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The Honolulu Advertiser
Posted on: Tuesday, December 8, 2009

Judge questions Jones Act suit


By Andrew Gomes
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Five local local businesses and former business operators have filed a suit to block the Jones Act, which requires that cargo shipped between U.S. ports be shipped on U.S.-built vessels with U.S. owners and American crews.

ADVERTISER LIBRARY PHOTO | 2006

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Hawaii news photo - The Honolulu Advertiser

Judge David Ezra

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A federal judge suggested that a lawsuit seeking to invalidate the Jones Act has serious problems, though no immediate ruling was made at a hearing yesterday.

Five local businesses and former business operators filed a lawsuit in October against the federal government seeking to block the 89-year-old cabotage law that protects America's fleet of commercial ships. The law has long been criticized as inflating the cost of living and doing business in Hawai'i.

Yesterday Hawai'i District Judge David Ezra suggested that the suit, which sought an injunction against the law to protect plaintiffs from further injury, can't be heard because some of the plaintiffs are already out of business and others haven't shown that the Jones Act specifically threatens their existence.

Ezra also explained that federal courts can't address a general grievance someone has with the cost or impact of a federal law whether it be the Jones Act, taxes or health care costs.

"You have a serious problem here with standing (grounds to bring the case)," Ezra told John Carroll, lead attorney representing the plaintiffs.

Carroll sought to have all Hawai'i companies negatively impacted by the law represented by the suit, and recover damages for them and consumers.

The Jones Act requires that all cargo moved between two U.S. seaports be shipped on vessels that are built in the United States, owned by a U.S. citizen or company and manned by a U.S. crew.

The law is intended to protect domestic shipping and ensure a capable merchant marine in times of war.

Carroll's suit contends that the Jones Act runs afoul of the U.S. Constitution's Commerce Clause governing trade between states because negative effects of the law disproportionately harm Hawai'i consumers and businesses.

Rachel Moriyama, an attorney with the U.S. Department of Justice in Honolulu, argued that the case should be dismissed in part because there is no equal protection requirement under the Commerce Clause, and any change to the Jones Act is the purview of Congress.

"This case is really just a disagreement with the maritime policy set out by Congress," she said. "(Plaintiffs) are simply trying to do an end run around the political process."

Ezra indicated that he wasn't inclined to grant an injunction, but held off on issuing a ruling in court yesterday. A written decision on the case is expected soon.