A federal judge on Dec. 11 denied George Harms Construction Co.’s request. to stop bidding on the surface alignment package for the Hudson Tunnel project in New Jersey, finding no irreparable harm to the Gateway Development Commission project’s labor agreement while the lawsuit continues.
In the 11-page letter opinion reviewed by ENR, the U.S. District Court for the District of New Jersey wrote that Harms “has not shown that the PLA prevents him from bidding,” citing the terms of the settlement and repeated assurances from the commission.
The decision keeps intact GDC’s procurement schedule for one of the megaproject’s largest design-build contracts.
The ruling is a setback for Harms, who filed a lawsuit Nov. 26, alleging that EPL illegally excludes its workforce represented by the United Steelworkers and violates state labor guidelines, hiring rules, and federal antitrust and constitutional provisions.
The court noted that denying a temporary restraining order does not resolve the underlying claims, which will continue.
Court rejects estoppel argument, finds limited merit in claim
Harms claimed the PLA, signed by the Hudson County Building and Construction Trades Council and its affiliated unions, effectively blocks the company from bidding unless the Steelworkers are added as signatories.
The judge disagreed, writing that the agreement “allows any qualified bidder to compete” and noting that Harms had been told he could submit a proposal.
The opinion cites the New Jersey Supreme Court’s 2024 decision in Delaware River Joint Toll Bridge Commission v. Harms, which upheld a PLA contested by the same contractor. That precedent, the judge wrote, “substantially undermines Harms’ claims” about GDC’s authority to adopt the agreement.
The ruling found that Harms is “likely to succeed” only on a narrow First Amendment claim alleging compelled speech through mandatory fringe benefit contributions.
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Still, the court concluded that the argument did not warrant emergency relief. The judge said Harms did not show a warming effect or any other form of immediate, non-compensable injury.
The court also cited evidence that GDC indicated it would facilitate discussions between Harms and the building trades and wrote that Harms “was not significantly involved in this process,” undermining its claim that the tender was impossible.
The judge further rejected Harms’ argument that GDC’s delay in ruling on its Oct. 29 bid protest rendered administrative relief futile, writing that the commission “has been responsive” and had not enforced a decision.
With the TRO denied, GDC can continue to evaluate proposals and move toward awarding the surface alignment contract, which includes roads, civil structures, bridges, utility reconstruction and a wetlands viaduct between Secaucus and North Bergen, NJ.
The case now turns to Harms’ remaining Sherman Act, equal protection, due process, and First Amendment claims.
“GDC is pleased with the district court’s decision today denying the plaintiff’s motion,” said Molly Beckhardt, senior communications associate. “We are continuing the contract award process for this critical component of the Hudson Tunnel project to help deliver the nation’s most urgently needed passenger rail project.”
United Steelworkers has not yet responded to ENR’s request for comment. The court has not scheduled hearings on Harms’ request for a preliminary injunction.
