DUKE POWER CO. v. CAROLINA ENVIRONMENTAL STUDY GROUP, INC., ET AL.
No. 77-262
Supreme Court of the United States
Argued March 20, 1978—Decided June 26, 1978
438 U.S. 59
*Together with No. 77-375, United States Nuclear Regulatory Commission et al. v. Carolina Environmental Study Group, Inc., et al., also on appeal from the same court.
No. 77-262. Argued March 20, 1978—Decided June 26, 1978*
William B. Schultz argued the cause for appellees in both cases. With him on the brief were Alan B. Morrison, George Daly, Norman B. Smith, and Jonathan R. Harkavy.†
MR. CHIEF JUSTICE BURGER delivered the opinion of the Court.
These appeals present the question of whether Congress may, consistent with the Constitution, impose a limitation on
I
A
When Congress passed the
Private industry responded to the
Congress responded in 1957 by passing the
Since its enactment, the Act has been twice amended, the first occasion being on the eve of its expiration in 1966.4 These amendments extended the basic liability-limitation provisions for another 10 years, and added a provision which had the effect of requiring those indemnified under the Act to waive all legal defenses in the event of a substantial nuclear accident.5 This provision was based on a congressional concern that state tort law dealing with liability for nuclear incidents was generally unsettled and that some way of insuring a common standard of responsibility for all jurisdictions—strict liability—was needed. A waiver of defenses was thought to be the preferable approach since it entailed less
In 1975, Congress again extended the Act‘s coverage until 1987, and continued the $560 million limitation on liability. However a new provision was added requiring, in the event of a nuclear incident, each of the 60 or more reactor owners to contribute between $2 and $5 million toward the cost of compensating victims.7
Under the
B
Appellant in No. 77-262, Duke Power Co., is an investor-owned public utility which is constructing one nuclear power plant in North Carolina and one in South Carolina. Duke Power, along with the NRC, was sued by appellees, two organizations—Carolina Environmental Study Group and the Catawba Central Labor Union—and 40 individuals who live within close proximity to the planned facilities. The action was commenced in 1973, and sought, among other relief, a declaration that the
After the parties had engaged in extensive discovery, the District Court held an evidentiary hearing on the questions of whether the issues were ripe for adjudication and whether
We noted probable jurisdiction11 in these appeals, 434 U. S. 937 (1977), and we now reverse.
II
As a threshold matter, we must address the question of whether the District Court had subject-matter jurisdiction over appellees’ claims, despite the fact that none of the parties raised this issue and the District Court did not consider it. See Liberty Mutual Ins. Co. v. Wetzel, 424 U. S. 737, 740 (1976). Appellees’ complaint alleges jurisdiction under
Specifically, as we read the complaint, appellees are making two basic challenges to the Act—both of which find their moorings in the
For purposes of determining whether jurisdiction exists under
The further question of whether appellees’ cause of action under the Constitution is one generally to be recognized need not be decided here. The question does not directly implicate our jurisdiction, see Bell v. Hood, supra, was not raised in the court below, was not briefed, and was not addressed during oral argument. As we noted last Term in a similar context, questions of this sort should not be resolved on such an inadequate record; leaving them unresolved is no bar to full consideration of the merits. See Mt. Healthy City Bd. of Educ. v. Doyle, 429 U. S. 274, 278-279 (1977). It is enough for present purposes that the claimed cause of action to vindicate appel-
III
The District Judge held four days of hearings on the questions of standing and ripeness; his factual findings form the basis for our analysis of these issues.
