FMC shoots down Puerto Rico port defense
The Federal Maritime Commission issued a ruling Thursday that said the Puerto Rico Ports Authority is not entitled to 'sovereign immunity,' a claim the port authority had used as a defense in petitions claiming it had violated provisions in the Shipping Act.
Separate claims had been filed with the FMC by Odyssey Stevedoring of Puerto Rico, Inc., International Shipping Agency, Inc., and the joint petitioners San Antonio Maritime Corp. and Antilles Cement Corp. The companies claim the Puerto Rico Ports Authority is violating U.S. shipping laws pertaining to port and terminal operations, while the port authority says it has 'sovereign immunity' from any FMC adjudication related to PRPA operations.
The FMC ruling said the port authority is not an arm of the Commonwealth of Puerto Rico and is therefore not entitled to 11th Amendment sovereign immunity, under which states are immune from some federal laws. As a result of the decision, the ruling noted, the port authority will be subject to adjudication of the complaints filed by the companies.