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The Supreme Court delivered New Jersey a major win April 18, issuing a unanimous decision allowing the state to withdraw from the Waterfront Commission.

Justice Brett Kavanaugh wrote the decision, which declared that each state possesses the sovereign authority to enter into a compact with another state, subject to Congress’ approval.

“In 1953, New York and New Jersey exercised that authority and entered into a Waterfront Commission Compact. The compact created a bistate agency to perform certain regulatory and law-enforcement functions at the Port of New York and New Jersey,” Kavanaugh wrote. “In 2018, after concluding that the decades-old compact had outlived its usefulness, New Jersey sought to withdraw from the compact.

“New York opposes New Jersey’s withdrawal and contends that the compact does not allow either state to unilaterally withdraw,” he continued. “We hold that New Jersey may unilaterally withdraw from the Waterfront Commission Compact notwithstanding New York’s opposition.”

Since New Jersey first tried to exit the pact in 2018 under then-Gov. Chris Christie, the issue was kicked around in the judiciary, ultimately ending up at the Supreme Court.

Recent developments in the case showed clear momentum for New Jersey, as the justices questioned New York’s rationale during oral arguments last month. That led Gov. Phil Murphy to release a statement saying he was optimistic about prevailing in the case. The Garden State also received a boost last August when the solicitor general filed an amicus brief arguing that New Jersey should be permitted to withdraw from the bistate compact unilaterally.

“The question presented is straightforward: Does the Waterfront Commission Compact allow New Jersey to unilaterally withdraw from the compact notwithstanding New York’s opposition? The answer is yes,” Kavanaugh wrote.

The decision also noted that the default contract-law rule – that contracts calling for ongoing and indefinite performance may be terminated by either party – supported New Jersey’s position in this case.

“In sum, background principles of contract law, reinforced here by principles of state sovereignty and the fact that the states did not intend for the compact to operate forever, indicate that New Jersey may unilaterally withdraw from the Waterfront Commission Compact,” Kavanaugh wrote in the decision, which granted New Jersey’s motion for judgment on the pleadings and denied New York’s cross-motion.

In a statement, Murphy applauded the Supreme Court’s decision.

“I am thrilled that the United States Supreme Court has unanimously ruled that New Jersey has the right to withdraw from the Waterfront Commission,” said Murphy. “Since the first hours of our time in office, my administration has steadfastly pursued the dissolution of the Waterfront Commission because it was the right thing to do. Over 90% of commerce at our ports happens on the New Jersey side, and the New Jersey State Police, one of the finest law enforcement agencies in the nation, is more than capable of taking on the Commission’s law enforcement and regulatory responsibilities.”

I am thrilled that the U.S. Supreme Court has unanimously ruled that New Jersey has the right to withdraw from the Waterfront Commission.

We look forward to working with New York to ensure its swift and orderly dissolution. pic.twitter.com/RMQfXwS2HN

— Governor Phil Murphy (@GovMurphy) April 18, 2023

Murphy stressed that frustration over the Commission’s operations has been building for many years.

“I am proud that after a five-year battle in the federal courts, where my administration used every legal tool at our disposal, New Jersey’s sovereign right to govern our ports has been vindicated,” said Murphy.

New York Gov. Kathy Hochul said she was disappointed by the Supreme Court’s decision.

“For decades, the Waterfront Commission has been a vital law enforcement agency, protecting essential industries at the port and cracking down on organized crime,” said Hochul in a statement. “We will continue to do everything in our power to combat corruption and crime, protect the health of our economy, and ensure the safety of New Yorkers.”

“We look forward to working with New York to ensure a swift and orderly dissolution of the Commission in a way that ensures security and uninterrupted business at New Jersey’s ports,” Murphy added.