In a victory for citizens' suit litigation, the U.S. Supreme Court held that citizens' groups do not lose standing where a defendant comes into compliance after a lawsuit is filed. In Friends of the Earth v. Laidlaw, environmental groups notified Laidlaw of their intent to file a Clean Water Act citizens' suit, alleging violations of the company's wastewater discharge permit. After the suit was filed and at the defendant's request, the state environmental agency sued Laidlaw for the permit violations and then quickly settled the suit. Laidlaw then moved to dismiss plaintiffs' claims on the ground that the groups did not have standing.
The Court of Appeals for the Fourth Circuit dismissed the suit, finding that while plaintiffs did have standing at the outset, the case had become moot once Laidlaw complied with its permit. On appeal, the Supreme Court held that the subsequent compliance did not remove standing from plaintiffs or render the case moot. Plaintiffs had standing based upon the injury suffered from Laidlaw's allegedly unlawful discharges, in the form of diminished use and enjoyment of the river and lower property values. The Court also found that plaintiffs had standing to seek civil penalties even though such penalties are payable to EPA rather than plaintiffs, since civil penalties under the Clean Water Act both promote compliance and deter future violations and, thus, afford plaintiffs redress for their injuries. Further, the Court held that cessation of unlawful conduct is not, alone, sufficient to render an action moot unless it is clear that the unlawful behavior could not be expected to recur. In reversing the lower court's opinion, the Supreme Court has eased the burden of citizens' groups with respect to standing, and reinforced the stringent requirements necessary to render an action moot.
