Sterigenics U.S., LLC v. Kim
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.
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,
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
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. ,
Free access — add to your briefcase to read the full text and ask questions with AI
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,
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
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. ,
On February 27, 2019, the case was reassigned to this Court. (R. 38, Order.) Subsequently, on March 7, 2019, Plaintiff filed an amended complaint. (R. 54, Am. Compl.) The amended complaint brings three counts against Defendants. (R. 54, Am. Compl. ¶¶ 38-63.) The first two counts bring claims under
Defendants move to dismiss the amended complaint, (R. 63, Mot.), first arguing that Plaintiff fails to plausibly allege that Defendants deprived Plaintiff of its constitutional right to a hearing or other process to challenge the seal order before or after it was issued. (R. 64, Mem. at 6-12.) Defendants maintain that the Constitution allows them to deprive Plaintiff of its property without a pre-deprivation hearing in situations where "swift action is necessary to protect the public health and safety." (Id. at 8.) Defendants also argue that a pre-deprivation due process claim only arises if the Act is incapable of affording due process; therefore, according to Defendants, Plaintiff's claim fails because the Act does afford due process. (Id. at 9-10.)
With respect to Plaintiff's claim that it was deprived of due process after the seal order was issued, Defendants again argue that the Act affords adequate process and therefore the Court should dismiss Plaintiff's *606post-deprivation due process claim. (Id. at 10-11.) Defendants also argue that the seal order itself outlines what Plaintiff can do to have the seal order lifted, and that Plaintiff adopts an untenable position that would require Defendants to provide detailed instructions regarding the steps Plaintiff must take before the seal order is lifted. (Id. at 11-12.)
According to Defendants, because there is no viable federal claim, the Court should dismiss Plaintiff's state law claim because the Court is left with no independent grounds for subject-matter jurisdiction. (Id. at 12-13.) Defendant also maintains that, in addition to Plaintiff's failure to state a federal claim giving rise to federal jurisdiction, Plaintiff's lawsuit is barred by the Eleventh Amendment because it asks the Court to order state officials to comply with state law. (Id. at 13-15.) Lastly, Defendants argue that, pursuant to Younger v. Harris ,
In response, Plaintiff argues that it has adequately alleged a deprivation of its procedural due process rights. (R. 72, Resp. at 5-12.) Plaintiff also maintains that it has sufficiently pleaded a violation of due process because it has alleged that Defendants issued a facially valid permit to operate the Willowbrook facility and then deprived Plaintiff of that permit without providing notice of the permit's invalidity. (Id. at 8-11.) According to Plaintiff, controlling legal authorities forbid such "regulation by ambush." (Id. at 9.) Plaintiff also contends that its lawsuit is not barred by the Eleventh Amendment, and that the abstention doctrine from Younger does not apply. (Id. at 12-15.) Defendants' motion to dismiss is fully briefed and ripe for the Court's consideration. (R. 75, Reply.)
LEGAL STANDARDS
A complaint must set forth a "short and plain statement of the claim showing that the pleader is entitled to relief." FED. R. CIV. P. 8(a)(2). "A motion to dismiss pursuant to Rule 12(b)(6) challenges the viability of a complaint by arguing that it fails to state a claim upon which relief may be granted." Firestone Fin. Corp. v. Meyer ,
*607Plaintiff also moves to dismiss pursuant to Rule 12(b)(1). (R. 63, Mot. at 1-2.) A motion to dismiss pursuant to Rule 12(b)(1) challenges this Court's subject-matter jurisdiction over the action. FED. R. CIV. P. 12(b)(1). Defendants' Rule 12(b)(1) motion is a facial challenge to subject-matter jurisdiction because it contends that Plaintiff's amended complaint lacks sufficient factual allegations to establish jurisdiction. See Silha v. ACT, Inc. ,
ANALYSIS
I. The Eleventh Amendment
The Court first addresses Defendants' argument that the Court lacks subject-matter jurisdiction over this lawsuit because it is barred by the Eleventh Amendment, (R. 64, Mem. at 13-15). The Eleventh Amendment provides that "[t]he Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State." U.S. CONST. AMEND. XI . Courts have construed this language broadly to confer sovereign immunity upon the states, which "guarantees that an unconsenting State is immune from suits brought in federal courts by her own citizens as well as by citizens of another State." Council 31 of the Am. Fed'n of State, Cty. & Mun. Emps., AFL-CIO v. Quinn ,
There are, however, exceptions to the Eleventh Amendment's reach. One exception set forth by the Supreme Court in Ex parte Young ,
