Congestion pricing lawsuit venue changed, but plan still on track for Jan. 5 start

The court venue has been changed for a case filed by the Town of Hempstead against the Metropolitan Transportation Authority’s congestion pricing plan set to start Jan. 5, a move Supervisor Donald X. Clavin Jr. hailed as a "win."

The U.S. District Court for the Eastern District of New York sent the case back to Nassau County Supreme Court on Thursday, agreeing with the plaintiffs that the state court is the appropriate venue because their complaint deals with state law. 

Clavin said the MTA had been trying to stall by seeking a new venue. "These are … issues for the state court to decide, not the federal court," he said.

The MTA did not immediately respond to a request for comment. It had originally planned to enact a $15 toll in June, but weeks before it was set to take effect, Gov. Kathy Hochul ordered a pause, citing affordability concerns. The MTA, with the governor's approval, resurrected the plan on Nov. 18 with a lower rate of $9.

Hempstead’s case claims the MTA failed to adhere to state administrative law by not allowing a 45-day pre-adoption public notice period when it decided on the lower toll. The town has sought a temporary restraining order that could delay implementation while the case proceeds.

The case is one of at least 10 filed by various businesses, interest groups and local governments seeking to block the MTA's plan, which federal transportation officials approved last month. Unless a court orders otherwise, the MTA is set to begin charging passenger vehicles entering lower Manhattan $9 on Jan. 5, with other rates for other types of vehicles.

Other pending lawsuits have been filed by New Jersey and Rockland and Orange counties. The various legal challengers claim the toll could cause more pollution in areas like New Jersey by diverting traffic and result in hardship on commuters and small businesses.

Hempstead originally filed its case in the Nassau County court in November, but it was transferred to federal court upon request from the MTA and its co-plaintiff, Hochul. Hempstead also has a separate case, filed in federal court in May, seeking to block the tolls.

Federal Judge Joan M. Azrack ordered Hempstead’s case remanded to state court on Thursday, saying it primarily deals with state law.

The MTA then requested to change the venue again — this time to a state court in Manhattan.

The MTA claims the Manhattan court is the proper venue because that is where congestion pricing will take place and the MTA is headquartered.  

Hempstead claims that Nassau is the proper court venue because congestion pricing will affect county residents who commute into the city, and some of the tolls collected will be used on the Long Island Rail Road, which the MTA owns, in Nassau County.

It remains unclear whether an injunction or other decision will come before President-elect Donald Trump — who has vowed to block congestion pricing — assumes office Jan. 20. Trump could have a more difficult time blocking the program if the MTA has already begun tolling, experts have said.

The toll would be the first of its kind in the United States, though other cities around the world like London and Stockholm have implemented similar programs. The MTA argues the toll is necessary to reduce gridlock, improve air quality and raise billions of dollars for public transit.