Detroit Diesel Corp. v. Attorney General

269 A.D.2d 1, 709 N.Y.S.2d 1
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 2, 2000
StatusPublished
Cited by16 cases

This text of 269 A.D.2d 1 (Detroit Diesel Corp. v. Attorney General) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Detroit Diesel Corp. v. Attorney General, 269 A.D.2d 1, 709 N.Y.S.2d 1 (N.Y. Ct. App. 2000).

Opinion

OPINION OF THE COURT

Nardelli, J. P.

In this appeal, we are called upon to determine whether the [3]*3express preemption provision of the Clean Air Act precludes the Attorney General of the State of New York from pursuing claims arising out of the respondents’ manufacture of heavy-duty diesel engines which, purportedly, were equipped with electronic devices specifically designed to circumvent Federal emissions controls and, concomitantly, whether certain subpoenas duces tecum issued by the Attorney General in furtherance of those claims should be quashed.

The Federal Investigation

In the fall of 1997, the United States Environmental Protection Agency (EPA) commenced what it described in an October 22, 1998 press release as an “extensive investigation” into the heavy-duty diesel engine (HDDE) industry. The focus of the investigation was on the use by all HDDE manufacturers, including the petitioners herein, of electronic engine control systems, or “defeat devices,” which allegedly differentiated between nitrogen oxide (NOx) emissions during “transient,” or normal urban driving conditions, and NOx emissions during “steady state” or highway driving conditions, the former of which had been the exclusive regulatory focus of the EPA. The EPA maintained that the devices allowed the manufacturers to circumvent Federal emissions standards and violated various provisions of the Clean Air Act by vastly increasing the amount of NOx emitted by the HDDEs when engaged in driving patterns not reflected in the Federal emissions tests.

The parties entered into lengthy settlement negotiations and on October 22, 1998, the EPA, the United States Department of Justice and the individual manufacturers entered into consent decrees which were designed to: resolve all of the EPA’s claims; reduce the emissions from HDDEs; ensure compliance with the Clean Air Act by having the manufacturers “replace the strategies the United States alleges are defeat devices and providing for emissions and compliance monitoring through the term of the Decree through supplementary test requirements;” and to accomplish the foregoing without “prolonged and complicated litigation.”1 On or about July 1, 1999, after the period for public comment expired, the United States District Court for the District of Columbia entered the decrees, having found them to be in the public interest.

[4]*4The Subpoenas Duces Tecum

On the same date that the complaint and consent decrees were filed in the United States District Court, the Attorney General of the State of New York (Attorney General) issued identical subpoenas to petitioners Detroit Diesel Corporation, Mack Trucks, Inc., Cummins Engine Co., Inc., and Caterpillar, Inc., and allegedly served petitioner Volvo Truck North America, Inc., pursuant to Business Corporation Law § 307, approximately one week later.2 The subpoenas state that they relate to an “investigation” of “repeated fraudulent or illegal acts or persistent fraud” allegedly perpetrated by HDDE manufacturers.

The subpoenas seek, inter alia: all testing data generated by each manufacturer in connection with its compliance with Federal emissions standards; all documents provided to the EPA with respect to that agency’s recently concluded investigation of electronic engine controls for HDDEs; all correspondence between petitioners and either the EPA or the Department of Justice relating to the Federal investigation and the negotiations which led to the execution of the consent decrees; and all submissions by petitioners in response to the EPA’s order to show cause concerning their compliance with the Federal emissions standards.

On November 18, 1998, a meeting was held between representatives of the HDDE manufacturers and an Assistant Attorney General of the State of New York (AAG) assigned to the Environmental Protection Bureau, in order to discuss the subpoenas. At that time, the AAG purportedly stated that the subpoenas were primarily intended to give the Attorney General “discovery” for possible use in opposing entry of the consent decrees. The AAG made it clear that any documents obtained through the use of the subpoenas would be utilized to support either New York’s public comments regarding the consent decrees, which would be submitted to the Federal District Court, or a motion to intervene in the proceedings in that court.

Petitioners thereafter moved, by separate orders to show cause served on November 24, 1998, to quash the subpoenas. In opposition, the Attorney General maintained that the [5]*5preemptive effect of the Clean Air Act is not so broad that it forecloses the regulation of HDDEs after they have been sold and placed in use. The Attorney General also argued that the issue of preemption was premature and that State common-law actions for damages, such as fraud, breach of warranty, public nuisance and conspiracy to restrain trade, are not preempted by the Clean Air Act. The IAS Court disagreed, granted the petitions and quashed the subpoenas, holding, inter alia, that the petitions were not premature and that any investigation commenced by the Attorney General regarding alleged violations of Federal emissions standards is preempted by section 209 (a) of the Clean Air Act (42 USC § 7543 [a]). The Attorney General appeals and we now affirm.

The Clean Air Act

The Clean Air Act (42 USC § 7401 et seq. [CAA]) has been described as “one of the most comprehensive pieces of legislation in our nation’s history” (Motor Vehicle Mfrs. Assn. v New York State Dept. of Envtl. Conservation, 17 F3d 521, 524) which, when enacted by the United States Congress in 1955, was aimed primarily at increasing Federal research and assistance in reducing air pollution levels. The original version of the CAA made no attempt to establish Federal motor vehicle emission standards (see, Air Pollution Control — Research and Technical Assistance Act of 1955, Pub L 84-159, 69 US Stat 322).

Congress first enacted emissions standards for new motor vehicle engines in 1965 (see, Motor Vehicle Air Pollution Control Act of 1965, Pub L 89-272, § 202 [a], 79 US Stat 992) and, in 1967, imposed Federal preemption over motor vehicle emission standards, although California was granted a waiver from preemption because it is the largest single market for automobiles in the United States and because California had already developed and implemented a regulatory framework for the control of emissions by the time the CAA was enacted. Subsequent legislation permits other States to adopt California’s standards if those States’ standards “are identical to the California standards for which a waiver has been granted for such model year.” (Pub L 95-95, § 129 [b], 91 US Stat 685, 750.)3

In its present form, title I of the CAA directs the EPA to develop national ambient air quality standards (NAAQS) for [6]*6pollutants which are determined to “cause or contribute to air pollution which may reasonably be anticipated to endanger public, health or welfare” (42 USC § 7408 [a] [1] [A]). Title II of the CAA establishes a comprehensive framework for the EPA’s regulation of emissions for new motor vehicles and motor vehicle engines, including the HDDEs which are at issue herein. Specifically, the CAA gives the EPA the responsibility of promulgating and enforcing emissions standards for NOx, particulate matter, carbon monoxide and hydrocarbons (see, 42 USC §§ 7521, 7543).

Preemption

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Cite This Page — Counsel Stack

Bluebook (online)
269 A.D.2d 1, 709 N.Y.S.2d 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/detroit-diesel-corp-v-attorney-general-nyappdiv-2000.