Phoenix Resources, Inc. v. Duncan Township

155 F.R.D. 507, 1994 U.S. Dist. LEXIS 7855, 1994 WL 256748
CourtDistrict Court, M.D. Pennsylvania
DecidedMay 24, 1994
DocketNo. 4:CV-92-0956
StatusPublished
Cited by1 cases

This text of 155 F.R.D. 507 (Phoenix Resources, Inc. v. Duncan Township) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phoenix Resources, Inc. v. Duncan Township, 155 F.R.D. 507, 1994 U.S. Dist. LEXIS 7855, 1994 WL 256748 (M.D. Pa. 1994).

Opinion

MEMORANDUM

McCLURE, District Judge.

BACKGROUND:

Plaintiffs Phoenix Resources, Inc., and An-trim Mining, Inc., instituted this action under various statutory and constitutional provisions alleging that defendants had conspired to prevent plaintiffs from operating residual waste landfills in Duncan Township, Tioga County, Pennsylvania.

On January 6, 1994, plaintiffs filed a motion for approval of a consent order and agreement. The court held a hearing on the motion February 22, 1994.

Following the hearing, the court expressed its concern with the manner in which the proposed consent order and agreement appeared to require Duncan Township to abdicate its authority to regulate land use within its territorial jurisdiction, and with no apparent time limit. We therefore directed briefing on issues related to our concerns.

Plaintiffs then moved to amend their motion for approval of a proposed consent order and agreement. The motion offered modifications designed to allay the concerns expressed by the court. The motion to amend was granted by order of March 16, 1994. The revised proposed consent order and agreement attached to plaintiffs’ motion to amend (record document no. Ill) will hereinafter be referred to as the “proposed consent decree.”

DISCUSSION:

Defendants Janeski and Pine Creek Headwaters Protection Group, Inc. do not dispute that Duncan Township has the authority to enter into a contract and, therefore, a settlement agreement and/or a consent decree. They do contest, however, the extent of that authority and, specifically, the validity of the proposed consent decree in the instant case.

The court initially expressed concern over the authority of the Duncan Township Supervisors to abdicate certain governmental powers and duties and to bind their successors through the proposed consent decree. We agree with defendants that these concerns continue to be implicated in the revised proposed consent decree. Also, the proposed consent decree covers a number of disputes between the parties which are not material to the instant case. The court will not issue a consent decree purporting to bind the parties to disputes not before the court, based upon fundamental principles of comity and federalism. Of course, the parties are free to enter into an agreement without approval of the court; however, the court will not give its imprimatur to the proposed settlement agreement by issuing a consent decree containing its terms.

I. CONSENT DECREES GENERALLY

A consent decree serves a dual function. It is an agreement between the parties reached through mutual consent, and so has the attributes of a contract. It also serves as res judicata, barring either party from bringing a separate lawsuit, and so has the attributes of a judgment. Because of its hybrid nature, a consent decree can be la-belled as either a judgment or a contract depending upon the purpose for which it is being reviewed. Local No. 93, Int'l Ass’n of Firefighters v. City of Cleveland, 478 U.S. 501, 519, 106 S.Ct. 3063, 3073-74, 92 L.Ed.2d 405 (1986); United States v. Fisher, 864 F.2d 434, 439 (7th Cir.1988). Essentially, a consent decree is a settlement agreement subject to continued judicial policing. United States v. Oregon, 913 F.2d 576, 580 (9th Cir.1990), cert. denied, 501 U.S. 1250, 111 S.Ct. 2889, 115 L.Ed.2d 1054 (1991). This is so because a consent decree continues jurisdiction in a single court (the issuing court), thereby facilitating enforcement through the court’s contempt powers. Local No. 93, 478 U.S. at 523-524 n. 13, 106 S.Ct. at 3076 n. 13. See also In re Pearson, 990 F.2d 653, 658 (1st Cir.1993) (“A consent decree is not simply a contract entered into between private parties seeking to effectuate parochial concerns____ The court stands behind the decree, ready to interpret and enforce its provisions.”; citations omitted).

Before approving a settlement and issuing a consent decree, the district court [510]*510must be satisfied that it is fair, adequate, and reasonable. Georgevich v. Strauss, 772 F.2d 1078, 1085 (3d Cir.1985), cert. denied, 475 U.S. 1028, 106 S.Ct. 1229, 89 L.Ed.2d 339 (1986); United States v. Oregon, 913 F.2d at 580. The district court has “considerable discretion” in doing so. Georgevich, 772 F.2d at 1085. See also Pearson, 990 F.2d at 658 (“This ongoing supervisory responsibility carries with it a certain correlative discretion.”; citation omitted). Finally, the consent decree (because it is a judgment) should conform to the applicable laws. United States v. Oregon, 913 F.2d at 580-81.

In Georgevich, for example, the Third Circuit affirmed the district court’s refusal to approve a consent decree in a class action suit. The district court’s decision was based on objections by members of the defendant class, concerns about federal-state relations, and the changed position of the defendant class representative. 772 F.2d at 1085.

II. PROBLEMATIC PROVISIONS

Of particular concern to the objecting defendants are paragraphs 5 and 6 of the proposed consent decree. Paragraph 5 reads:

5. The parties agree that the operation of the Antrim Flyash disposal Facility and the Rock Run Flyash Facility pursuant to Permit No. 301106 and Permit No. 301025, respectively, are preexisting, nonconforming uses and are therefore grandfathered under all township ordinances and Tioga County Ordinance No. 2-1988. The parties recognize the preexisting, nonconforming uses are subject to the doctrine of natural expansion. Therefore, the parties agree that the acreage used for residual waste landfills on the property may be expanded beyond the 13.5 acre Rock Run Facility and 135 acre Antrim Facility, but in no event shall the additional acreage exceed 176.5 acres.

Paragraph 6 reads:

6. On January 28, 1992 Duncan Township filed an appeal to the Environmental Hearing Board challenging various actions taken by PaDER[1] on December 31, 1991. Duncan Township has since voluntarily withdrawn its appeal to the Environmental Hearing Board. Duncan Township covenants not to appeal to the Environmental Hearing Board or to provide funding for an appeal to the Environmental Hearing Board for permits, transferees of permits, approval of permits or modifications to permits for beneficial uses, the Rock Run Flyash Disposal Facility, Antrim Mining Flyash Disposal Facility and the expansion permitted by this Agreement.
Duncan Township agrees that beneficial uses, the Rock Run Flyash Disposal Facility and the Antrim Flyash Disposal Facility as well as the natural expansion thereof not to exceed an additional 176.5 acres is grandfathered under any future ordinances, whether zoning or otherwise, and therefore, Duncan Township covenants not to take any action which would prohibit the operation thereof or which would materially restrict or limit the operation thereof.

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Bluebook (online)
155 F.R.D. 507, 1994 U.S. Dist. LEXIS 7855, 1994 WL 256748, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phoenix-resources-inc-v-duncan-township-pamd-1994.