value of this argument by its application to other cases that naturally suggest themselves. If this act had, in direct terms, compelled the master to pay a tax or duty levied or graduated on the ratio of the tonnage of his vessel, whose freight was earned by the transportation of passengers, it might have been said, with equal truth, that the duty was paid by the passenger, and not by the vessel. And so, if it had laid an impost on the goods of the passenger imported by the vessel, it might have been said, with equal reason, it was only a tax on the passenger at last, as it comes out of his pocket, and, graduating it by the amount of his goods, affects only the modus or ratio by which its amount is calculated. In this way, the most stringent enactments may be easily evaded. It is a just and well-settled doctrine established by this court, that a State cannot do that indirectly which she is forbidden by the Constitution to do directly.... The Constitution of the United States, and the powers confided by it to the general government, to be exercised for the benefit of all the States, ought not to be nullified or evaded by astute verbal criticism, without regard to the grand aim and object of the instrument, and the principles on which it is based.
Passenger Cases,
Justice Grier’s expansive reading of the Tonnage Clause has since acquired disposi-tive weight with the endorsement of his position by the Court in Polar Tankers. See Polar Tankers,
Although the present case involves a cargo throughput assessment levied on a stevedoring operation, conceptually, there is no difference between that and the fee levied in the Passenger Cases.
. The Import-Export Clause provides, "No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing its inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress." U.S. Const, art. I, § 10, cl. 2.
. The Commerce Clause authorizes Congress to “regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.” U.S. Const, art. I, § 8, cl. 3.
.By including the Tonnage Clause, certain delegates to the Convention worried that it "would imply the opposite [ — that states could otherwise impose a tonnage duty — ] and put the states in a worse position,” Plaquemines,
. A "supercargo” is "[a] person specially employed and authorized by a cargo owner to sell cargo that has been shipped and to purchase returning cargo, at the best possible prices; the commercial or foreign agent of a merchant.” Black's Law Dictionary 1575 (9th ed.2009).
. The Majority's reasoning gains no traction by invoking the "zone of interests” test. In Commerce Clause cases, as the Majority recognizes, "we have advocated a liberal employment of the zone of interests test, explaining that it is not meant to be especially demanding.” Oxford Assocs. v. Waste Sys. Auth. of E. Montgomery Cnty.,
In any event, the notion that Maher is not within the "zone of interests” of the Tonnage Clause is untenable. Maher's marine container terminal is the largest in the Port of New York and New Jersey, Maher unloads about one million ocean-shipping containers every year, and it paid $12.5 million in Container Throughput Rental assessments in 2010 alone. It is one of the world’s largest multi-
. It bears mention that the Tonnage Clause is one of the'few limitations of the Constitution that is not absolute but instead only disallows states from enacting such duties "without the Consent of Congress.” U.S. Const., art. I, § 10, cl. 3. The Port Authority is thus free to seek an Act of Congress permitting the fees at issue here. Indeed, the Water Resources Development Act itself is specifically styled as congressional consent to impose an others wise-impermissible duty of tonnage. See 33 U.S.C. § 2236(a). Rather than foreclose all such taxes, the Tonnage Clause operates to move decision-making over duties of tonnage to Congress, thereby ensuring its control over matters of national commerce. The potential permissibility of such taxes, with congressional assent, makes plain "the necessity of a rigid adherence to the demands of” the Tonnage Clause. Cannon v. City of New Orleans,
If hardships arise in the enforcement of this principié, and the just necessities of a local commerce require a tax which is otherwise forbidden, it is presumed that Congress would not withhold its assent if properly informed and its consent requested. This is a much wiser course, and Congress is a much safer depositary of the final exercise of this important power than the ill-regulated and overtaxed towns and cities, whichare not likely to look much beyond their own needs and their own interests.
Id. By upholding the assessment levied here, the Majority forecloses the need for cooperative federalism and instead permits the Port Authority to make the decision alone, without proper input from Congress.
. In the case of the Cargo Facility Charge, the Port Authority actually requires that the “user of cargo handling services” (i.e., the vessels) pay charges "to the Port Authority”, but the charge "will be collected by the terminal operator”, like Maher, "for remittance to the Port Authority.” (App. at 345.) In other words, Maher is nothing more than the collector of such charges directly on behalf of the Port Authority, and keeps none of the assessment for itself. Presumably, the Majority would have no problem with such a levy, even if it otherwise violated the Tonnage Clause, because the money first passed through die hands of the terminal operator.
. In Puget Sound, the Supreme Court struck down the State of Washington’s effort to impose a business tax on a stevedoring company as a violation of the Commerce Clause.
. More recently, the Second Circuit adhered to this principle in Bridgeport & Port Jefferson Steamboat Co. v. Bridgeport Port Auth., in holding that a passenger fee violated the Tonnage Clause.
. My colleagues warn that, if we unmoor the Tonnage Clause from taxes on vessels, then landside entities having some relationship to maritime commerce would be able to challenge any unreasonable state-imposed fees for the privilege of doing business at a port. For example, they say, a restaurant renting state property in a port could state a claim under the Tonnage Clause by claiming that its rent is unreasonably high given the services provided by the state. That hypothetical misses the mark by a wide margin. To begin with, a rental fee is clearly reimbursement for a service rendered: providing the property on which the lessee- can conduct its business. Further, unlike the restaurateur from the Majority’s hypothetical, Maher does not have merely some tenuous relationship to maritime commerce. Maher is directly engaged in it. As the Supreme Court recognized in Puget Sound, such commerce could not occur without stevedores like Maher to load and unload seaborne cargo. The faithful construction of the Tonnage Clause that I propose will not, as the Majority fears, encompass disputes unrelated to volumetric charges. It will, instead, avoid arbitrary line-drawing that forecloses claims by entities that are clearly within the Tonnage Clause’s zone of interest.
. The Majority implicitly recognizes as much. It announces that the Tonnage Clause applies to taxes on passengers because such duties "will likely indirectly impact a vessel’s decisions by reducing demand,” but then, inconsistently, says that the Clause does not apply to a fee on Maher because such a fee "does not in and of itself impact a vessel's ability to freely navigate in commerce.” (Majority at 108.)
.While I dissent from my colleagues’ narrow reading of the Tonnage Clause, I have no disagreement with their conclusion that the Basic Rental assessment does not violate that constitutional provision. The Basic Rental assessment, unlike the Container Throughput Rental, is more properly considered, a fee for services rendered than a revenue-raising tax. The Port Authority owns the marine terminal and is entitled to "just compensation for the use of such property.” Cannon,
To the extent the District Court held that "most (if not all) of the rental charges and fees imposed by Port Authority against Maher would likely be the type of charges for services rendered that fall outside the Tonnage Clause's scope” (App. at 12-13 (internal quotations omitted)), it did not view the facts in the light most favorable to and draw all reasonable inferences in favor of Maher. In its Complaint, Maher repeatedly emphasized the disconnect between the amount paid and the services rendered, but the District Court did not adequately credit Maher’s assertions.