A
The essence of the standing inquiry is whether the parties seeking to invoke the court‘s jurisdiction have “alleged such a personal stake in the outcome of the controversy as to assure that concrete adverseness which sharpens the presentation of issues upon which the court so largely depends for illumination of difficult constitutional questions.” Baker v. Carr, 369 U. S. 186, 204 (1962). As refined by subsequent reformulation, this requirement of a “personal stake” has come to be understood to require not only a “distinct and palpable injury,” to the plaintiff, Warth v. Seldin, 422 U. S. 490, 501 (1975), but also a “fairly traceable” causal connection between the claimed injury and the challenged conduct. Arlington Heights v. Metropolitan Housing Dev. Corp., 429 U. S. 252, 261 (1977). See also Simon v. Eastern Ky. Welfare Rights Org., 426 U. S. 26, 41-42 (1976); Linda R. S. v. Richard D., 410 U. S. 614, 617 (1973). Application of these constitutional standards to the factual findings of the District Court persuades us that the
We turn first to consider the kinds of injuries the District Court found the appellees suffered. It discerned two categories of effects which resulted from the operation of nuclear
For purposes of the present inquiry, we need not determine whether all the putative injuries identified by the District Court, particularly those based on the possibility of a nuclear accident and the present apprehension generated by this future uncertainty, are sufficiently concrete to satisfy constitutional requirements. Compare O‘Shea v. Littleton, 414 U. S. 488 (1974), with United States v. SCRAP, 412 U. S. 669 (1973). See also Conservation Society of Southern Vermont v. AEC, Civ. Action No. 19-72 (DC Apr. 17, 1975). It is enough that several of the “immediate” adverse effects were found to harm appellees. Certainly the environmental and aesthetic consequences of the thermal pollution of the two lakes in the vicinity of the disputed power plants is the type
The more difficult step in the standing inquiry is establishing that these injuries “fairly can be traced to the challenged action of the defendant,” Simon v. Eastern Ky. Welfare Rights Org., supra, at 41, or put otherwise, that the exercise of the Court‘s remedial powers would redress the claimed injuries. 426 U. S., at 43. The District Court discerned a “but for” causal connection between the
These findings, which, if accepted, would likely satisfy the second prong of the constitutional test for standing as elaborated in Simon,20 are challenged on two grounds. First, it is argued that the evidence presented at the hearing, contrary to the conclusion reached by the District Court, indicated that the McGuire and Catawba nuclear plants would be completed and operated without the
The District Court‘s finding of a “substantial likelihood” that the McGuire and Catawba nuclear plants would be neither completed nor operated absent the
“Nuclear power plants now in the planning and design phases would not receive construction permits until about 1977-1978. Thus there is uncertainty as to whether these plants would receive protection in the form of Government indemnity. Reactor manufacturers and architect-engineers are already requiring escape clauses in their contracts to permit cancellation in the event some form of protection from unlimited potential liability is not provided. Action is required soon to prevent disruption in utility plans for nuclear power.” H. R. Rep. No. 94-648, p. 7 (1975).
Nor was the testimony at the hearing in this case, evaluation of which is the primary responsibility of the trial judge, at odds with the impression drawn from the legislative history. The testimony of Executive Vice President Lee of Duke Power
The second attack on the District Court‘s finding of a causal link warrants only brief attention. Essentially the argument is, as we understand it, that Price-Anderson is not a “but for” cause of the injuries appellees claim since, if Price-Anderson had not been passed, the Government would have undertaken development of nuclear power on its own and the same injuries would likely have accrued to appellees from such Government-operated plants as from privately operated ones. Whatever the ultimate accuracy of this speculation, it is not responsive to the simple proposition that private power companies now do in fact operate the nuclear-powered generating plants in-
B
It is further contended that in addition to proof of injury and of a causal link between such injury and the challenged conduct, appellees must demonstrate a connection between the injuries they claim and the constitutional rights being asserted. This nexus requirement is said to find its origin in Flast v. Cohen, 392 U. S. 83 (1968), where the general question of taxpayer standing was considered:
“The nexus demanded of federal taxpayers has two aspects to it. First, the taxpayer must establish a logical link between that status and the type of legislative enactment attacked. . . . Secondly, the taxpayer must establish a nexus between that status and the precise nature of the constitutional infringement alleged.” Id., at 102.
See also United States v. Richardson, 418 U. S. 166, 174-175 (1974). Since the environmental and health injuries claimed by appellees are not directly related to the constitutional attack on the
The major difficulty with the argument is that it implicitly assumes that the nexus requirement formulated in the context of taxpayer suits has general applicability in suits of all other types brought in the federal courts. No cases have been cited
“Looking ‘to the substantive issues’ which Flast stated to be both ‘appropriate and necessary’ in relation to taxpayer standing was for the express purpose of determining ‘whether there is a logical nexus between the [taxpayer] status asserted and the claim sought to be adjudicated.’ 392 U.S., at 102. This step is not appropriate on a claim of citizen standing since the Flast nexus test is not applicable where the taxing and spending power is not challenged. . . .”
