MACKINAC ISLAND -- The battle for ferry services linking residents and tourists to Mackinac Island and the mainland is heating up once again.
Arnold Transit is filing its own lawsuit against Shepler's, while city residents continue to discuss the best route to take in the ongoing battle.
Arnold's counterclaim alleges that Shepler's is illegally interfering with Arnold's plans for ferry service to and from the island through a baseless lawsuit and misrepresentations.
According to the counterclaim, "Shepler's has engaged in a campaign to distort the facts and pursue a baseless lawsuit which it has no intention of fully prosecuting . . ." The counterclaim alleges that Shepler's has taken this action "in order to intimidate and mislead the Mackinac Island City Council and interfere with proper consideration of Arnold's and Star's proposal for a single ferry franchise." The counterclaim further states that Shepler's "has engaged in this campaign through false and malicious statements, a completely unfounded lawsuit … and a publicity and lobbying campaign based upon those false statements and that baseless lawsuit."
The counterclaim also alleges that "Shepler's has every opportunity to compete with Arnold and Star for the Mackinac Island franchise by providing a better, more competitive bid, that provides more benefits to the people of Mackinac Island." The counterclaim goes on to note that rather than "attempting to be competitive, Shepler's has instead attempted to use litigation and misrepresentation to interfere with the process" and with Arnold's efforts to improve ferry service and provide greater benefits to the people of Mackinac Island. The counterclaim alleges that the benefits offered by Arnold and Star would include reduced ticket prices, expanded schedules, more than $1 million in increased fees to Mackinac Island, and an opportunity for Mackinac Island to purchase the Arnold docks.
In addition to identifying the various flaws in the lawsuit's legal theories, the counterclaim also alleges that the "baseless nature of Shepler's claims is also revealed by the fact that several years ago, Shepler's agreed with Arnold and Star to form a consolidated entity and seek a single franchise in order to reduce costs." The counterclaim notes that Shepler's "then backed out of the venture, which it now claims to be illegal."
In accordance with the court's rules, Arnold has previously requested a conference with the court to seek permission to file a motion to dismiss the Shepler's case.
The ferry feud took on another dimension last week when Shepler's announced extended service for island residents. The move has the Mackinac Island fighting back saying Shepler's is violating its franchise agreement.
"Our mission is to serve island residents and visitors, and we will continue doing that despite the city's misinformed and misguided threats to shut us down," said Chris Shepler, vice president of Shepler's.
Shepler's began providing fast-boat service on Nov. 3, responding to the city's request for extended ice-to-ice service.
Shepler's will provide that service through Dec. 4 and on Dec. 5 will start offering slow-boat passenger and freight service through Jan. 5. Traditionally Shepler's has ended service on Oct. 31.
The city sent Shepler's a letter on Nov. 3, notifying them that they were in violation of the franchise agreement and would have to apply for extended service.
However, Shepler's attorney Edmond Koester said Wednesday city officials apparently acted before they had read Shepler's franchise agreement, which says: ". . . . nothing herein shall be interpreted as limiting the Franchisee from offering ferryboat services in addition to the services contained in its filed schedule of services."
The ferry fight started in early October when Arnold Transit and Star Line submitted a proposal to merge into a new company called Northern Ferry.
Under the deal, they would sell some assets to the city, and lease the property back in exchange for exclusive service to the island.
Shepler's Ferry Service is left out of the deal, so they filed an anti-trust lawsuit claiming it would create a monopoly. A few weeks later they announced the extended service for the community.
