Cecos International, Inc. v. JorlingCecos International, Inc. v. Jorling
L. Rep. 20,428
CECOS INTERNATIONAL, INC., and Niagara Recycling, Inc.,
Plaintiffs-Appellants,
v.
Thomas C. JORLING, as Commissioner of the New York State
Department of Environmental Conservation, and the
New York State Department of
Environmental Conservation,
Defendants-Appellees,
City of Niagara Falls, County of Niagara, Great Lakes
United, LaSalle and Niagara Demand, Campaign to Save
Niagara, Ecumenical Task Force of the Niagara Frontier, and
Society to Oppose Pollution in Towns,
Defendants-Intervenors-Appellees.
No. 38, Docket 89-7310.
United States Court of Appeals,
Second Circuit.
Argued Sept. 15, 1989.
Decided Jan. 4, 1990.
James B. Rather, Uniondale, N.Y. (Steven Brock, Rivkin, Radler, Dunne & Bayh, Uniondale, N.Y., of counsel, Barbara Guibord, Katten Muchin & Zavis, Chicago, Ill., of counsel), for plaintiffs-appellants.
Stuart Miller, Asst. Atty. Gen., State of N.Y., New York City (Robert Abrams, Atty.Gen., State of N.Y., John J. Privitera, Asst. Atty. Gen., New York City, of counsel), for defendants-appellees.
Michael B. Gerrard, New York City (Philip Weinberg, Berle, Kass & Case, New York City, of counsel), for defendants-intervenors-appellees, City of Niagara Falls and County of Niagara.
Brent K. Olsson, New York City (Milbank, Tweed, Hadley & McCloy, New York City, of counsel), filed letter brief for defendants-intervenors-appellees, Great Lakes United, LaSalle and Niagara Demand, Campaign to Save Niagara, Ecumenical Task Force of the Niagara Frontier, and Soc. to Oppose Pollution in Towns.
Before KAUFMAN, CARDAMONE, and FRIEDMAN,* Circuit Judges.
CARDAMONE, Circuit Judge:
The present appeal involves, among other issues, a constitutional challenge to a newly amended state law governing the expansion of commercial hazardous waste facilities in New York. The exрansion of such a facility arouses considerable public concern, as is evident from the number of citizens' organizations intervening in this litigation. It is a truism that producing today's modern goods creates a negative trade-off to the better life these items afford because the by-products of their manufacture often constitute hazardous waste materials. This appeal presents another episode in the voluminous litigation between waste management facilities, operators and state regulators over what regulations should apply and "in whose backyard" the additional facilities are to be sited.
Plaintiffs, CECOS International, Inc. and Niagara Recycling, Inc. (collectively CECOS), appeal from a judgment dated February 23, 1989 in the United States District Court for the Northern District of New York (McCurn, J.), dismissing their complaint under
BACKGROUND AND PRIOR PROCEEDINGS
CECOS has been operating a commercial hazardous waste landfill on a 385 acre site in Niagara County, New York since 1976. It operates one of only two such landfill operations in New York. The other is run by SCA Chemical Services, Inc. (SCA). Together CECOS and SCA handle 80 percent of the 280,000 tons of hazardous waste annually produced in New York, and also process much of the 100,000 tons transported annually into that state from other states. Presently, all of the five CECOS landfills, referred to as Secure Chemical Management Facilities, are fillеd to capacity and are no longer operational. The last facility, Facility No. 5, was filled in mid-1988.
Because of the time that elapses between the application for and the issuance of a final permit to operate a landfill, CECOS in 1984 began developing a sixth landfill, Secure Chemical Residue Facility No. 6 (Facility No. 6), and submitted an initial application for its approval on May 1, 1985. The DEC responded with a series of Notices of Incomplete Informatiоn and requests for additional information needed to satisfy state regulations. After two years during which CECOS invested in excess of seven million dollars in the new landfill, the DEC indicated that the application for Facility No. 6 was complete, and it thereupon issued a draft permit on February 25, 1987. An adjudicatory hearing was then commenced by the DEC before an Administrative Law Judge (ALJ), who continued the hearing until the late summer of 1987 pending the parties' submission of briefs on the issue of whether the siting law, as originally еnacted, exempted CECOS from siting board review.
