Pound v. Airosol Company, Inc.

498 F.3d 1089, 2007 WL 2358674
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 21, 2007
Docket06-3299
StatusPublished
Cited by25 cases

This text of 498 F.3d 1089 (Pound v. Airosol Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pound v. Airosol Company, Inc., 498 F.3d 1089, 2007 WL 2358674 (10th Cir. 2007).

Opinions

BRISCOE, Circuit Judge.

In this citizen-suit action, Plaintiffs-Appellants Robert Pound and Pro Products, Inc. (collectively “Pro Products”) challenge an order of the district court declining to impose a monetary penalty against Defendant-Appellee Airosol Company, Inc. (Ai-rosol) for violations of the Clean Air Act (CAA, or “the Act”). Pro Products also challenges the district court’s order denying its request for attorney fees and costs. We exercise jurisdiction pursuant to 28 U.S.C. § 1291, and REVERSE and REMAND for further proceedings.

I

Pro Products sells habitat control products for exotic animals, primarily reptiles. One such product is Provent-a-Mite, an insecticide used to control mites and ticks on reptiles. By early 2002, Pound, the owner of Pro Products, learned that certain reptile dealers and reptile product suppliers were marketing a pesticide labeled Black Knight for use in eradicating reptile parasites. Dealers and suppliers were marketing Black Knight for this use despite the fact that Black Knight was not registered or approved for the treatment of pests affecting reptiles.

Black Knight, a pesticide manufactured by Airosol, is registered under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) for treatment of various household pests. Black Knight is an aerosol product containing hydrochloro-fluorocarbons (HCFCs) 22 and 142 (mo-nochlorodifluoromethane and monochloro-difluoroethane, respectively), Class II substances as defined and regulated by § 602(b) of the CAA, 42 U.S.C. § 7671a(b). As of February 10, 1993, Ai-rosol manufactured and sold the identical product, registered under Environmental Protection Agency (EPA) Registration No. 901-82, under three different labels: Black Knight, Airosol Aircraft Insecticide, and Government Insecticide.

The 1990 Amendments to the CAA included provisions to phase out the use of ozone-depleting substances such as those contained in Black Knight, and provided that, unless a manufacturer has applied prior to January 1, 1994, for an exception or exemption for reformulation as set forth by statute or regulation, “[ejffective January 1, 1994, it shall be unlawful for any person to sell or distribute, or offer for sale or distribution in interstate commerce ... any aerosol product or other pressurized dispenser which contains a Class II substance....” 42 U.S.C. § 7671i(d)(1)(A); see also 40 C.F.R. § 82.65(b), (c) (setting forth procedure to apply for temporary extension). Thus, Class II substances, such as those contained in Black Knight, are banned by the CAA, although the distribution or sale of products containing banned substances is permitted for an additional period if a reformulation exemption is first obtained.

On December 18, 2002, Pro Products brought suit against Airosol under the citizen suit provision of the CAA, 42 U.S.C. § 7604(a)(1). Pro Products sued Airosol, alleging, in pertinent part, that Airosol was [1094]*1094in violation of § 7671i(d)(l)(A) of the CAA. On March 10, 2004, the district court granted Pro Products’ motion for partial summary judgment finding, as a matter of law, that Airosol’s manufacture, sale, and distribution of Black Knight violated § 7671i(d)(l)(A) of the CAA.1 Following a bench trial, the district court entered an order on July 18, 2006, declining to penalize Airosol for its CAA violations. The court cited other factors, but relied heavily on its conclusion that Pro Products’ suit was brought to remove a competitor from the market and not out of a concern for the environment. The court also denied Pro Products’ renewed request for attorney fees and costs noting a circuit split, and no guidance from this court, on whether an award of attorney fees is appropriate “when the prevailing party brought the suit for personal financial gain rather than to further the purpose of the Clean Air Act.” Appx. at 545. Pro Products now challenges the district court’s decision not to penalize Airosol for violating the Act, and also the district court’s denial of its request for attorney fees and costs.

II

A. CAA Penalty Analysis

We will uphold a district court’s findings of fact in support of a CAA penalty unless the findings are clearly erroneous. See Pub. Interest Research Group of New Jersey, Inc. v. Powell Duffryn Terminals, Inc., 913 F.2d 64, 79 (3d Cir.1990), cert. denied, 498 U.S. 1109, 111 S.Ct. 1018, 112 L.Ed.2d 1100 (1991).2 The district court’s weighing of those facts, and its penalty determination, are reviewed for abuse of discretion. See United States v. Dell'Aquilla, 150 F.3d 329, 338 (3d Cir.1998). However, we “review de novo the statutory interpretation behind the district court’s decision.” United States v. B & W Inv. Props., 38 F.3d 362, 366 (7th Cir.1994) (reviewing a Clean Air Act citizen suit). Specifically, our review of the district court’s “legal construction” of the Clean Air Act’s penalty factors “is plenary.” United States v. Allegheny Ludlum Corp., 366 F.3d 164, 171 (3d Cir.2004).

Section 7604(a) of the CAA provides the district court with authority to “enforce such an emission standard or limitation, or such an order ... and to apply any appropriate civil penalties.... ” 42 U.S.C. § 7604(a). Section 7413(e)(1) sets forth the factors that a court “shall” take into consideration in determining the penalty, if any, to be assessed for a violation of the Act:

In determining the amount of any penalty to be assessed under this section or section 7604(a) of this title, the Administrator or the court, as appropriate, shall take into consideration (in addition to such other factors as justice may require) the size of the business, the economic impact of the penalty on the business, the violator’s full compliance history and good faith efforts to comply, the duration of the violation as established by any credible evidence (including evidence other than the applicable test method), payment by the violator of penalties previously assessed for the same violation, the economic benefit of noncompliance, and the seriousness of the violation.

[1095]*109542 U.S.C. § 7413(e)(1).3

“In considering fines under the Act, courts generally presume that the maximum penalty should be imposed.” United States v. B & W Inv. Props., 38 F.3d at 368; see also Dell’Aquilla,

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498 F.3d 1089, 2007 WL 2358674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pound-v-airosol-company-inc-ca10-2007.