United States v. County of Nassau

749 F. Supp. 458, 1990 U.S. Dist. LEXIS 14730, 1990 WL 168337
District Court, E.D. New York·Decided October 17, 1990·No. No. CV 89-2532·Published·Cited by 1 cases

Opinion

MEMORANDUM OF DECISION AND ORDER

MISHLER, District Judge.

Plaintiffs, the United States of America and the State of New York (“Regulators”), move either for an order finding the defendants, County of Nassau and Nassau County Department of Public Works (“Nassau”), in contempt of provisions of the Consent Decree and Enforcement Agreement (“Decree”), or for modification of the Decree. Nassau cross-moves for an order to compel the payment of funds from a trust account established pursuant to paragraph X.C of the Decree.

The Decree outlines the steps Nassau must take to cease ocean disposal of 50 percent of its sewage sludge by June 30, 1991, and all dumping of sewage sludge by December 31, 1991, and further requires a long-term alternative system of sludge management to be in operation by December 31, 1994. The history and background leading to the Decree is detailed in United States v. County of Nassau, 733 F.Supp. 563, 564-65 (E.D.N.Y.1990), aff'd, 907 F.2d 397 (2d Cir.1990) (Nassau I). An earlier motion by Nassau to modify the Decree was denied. Id. at 570.1

It is clear as a matter of law that Nassau currently is violating paragraphs V.4, V.5, and V.6 of the Decree. These provisions expressly require Nassau to award a contract for sludge dewatering equipment and facilities by May 15, 1990, and commence on-site construction of all sludge dewater-ing facilities by June 30, 1990. Nassau has not complied with these milestones agreed upon in the Decree. County of Nassau Department of Public Works Consent Decree and Enforcement Agreement Monthly Status and Progress Report Number 12 at 1-2 (August 1990) and accompanying cover letter from Steven Fangmann dated September 17, 1990; 9/17/90 Hearing Tr. at 11.

Nassau’s failure to comply with provisions in paragraph V of the Decree has resulted in the accrual and payment of stipulated penalties outlined in paragraph IX of the Decree. Nassau has already paid more than one million dollars for violating provisions of the Decree and currently pays about $40,000 each day for continuing violations. Nassau claims that it either may comply with provisions in paragraph V or be relieved of these obligations by paying the stipulated penalties. This construction of the Decree is not correct. The payment of stipulated penalties does not excuse Nassau from the affirmative requirements of paragraphs IV, V, VI, VII, or VIII.

Nassau claims that a recently disclosed proposal to contract with the Passaic Valley Sewerage Commissioners (“PVSC”) is a better way to dewater and dispose of the county sewage than constructing dewatering facilities. While Nassau is free to pursue its own agenda, this is not an alternative to the requirements set forth in paragraph V of the Decree. Any interim disposal means other than awarding contracts and commencing construction of sludge dewatering facilities pursuant to paragraph V falls outside of the Decree and does not constitute compliance with it.

The Consent Decree, a judicial order, already requires Nassau to specifically per[460]*460form the acts enumerated in paragraph V. An additional directive by the court ordering Nassau to comply with paragraph V would be duplicative and therefore is not appropriate. The Decree itself specifically establishes the consequences of noncompliance with paragraphs IV, V, VI, VII or VIII: the payment of the stipulated penalties by Nassau. When the Decree was negotiated and entered into it was foreseeable that Nassau might not comply with the agreed upon milestones; after all, noncompliance is what the stipulated penalties address.

The Contempt Action

“A court’s inherent power to hold a party in civil contempt may be exercised only when (1) the order the party allegedly failed to comply with is clear and unambiguous, (2) the proof of noncompliance is clear and convincing, and (3) the party has not diligently attempted in a reasonable manner to comply.” New York State Nat'l Org. for Women v. Terry, 886 F.2d 1339, 1351 (2d Cir.1989), citing EEOC v. Local 638, Local 28 of Sheet Metal Workers’ Int’l Ass’n, 753 F.2d 1172, 1178 (2d Cir.1985), aff'd, 478 U.S. 421, 106 S.Ct. 3019, 92 L.Ed.2d 344 (1986); Powell v. Ward, 643 F.2d 924, 931 (2d Cir.) (per curiam), cert. denied, 454 U.S. 832, 102 S.Ct. 131, 70 L.Ed.2d 111 (1981).

The Decree is clear and the proof, at minimum, is clear and convincing: Nassau currently is violating paragraphs V.4, V.5, and V.6. It is equally clear, however, that Nassau is paying the stipulated penalties the Decree imposes for these violations.2 Because Nassau is complying with the stipulated penalties outlined in the Decree, civil contempt is not appropriate at this time.3 The court reiterates that paying the stipulated penalties is no substitute for complying with the requirements of paragraph V.

As this court has said before, if Nassau pays the stipulated penalties until December 31, 1991, and then does not stop dumping one-hundred percent of its sewage sludge into the ocean, an injunction might be issued enjoining further ocean dumping, pursuant to the Ocean Dumping Ban Act of 1988. (5/18/90 Hearing Tr. at 17).

The final enforcement issue concerns the construction of the stipulated penalties provision in paragraph IX of the Decree: “The stipulated penalties ... shall begin to accrue at the close of business on the day that performance is due or non-compliance occurs, and shall continue to accrue through the final day of correction of the non-compliance.” (ÍI IX.C). Nassau claims that no penalty is owed for the first day since the stipulated penalties do not begin to accrue until the close of business on the first day of non-compliance. Nassau offers in support of this interpretation Fed.R. Civ.P. 6(a), which indicates that the first day would be excluded.

The Regulators contend that since the penalties do not begin to accrue until the close of business, this allows Nassau up until approximately 5:00 p.m. or 6:00 p.m. to comply; if however, Nassau has not complied by the close of business, penalties accrue for that first day.

Fed.R.Civ.P. 6(a) does not control matters of timing in all circumstances. Rule 6(a) does not apply to contracts, J. Aron & Co. v. S/S Olga Jacob, 527 F.2d 416, 417 (5th Cir.1976), nor does it always apply to the time period from which damages are computed. Miller v. Daybrook-Ottawa Corp., 291 F.Supp. 896, 905 (N.D.Ohio 1968). Because consent decrees are construed as contracts, Canterbury Belts, Ltd. v. Lane Walker Rudkin, Ltd.,

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United States v. County of Nassau, 749 F. Supp. 458, 1990 U.S. Dist. LEXIS 14730, 1990 WL 168337 (E.D.N.Y. 1990).

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