Appeals court upholds SPA's eviction of CIP Authority regains control of terminal BY RON MENCHACA Of The Post and Courier Staff Supremacy in a tug of war over control of a shipping terminal at the former Charleston Naval Base shifted again, this time in favor of the state, after an order Wednesday from the state Court of Appeals upheld the eviction of a private firm licensed to operate the terminal. The court's order sets aside an earlier lower court ruling and puts the State Ports Authority back in charge of the disputed 100-acre property on the Cooper River. It also removes current terminal operator Charleston International Ports. CIP's managing member is H.L. Hunley fund-raiser Warren Lasch. The court is scheduled to hear oral arguments from both sides Wednesday before making a final ruling. Still unresolved in the costly, high-profile dispute are broader differences over which side breached a contract and owes the other a settlement. Those issues will be decided by a private mediator or a panel of arbitrators, perhaps as early as a week or two from now. "We appreciate the Court of Appeals taking this step and look forward to the oral arguments," SPA board Chairman Whit Smith said in a brief written statement. CIP officials could not be reached for comment Wednesday. The SPA has been locked in the contentious contractual dispute with CIP since April, when the state agency seized CIP's terminal, customers and vendors and terminated its 30-year contract in a dispute over control of the terminal. State Sen. Arthur Ravenel Jr., R-Mount Pleasant, and other lawmakers recently chided port officials for pursuing the appeal, arguing that the agency had unwisely spent more than $1 million of public money to fight CIP and risked public embarrassment if the court rejected its argument. Perry Collins, whose Winyah Stevedoring company provides much of the skilled labor that unloads cargo at the terminal, said he had not expected another changeover so soon after the last. "That is absolutely amazing. I just can't believe it," said Collins, noting that the back and forth has not had much effect on his bottom line but voicing concern that the rift may reflect poorly on the state's maritime industry. "Every time they do this, it is seamless," he said. "I hope that continues." The SPA alleges that CIP officials, who ran the break bulk cargo terminal on land controlled by the SPA, made spending decisions that kept CIP from sharing half its profits with SPA. Among other things, the state agency challenged CIP's decision to donate to political and charitable causes and to loan money to another company owned by Lasch. CIP officials maintain the company did not violate the contract and counter that it was the SPA that did so by not adequately marketing CIP's terminal to potential customers. Break bulk cargo terminals handle loose items such as metals and lumber that are not suited for packaging in standard shipping containers. CIP sued the SPA in October and won the terminal back when Charleston County Circuit Judge Roger Young ruled that the SPA lacked the authority to seize the terminal ahead of binding arbitration. Young's order was similar to a state attorney general's opinion issued in May, which said the SPA had resorted to self-help measures by seizing the terminal.
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