Friends of the Earth brought an enforcement action against Laidlaw pursuant to the citizen-suit provision of the Federal Water Pollution Control Act (Clean Water Act). They alleged ongoing violations by Laidlaw of certain permits and sought monetary penalties, declaratory judgment, injunctive relief, attorneys’ fees and costs.The district court found that Laidlaw had committed several permit violations and imposed a penalty of $405,800. The court did, however, deny plaintiffs’ request for declaratory judgment and injunctive relief because Laidlaw’s violations had not harmed the environment and Laidlaw had been in substantial compliance for several years at the time the court issued its final order.
The plaintiffs appealed the size of the penalty to the Fourth Circuit Court of Appeals, but did not challenge the denial of injunctive relief. Laidlaw argued that plaintiffs lacked standing. Applying Steel Co. v. Citizens for a Better Environment, the court concluded that "this action is moot because the only remedy currently available to Plaintiffs—civil penalties payable to the government—would not redress any injury Plaintiffs have suffered." It vacated the order of the district court and remanded the case with instructions to dismiss the action.
On January 12, 2000, the Supreme Court reversed by a vote of 7 to 2. It held that the case is not moot even where the company has come into compliance with its permit, since it was in violation at the time of the complaint, and its violations could continue into the future if undeterred. It sent the case back to the lower courts to determine whether there was any chance that the company might still violate its permit in the future. The ruling is a step back from the Steel Company decision, where it found that citizen suits could not be filed for wholly past permit violations.