- A federal judge has twice ruled that Mackinac Island hasn’t proven the Florida company that owns both island ferry companies violated antitrust laws
- Both sides said they’re willing to go into mediation, but they haven’t had meaningful talks since October, and the city says they can’t imagine a settlement can be reached
- The outcome of the case could decide ferry prices heading into the summer tourism season
A federal appeals court has upheld Mackinac Island’s authority to regulate fares charged by the ferries that transport tourists to and from the island.
The island city is now “evaluating its next steps with regards to the 2026 season and anticipates taking action over the next week,” Erin Evashevski, a St. Ignace attorney representing the city, said in an email to Bridge Michigan on Friday.
The city’s franchise agreement with the ferry operators says the city can regulate fares when there’s no ferry competition. When the Florida-based Hoffman Marine took over its sole ferry competitor in 2024, the city passed an ordinance that aimed to stop Hoffman’s planned $2 fare hike.
The ferry companies raised rates anyway and then sued, saying the island cannot unilaterally decide that no competition exists. A US District Court judge last summer ordered a preliminary injunction stopping the city while the case continued in court.
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On Thursday, a panel of judges for the Sixth Circuit Court of Appeals overturned that injunction as it relates to ferry fares, calling the city’s interpretation of the franchise agreement’s language “reasonable.” The appellate judges upheld the part of the injunction blocking the city from regulating parking rates on the mainland.
The current ferry contracts expire June 30, 2027.
The case continues in District Court, where a trial seems likely in the yearlong court battle over ticket and parking prices charged by Hoffman.
In court filings this week, both sides expressed a willingness to participate in mediation but the island city said it “does not believe that the parties have any realistic prospect of settlement at this point.” No meaningful negotiations have happened since October, the city said.
Attorneys for Hoffman did not respond to messages seeking comment on Friday.
The case has roiled one of Michigan’s top tourist destinations, with many island businesses worried rising ferry prices could deter visitors.
At issue is whether Hoffman Marine violated its franchise agreement with the city when it raised ticket prices last spring over the objection of the Mackinac Island City Council.
The contract allows the city to regulate fares when there’s no ferry competition. Since 2024, Hoffman Marine — part of the private equity firm Hoffman Family of Companies — has owned both Mackinac Island ferry lines, Shepler’s Inc. and the Arnold Transit Co., formerly Star Line. The company also owns the ferry docks in St. Ignace, Mackinaw City and on the island, along with most of the long-term parking on the mainland (along with the Mackinac Island and St. Ignace newspapers).
Hoffman’s control of all ferry operations prompted the city in December 2024 to declare a monopoly and vote to nix the ferry companies’ $2 ticket price hike.
The ferry companies raised prices anyway, contending the city could not unilaterally declare that no competition exists.
The ferry companies sued the city, which countersued, accusing the companies of violating US antitrust laws.
US District Judge Robert Jonker has twice ruled — most recently last month — that the city did not prove antitrust violations, but allowed the city’s breach-of-contract claims to continue in court.
The two sides are expected in court Monday for a status conference.
Last summer, an adult roundtrip ferry ride cost $38 and parking day passes cost $15. This year’s prices haven’t yet been announced.
Separate from the court battle, the state Senate has passed a bill that would explicitly allow Mackinac Island to regulate ferry and parking prices. The bill has been stuck in the state House Government Operations Committee since July, but committee chairperson state Rep. Brian BeGole, R-Perry, said he “wouldn’t say the bill is dead.
“It’s not an urgent priority,” he said Friday, “but it is on our list to review.”
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