Bus Companies File Class Action Against NY Transit Authorities

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The New York State Thruway Authority, its acting executive director, the New York State Canal Corporation, its chairwoman, and several other high-ranking officials are the defendants in a proposed class action lawsuit filed by the American Bus Association, Dattco, Inc., and Starr Transit Co., Inc. The plaintiffs allege in the 19-page lawsuit that the toll system employed by the defendants violates the Commerce Clause of the United States Constitution. The case, citing a previous suit filed on behalf of trucking companies who claimed they were also affected by the defendants’ toll system, argues interstate bus companies are affected in the same way as the trucking companies behind that lawsuit.

This lawsuit stems from the period of time between 1992 and January 1, 2017 when the Thruway Authority was responsible for the administration of the Canal System, which the case describes as ”neither self-sustaining nor self-funding.” At issue, of course, is the funding. In 2013, the Thruway Authority reportedly generated $682.8 million in total operating revenue, with $648.9 million coming from toll payments. From here, the complaint does a good job of explaining where the rift between the plaintiffs and defendants comes from:

“All told, the Thruway Authority’s non-toll sources of revenue—including all revenue from canal fees as well as from all other sources—accounted for only $33.9 million in operating revenue.”

According to the lawsuit, the defendants’ “unconstitutional toll regime” is the result of a non-functional partnership between the Thruway and Canal System that unfairly and unlawfully places the burden of paying for the latter on drivers—i.e. bus companies—who pay Thruway tolls.

From the lawsuit:

“Both the funding scheme for the Canal System in place until January 1, 2017—which diverted toll revenue to fund the Canal System directly—and the Thruway’s ongoing practice of paying interest on Canal-related indebtedness with toll revenue cause bus companies engaged in interstate commerce to bear costs unrelated to their use of the Thruway. The tolls charged by the Thruway to interstate bus companies are not a fait approximation of their use of the Thruway.”

The lawsuit seeks refund of the allegedly unlawful portion of tolls collected from proposed class members, i.e. all bus companies engaged in interstate commerce that have paid tolls to the Thruway Authority since February 1, 2014, and an injunction against the defendants.