In determining whether the doctrine of Ex parte Young applies, "a court need only conduct a straightforward inquiry into whether the complaint alleges an ongoing violation of federal law and seeks relief properly characterized as prospective." McDonough Assocs. ,
Plaintiff's allegations are analogous to those in Tenny v. Blagojevich ,
Like Tenny , Plaintiff's allegations are directed toward what Defendants did, namely, invoking Section 34(b) allegedly without any emergency or imminent and substantial endangerment to public health that would justify action under Section 34(b). (See, e.g. , R. 54, Am. Compl. ¶ 41.) Specifically, Plaintiff alleges that Defendants issued the seal order without any explanation, any true emergency situation at the Willowbrook facility, and without affording Plaintiff the ability to address any emergency situation and lift the seal order in a manner other than resorting to litigation in the courts. (Id. ¶¶ 38-57.) The crux of these allegations is that Defendants violated state law to bypass the regulatory process and courts. (Id. ¶¶ 3, 22.) As a result, Plaintiff's lawsuit merely recasts a state-law claim seeking injunctive relief for violation of Section 34(b) as constitutional due process claims. (See id. ¶¶ 58-63.) Although Plaintiff labels its claims as procedural due process claims, the Eleventh Amendment prohibits this Court from ordering Defendants to comply with Section 34(b). See Tenny ,
The Court, as a result, rejects Plaintiff's argument that its claims fall within the Ex Parte Young exception, which applies to claims involving violations of federal law, not state law. See McDonough Assocs., Inc. ,
Plaintiff refers to Section 34 in its complaint and does not bring this action pursuant to the federal Clean Air Act. Nor can Plaintiff bring a lawsuit under the Clean Air Act to enjoin the seal order because the Clean Air Act only allows a private party like Plaintiff to sue to enforce emissions standards imposed by the Clean Air Act. See
Plaintiff argues that its claims under Section 34(b) allege a violation of federal law because Section 34(b) is part of Illinois' State Implementation Plan ("SIP") under the federal Clean Air Act that the EPA must approve. (R. 72, Resp. at 14.) Plaintiff contends that once the SIP is approved by the EPA, "a state rule embodied in a SIP becomes enforceable federal law." (Id. (quoting Indiana v. U.S. Envtl. Prot. Agency ,
Additionally, the legal principle and supporting case law that Plaintiff relies on stand for the simple proposition that the federal government can enforce SIP rules. Indiana , 796 F.3d at 806 ; Gen. Motors Corp. v. United States ,
*610Plaintiff also contends that under "Judge Lee's reasoning" for remanding the October 2018 action to state court due to a lack of subject-matter jurisdiction, Plaintiff's claim for a violation of Section 34(b) alleges a violation of federal law. (R. 72, Resp. at 15.) The Court disagrees. Judge Lee only reasoned that federal question jurisdiction might exist "if the State were suing [Plaintiff] for failing to meet its ... permit obligations, and thus, national air quality standards." (18-cv-8010, R. 48, Order at 9-13 (emphasis added).) That is not the situation here; rather, Plaintiff is suing the State for allegedly acting outside of its authority under Illinois' SIP. (See R. 72, Resp. at 15.) As Judge Lee noted in his decision, the parties' dispute concerns Defendants' desire to stop Plaintiff's emissions of ethylene oxide at the Willowbrook facility "despite its compliance with the [Clean Air Act] and the SIP." (18-cv-8010, R. 48, Order at 9-10.) Like the dispute before Judge Lee, Plaintiff alleges it complies with all regulatory requirements, but Defendants nonetheless issued a seal order requiring Plaintiff to seal all ethylene oxide containers at the Willowbrook facility. (R. 54, Am. Compl. ¶¶ 2-3, 14, 17-18, 22-34.) Thus, Plaintiff's suit implicates state, not federal, law. (See 18-cv-8010, R. 48, Order at 9-13.) Accordingly, this lawsuit is dismissed without prejudice to Plaintiff pursuing its claims in state court. See Lewert v. P.F. Chang's China Bistro, Inc. ,
II. Procedural Due Process Claims
Even if sovereign immunity did not bar Plaintiff's lawsuit, the suit would nevertheless be dismissed for failure to state any federal claim giving rise to federal jurisdiction. See
"The Due Process Clause of the Fifth and Fourteenth Amendments prohibits deprivation of life, liberty, and property without due process of law." Mann v. Vogel ,
In evaluating what satisfies due process under the Constitution, "the Supreme Court has distinguished between (a) claims based on established state procedures and (b) claims based on random, unauthorized acts by state employees." Leavell v. Ill. Dep't of Nat. Res. ,