We continue to be of the same view and cannot accept the contention that, outside the context of taxpayers’ suits, a litigant must demonstrate something more than injury in fact and a substantial likelihood that the judicial relief requested will prevent or redress the claimed injury to satisfy the “case or controversy” requirement of
There are good and sufficient reasons for this prudential limitation on standing when rights of third parties are implicated—the avoidance of the adjudication of rights which those not before the Court may not wish to assert, and the assurance that the most effective advocate of the rights at issue is present to champion them. See Singleton v. Wulff, 428 U.S. 106, 113-114 (1976). We do not, however, find these reasons a satisfactory predicate for applying this limitation or a similar nexus requirement to all cases as a matter of course. Where a party champions his own rights, and where the injury alleged is a concrete and particularized one which will be
We conclude that appellees have standing to challenge the constitutionality of the Price-Anderson Act.26
C
The question of the ripeness of the constitutional challenges raised by appellees need not long detain us. To the extent that “issues of ripeness involve, at least in part, the existence of a live ‘Case or Controversy,’ ” Regional Rail Reorganization Act Cases, 419 U.S., at 138, our conclusion that appellees will sustain immediate injury from the operation of the disputed power plants and that such injury would be redressed by the relief requested would appear to satisfy this requirement.
The prudential considerations embodied in the ripeness doctrine also argue strongly for a prompt resolution of the claims presented. Although it is true that no nuclear accident has yet occurred and that such an occurrence would eliminate much of the existing scientific uncertainty surrounding this
IV
The District Court held that the Price-Anderson Act contravened the Due Process Clause because “[t]he amount of recovery is not rationally related to the potential losses“; because “[t]he Act tends to encourage irresponsibility in matters of safety and environmental protection . . .“; and finally because “[t]here is no quid pro quo” for the liability limitations. 431 F. Supp., at 222-223. An equal protection violation was also found because the Act “places the cost of [nuclear power] on an arbitrarily chosen segment of society, those injured by nuclear catastrophe.” Id., at 225. Application of the relevant constitutional principles forces the conclusion that these holdings of the District Court cannot be sustained.
A
Our due process analysis properly begins with a discussion of the appropriate standard of review. Appellants, portraying the liability-limitation provision as a legislative balancing of economic interests, urge that the Price-Anderson Act be
As we read the Act and its legislative history, it is clear that Congress’ purpose was to remove the economic impediments in order to stimulate the private development of electric energy by nuclear power while simultaneously providing the public compensation in the event of a catastrophic nuclear incident. See, e. g., S. Rep. No. 296, 85th Cong., 1st Sess., 15 (1957). The liability-limitation provision thus emerges as a classic example of an economic regulation—a legislative effort to structure and accommodate “the burdens and benefits of economic life.” Usery v. Turner Elkhorn Mining Co., supra, at 15. “It is by now well established that [such] legislative Acts . . . come to the Court with a presumption of constitutionality, and that the burden is on one complaining of a due process violation to establish that the legislature has acted in an arbitrary and irrational way.” Ibid. That the accommodation struck may have profound and far-reaching consequences, contrary to appellees’ suggestion, provides all the
B
When examined in light of this standard of review, the Price-Anderson Act, in our view, passes constitutional muster. The record before us fully supports the need for the imposition of a statutory limit on liability to encourage private industry participation and hence bears a rational relationship to Congress’ concern for stimulating the involvement of private enterprise in the production of electric energy through the use of atomic power; nor do we understand appellees or the District Court to be of a different view. Rather their challenge is to the alleged arbitrariness of the particular figure of $560 million, which is the statutory ceiling on liability. The District Court aptly summarized its position:
“The amount of recovery is not rationally related to the potential losses. Abundant evidence in the record shows that although major catastrophe in any particular place is not certain and may not be extremely likely, nevertheless, in the territory where these plants are located, damage to life and property for this and future generations could well be many, many times the limit which the law places on liability.” 431 F. Supp., at 222.
