United States v. Krilich

152 F. Supp. 2d 983, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20787, 53 ERC (BNA) 1090, 2001 U.S. Dist. LEXIS 8405, 2001 WL 709497
District Court, N.D. Illinois·Decided June 21, 2001·No. 92 C 5354·Published·Cited by 8 cases

Opinion

MEMORANDUM OPINION AND ORDER

HART, District Judge.

In 1992, the parties to this case entered into a consent decree regarding Clean Water Act (“CWA”) violations involving wetlands in an area being developed by defendants. 1 Following consideration by the court, the proposed decree, as modified, was entered on October 29, 1992 (the “Decree”). The United States subsequently contended that defendants had violated certain provisions of the Decree concerning the Royce Renaissance Property (the “Royce Property”). 2 The issue was presented on stipulated and asserted facts and briefed by the parties. • It was held that none of the facts claimed to be in dispute were material and a ruling was issued on the basis of the documents that had been presented. Defendants were held to have violated deadlines for a mitigation plan that were contained in the Decree and therefore were subject to a substantial penalty under the terms of the Decree. See United States v. Krilich, 948 F.Supp. 719 (N.D.Ill.1996) (“Krilich /”). . In an opinion dated October 15, 1997, this holding was upheld on appeal, except that the government conceded that there had been a miscalculation of the penalty. See United States v. Krilich, 126 F.3d 1035 (7th Cir.1997) (“Krilich II”). On December 15, 1997, a modified judgment in the amount of $1,257,500 was entered on the docket.

In November 1998, defendants moved to bar enforcement of the penalty. That motion was construed as being pursuant to Fed.R.Civ.P. 60(b). See United States v. Krilich, 1999 WL 182333 *1 (N.D.Ill. *987 March 25, 1999) (“Krilich III ”). The primary argument raised by defendants was that this court lacked jurisdiction to enforce the mitigation plan deadlines. Defendants contended that subject matter jurisdiction was lacking because the Royce Property wetlands that allegedly were improperly filled were not “navigable waters” 3 covered by the CWA nor did they have a sufficient connection with interstate commerce to invoke federal jurisdiction. It was assumed that these issues went to the court’s subject matter jurisdiction, but Rule 60(b)(4) relief was denied on the ground that the judgment was not void for lack of subject matter jurisdiction because, even if jurisdictional, a colorable basis existed for finding the wetlands to be navigable waters and within the federal government’s interstate commerce powers. Id. at *2. Defendants also contended that the penalty should not be enforced because the Decree should be modified in light of a more recent precedent from another circuit supporting that the filled lands did not fall within the purview of the CWA. The merits of this Rule 60(b)(5) contention were not addressed because defendants only sought retrospective relief (vacating the prior monetary judgment), whereas modifying the Decree in 1999 could only affect possible prospective relief. Id. at *3.

Defendants appealed Krilich III, raising only the Rule 60(b)(4) contentions discussed above. The Seventh Circuit held that the questions of whether the wetlands at issue were navigable waters or had a sufficient nexus to interstate commerce did not go to the court’s subject matter jurisdiction. United States v. Krilich, 209 F.3d 968, 971-72 (7th Cir.2000) (“Krilich IV”). The court further stated: “Moreover, just as a guilty plea (in which the criminal defendant admits — at least implicitly — the connection between his conduct and interstate commerce) forecloses an appellate attack on subject matter jurisdiction, [defendants] cannot now assail the district court’s subject matter jurisdiction because [they] entered into a consent decree in which [they] agreed that the waters involved were ‘waters of the United States.’ ” Id. at 972. The Seventh Circuit concluded: “In sum, the district court had subject matter jurisdiction over the EPA’s case against [defendants] because the suit civilly charged a violation of a federal statute which is within the federal courts’ federal question jurisdiction. And [defendants’] attempt to now assail the court’s subject matter jurisdiction fails because [they] entered into a consent decree stipulating that the waters involved were ‘waters of the United States,’ and that is merely an element of the offense and not the basis for federal subject matter jurisdiction.” Id. at 973. On November 13, 2000, the Supreme Court denied certiorari. Krilich v. United States, 531 U.S. 992, 121 S.Ct. 482, 148 L.Ed.2d 455 (2000).

On January 9, 2001, the Supreme Court issued Solid Waste Agency of Northern Cook County v. United States Army Corps of Engineers, 531 U.S. 159, 121 S.Ct. 675, 148 L.Ed.2d 576 (2001) (“SWANCC”). In that case, the Supreme Court held that the Army Corps’ “Migratory Bird Rule” was unenforceable because it exceeded the authority granted to the Corps under the CWA. Id. at 684. 4 Under the Migratory *988 Bird Rule, waters of the United States were defined as including isolated wetlands which are or could be used by migratory birds or endangered species. See id. at 678. SWANCC holds that the CWA definition of navigable waters/waters of the United States does not extend to the full limits of Congress’s powers under the Commerce Clause. Id. at 683-84. SWANCC does not reach the question of whether, on a basis other than being visited by migratory birds, isolated wetlands may fall under the definition of navigable waters/waters of the United States. United States v. Interstate General Co., 152 F.Supp.2d 843 (D.Md.2001). It makes clear that it is still the rule that a nonnavi-gable (in the traditional sense) wetland directly adjacent to a navigable body of water falls within the purview of the CWA, SWANCC, 121 S.Ct. at 682-83 (citing United States v. Riverside Bayview Homes, Inc., 474 U.S. 121, 106 S.Ct. 455, 88 L.Ed.2d 419 (1985)), and that an isolated wetland being visited by migratory birds is not enough to bring the wetland within the purview of the CWA. SWANCC does not clarify at what points between those two extremes a nonnavigable body of water falls within the CWA definition of navigable waters. SWANCC does indicate, though, that wetlands likely need to have a substantial connection to interstate commerce or a connection to navigable waters (in the traditional sense) in order to be waters of the United States that fall within the CWA term navigable waters. See id. at 682-83. 5

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United States v. Krilich, 152 F. Supp. 2d 983, 31 Envtl. L. Rep. (Envtl. Law Inst.) 20787, 53 ERC (BNA) 1090, 2001 U.S. Dist. LEXIS 8405, 2001 WL 709497 (N.D. Ill. 2001).

152 F. Supp. 2d 983 (United States v. Krilich) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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