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Class Action Suit Filed in Hawaii to Declare Jones Act Unconstitutional Mike Schuler Total Views: 67 November 2, 2009 Dear gCaptain- As you know, in and around 1916, Senator Wesley Jones, then a Senator from the great state of Washington urged the adoption of what has commonly referred to as the Jones Act. There are two main “sides” to the Jones Act. First, as you know, the Jones Act provides a ‘vehicle’ for an injured seaman to be fairly compensated for injuries caused due to the negligence of a fellow crewmember or due to the “unseaworthiness” [“not fit for its intended purpose”] of a piece of equipment. Second is the “Cabotage” side. It is the Cabotage side of the Jones Act that a new suit has been filed in the United States District Court for Hawaii seeking it held unconstitutional as it applies to Hawaii. I have provided you with a copy, in .pdf format, the Original Complaint ( Download .pdf ). The case is styled: CV09-00473; KAUA’I KUNANA DAIRY, INC., et al. vs. The United States Government; USDC-District of Hawaii. It was filed October 7, 2009. To understand the plaintiffs argument, a brief explanation of the Cabotage side is necessary. Simply put, the Jones Act requires that if persons or property are going to be transported from one U.S. port to another U.S. port, it must be done by a vessel (1) manufactured in the United States; (2) by a United States flagged vessel and (3) by a United States crewed vessel. The plaintiffs’ argument boils down to this: (1) Hawaii receives 90% of its products via water transportation; (2) there are two main companies qualified and equipped to service the island (Matson Navigation and Horizon); and (3) that these two companies have engaged in “price fixing” causing their wholesale prices for items to be more inflated due to the requirement to utilize these two companies to satisfy the Jones Act. In the Complaint, the plaintiffs’ counsel, goes into an elaborate demonstration that demonstrates that the two companies increased t
Class Action Suit Filed in Hawaii to Declare Jones Act Unconstitutional
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