Gordon-Darby Holdings, Inc. v. Quinn

Court of Appeals for the First Circuit·Decided April 30, 2026·No. 26-1209·Unknown

Opinion

United States Court of Appeals For the First Circuit

No. 26-1209

GORDON-DARBY HOLDINGS, INC.,

Plaintiff, Appellee,

v.

ROBERT L. QUINN, in the official capacity as Commissioner of the New Hampshire Department of Safety, et al.,

Defendants, Appellants.

Before

Barron, Chief Judge,

Aframe and Dunlap, Circuit Judges.

ORDER OF COURT

Entered: April 30, 2026

This case concerns New Hampshire's recent repeal of the State's motor vehicle emissions inspection and maintenance program ("I/M program"). Defendants-Appellants, the Commissioners for both New Hampshire's Department of Safety and its Department of Environmental Services (together, the "Commissioners"), seek a stay pending appeal of the district court's January 27, 2026, preliminary injunction, which enjoined the Commissioners "from taking or directing any action to terminate, suspend, or otherwise cease implementation or enforcement of" New Hampshire's I/M program and to "take all steps necessary to resume and ensure the continued implementation and enforcement of" that program. For the reasons described below, we grant the Commissioners' motion to stay the injunction.

Plaintiff-Appellee Gordon-Darby Holdings, Inc. ("Gordon-Darby") is the parent company of Gordon-Darby NHOST Services, Inc. ("Gordon-Darby NHOST"), which was the sole vendor contracted to administer I/M services to New Hampshire motorists. In June 2025, New Hampshire adopted House Bill 2 ("HB 2"), which repealed the State's I/M program effective January 31, 2026. 2025 N.H. Laws §§ 141:244-141:256. On October 7, 2025, Gordon-Darby notified the Commissioners of its intent to sue under the Clean Air Act ("CAA") for alleged violations related to the repeal of the I/M program. On December 8, 2025, Gordon-Darby sued the Commissioners under the CAA's citizen suit provision. 42 U.S.C. § 7604(a).

I. Standard of Review

"A stay pending appeal is 'an intrusion into the ordinary processes of administration and judicial review.'" Rhode Island v. Trump, 155 F.4th 35, 41 (1st Cir. 2025) (quoting New York v. Trump, 133 F.4th 51, 65 (1st Cir. 2025)). As the party seeking a stay of the preliminary injunction pending appeal, the Commissioners bear the burden of justifying that they are entitled to such extraordinary relief. See Nken v. Holder, 556 U.S. 418, 433–34 (2009); see also Somerville Pub. Schs. v. McMahon, 139 F.4th 63, 68 (1st Cir. 2025); Rhode Island, 155 F.4th at 41. We consider four factors:

(1) whether the stay applicant has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) where the public interest lies.

Rhode Island, 155 F.4th at 41 (quoting Nken, 556 U.S. at 434). Of these factors, the first two "are 'the most critical.'" Id. (quoting Nken, 556 U.S. at 434). Within the stay framework, we review legal conclusions de novo. See id. at 44-45.

II. Likelihood of Success on the Merits

The CAA is a complicated statutory scheme that contemplates "cooperative federalism."

Env't Integrity Project v. EPA, 969 F.3d 529, 535 (5th Cir. 2020) (internal quotations omitted) (quoting Luminant Generation Co. v. EPA, 675 F.3d 917, 921 (5th Cir. 2012); see Conservation L. Found. v. Acad. Express, LLC, 129 F.4th 78, 82 (1st Cir. 2025) (noting division of "responsibilities among state and federal governments" under the CAA). The CAA empowers the U.S. Environmental Protection Agency ("EPA") to promulgate air quality standards for certain pollutants. 42 U.S.C. § 7409(a). The CAA further directs states to develop State Implementation Plans ("SIPs") to implement, maintain, and enforce these air quality standards, and submit those plans to the EPA Administrator for approval. See 42 U.S.C. § 7410(a). The Administrator may accept a proposed plan as consistent with the CAA, at which point the SIP becomes part of federal law. See Conservation L. Found., 129 F.4th at 83. If a state chooses not to submit a SIP or submits a SIP that is not satisfactory, the Administrator must promulgate a federal plan. 42 U.S.C. § 7410(c). The EPA also may employ sanctions designed to encourage states to submit qualifying SIPs; it can implement these sanctions after giving eighteen months for the state to rectify any "deficiency." 42 U.S.C. § 7509(a)-(b). Assuming a state proposes a SIP that is approved by the Administrator, the EPA possesses important enforcement mechanisms as to any person that "has violated or is in violation of any requirement or prohibition of" the SIP. 42 U.S.C. § 7413(a)(1); see also id. § 7413(a)(2), (b)-(d) (outlining alternative ways the EPA can enforce SIPs).

The CAA's statutory scheme also provides the public with a role in enforcing the CAA.

Any "person may commence a civil action on his own behalf" against

any person (including (i) the United States, and (ii) any other governmental instrumentality or agency to the extent permitted by the Eleventh Amendment to the Constitution) who is alleged to have violated (if there is evidence that the

alleged violation has been repeated) or to be in violation of . . . an emission standard or limitation under this chapter.

Id. § 7604(a)(1) (emphasis added). As relevant here, an "emission standard or limitation" includes "any condition or requirement under" the applicable SIP relating to I/M programs. Id. § 7604(f)(3).

The CAA imposes limits on citizen suits. A citizen suit cannot be filed until "60 days after the plaintiff has given notice of the violation (i) to the Administrator, (ii) to the State in which the violation occurs, and (iii) to any alleged violator of the standard, limitation, or order." Id. § 7604(b)(1)(A). Nor can one be filed "if the Administrator or State has commenced and is diligently prosecuting" a civil action to require compliance with the relevant emission standard or limitation. Id. § 7604(b)(1)(B).

Gordon-Darby is seeking to avail itself of the citizen-suit provision. It satisfies certain threshold requirements to bring a suit under § 7604: Gordon-Darby is a "person" within the meaning of the statute, id. § 7602(e), and it avoids Eleventh Amendment concerns by suing the Commissioners in their official capacity, see, e.g., Cotto v. Campbell, 126 F.4th 761, 767-68 (1st Cir. 2025). Gordon-Darby also provided notice to the Commissioners that it intended to sue them for "tak[ing] steps to cease implementation of the I/M program effective January 31, 2026," including by "inform[ing] the public" on a state website that the Department of Safety "will cease administering and enforcing the I/M requirements" as of that date, and by giving Gordon-Darby NHOST a notice of their "intent to terminate the state's contract for services related to the I/M program" on January 31, 2026. In its citizen-suit notice, Gordon-Darby also asserted that the Commissioners would "remain in violation" of the SIP "until they resume implementing and enforcing" the I/M program.

The difficulty here, as the Commissioners properly identify, is that New Hampshire did not terminate its I/M program or terminate its I/M supplier contract with Gordon-Darby NHOST until January 31, 2026. Prior to that date, New Hampshire had only (1) announced that it would, pursuant to HB 2, discontinue the I/M requirements effective January 31, 2026, and (2) communicated to Gordon-Darby NHOST its intent to terminate its contract effective January 31, 2026.

The Commissioners zero in on this difficulty in seeking the stay. They do so in part by contending that Gordon-Darby failed to satisfy the notice requirement of § 7604(b)(1). But, in advancing this notice-based ground for seeking the stay, they also necessarily advance an argument based on § 7604(a)(1), namely, that Gordon-Darby is not likely to succeed in showing that the Commissioners were "in violation of" any emission standard or limitation when it commenced this suit.

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