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