Sunday, October 27, 2013

General Electric Company v. U.S. Environmental Protection Agency case brief

General Electric Company v. U.S. Environmental Protection Agency case brief summary
53 F.3d 1324 (1995)

CASE SYNOPSIS
Petitioner manufacturer sought review of the decision of respondent Environmental Protection Agency, which found it violated regulations for disposing of polychlorinated biphenyls and imposed a fine.

CASE FACTS
Petitioner manufacturer decommissioned electric transformers that contained fluid with high concentrations of polychlorinated biphenyls (PCB). Petitioner incinerated the fluid, but recycled the cleaning solvent used to clean the transformers by distilling it. Respondent Environmental Protection Agency claimed the recycling process violated PCB regulations, and an administrative law judge and appeals board agreed.

DISCUSSION
  • The court vacated the finding of liability. 
  • It concluded that respondent's interpretation of the regulation was permissible; however, respondent did not provide petitioner with fair warning of its interpretation of the regulations. 
  • It held that where regulations and other policy statements were unclear, the petitioner's interpretation was reasonable, and respondent itself struggled to provide a definitive reading of the regulatory requirements, petitioner was not on notice of respondent's ultimate interpretation of the regulations and could not be punished. 
  • Therefore, respondent could not hold petitioner responsible, either financially or in future enforcement proceedings, for the actions charged in this case.
OUTCOME

The court reversed the finding of liability and vacated the fine. Petitioner could not be held liable for recycling cleaning solvent as respondent Environmental Protection Agency did not provide petitioner with fair warning of its interpretation as the regulation was unclear, petitioner's interpretation was reasonable, and respondent struggled to provide definitive reading of requirements.

Recommended Supplements for Administrative Law
Examples & Explanations: Administrative Law, Fourth Edition
Administrative Law and Process: In a Nutshell (Nutshell Series)

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