Galveston pilots group wins ruling in battle over licensing

A state district judge in Austin has sided with the Galveston-Texas City Pilots in a lawsuit challenging the process for licensing the state pilots who guide cruise ships and other vessels to their docks in Galveston County. An appeal is expected. A group of five ship captains is seeking to compete directly with the Galveston-Texas City Pilots. Unable to get state licenses, they sued Gov. Greg Abbott and the state-appointed commissioners who oversee the pilots group.

A major theme of the lawsuit hinges on the state’s right to regulate a critical service for the public good versus the illegality of monopolies in Texas, with the ship captains’ attorney calling the Galveston-Texas City Pilots a cartel during a hearing two weeks ago. Attorney Justin Renshaw said they’re seeking to make as much money for themselves as possible and exclude other mariners.

On Tuesday, Judge Dustin

“If the federal pilots decide to appeal, we feel like the law is on our side.”

Paxton Crew, attorney

Howell issued a decision letter ruling in favor of Abbott, the Galveston-Texas City Pilots and the commissioners who oversee that group. He granted the governor’s plea to the jurisdiction, as well as the pilots’ and commissioners’ motions for summary judgment.

“We’re very pleased with the judge’s decision,” said Paxton Crew, attorney for the Galveston-Texas City Pilots. “And if the federal pilots decide to appeal, we feel like the law is on our side.”

In earlier court documents, Assistant Attorney General John Langley, who represents Abbott and the pilot commissioners, argued that exceptions to the state’s prohibition on monopolies have been recognized in previous court decisions. They’re justified when created by government regulations that protect public health and welfare, such as requiring occupational licenses to practice medicine or law.

Renshaw countered that the pilot situation is not like getting a license to practice law because lawyers have the liberty of choosing among myriad firms. It would be comparable to the pilot situation only if there were just one law firm in town through which a lawyer could be licensed and employed.

He’s previously said that the safety argument does not argue in favor of a monopoly, but it does support licensing. He emphasized that the mariners he represents are not trying to get rid of licensing. They just want everyone to have the same opportunity for receiving that license.

On Wednesday, Renshaw filed a request for findings of fact and conclusions of law to get the judge to specify why he made that ruling.

Renshaw said he is optimistic the captains’ case will prevail on appeal.

“Round 1 goes to them,” he said. “Now we move on to Round 2 and see what happens there.”