Sierra Club v. Oklahoma Gas & Electric Co.
816 F.3d 666
| 10th Cir. | 2016Background
- Sierra Club sued Oklahoma Gas & Electric (OG&E) under the Clean Air Act (CAA), alleging OG&E modified a Muskogee coal-fired boiler in March–April 2008 without a required PSD permit, increasing emissions.
- Sierra Club did not file suit until 2013 and agreed with OG&E to toll limitations effective April 1, 2013; under 28 U.S.C. § 2462 the five‑year limitations cutoff for penalties was April 1, 2008.
- Sierra Club sought civil penalties (daily fines under 42 U.S.C. § 7413(e)(2)) plus declaratory and injunctive relief requiring OG&E to obtain a PSD permit and upgrade controls.
- The district court dismissed under Rule 12(b)(6) as time‑barred, holding the cause of action "first accrued" when unpermitted modification commenced (before April 1, 2008), and dismissed equitable claims as precluded by the concurrent‑remedy doctrine.
- The Tenth Circuit majority affirmed: (1) § 2462’s five‑year clock runs from when the claim first accrued (the start of modification), so penalty claims are time‑barred; (2) equitable claims based on the same facts are barred by the concurrent remedy doctrine.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 2462’s five‑year limitations period is tolled while unpermitted construction/modification continues | Sierra Club: continuing‑violation or repeated‑violation theories—limitations reset daily or run from final day of modification | OG&E: the violation accrued when modification commenced, so the five‑year clock began then | Held: claim "first accrued" at commencement; § 2462 runs from that date, so penalty claim is time‑barred |
| Whether a continuing violation characterization delays accrual under § 2462 | Sierra Club: continuing violation means accrual at completion of modification | OG&E: even if continuing, accrual occurs when claim is complete and actionable (start) | Held: continuing violation does not alter when the claim first accrued; accrual occurs when a plaintiff has a complete and present cause of action (i.e., at commencement) |
| Whether daily statutory penalties cause the limitations period to "re‑accrue" each violating day | Sierra Club: daily penalties imply each day is a new claim restarting the clock | OG&E: availability of daily penalties does not change when the claim first accrued | Held: availability of daily penalties does not affect initial accrual under § 2462; first accrual controls |
| Whether equitable relief (injunction/declaratory) is barred when the coextensive legal penalty claim is time‑barred | Sierra Club: equitable claims are distinct and may proceed even if penalties are time‑barred | OG&E: concurrent remedy doctrine bars equitable claims rooted in the same facts as expired legal claims | Held: concurrent remedy doctrine bars equitable relief that could be brought on the same facts as the time‑barred legal claim; Sierra Club’s equitable claims are precluded |
Key Cases Cited
- Plaza Speedway, Inc. v. United States, 311 F.3d 1262 (10th Cir.) (statute‑of‑limitations applicability reviewed de novo)
- Gabelli v. SEC, 568 U.S. 442 (2013) (a claim accrues when plaintiff has a complete and present cause of action)
- Heimeshoff v. Hartford Life & Accident Ins. Co., 571 U.S. 99 (2013) (claim accrues when plaintiff can file suit and obtain relief)
- Nat’l R.R. Passenger Corp. v. Morgan, 536 U.S. 101 (2002) (distinction between discrete acts and continuing violations)
- Havens Realty Corp. v. Coleman, 455 U.S. 363 (1982) (continuing discriminatory practice tolls limitations under FHA language)
- United States v. Midwest Generation, LLC, 720 F.3d 644 (7th Cir.) (PSD violation complete when construction commenced without permit)
- United States v. EME Homer City Generation, L.P., 727 F.3d 274 (3d Cir.) (discussion of daily fines and accrual over construction period)
- Telluride Co. v. United States, 146 F.3d 1241 (10th Cir.) (concurrent‑remedy doctrine: equitable claims barred when legal claims on same facts are barred)