During this period, New York State Assembly Bill 7835-C, which amends the sections of the ECL governing the siting of new hazardous waste disposal facilities, was passed by both houses of the New York State Legislature. Under the old law, CECOS was not required to obtain a Certificate of Environmental Safety and Public Necessity from a siting board because it fell within a grandfather exception granted operators seeking to expand an existing facility. The newly passed аmendments eliminate commercial land disposal facilities, such as CECOS, from the grandfather exception and specifically require it to obtain a certificate. N.Y.Envtl.Conserv.Law Sec. 27-1105(2)(d) (McKinney 1989).1
The new siting law also establishes four exceptions to the certificate requirement, including one for the expansion of non-commercial landfills--landfills which, unlike CECOS, dispose of hazardous wastes generated at the site of the facilities. N.Y.Envtl.Conserv.Law Sec. 27-1105(2)(b) (McKinney 1989).2 SCA also lost thе grandfather exception, and it too is required to obtain a certificate under the amended law. In response to the New York State Legislature's passage of the new siting law, the ALJ suspended the adjudicatory hearing and remanded CECOS' application to the DEC to determine what additional information CECOS would be required to submit to complete its application under the new amendments, assuming that the Governor would sign them into law. Notice of the suspension of the hearing was contained in a memorandum dated July 21, 1987. On August 4, 1987 Governor Cuomo signed the amendments into law.
In order to resume the state administrative hearing on Facility No. 6, CECOS resubmitted its application on that facility in November 1987 including a request for a certificate from the siting board. The administrative hearing was reopened on March 29, 1988, a public statement hearing and an issues conference were held on March 30, 1988 and at that time the ALJ issued a ruling on the issues that would be covered in the actual adjudicatory hearing, which ultimately was held from August 3 through November 25, 1988. On August 21, 1989 after submission of posthearing and reply briefs and additional information was added to the record, the ALJ issued his recommendation that the siting board and Commissioner grant CECOS a certificate and permit for Facility No. 6. These documents have not been issued as of the date of this opinion.
About a month after the July 21, 1987 suspension, CECOS instituted this action in the United States District Court for the Northern District of New York on August 24, 1987 seeking a preliminary injunction barring the defendants, the DEC and its Commissioner, from enforcing the new siting law. CECOS sought, in addition, a judgment declaring that the amendments violated the Fourteenth Amendment's Due Process and Equal Protection Clauses.
On February 23, 1989 the district court granted defendants' cross-motion for summary judgment. With respect to the jurisdictional questions before it, the district court declined to abstain on the basis of the Pullman, Younger, or Burford doctrines and determined that the aсtion against the DEC--but not the action against the Commissioner--was barred by the Eleventh Amendment.
DISCUSSION
We are asked to decide whether the district court properly exercised jurisdiction and whether the new siting law is preempted by fedеral law or violative of the Equal Protection and Commerce Clauses of the United States Constitution. Because neither the preemption nor Commerce Clause contentions were pleaded or argued to the district court, we decline to hear these issues on appeal. See Usery v. Turner Elkhorn Mining Co.,
I Abstention
We turn to appellees' argument that the district court should have abstained from exercising jurisdiction. To begin, federal courts have an unflagging obligation to аdjudicate cases brought within their jurisdiction. It is now black-letter law that abstention from the exercise of federal jurisdiction is the narrow exception, not the rule. Moses H. Cone Memorial Hosp. v. Mercury Constr. Corp.,
The traditional categories of abstention are set forth in Younger v. Harris,
A. Younger Abstention
Abstention under Younger is fueled by the notion that courts of equity should not intervene where a party has an adequate remedy at law, see
To justify a refusal to assume jurisdiction on Younger grounds, a district court must answer three questions affirmatively: (1) is there an ongoing state proceeding; (2) is an important state interest implicated; (3) does the plaintiff have an avenue open for review of constitutional claims in the state court? Middlesex County Ethics Comm.,
The district court reached its conclusion based on a belief that CECOS' constitutional challenge to the new siting law was unavailable in an Article 78 proceeding seeking review of the DEC's decision on Facility No. 6.
