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Legal opponents of congestion pricing may be required to post a bond worth hundreds of millions of dollars if they want a judge to prevent the contentious tolls from taking effect June 30.
Several pending lawsuits in federal and New York state court are challenging the Metropolitan Transportation Authority’s plan to charge most motorists $15 to enter Manhattan below 60th Street. But judges may require plaintiffs to post a potentially hefty bond that would allow the MTA to recoup lost toll revenue from an order that temporarily blocks the tolls from taking effect, assuming the tolls ultimately pass legal muster, experts told Crain’s New York Business.
Posting such a bond would be a risky financial move for the mix of municipalities, organizations and individuals who have filed lawsuits seeking to block the tolls, including the state of New Jersey, the United Federation of Teachers, and most recently, the Trucking Association of New York. A judge could issue a temporary restraining order or a longer-term preliminary injunction against the tolls and have the final say on whether to grant or waive a bond, which could be for hundreds of millions of dollars if the toll program is delayed for several months.
Congestion pricing, under state law, is required to generate $1 billion in revenue annually that the MTA intends to bond to $15 billion for upgrades to the region’s mass transit.
“The MTA may well ask for a bond in the amount of the revenues it would lose; it would be up to the judge whether to grant that,” said Michael Gerrard, an environmental lawyer and the founder and faculty director of Columbia University’s Sabin Center for Climate Change Law.
“It is common for judges to require plaintiffs to post a bond before issuing a [temporary restraining order or a preliminary injunction], but it is within the discretion of the judge whether to require a bond and, if so, its size,” added Gerrard.
The MTA declined to comment on whether the authority intends to push for the bonds or on the dollar amount its legal team would request.
The Trucking Association of New York could be the first to take the legal gamble with a hearing for a preliminary injunction seeking to prevent the tolls from going live scheduled for a federal Manhattan courtroom on June 27 — just three days before congestion pricing is set to launch.
An attorney for the Trucking Association did not immediately respond to calls for comment.
Neil Pedersen, the owner of Pedersen & Sons, a surety bond agency in Manhattan said he believes the MTA can make a strong case for a judge to order its legal foes to put up collateral in the form of a bond.
“Given that this is a hotly contested issue, I think it’s relatively likely at least some sort of indemnity is going to be required,” Pedersen said. “Because I think there’s going to be an actual dollar value of how [the MTA is] going to be damaged if a judge grants the relief.”
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Caroline Spivack , 2024-06-04 12:03:04
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