MACKINAC ISLAND -- As City leaders on Mackinac Island discuss purchasing docks and entering into an agreement with one ferry company, the other ferry company left out of the mix is taking the battle to court.
Shepler's Mackinac Island Ferry filed an antitrust lawsuit in U.S. District Court. Named in the lawsuit are James Wynn, owner of Arnold Transit, a competing ferry company, Arnold Transit Co., Union Terminal Piers, which is owned by Arnold, and the City of Mackinac Island.
The lawsuit charges the dock purchase plan will cause a monopoly by eliminating competitive ferry boat service to Mackinac Island.
"As a family-owned business with more than 150 employees, Shepler's is fighting for our right to compete to provide high-quality ferry service to Michigan's most spectacular tourist destination," said Chris Shepler, son of owner Bill Shepler. "The city's efforts to establish a monopoly on ferry service are not only wrong, they are illegal."
The deal involves Wynn selling Arnold and Union's docks and some properties to the City of Mackinac Island, which would pay for them by issuing public bonds. Arnold and Union would then lease back the property and docks from the city, in exchange for a monopoly on ferry service to the island.
The lawsuit charges that in reaching the deal with Wynn, Mackinac Island exceeded its governmental authority, and that Wynn violated antitrust laws and Michigan tort law by suggesting, participating in and creating the deal.
Meanwhile, Shepler's has met the city's Monday deadline for ferry operators to submit proposals for providing service.
"We want to make sure we're doing everything we can to work with the city on this," Shepler said. "We've made many suggestions for continuing to improve service, and we hope the city is open to ideas that do not include a monopoly on ferry service. All we're asking for is the chance to compete fair and square."
The dock plan will be discussed at a meeting on Mackinac Island Wednesday evening. It will take place at the City Hall starting at 5:00.