Assuming, arguendo, that the $560 million fund would not insure full recovery in all conceivable circumstances28—and
“[T]his limitation does not, as a practical matter, detract from the public protection afforded by this legislation. In the first place, the likelihood of an accident occurring
which would result in claims exceeding the sum of the financial protection required and the governmental indemnity is exceedingly remote, albeit theoretically possible. Perhaps more important, in the event of a national disaster of this magnitude, it is obvious that Congress would have to review the problem and take appropriate action. The history of other natural or man-made disasters, such as the Texas City incident, bears this out. The limitation of liability serves primarily as a device for facilitating further congressional review of such a situation, rather than as an ultimate bar to further relief of the public.” H. R. Rep. No. 883, 89th Cong., 1st Sess., 6-7 (1965).
See also S. Rep. No. 296, supra, at 21; H. R. Rep. No. 94-648, pp. 12, 15 (1975).
Given our conclusion that, in general, limiting liability is an acceptable method for Congress to utilize in encouraging the private development of electric energy by atomic power, candor requires acknowledgment that whatever ceiling figure is selected will, of necessity, be arbitrary in the sense that any choice of a figure based on imponderables like those at issue here can always be so characterized. This is not, however, the kind of arbitrariness which flaws otherwise constitutional action. When appraised in terms of both the extremely remote possibility of an accident where liability would exceed the limitation30 and Congress’ now statutory commitment to “take whatever action is deemed necessary and appropriate to protect the public from the consequences of” any such disaster,
This District Court‘s further conclusion that the Price-Anderson Act “tends to encourage irresponsibility . . . on the part of builders and owners” of the nuclear power plants, 431 F. Supp., at 222, simply cannot withstand careful scrutiny. We recently outlined the multitude of detailed steps involved in the review of any application for a license to construct or to operate a nuclear power plant, Vermont Yankee Nuclear Power Corp. v. NRDC, 435 U.S. 519, 526-527, and n. 5 (1978); nothing in the liability-limitation provision undermines or alters in any respect the rigor and integrity of that process. Moreover, in the event of a nuclear accident the utility itself would suffer perhaps the largest damages. While obviously not to be compared with the loss of human life and injury to health, the risk of financial loss and possible bankruptcy to the utility is in itself no small incentive to avoid the kind of irresponsible and cavalier conduct implicitly attributed to licensees by the District Court.
The remaining due process objection to the liability-limitation provision is that it fails to provide those injured by a
The legislative history of the liability-limitation provisions and the accompanying compensation mechanism reflects Congress’ determination that reliance on state tort law remedies and state-court procedures was an unsatisfactory approach to assuring public compensation for nuclear accidents, while at the same time providing the necessary incentives for private development of nuclear-produced energy. The remarks of Chairman Anders of the NRC before the Joint Committee on Atomic Energy during the 1975 hearings on the need for renewal of the Price-Anderson Act are illustrative of this concern and of the expectation that the Act would provide a more efficient and certain vehicle for assuring compensation in the unlikely event of a nuclear incident:
“The primary defect of this alternative [nonrenewal of the Act], however, is its failure to afford the public either a secure source of funds or a firm basis for legal liability with respect to new plants. While in theory no legal limit would be placed on liability, as a practical matter the public would be less assured of obtaining compensation than under Price-Anderson. Establishing liability would depend in each case on state tort law and procedures, and these might or might not provide for no-fault liability, let alone the multiple other protections now embodied in Price-Anderson. The present assurance of prompt and equitable compensation under a pre-structured and nationally applicable protective system would give way to uncertainties, variations and potentially lengthy delays in recovery. It should be emphasized, moreover, that it is collecting a judgment, not filing a
lawsuit, that counts. Even if defenses are waived under state law, a defendant with theoretically ‘unlimited’ liability may be unable to pay a judgment once obtained. When the defendant‘s assets are exhausted by earlier judgments, subsequent claimants would be left with uncollectable awards. The prospect of inequitable distribution would produce a race to the courthouse door in contrast to the present system of assured orderly and equitable compensation.” Hearings on H. R. 8631 before Joint Committee on Atomic Energy, 94th Cong., 1st Sess., 69 (1975).