The trial court also determined that there was an ongoing state proceeding on Facility No. 6 based upon CECOS' original application for a permit under the former siting law. Specifically, it found that the Facility No. 6 proceeding was ongoing because it had not been terminated--but only held in abeyance in July 1987--prior to thе filing of the instant federal suit. In this analysis, we think the district court was mistaken.
B. No Ongoing State Proceedings
Whether CECOS' original administrative application was "ongoing" at the time CECOS brought its federal court action requires us to examine both the circumstances of that application and the ALJ's memorandum "suspending" that proceeding. CECOS originally made its application while the old siting law was in effect. Under the terms of that law, CECOS had a grandfather exemption from the certification requirement, and therefore had no reason to assume that it would have to raise any constitutional challenges to the siting law before the ALJ. The constitutional challenges raised in the federal court action are not aimed at the old siting law under which CECOS originally filed its application. Rather, CECOS challenges only the amended siting law that came into existence after CECOS initiated the original application proceeding. In short, CECOS could not have raised its federal claims in the original administrative proceeding until the Governor signed into law the amendments that are the subject of those claims.
When the amendments were passed by the state legislature, the ALJ presiding over CECOS' application proceedings "suspended" the proceedings and remanded the matter to the DEC for it to indicate to CECOS what additional information was necessary under the new law. Although the ALJ initially characterized his order as a "suspension" of the proceedings, he later indicated that it more likеly could be characterized as a dismissal without prejudice of the original application, stating
Of course, it is the Applicant's prerogative to withdraw or modify the application or to pursue any other legal avenue available. When any such further processing of the application has been completed, the hearing would presumably be rescheduled jointly before a siting board and the Department, and the proceedings would begin anew. In the event the bill does not become law, we will resume the proceedings begun after the issues conference of June 3, 1987.
CECOS International Inc., Memorandum of Administrative Law Judge (July 21, 1987).
In light of the language used by the ALJ indicating that he had, in effect, dismissed CECOS' original application with leave to file a new application under the amended siting law, it is apparent that the original state administrative proceedings under the old law ended as of the ALJ's "suspension." Hence, there was no ongoing state proceeding when CECOS filed its action in federal court on August 24, 1987.
In concluding that there was an ongoing state proceeding the district court relied on the fact that the application proceeding was "reopened" on March 29, 1988, and was continuing as of the point in time when the district court drafted its opinion.
Under the circumstances, there was no state judicial or administrative proceeding pending that warranted Younger abstention at the time CECOS filed its federal suit. A federal court need not stay its jurisdictional hand when there is no state action pending at the time the federal suit is filed, even if there is a substantial likelihood that a state proceeding will be instituted in the future to vindicate the state's interests. See Wisconsin v. Constantineau,
Further support for permitting CECOS access to federal court is found in Patsy v. Board of Regents,
CECOS was therefore entitled to seek relief either by instituting a declaratory judgment action in federal court asserting that it has a viable cause of action under Sec. 1983 and Sec. 1988, or by petitioning a state court in an Article 78 proceeding to review the action taken by the siting board. CECOS chose the former course. It may not be precluded from asserting its rights under Sec. 1983 and Sec. 1988 and having a federal court review its constitutional challenges to an amended state law simply because it had filed an application for a permit before the challenged amendment was enacted.
