Obama, EPA Lose Major Property Rights Case at Supreme Court

Homeowners and landowners won a major victory over the EPA and the Obama administration Tuesday when the Supreme Court unanimously ruled that property owners have the right to challenge, in federal court, efforts to use the Clean Water Act to restrict land use.

The court ruled that property owners can go directly to court if the US Army Corps of Engineers says the land falls under Clean Water Act restrictions.

The Obama administration had argued that property owners must wait to sue until they are denied a permit – a lengthy bureaucratic process which could take years.

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“If that were correct, the Act’s ominous reach would again be unchecked by the limited relief the Court allows today,” Justice Anthony Kennedy wrote of the federal government’s argument.

The justices, in an 8-0 decision, ruled that Hawkes Company, which mines peat in Minnesota, has the right to file a suit challenging a Corps of Engineers decision not to grant a permit to dig peat on the property. The Corp ruled that the area was part of the “water of the US.”

“They may proceed without a permit and argue in a Government enforcement action that a permit was not required, or they may complete the permit process and then seek judicial review, which, the Corps suggests, is what Congress envisioned,” Chief Justice John Roberts wrote of Hawkes.

The Corps argued that it had the right to stop Hawkes from digging peat because it was mining in wetlands on a tributary of a river.

If Hawkes Company proceeds without a permit or court ruling on its side, it would be subject to fines as high as $37,500 a day.

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