Appellees, like the District Court, differ with this appraisal on several grounds. They argue, inter alia, that recovery under the Act would not be greater than without it, that the waiver of defenses required by the Act,
We disagree. We view the congressional assurance of a $560 million fund for recovery, accompanied by an express statutory commitment, to “take whatever action is deemed necessary
Appellees’ remaining objections can be briefly treated. The claim-administration procedures under the Act provide that in the event of an accident with potential liability exceeding the $560 million ceiling, no more than 15% of the limit can be distributed pending court approval of a plan of distribution taking into account the need to assure compensation for “possible latent injury claims which may not be discovered until a later time.”
In the course of adjudicating a similar challenge to the
Although the District Court also found the Price-Anderson Act to contravene the “equal protection provision that is included within the Due Process Clause of the
Accordingly, the decision of the District Court is reversed, and the cases are remanded for proceedings consistent with this opinion.
Reversed and remanded.
MR. JUSTICE STEWART, concurring in the result.
With some difficulty I can accept the proposition that federal subject-matter jurisdiction under
On the issue of standing, the Court relies on the “present” injuries of increased water temperatures and low-level radiation emissions. Even assuming that but for the Act the plant would not exist and therefore neither would its effects on the environment, I cannot believe that it follows that the appellees have standing to attack the constitutionality of the Act. Apart from a “but for” connection in the loosest sense of that concept, there is no relationship at all between the injury alleged for standing purposes and the injury alleged for federal subject-matter jurisdiction.
Surely a plaintiff does not have standing simply because his challenge, if successful, will remove the injury relied on for standing purposes only because it will put the defendant out of existence. Surely there must be some direct relationship between the plaintiff‘s federal claim and the injury relied on for standing. Cf. Arlington Heights v. Metropolitan Housing Dev. Corp., 429 U.S. 252, 261; United States v. SCRAP, 412 U.S. 669, 687-690; Linda R. S. v. Richard D., 410 U.S. 614, 617-618. An interest in the local water temperature does not, in short, give these appellees standing to bring a suit under
For these reasons, I would remand these cases to the District Court with instructions to dismiss the complaint.
MR. JUSTICE REHNQUIST, with whom MR. JUSTICE STEVENS joins, concurring in the judgment.
I can understand the Court‘s willingness to reach the merits of this case and thereby remove the doubt which has been cast over this important federal statute. In so doing, however, it ignores established limitations on district court jurisdiction
Giving the conclusory allegations of appellees’ complaint the most liberal possible reading, they purport to establish only two grounds for the declaratory relief requested. First, they contend that the Price-Anderson Act deprives them of their property without due process of law in that it irrationally limits the tort recovery otherwise available in the North Carolina courts.1 Second, they contend that the Act works an unconstitutional taking of their property for public use without just compensation. They purport to base District Court jurisdiction upon
I
It is apparent that appellees’ first asserted basis for relief does not state a claim “arising under” the Price-Anderson Act. Their complaint alleges that the operation of the two power plants will cause immediate injury to property within their vicinity. App. 32, ¶ 21. The District Court explicitly found that these injuries “give rise to an immediate right of action for redress. Under the law of North Carolina a right of action arises as soon as a wrongful act has created ‘any injury, how-
It has long been established that the mere anticipation of a possible federal defense to a state cause of action is not sufficient to invoke the federal-question jurisdiction of the district courts. In Louisville & Nashville R. Co. v. Mottley, 211 U.S. 149 (1908), the plaintiffs sought to compel the specific performance of a contract by which the railroad had granted them free passes for life. Although their contract was not predicated upon federal law, the plaintiffs contended that federal-question jurisdiction was established by the presence of an Act of Congress forbidding railroads to issue free passes. This Court held that the District Court did not have jurisdiction to consider whether the Act was inapplicable or unconstitutional:
“It is the settled interpretation of these words [‘arising under‘], as used in this statute, conferring jurisdiction, that a suit arises under the Constitution and laws of the United States only when the plaintiff‘s statement of his own cause of action shows that it is based upon those laws or that Constitution. It is not enough that the plaintiff alleges some anticipated defense to his cause of action and asserts that the defense is invalidated by some provision of the Constitution of the United States. Although such allegations show that very likely, in the course of the litigation, a question under the Constitution would arise, they do not show that the suit, that is, the plaintiff‘s original cause of action, arises under the Constitution.” Id., at 152.
