By Eric Hunang.     Photo：EKATERINA  BOLOVTSOVA

The U.S. Supreme Court says New Jersey can withdraw from the decades-old Waterfront Commission which created with New York to combat mob influence in its joint ports and be famous because of the Marlon Brando’s movie "On the Waterfront". The Waterfront Commission of New York Harbor (WCNYH) is the regulatory agency for the ports of New York and New Jersey in the United States. The bilateral agency was established in 1953 by a congressional mandate compact between New York and New Jersey "to rid the waterfront of New York Harbor of evils of every kind," at a time when organized crime had infiltrated the port and charged workers and the shipper demands payment. Under its statutory mandate, the Commission is tasked with investigating, deterring, combating, and remediating criminal activity and impacts in the port area and ensuring fair hiring and employment practices.

The two-state commission -- each with a commissioner -- oversees permits and inspections in the ports of New York and New Jersey and has its own police force. It has about 70 employees. In the decades since the commission was created, the Port Authority of New York and New Jersey has grown much larger, overseeing the region's transportation infrastructure. In 1953, approximately 70 percent of the waterfront employees worked on the New York side of the port. However, by 2018, according to the state of New Jersey, it had evolved to the point where more than 80 percent of work hours took place in New Jersey, and 80 percent of cargo was handled at New Jersey terminals.

The dispute between the two states has been ongoing for the past five years, since New Jersey lawmakers voted in 2018 to end participation in the commission. The original compact between the two states in 1953 to form the commission did not include each state's power to withdraw from the compact, which New York state believed required mutual consent. The case went through a series of decisions in lower courts as part of the court's initial mandate to resolve disputes between the states before the Supreme Court agreed to hear it. New Jersey defended its decision to terminate the commission, saying it believed the commission was "incapable of meeting 21st century security challenges. They also supported the union's position that the port was over-regulated and thus hindered job growth and efficiency. New York argued, aside from the need for an agreement to terminate the commission, the commission continues to play a vital role in monitoring operations and helping keep organized crime at bay.

Judge Kavanaugh, who oversaw the case, emphasized that both states acknowledged the fact that the commission was never intended to operate forever. During the argument, neither side disputed this. The court said the issue came down to what the two states understood when they entered the contract, pointing to principles of contract law. They argue that there is no specific language in the compact that either party may withdraw unilaterally. The 1953 Opinion on Contract Law states that, to this day, either party can terminate the contract at will. The decision further underscores the principle of state sovereignty, which the court found also supports New Jersey's position.

On Tuesday, New York Gov. Kathy Hochul and Attorney General Letitia James issued a joint statement expressing their disappointment with the court's decision. "For decades, the Waterfront Commission has been a key law enforcement agency, protecting the port's vital industries and fighting organized crime," the statement said. “We will continue to do everything in our power to fight corruption and crime, protect the health of our economy, and keep New Yorkers safe. In the meantime, New Jersey Governor Phil Murphy said in a written statement following the release of the opinion “I am thrilled that the United States Supreme Court has unanimously ruled that New Jersey has the right to withdraw from the Waterfront Commission…. For many years, frustration over the Commission’s operations has been building. I am proud that after a five-year battle in the federal courts, where my Administration used every legal tool at our disposal, New Jersey’s sovereign right to govern our ports has been vindicated。Over 90 percent of commerce at our ports happens on the New Jersey side, and the New Jersey State Police, one of the finest law enforcement agencies in the nation, is more than capable of taking on the Commission’s law enforcement and regulatory responsibilities. "

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