STOCK MARKET WATCH -- Thursday, 12 January 2012

[tclambert]

90. Matty Moroun could face lengthy incarceration

[b]Matty Moroun could face lengthy incarceration as Ambassador Bridge company again ordered to finish Gateway Project

Trucking magnate Matty Moroun is now part of that dubious club of billionaire inmates.

Wayne County Circuit Judge Prentis Edwards’ decision to imprison Moroun and Detroit International Bridge Company President Dan Stamper for contempt is no slap on the wrist. If the decision holds—attorneys for Moroun, Stamper and the DIBC vow to appeal—both men will be in Wayne County Jail until the Gateway Project is completed to the judge’s satisfaction.

Michigan Department of Transportation Chief Operating Officer Gregory Johnson said he estimates it will take a full construction season the build the truck road and freeway connections MDOT and Judge Edwards says DIBC must complete in order to comply with the Gateway Project agreement.
_________________________________

Some backstory for those not from the Detroit area: Matty Moroun owns the bridge between Detroit and Windsor, Ontario. The state has long wanted to build another bridge that would compete with it. Moroun has paid for loads of commercials claiming such a government-run bridge would cost taxpayers hugely. They claim this even though his bridge company has plans of its own to build a second bridge.

The reason he was sent to jail, though, is that he made a contract and received money to build a new connector ramp from his existing bridge to public freeways. The government built their parts of the ramps. Moroun instead routed roads past businesses he owns, obviously hoping to make a few bucks from motorists who stop for a bit. For years now, he has refused to complete his part of the new ramps to the freeways, despite the contracts, money, and legal threats.

This judge has now put Moroun and the bridge company president, Stamper, in jail, supposedly until their company finishes the connectors to the satisfaction of the Michigan Department of Transportation.

It seems unlikely that a billionaire will spend much time in jail over this. The court and the state want him to quit fooling around and agree to finally finish his part of the Gateway Project. The real way to show a predatory businessperson like this that the government is serious would be to seize some of his property under eminent domain and build the rest of the connector themselves, and fine him the costs plus punitive damages.