Friends of the Earth v. Laidlaw Environmental Services, Inc.

Facts

The Clean Water Act permits individuals with an interest that is or may be negatively affected to bring a suit to enforce any of the Act’s pollution permit limitations. The Act requires potential plaintiffs to give the alleged violator sixty day’s notice before initiating such a suit, so that the alleged violator has the opportunity to come into compliance with the Act, which would render the suit unnecessary. The Supreme Court has held that citizens lack standing to sue for violations that have ceased by the time the complaint is filed. The Act also permits district courts to order injunctions and civil penalties payable to the government.

Defendant Laidlaw Environmental Services, Inc. bought a hazardous waste incinerator facility, and discharged pollutants into a waterway in excess of the limits set by their permit. Plaintiff Friends of the Earth and Citizens Local Environmental Action Network, Inc. and other plaintiff organizations notified Laidlaw of their intention to file a suit under the Clean Water Act after the requisite 60-day notice period. The day before the notice period expired, the State and Laidlaw reached a settlement requiring Laidlaw to pay $100,000 in civil penalties, and to make every effort to comply with the permit obligations. Three days later, plaintiffs filed this suit against Laidlaw seeking declaratory and injunctive relief and civil penalties. The District court found that Laidlaw gained $1,092, 581 from its period of noncompliance with its permit, and assessed a civil penalty of $405,800. The District Court denied injunctive relief because Laidlaw had recently been in compliance with the permit requirements. The Court of Appeals held that the case was moot because civil penalties were the only available remedy, and they would not redress any injury the plaintiffs had suffered.