Nor does the fact that appellees seek only declaratory relief under the Declaratory Judgment Act,
Appellees do not contend that the Price-Anderson Act itself grants to them personal rights which may be vindicated in a federal proceeding. Since the only property rights they assert arise under North Carolina law, the District Court had no jurisdiction to consider whether the setting up of an Act of Congress as a defense against those rights would deny them due process of law under the
Indeed, the Court does not even contend that there is an independent statutory source of jurisdiction over Duke. Ante, at 72 n. 16. It suggests instead that the complaint states a claim against the Nuclear Regulatory Commission, not as a joint tortfeasor under North Carolina law, but as the administrator of an unconstitutional federal statute. The Court‘s theory is that the complaint alleges the existence of an implied right of action under the
More importantly, there is no allegation in this complaint that the Nuclear Regulatory Commission has taken or will take any unconstitutional action at all. The complaint alleges only that the Commission granted construction permits to
It simply cannot be said that these allegations make out an actual controversy against the Commission. While the Commission may be quite interested in the constitutionality of the statute, that is hardly sufficient to establish a justiciable controversy. Muskrat v. United States, 219 U.S. 346, 361-362 (1911). While appellees may have been damaged by Duke‘s decision to construct these plants, there is no “challenged action of the defendant” Commission to which their damage “fairly can be traced.” Simon v. Eastern Ky. Wel- fare Rights Org., 426 U.S. 26, 41 (1976). If Duke decided to proceed with construction despite a declaration of the statute‘s unconstitutionality, there would be nothing that the Commission could do to aid appellees. Where the prospect of effective relief against a defendant depends on the actions of a third party, no justiciable controversy exists against that defendant. Warth v. Seldin, 422 U.S. 490, 505 (1975). In short, appellees’ only conceivable controversy is with Duke, over whom the District Court had no jurisdiction.
II
As appellees themselves describe the second aspect of their complaint, “the central issue is whether in the circumstances of this case, the complete destruction of appellees’ property by a nuclear accident, occurring at one of Duke‘s plants, would be a ‘taking’ by the United States, as that term is defined in the
The District Court does have jurisdiction to consider claims of taking under the Tucker Act,
There being no basis for District Court jurisdiction over either of appellees’ claims, its judgment should be reversed and the cause remanded with instructions to dismiss the complaint for want of jurisdiction.
MR. JUSTICE STEVENS, concurring in the judgment.
The string of contingencies that supposedly holds this litigation together is too delicate for me. We are told that but for the Price-Anderson Act there would be no financing of nuclear power plants, no development of those plants by private parties, and hence no present injury to persons such as appellees; we are then asked to remedy an alleged due process viola-
The Court‘s opinion will serve the national interest in removing doubts concerning the constitutionality of the Price-Anderson Act. I cannot, therefore, criticize the statesmanship of the Court‘s decision to provide the country with an advisory opinion on an important subject. Nevertheless, my view of the proper function of this Court, or of any other federal court, in the structure of our Government is more limited. We are not statesmen; we are judges. When it is necessary to resolve a constitutional issue in the adjudication of an actual case or controversy, it is our duty to do so. But whenever we are persuaded by reasons of expediency to engage in the business of giving legal advice, we chip away a part of the foundation of our independence and our strength.
I join MR. JUSTICE REHNQUIST‘s opinion concurring in the judgment.
*With respect to whether appellees’ claim of present injury is sufficient to establish standing, it should be noted that some sort of financing is essential to almost all projects, public or private. Statutes that facilitate and may be essential to the financing abound—from tax statutes to statutes prohibiting fraudulent securities transactions. One would not assume, however, that mere neighbors have standing to litigate the legality of a utility‘s financing. Cf. Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723.
