GRAND RAPIDS, Mich. (WOOD) — Days after Shepler’s Inc. and Mackinac Island Ferry Firm filed a joint lawsuit in opposition to the town of Mackinac Island, Mayor Margaret Doud has introduced the town will file a countersuit.
In keeping with the Mackinac Island City Crier, Doud made a public announcement following a particular metropolis council assembly Wednesday afternoon.
Mackinac Island ferry service suspends journeys amid $4M in repairs
The ferry corporations filed their lawsuit in federal court docket on Monday. They argue that the town is overstepping its authority set of their franchise agreements by refusing their proposed fare will increase to assist cowl rising prices and a $6 million funding to improve MIFC’s getting old fleet.
Town, likewise, has argued that what historically was a small however open business has changed into a monopoly. Traditionally, at the least three ferry corporations have offered service to the island: Arnold Transit Firm, Star Line Ferry and Shepler’s. Star Line purchased Arnold in 2016 and rebranded to the MIFC. Now, for the reason that Hoffmann Household purchased Shepler’s in 2022 and MIFC in 2024, they’re owned by one company.
Invoice Shepler, longtime chief of in style ferry service, dies at 92
The Metropolis Council sought out a authorized opinion and revealed the response to the town web site. Representatives from Detroit legislation agency Miller, Canfield, Paddock and Stone consider the ferry corporations may very well be challenged underneath antitrust legal guidelines.
“A parent corporation and its wholly owned subsidiaries are, except in very rare circumstances, treated as a single entity under the antitrust laws,” the letter states. “As a single entity, Shepler’s and Arnold have market power and would be considered a monopoly in the relevant market. If Shepler’s and Arnold were actually independent companies (or were seriously held out as such), they could be found liable for fixing prices and dividing markets.”
As a part of the franchise settlement between the town and the businesses, each ferry companies should submit their proposed fares for the upcoming season. Citing the tumultuous 2024 season and different financial elements, the 2 corporations proposed a “slight increase” for ticket charges in 2025.
Every part it’s good to find out about Mackinac Island
The Metropolis Council rejected the proposed charges, accusing the Hoffmanns of attempting to “monopolize” the market and lift costs. Legal professionals representing Shepler’s and MIFC reject that declare and say monetary stresses should be addressed.
“In addition to the substantial capital investments that need to be recouped over time, both Shepler’s and MIFC were experiencing a significant increase in expenses, including a $500,000 increase in fuel prices, an increase in local taxes of $50,000, a $1,900,000 increase in payroll and approximately $420,000 in lost ticket value that Shepler’s and MIFC, in conjunction with the City, gives away for purposes of promotion,” the lawsuit reads.