Plaintiff alleges that the seal order seeks "to circumvent both regulatory and judicial processes," and that it is an "extra-legal attempt to accomplish instantaneously what it cannot lawfully do without proper notice and process." (R. 54, Am. Compl. ¶ 3.) Plaintiff alleges further that, with the seal order, "Defendants decided to bypass the court system" and pending court action in which Defendants allegedly sought the same relief they achieved through the seal order. (Id. ¶ 22.) Plaintiff claims that the seal order was justified by an August 2018 report issued by the "Agency for Toxic Substances and Disease Registry," who "is not a regulator" issuing reports that have "the force of law." (Id. ¶ 24.) According to Plaintiff, Defendants' justification for the seal order is contrary to the EPA's conclusions regarding the health risks posed by Plaintiff's Willowbrook facility, and that Plaintiff has operated the Willowbrook facility with IEPA's authorization and in compliance with all applicable regulations. (Id. ¶¶ 23, 25-26, 31, 41, 47.) These allegations essentially allege that Defendants violated Section 34(b) of the Act by issuing a seal order in the absence of an emergency. Plaintiff's due process claims fail at the outset because a state government does not violate the federal constitution just because it violates a state law. Daw v. Consol. City of Indianapolis & Marion Cty. ,
Additionally, Plaintiff's allegations detail "random and unauthorized" misconduct by IEPA officials in which they issued a seal order outside of established administrative and court procedures in an effort to bypass those procedures. See Cannici ,
Plaintiff relies heavily on Simpson v. Brown County ,
This case, on the other hand, does not involve Plaintiff's license to operate but a seal order that Plaintiff alleges is a circumvention of "regulatory and judicial processes" and an "extra-legal attempt to accomplish instantaneously what [Defendants] cannot lawfully do without proper notice and process." (R. 54, Am. Compl. ¶ 3.) Simpson , therefore, is not analogous because the plaintiff there alleged an established state procedure and broad delegation of power that led to the plaintiff's loss of a property interest. Simpson ,
Plaintiff's cited authorities outside of the Seventh Circuit are not binding on this Court and are nonetheless unpersuasive. They are either inapposite cases weighing evidence instead of allegations or involve situations where the state's actions depriving a person of due process was predictable and alleged to be part of an established state procedure, unlike the allegations in this case. (See R. 72, Resp. at 6-7 (citing RBIII, L.P. v. City of San Antonio ,
Plaintiff then contends that the fair notice principles of due process prohibit Defendants from issuing a seal order because IEPA has approved of the Willowbrook facility's operation through the state's permitting process. (R. 72, Resp. at 8-11.) Plaintiff relies on Wisconsin Resources Protection Council v. Flambeau Mining Co. ,
*613Flambeau Mining Co. ,
Flambeau thus addressed an established state procedure, unlike the random and unauthorized conduct Plaintiff alleges in this case that was an attempt "to circumvent ... regulatory and judicial processes." (R. 54, Am. Compl. ¶ 3.) Accordingly, Flambeau does not alter the Court's conclusion.
Additionally, Flambeau is a fair notice case that has no application here because Plaintiff's pre-deprivation due process claims are based on a deprivation of its property rights "without conducting any pre-deprivation hearing" or providing Plaintiff with "the opportunity to be heard at a meaningful time in a meaningful manner." (R. 54, Am. Compl. ¶¶ 38-49.) Plaintiff's due process claims are not-and could not be-based on allegations of a lack of fair notice of Section 34(b) under the Act or Defendants' authority under Section 34(b), a statutory provision that has been codified for years. See United States v. Navistar Int'l Corp. ,
In other words, Plaintiff does not challenge the lack of clarity or notice provided by the applicable statute and regulations as is required for a fair notice claim. See
Plaintiff also cites to Christopher v. SmithKline Beecham Corp. ,
Turning to Plaintiff's post-deprivation procedural due process claim, to survive a motion to dismiss, Plaintiff must allege that there are inadequate procedures to challenge the seal order after it was issued. Leavell ,
Plaintiff alleges that its options in state court are not ideal, but to allege an inadequate post-deprivation remedy, Plaintiff *615must plausibly allege that the post-deprivation remedies available in state court are "meaningless" or "nonexistent." Easter House v. Felder ,
Given that Plaintiff fails to sufficiently allege a claim under Section 1983 or any other federal law, there are no pending federal claims that could provide grounds for subject-matter jurisdiction. See
CONCLUSION
For the foregoing reasons, Defendants' motion to dismiss (R. 63) is GRANTED as set forth herein. This case is DISMISSED
*616without prejudice to Plaintiff litigating this dispute in state court.
Related
Cite This Page — Counsel Stack
385 F. Supp. 3d 600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sterigenics-us-llc-v-kim-illinoised-2019.