OCTOBER TERM 2011 · DECIDED MARCH 21, 2012 · 9–0

566 U. S. ____ · No. 10-1062 · Argued January 9, 2012

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Sackett v. Environmental Protection Agency

Reversed and remandedFinal ruling
property rightswetlands regulationEPA enforcementclean water actadministrative law

Opinion of the Court by Justice Scalia, joined by Justices Roberts, Kennedy, Thomas, Ginsburg, Breyer, Alito, Sotomayor, and Kagan

The Court ruled that a couple who received an EPA order accusing them of illegally filling wetlands on their Idaho lot could immediately sue in federal court to challenge it, rather than waiting for the EPA to sue them first.

The decision means people who receive EPA compliance orders no longer have to risk massive daily fines while waiting for the agency to decide whether to enforce the order in court — they can challenge the EPA's authority right away.

How it got here: A federal district court dismissed the Sacketts' suit for lack of jurisdiction; the Ninth Circuit affirmed, and the Supreme Court agreed to review.

The Case in Depth

What happened

Michael and Chantell Sackett filled part of their small residential lot near Priest Lake, Idaho, with dirt and rock to prepare for building a house. The EPA sent them a compliance order declaring their lot contained protected wetlands, saying they had violated the Clean Water Act, and ordering them to restore the site under an EPA-approved plan or face fines of up to $75,000 per day.

The question before the Court

When the EPA orders a landowner to restore wetlands under threat of huge daily fines, can the landowner immediately go to court to challenge that order?

Why it matters

Landowners, businesses, and developers who receive EPA compliance orders can now go straight to court to contest the agency's claim that their property falls under the Clean Water Act, instead of being stuck either complying under protest or accumulating tens of thousands of dollars a day in potential fines while waiting for the EPA to sue.

What changes now

The case goes back to the lower courts so the Sacketts can pursue their APA lawsuit challenging the EPA's authority over their property. The Supreme Court did not decide whether their land actually contains protected wetlands \u2014 only that they may now litigate that question in court instead of waiting for the EPA to sue them. Broader questions about what counts as a wetland were left for future cases.

What this does not decide

The Court did not decide whether the Sacketts' land actually contains wetlands covered by the Clean Water Act, or whether the EPA's specific findings were correct. Justice Ginsburg's concurrence also notes the Court left open whether landowners could challenge the specific terms of a compliance order, not just the EPA's basic authority to regulate the property.

Concurrences and dissents

Concurrence — Justice Ginsburg

Justice Ginsburg agreed the Sacketts could immediately challenge the EPA's claim that it had authority over their land, since the agency had ruled definitively on that question. She stressed the Court was not deciding whether landowners could also challenge the specific terms and conditions of a compliance order at this early stage, since the Sacketts had not raised that issue.

Concurrence — Justice Alito

Justice Alito agreed with the ruling but wrote to criticize the underlying problem: that the Clean Water Act's definition of 'waters of the United States' is so vague that ordinary landowners are left at the mercy of EPA staff's case-by-case judgments. He argued the Court's decision only provides modest relief and that real fairness requires Congress to write a clearer rule defining the law's reach.

How the Court got there

The legal reasoning, step by step

  1. The Court asked whether the EPA's compliance order counted as 'final agency action' under the Administrative Procedure Act (APA) — a legal requirement that an agency's decision must be truly complete, not just a preliminary step, before a court can review it.
  2. The Court found the order determined the Sacketts' legal rights and obligations, since it required them to restore their property under an agency plan and give the EPA access, and 'legal consequences' flowed from it, including exposure to doubled penalties in any later enforcement suit and a much harder path to getting an Army Corps permit.
  3. The Court also found the order marked the 'consummation' of the EPA's decision-making, because the agency's findings were not subject to any further internal review, and an invitation to informally discuss the order did not count as a real review process.
  4. The Court then considered whether the Sacketts had 'no other adequate remedy in a court,' another APA requirement, and concluded they did not, since only the EPA could start an enforcement lawsuit and applying for a permit from a different agency would not address the order already issued against them.
  5. Finally, the Court asked whether the Clean Water Act itself overcomes the APA's usual presumption that agency actions can be reviewed in court, and found none of the government's arguments — about the EPA's choice between orders and lawsuits, the orders' non-self-executing nature, or Congress's silence on review of these particular orders — strong enough to block review.

Doctrinal impact

Laws and provisions at issue

Clean Water Act § 309

Lets the EPA issue compliance orders or sue when it finds a violation of the Act.

Administrative Procedure Act § 704

Allows courts to review final agency actions when no other adequate remedy exists.

Administrative Procedure Act § 701(a)(1)

Bars APA review only when another statute clearly precludes judicial review.

Supreme Court Opinion

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