Port Authority User Fee Controversy

In this case, nine foreign ocean carriers challenged a user fee provision that was instituted by the Port Authority of New York and New Jersey in 2011 to recoup the costs of an on dock rail system and various other expenditures. Compass Lexecon was retained by Richard Rothman and Peter Isakoff of Weil, Gotshal & Manges LLP on behalf of their client, the Port Authority, to analyze the economic effects of the user fee. Compass Lexecon economists Rick Flyer and Allan Shampine then drafted a report which concluded that the complaining parties did in fact benefit from the projects including the rail system related to the user fee. Ultimately, the Federal Maritime Commission unanimously affirmed an earlier decision by an Administrative Law Judge in favor of the Port Authority and upheld the user fee.