II Equal Protection
CECOS argues that the state statute violates the Equal Protection Clause. The Equal Protection Clause of the Fourteenth Amendment directs that a state shall not "deny to any person within its jurisdiction the equal protection of the laws."
CECOS asserts that the state changed the rules in the middle of the game. Quite plainly, the state legislature realized that it should not grant an exemption to operators planning an expansion of an existing commercial facility from going through the siting certification process. The Assembly of the State of New York, Record of Proceedings 12 (July 10, 1987). The state provided cogent reasons for requiring siting board approval for expansion of commercial--but not non-commercial--hazardous waste facilities, all of which were found to be legitimate by the district court. The state noted first that commercial facilities are more likely to expand because their profits are based upon the number of operating facilities whereas non-commercial facilities, sited on the premises of the waste generator, lack a profit motive. Second, the state suggested that there are greater risks associated with commercial facilities because hazardous wastes must be transported to the off-site commercial facility. Third, it proposed that siting board review would prevent a particular area of the state from housing too many commercial facilities, thereby receiving a disproportionately large share of the state's hazardous wastes. Fourth, it believed that the gravity of the problem of expanding hazardous waste facilities merited review by both the DEC and the siting board, and it chose to proceed "one step at a time insofar as requiring siting board certifications is concerned." See
The thrust of CECOS' argument is that the true purpose behind the legislation was to prevent the expansion of CECOS, and that the state proffered reasons after the fact in an attempt to rehabilitate the statute. It claims that statements made by the assemblymen sponsoring the new siting law and not-in-my-backyard rhetoric prove that the actual purpose is to discriminate against CECOS.
CECOS' assertion that these statements, in and of themselves, reveal the discriminatory purpose of the new siting law is a shot wide of the mark. Even were we to hazard a guess at the "true" motives of lawmakers who vote on a bill, the Supreme Court admonishes us that "[i]nquiries into [lawmakers'] motives or purposes are a hazardous matter.... What motivates one legislator to make a speech about a statute is not necessarily what motivates scores of оthers to enact it, ..." and guesswork in this area is valueless conjecture. United States v. O'Brien,
CECOS' reliance upon Cleburne and LILCO v. Cuomo,
In the present case, another facility (SCA) is equally effected by the new siting law, and the reasons for distinguishing between commercial and non-commercial facilities articulated by the state are legitimate. Thus, the new siting law cannot be said to violate the Equal Proteсtion Clause.
CONCLUSION
For the foregoing reasons, we hold that the district court had jurisdiction over this matter. We also conclude that New York's amended siting law is not violative of the Equal Protection Clause of the Constitution.
The judgment appealed from is accordingly affirmed.
Notes
Hon. Daniel M. Friedman, United States Circuit Judge for the Federal Circuit, sitting by designation
The new siting law provides, in pertinent part:
[N]o person may commence construction or operation of the following industrial hazardous waste treatment, storage and disposal facilities, ... without having received a certificаte of environmental safety and public necessity from the facility siting board as hereinafter provided:
[T]he following industrial hazardous waste treatment, storage and disposal facilities shall not be subject to the provisions of this title:
(d) Additional facilities, other than land disposal facilities, to be located at the site of an existing facility, the operation of which will be substantially similar to that of the existing facility with respect to the mode of waste management and the typе and quantity of hazardous waste being managed.
N.Y.Envtl.Conserv.Law Sec. 27-1105 (McKinney 1989) (emphasis supplied).
Notwithstanding the provisions of subdivision one of this section, the new siting law provides an exception for
[a] land disposal facility located at the site of an existing land disposal facility where both the existing facility is or was and the proposed facility will be used solely for the disposal of non-incinerable residues from the on-site thermal destruction or chemical or aqueous treatment of wastes generated at the site of such facilities [.]
N.Y.Envtl.Conserv.Law Sec. 27-1105(2)(b) (McKinney 1989) (emphasis supplied).