International Paper Co. v. Ouellette

479 U.S. 481, 107 S. Ct. 805, 93 L. Ed. 2d 883, 1987 U.S. LEXIS 416, 17 Envtl. L. Rep. (Envtl. Law Inst.) 20327, 55 U.S.L.W. 4138, 25 ERC (BNA) 1457
CourtSupreme Court of the United States
DecidedJanuary 21, 1987
Docket85-1233
StatusPublished
Cited by535 cases

This text of 479 U.S. 481 (International Paper Co. v. Ouellette) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Paper Co. v. Ouellette, 479 U.S. 481, 107 S. Ct. 805, 93 L. Ed. 2d 883, 1987 U.S. LEXIS 416, 17 Envtl. L. Rep. (Envtl. Law Inst.) 20327, 55 U.S.L.W. 4138, 25 ERC (BNA) 1457 (1987).

Opinions

Justice Powell

delivered the opinion of the Court.

This case involves the pre-emptive scope of the Clean Water Act, 86 Stat. 816, as amended, 33 U. S. C. § 1251 et seq. (CWA or Act).1 The question presented is whether the Act pre-empts a common-law nuisance suit filed in a Vermont court under Vermont law, when the source of the alleged injury is located in New York.

I — I

Lake Champlain forms part of the border between the States of New York and Vermont. Petitioner International [484]*484Paper Company (IPC) operates a pulp and paper mill on the New York side of the lake. In the course of its business, IPC discharges a variety of effluents into the lake through a diffusion pipe. The pipe runs from the mill through the water toward Vermont, ending a short distance before the state boundary line that divides the lake.

Respondents are a group of property owners who reside or lease land on the Vermont shore. In 1978 the owners filed a class action suit against IPC, claiming, inter alia, that the discharge of effluents constituted a “continuing nuisance” under Vermont common law. Respondents alleged that the pollutants made the water “foul, unhealthy, smelly, and . . . unfit for recreational use,” thereby diminishing the value of their property. App. 29. The owners asked for $20 million in compensatory damages, $100 million in punitive damages, and injunctive relief that would require IPC to restructure part of its water treatment system.2 The action was filed in State Superior Court, and then later removed to Federal District Court for the District of Vermont.

IPC moved for summary judgment and judgment on the pleadings, claiming that the CWA pre-empted respondents’ state-law suit. With the parties’ consent, the District Judge deferred a ruling on the motion pending the decision by the Court of Appeals for the Seventh Circuit in a similar case involving Illinois and the city of Milwaukee. In that dispute, Illinois filed a nuisance action against the city under Illinois statutory and common law, seeking to abate the alleged pollution of Lake Michigan. Illinois v. Milwaukee, 731 F. 2d 403 (1984) (Milwaukee III), cert. denied, 469 U. S. 1196 (1985).3 The Court of Appeals ultimately remanded the case [485]*485for dismissal of Illinois’ claim, finding that the CWA precluded the application of one State’s law against a pollution source located in a different State. The decision was based in part on the court’s conclusion that the application of different state laws to a single “point source”4 would interfere with the carefully devised regulatory system established by the CWA. 731 F. 2d, at 414. The court also concluded that the only suits that were not pre-empted were those alleging violations of the laws of the polluting, or “source,” State. Id., at 413-414.

IPC argued that the holding in Milwaukee III was dispos-itive in this case. The Vermont District Court disagreed and denied the motion to dismiss. 602 F. Supp. 264 (1985). The court acknowledged that federal law normally governs interstate water pollution. It found, however, that two sections of the CWA explicitly preserve state-law rights of action. First, § 510 of the Act provides:

“Except as expressly provided . . . , nothing in this chapter shall... be construed as impairing or in any manner affecting any right or jurisdiction of the States with respect to the waters (including boundary waters) of such States.” 33 U. S. C. § 1370.

In addition, § 505(e) states:

“Nothing in this section shall restrict any right which any person (or class of persons) may have under any statute or common law to seek enforcement of any effluent standard or limitation or to seek any other relief_” 33 U. S. C. § 1365(e).

The District Court held that these two provisions (together, “the saving clause”) made it clear that federal law did not pre-empt entirely the rights of States to control pollution. [486]*486Therefore the question presented, said the court, was which types of state suits Congress intended to preserve. It considered three possibilities:5 first, the saving clause could be construed to preserve state law only as it applied to waters not covered by the CWA. But since the Act applies to virtually all surface water in the country,6 the District Court rejected this possibility. Second, the saving clause might preserve state nuisance law only as it applies to discharges occurring -within the source State; under this view a claim could be filed against IPC under New York common law, but not under Vermont law. This was the position adopted by the Court of Appeals for the Seventh Circuit in Milwaukee III. The District Court nevertheless rejected this option, finding that “there is simply nothing in the Act which suggests that Congress intended to impose such limitations on the use of state law.” 602 F. Supp., at 269.

The District Court therefore adopted the third interpretation of the saving clause, and held that a state action to redress interstate water pollution could be maintained under the law of the State in which the injury occurred. Ibid. The court was unpersuaded by the concern expressed in Milwaukee III that the application of out-of-state law to a point source would conflict with the CWA. It said there was no interference with the procedures established by Congress because a State’s “imposition of compensatory damage awards and other equitable relief for injuries caused . . . merely sup[487]*487plement the standards and limitations imposed by the Act.” 602 F. Supp., at 271 (emphasis in original). The court also found that the use of state law did not conflict with the ultimate goal of the CWA, since in each case the objective was to decrease the level of pollution. Ibid.

The District Court certified its decision for interlocutory appeal, see 28 U. S. C. § 1292(b) (1982 ed., Supp. III), and the Court of Appeals for the Second Circuit affirmed for the reasons stated by the District Court. 776 F. 2d 55, 56 (1985) (per curiam). We granted certiorari to resolve the circuit conflict on this important issue of federal pre-emption. 475 U. S. 1081 (1986). We now affirm the denial of IPC’s motion to dismiss, but reverse the decision below to the extent it permits the application of Vermont law to this litigation. We hold that when a court considers a state-law claim concerning interstate water pollution that is subject to the CWA, the court must apply the law of the State in which the point source is located.

II

A brief review of the regulatory framework is necessary to set the stage for this case. Until fairly recently, federal common law governed the use and misuse of interstate water. See, e. g., Hinderlider v. La Plata River & Cherry Creek Ditch Co.,

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Bluebook (online)
479 U.S. 481, 107 S. Ct. 805, 93 L. Ed. 2d 883, 1987 U.S. LEXIS 416, 17 Envtl. L. Rep. (Envtl. Law Inst.) 20327, 55 U.S.L.W. 4138, 25 ERC (BNA) 1457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-paper-co-v-ouellette-scotus-1987.