Sterigenics U.S., LLC v. Kim

385 F. Supp. 3d 600
CourtDistrict Court, E.D. Illinois
DecidedMay 3, 2019
DocketNo. 19 C 1219
StatusPublished
Cited by1 cases

This text of 385 F. Supp. 3d 600 (Sterigenics U.S., LLC v. Kim) is published on Counsel Stack Legal Research, covering District Court, E.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sterigenics U.S., LLC v. Kim, 385 F. Supp. 3d 600 (illinoised 2019).

Opinion

Rubén Castillo, Chief Judge

Sterigenics U.S., LLC ("Plaintiff") brings this action against the Illinois Environmental Protection Agency ("IEPA") and John Kim ("Kim") in his capacity as acting director of IEPA (collectively, "Defendants"). (R. 54, Am. Compl. ¶¶ 1-7.) Plaintiff operates a sterilization facility in Willowbrook, Illinois, where it stores ethylene oxide, a chemical substance used to sterilize medical devices. (Id. 5.) Plaintiff alleges that Defendants overstepped their authority under Illinois law and deprived it of procedural due process under the U.S. Constitution when Defendants issued a "seal order" that required Plaintiff to seal all storage containers of ethylene oxide at the Willowbrook facility. (Id. ¶¶ 1-4, 38-63.) Pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6), Defendants move to dismiss Plaintiff's lawsuit for lack of subject-matter jurisdiction and failure to state a claim. (R. 63, Mot. at 1-2.) Defendants' motion is granted for the reasons stated below.

BACKGROUND

Plaintiff is a limited liability company with its principal place of business in Broadview Heights, Ohio, that provides commercial sterilization services for companies in the healthcare and food industries. (R. 54, Am. Compl. ¶ 5.) Plaintiff operates a sterilization facility in Willowbrook that, on a typical day, sterilizes approximately 1,000 medical devices used in heart surgery, 1,000 knee implants, 1,500 surgical kits, 16,000 catheters, 11,000 syringes, thousands of diabetes monitoring and care kits, and many other medical products. (Id. ) Plaintiff or its predecessors have operated this facility continuously since 1984, and the facility has allegedly been operating pursuant to permit number 95120085 issued by IEPA under the U.S. Environmental Protection Agency's ("EPA") Clean Air Act Permit Program. (Id. ¶¶ 11-12.) Plaintiff alleges that it has consistently emitted "far less ethylene oxide than its permit allows," and that it has "voluntarily improved its safety measures for ethylene oxide well beyond what the law requires." (Id. ¶¶ 14-15.) Plaintiff also claims that the Willowbrook facility is not currently in violation of any rules or regulations promulgated by EPA or IEPA, and that its operating permits have not been *604modified, terminated, or revoked. (Id. ¶¶ 17-18.)

On February 15, 2019, Defendants issued a seal order, which sealed "[a]ll storage containers of ethylene oxide" at Plaintiff's Willowbrook facility pursuant to 415 ILL. COMP. STAT. 5/34(b), a statutory provision in Illinois' Environmental Protection Act (the "Act") that Plaintiff claims only applies if an emergency exists or if there is imminent and substantial endangerment to the public health, welfare, or environment. (Id. ¶¶ 1-2.) Plaintiff alleges that, instead of seeking relief through the court system or regulatory process, "Defendants decided to bypass the court system ... to 'sandbag' [Plaintiff]" by issuing the seal order. (Id. ¶ 22.) Plaintiff claims that at no point before or on the date the seal order was issued, did the IEPA or EPA represent that the Willowbrook facility's use and storage of ethylene oxide posed a safety concern or emergency. (Id. ¶ 23.) Plaintiff alleges that the seal order justifies itself by citing a questionable August 2018 report regarding the Willowbrook facility's ethylene oxide emissions, and that the EPA sent letters to Illinois officials stating that the Willowbrook facility was not causing immediate harm to persons in and around Willowbrook. (Id. ¶¶ 25-29, 31.)

Plaintiff has allegedly attempted to reach out to IEPA to determine what measures it can take to have the seal order lifted and continue sterilization activities in Willowbrook, but Plaintiff claims that Defendants have not cooperated. (Id. ¶ 33.) Plaintiff alleges that the seal order has caused serious harm to Plaintiff, Plaintiff's customers, and the United States' healthcare system at large. (Id. ¶ 35.) According to Plaintiff, the closure of the Willowbrook facility impacts several medical device companies and "risks creating [medical] device shortages with serious adverse effects on healthcare in this country." (Id. ¶¶ 36-37.)

PROCEDURAL HISTORY

On October 30, 2018, the state of Illinois filed a lawsuit against Plaintiff in Illinois state court. (Id. ¶ 19.) Plaintiff removed the case to this District where the case was assigned to U.S. District Judge John Lee. (Id. ) Plaintiff alleges that the October 2018 lawsuit seeks the same relief as the seal order, but none of the relief in that case was pursued on an emergency basis or claimed to be necessary to resolve an "imminent and substantial endangerment" to the public health, welfare, or environment. (Id. ) On March 11, 2019, Judge Lee remanded the October 2018 lawsuit back to state court. (18-cv-8010, R. 48, Order at 16.)

Judge Lee reasoned there was no subject-matter jurisdiction to proceed in federal court and thus rejected Plaintiff's contention that the State brought a federal cause of action sufficient to establish federal question jurisdiction. (Id. at 7-13.) Specifically, Judge Lee reasoned that the lawsuit did not involve a suit by the State against Plaintiff for failure to comply with the Clean Air Act, 42 U.S.C. §§ 7401, et seq. , or any other federal statute that might raise a federal question, but instead was a suit to enjoin Plaintiff "despite its compliance with the [Clean Air Act][.]" (Id. at 9-10.) As a result, Judge Lee concluded that the lawsuit was one involving only state law causes of action, and that Illinois' state laws and regulations implementing the Clean Air Act were not claims arising under federal law that could provide a basis for subject-matter jurisdiction. (Id. at 10-15.)

Approximately a month before Judge Lee remanded the October 2018 action, on February 18, 2019, Plaintiff filed its initial complaint in this case, which brought a *605claim under 42 U.S.C. § 1983 for deprivation of its procedural due process rights under the Fifth and Fourteenth Amendments and a claim alleging that Defendants violated Section 34(b) of the Act. (R. 1, Compl. ¶¶ 24-34.) The same day Plaintiff filed its complaint, it also filed a motion for a preliminary injunction and temporary restraining order ("TRO"). (R. 5, Mot.) The motion for a TRO was heard on February 20, 2019, by U.S. District Judge Matthew Kennelly who was the designated emergency judge at the time. (R. 28, Min. Entry.)

Judge Kennelly denied Plaintiff's motion for a TRO and reasoned that Plaintiff did not have a reasonable likelihood of success on the merits. (R. 51-1, Tr. at 74.) Judge Kennelly relied on the U.S. Supreme Court's decision in Hodel v. Virginia Surface Mining & Reclamation Ass'n, Inc. ,

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Bluebook (online)
385 F. Supp. 3d 600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sterigenics-us-llc-v-kim-illinoised-2019.