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Furie Operating Alaska, LLC v. U.S. Department of Homeland Security
3:12-cv-00158
D. Alaska
Jul 6, 2015
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Background

  • Furie Operating Alaska sues DHS, Napolitano, CBP, and CBP Commissioner alleging APA challenges to waiver and penalty decisions.
  • Spartan Rig transport from Texas to Alaska used a foreign vessel, implicating the Jones Act and potential forfeiture or penalties.
  • The Jones Act requires a US-built/documented/owned vessel for coastwise transportation; waivers can be granted if no qualified US vessel is available and national defense requires it.
  • Furie previously obtained a 2006 waiver from Secretary Chertoff for a different rig; the 2011 waiver reconsideration was denied by Napolitano.
  • Furie pursued mitigation of penalties; CBP initially indicated potential mitigation but ultimately imposed a $15 million penalty; Furie filed this lawsuit seeking APA review of Counts II–IV.
  • The court granted the motion to dismiss Counts II–IV as unreviewable under the APA.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the waiver denial under § 501(b) is reviewable under the APA. Furie argues Secretary failed to exercise independent judgment. Waiver decision is committed to agency discretion by law. Waiver decision is not reviewable under the APA.
Whether the Secretary's reliance on other agencies to decide a waiver impaired independent discretion. Accardi requires independent discretion; reliance on DoD/DoE undermines it. No procedural rule was violated; discretion remains with Secretary. Accardi does not govern; no failure to exercise independent discretion shown.
Whether the mitigation denial under § 1618 is reviewable under the APA. Defendants misled process; seeks review of conduct, not the decision itself. Mitigation decisions are discretionary and unreviewable under the APA. Mitigation decision is unreviewable; conduct claims not sufficient to confer jurisdiction.

Key Cases Cited

  • Accardi v. Shaughnessy, 347 U.S. 260 (1954) (agency must follow its rules; independent discretion not circumvented)
  • Webster v. Doe, 486 U.S. 592 (1988) (national-security related decisions generally unreviewable under the APA)
  • Pinnacle Armor, Inc. v. United States, 648 F.3d 708 (2011) (APA review limited where statutory discretion lacks meaningful standards)
Read the full case

Case Details

Case Name: Furie Operating Alaska, LLC v. U.S. Department of Homeland Security
Court Name: District Court, D. Alaska
Date Published: Jul 6, 2015
Docket Number: 3:12-cv-00158
Court Abbreviation: D. Alaska