Natural Resources Defense Council v. Southwest Marine, Inc.

39 F. Supp. 2d 1235, 29 Envtl. L. Rep. (Envtl. Law Inst.) 21189, 48 ERC (BNA) 1399, 1999 U.S. Dist. LEXIS 3293, 1999 WL 155914
CourtDistrict Court, S.D. California
DecidedJanuary 28, 1999
Docket3:96-cv-01492
StatusPublished
Cited by7 cases

This text of 39 F. Supp. 2d 1235 (Natural Resources Defense Council v. Southwest Marine, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Natural Resources Defense Council v. Southwest Marine, Inc., 39 F. Supp. 2d 1235, 29 Envtl. L. Rep. (Envtl. Law Inst.) 21189, 48 ERC (BNA) 1399, 1999 U.S. Dist. LEXIS 3293, 1999 WL 155914 (S.D. Cal. 1999).

Opinion

ORDER GRANTING MOTION FOR RECONSIDERATION AND AFFIRMING OPINION AND ORDER OF NOVEMBER 20,1998

BREWSTER, Senior District Judge.

I. Introduction

Defendant Southwest Marine (SWM) brings a motion to reconsider this Court’s Opinion and Order of November 20, 1998. 1 That Order denied SWM’s motion in limine seeking to preclude potential imposition of civil penalties for alleged violations of the Clean Water Act. 2 The Mo *1237 tion to Reconsider is GRANTED; 3 however, the Order of November 20, 1998 is AFFIRMED.

II. Analysis

Defendant’s motion is an elaboration of the argument put forth in its original motion. Defendant continues to insist that Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 118 S.Ct. 1003, 140 L.Ed.2d 210 (1998), represents a new overarching principle of constitutional jurisprudence whereby citizen suit plaintiffs never have standing to seek penalties for violations of an environmental statute if those penalties are payable to the U.S. Treasury. 4 Defendant’s position is without exception, i.e., civil penalties are never available to citizen suit plaintiffs, no matter if the Defendant may be engaged in continuing violations of the Clean Water Act.

A. Steel Co. Does Not Apply With Continuing Violations

Defendant reads Steel Co. too broadly. Steel Co. involved the limited situation in which an environmental advocacy group sought civil penalties — and only civil penalties — for wholly past violations of the Emergency Planning and Community Right>-to-Know Act of 1986 (EPCRA), 42 U.S.C. § 11046(a)(1). involve allegations of ongoing violations nor did the facts suggest that there was a likelihood that such violations might occur in the future. Because Steel Co. did not address the issue of penalties in the context of ongoing violations, nor address when civil penalties are requested in addition to other remedies, Steel Co. did not invalidate all statutorily-provided civil penalties in citizen suit cases without exception.

Defendant asserts that the issue of wholly past violations was “immaterial,” “irrelevant,” and “made no difference” to the Steel Co. analysis. By ignoring the facts of Steel Co., Defendant is able to assert that penalties can never serve as a deterrent, regardless of the status of alleged violations. 5 That is not the holding of Steel Co. In Steel Co., in the absence of a continuing violation or the imminence of a threatened violation, the request for civil penalties did not confer standing because plaintiff could only have a “generalized” interest in imposing civil penalties which would be paid to the U.S. Treasury and thus any injury suffered would not be redressed. 118 S.Ct. at 1018.

The instant matter is quite different. Plaintiffs have alleged, and Defendant *1238 does not dispute, sufficient concrete, particularized, and actual injuries to confer standing to bring their case. See, e.g., Lujan v. Defenders of Wildlife, 504 U.S. 555, 560, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992). Likewise, Plaintiffs have alleged continuing violations that contribute to the alleged injuries. The question then is—will the potential or actual imposition of civil penalties help remedy Plaintiffs’ alleged injuries'?

Civil penalties may have a remedial effect if they deter Defendant’s alleged violations. Deterrence comes in two forms— specific and general. As stated, Steel Co. held that penalties that only contribute to “generalized deterrence” were insufficient to satisfy standing’s redressability prong. 118 S.Ct. at 1018. Without deciding whether penalties should be imposed, this Court finds that the possible imposition of monetary penalties would contribute to specifically deterring current violations alleged to be harming Plaintiffs. With alleged continuing violations, because there are alleged current harms, in contrast to wholly past violations, a court does not have to engage in an abstract evaluation of whether a defendant may or may not repeat its illegal conduct and cause future harms. The alleged malfeasance is immediate and tangible, and the imposition of civil penalties may help stop it. If there is specific deterrence of Defendant’s conduct, then there is redress on an equivalent basis to any injunction this Court could issue. The Court also notes that Plaintiffs have asked this Court to apply a portion of any penalties imposed to local projects that have a beneficial impact on San Diego Bay. This Court has taken a similar step in previous litigation. See United States v. City of San Diego, 1991 WL 163747, *5 (S.D.Cal. April 18, 1991). The availability of this alternative strengthens the redress-ability aspect of civil penalties in significant measure.

As the redress Plaintiffs seek is related to remedy of a specific injury, Steel Co.’s concern that the monetary penalty remedy will only impart “psychic satisfaction,” or that the Plaintiffs will only derive “comfort and joy” from the potential levy of monetary penalties, is not implicated. 118 S.Ct. at 1019. The risk of allowing citizens to take on the mantle of purely public prosecutors without consideration of their own injuries is likewise not at issue. Plaintiffs’ interest in conforming Defendant’s conduct to the dictates of the Clean Water Act is not an “undifferentiated” interest in enforcing the rule of law, but instead in stopping behavior they allege is causing it legally cognizable injuries. 6

Defendant argues that Steel Co.’s language stating that injunctive relief would remedy harms caused by ongoing violations implies by negative inference that civil penalties are precluded even with ongoing violations. 7 118 S.Ct. at 1019. *1239 First, the Court is hesitant to read too much of a negative inference from this language, especially considering the Court’s decision in Gwaltney of Smithfield, Ltd. v. Chesapeake Bay Found., 484 U.S. 49, 108 S.Ct. 376, 98 L.Ed.2d 306 (1987), that civil penalties are available for ongoing violations. The absence of any suggestion in Steel Co. that Gwaltney is no longer good law is instructive. Second, such a negative inference flies in the face of established jurisprudence holding that monetary penalties do have a deterrent effect. See, e.g., Bennett v. Spear,

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39 F. Supp. 2d 1235, 29 Envtl. L. Rep. (Envtl. Law Inst.) 21189, 48 ERC (BNA) 1399, 1999 U.S. Dist. LEXIS 3293, 1999 WL 155914, Counsel Stack Legal Research, https://law.counselstack.com/opinion/natural-resources-defense-council-v-southwest-marine-inc-casd-1999.