US Supreme Court's Big No to Teck Cominco
BC-based mining firm loses bid to appeal cross-border pollution lawsuit.
Teck Cominco smelter in Trail, BC.
[Editor's note: Rhiannon Coppin received a Tyee Fellowship for Investigative Reporting to write about the controversy over Teck Cominco liability for pollution originating in B.C. and flowing into the U.S. Her in-depth series begins in the coming weeks. In the meantime, she reports here on a key court ruling made yesterday.]
The U.S. Supreme Court Monday denied Vancouver-based mining giant Teck Cominco's application for the re-hearing of a lawsuit launched by Washington State citizens over pollution in the upper Columbia River.
As a result it is possible, though not at all certain, that Teck Cominco will have to pay millions of dollars to U.S. citizens who claim to have been affected by its pollution.
But the Supreme Court's decision not to hear the company's appeal scuttles a court case that might have had far more sweeping impact. Still legally murky is the broader question of how much power citizens have to sue a foreign entity for polluting their land.
Millions of tonnes of slag
Teck Cominco may have hurt their own appeal in June of 2006 when they signed a contentious $20 million deal with the Environmental Protection Agency (EPA) to study the health of the river after millions of tonnes of smelter by-product -- namely slag -- had been dumped into the Columbia River at Trail, B.C. over decades, leading up until the early '90s.
Teck Cominco signed the deal with the EPA partly because, they asserted, it was the right thing to do. "From the outset of our involvement in this issue, our intent has been to commit to do what we needed to do to deal with the environmental consequences of our past activities," asserted senior vice president of environment & corporate affairs Doug Horswill in a 2006 interview.
But the agreement also allowed the federal agency to withdraw a legally-binding enforcement order from 2003 that would have forced the Canadian company to undertake a full study and clean up of the river, with terms set out by the EPA, with potentially unlimited monetary costs to Teck Cominco.
The question in court was whether a Canadian corporation, operating and polluting in Canada -- for the most part within the limits of B.C.-issued permits -- could be targeted by U.S. environmental laws.
A group of U.S. citizens, headed up by representatives of the Colville Confederated Indian Tribes, sought enforcement of the then-outstanding EPA clean up order through Washington State court.
The case of Pakootas vs. Teck Cominco, which was initially won, went to federal appeals court in 2005. While the decision there was outstanding, Teck Cominco signed their deal with the EPA.
The decision came back in the fall of 2006 -- against the company. The problem with the decision was that there was no longer an EPA cleanup order to enforce, and the EPA had agreed not to pursue the fines they had levied against Teck Cominco for non-compliance.
Still, the tribes had not agreed not to sue for the non-compliance fines, and they also tacked on provisions for suing for costs and damages to their original lawsuit. The tribes did this partly to make sure that the EPA's private deal with Teck Cominco wouldn't nullify their complaint, and partly because going to court and living on and near polluted beaches can be a costly endeavour.
Threat to foreign policy?
The Supreme Court offered no reason why they wouldn't hear the case, but they had requested the opinion of the U.S. government on the matter in the summer of 2007.
Teck Cominco argued that the appeals court decision against them threatened U.S. foreign policy.
"For example, the president might find it difficult to press the Canadian government to continue its military presence in Afghanistan if Canadians were preoccupied with the prospect of being sued by EPA and private U.S. parties in American courts for conduct that occurred in Canada and in compliance with Canadian law," the company's lawyers wrote in their petition to the U.S. Supreme Court.
Teck Cominco further argued that the decision against them, and thus Canada, could affect American relations with other border nations such as Mexico and Russia and that trade with China could be harmed if someone sought damage for airborne mercury sourced from Asian smokestacks.
"The Ninth Circuit's decision thus threatens to interfere with the Executive's ability to conduct foreign policy not only within North America, but anywhere air and ocean currents may carry pollutants -- potentially, anywhere in the world," the company wrote.
In response, the U.S. solicitor general agreed that "international pollution can be diplomatically sensitive" but called Teck Cominco's arguments "unusually weak. . .because [the] petitioner dumped millions of tons of slag into a river just upstream of the border."
The U.S. solicitor general further argued in a response filed Dec. 4 that the Washington state citizens' lawsuit and the lower courts' decision in its favour was now irrelevant because the EPA had withdrawn the order against Teck Cominco -- the order for which the original citizen's lawsuit was seeking court enforcement.
The tribes and the State of Washington responded in turn, fearing that the U.S. Supreme Court, in addition to not hearing the case, might also "vacate" the lower court's opinion in accord with the Teck Cominco request in its own response to the solicitor general's argument for mootness.
Missed chance for precedent
In the end, Teck Cominco stood alone against the U.S. government, the State of Washington, and the citizens suing them, all of whom had their own reasons for asking the U.S. Supreme Court to reject Teck Cominco's request for an appeal.
Today marks a small victory for the plaintiffs in Pakootas vs. Teck Cominco, but it is by no means a clear win. Actually enforcing a cross-border "pay-up" command against Teck Cominco is still a challenge untested. Actually seeing a cleanup of the upper Columbia River? It may be impossible. But had the Supreme Court agreed to hear Teck Cominco's case, it may have settled once and for all the powers and boundaries of a nation's laws: Can citizens sue a foreign entity for polluting their land?
Without a precedent, you could argue there are no winners.
Related Tyee stories:
- Inside BC's Mining Boom
Why billions are pouring in for copper, coal, uranium. - Panel Rejects BC Mine Project Worth $8 Billion
Northgate's Kemess North mine would turn lake into toxic dump. - Top Donors Thrive under BC Liberals
Mining, timber and construction corporations enriched by policy changes.



8
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Frank
4 years ago
No winners
Wouldn't it be nice to live in a world where instead of Cominco paying a fine all of its shareholders were locked up for polluting the water supply or at least told to get on their hands and knees and clean it up pronto?
The world will be a better place when owners can no longer hide behind a corporate banner.
Fiat lux
4 years ago
Remember what Phil Gaglardi
Remember what Phil Gaglardi said about 40 years ago, when the question of pollution was first raised: "Pollution is the sweet smell of money!"
Today it is called "wealth creation", by the faithful.
Phil was ahead of his time on this one.
Now, if we could elect governments that dared to hit the "wealth creating foreign investors" who are getting "national treatment" the minute they enter the country, some of them with hundreds of convictions and fines all over the world, perhaps we would get somewhere!
Individuals are denied entry into Canada and the US over single, ages old, minor convictions, but some of the biggest corporate criminals and destroyers are welcomed with open arms and permitted to take over and control our economy and buy pimp governments.
Ed Deak.
alive
4 years ago
Thanks
Frank and ED,you said it well!
Much better to have a few good comments, than the forever rant of the "acedemia types"
Doug Alder
4 years ago
It's very old pollution
The pollution being referred to is mostly old pollution, much of it going back to Cominco's beginnings in 1906 and continuing through to the early 70s when they were forced by Canadian law to clean up their act and as a result the Trail plant underwent a massive modernization. Cominco stopped dropping slag into the river a very long time ago. I doubt very many of the shareholders from that era are still alive.
Doug Alder
4 years ago
Another thing
that should be pointed out is that at the time Cominco was dropping slag into the river it was not known this would be a hazard and that all smelters in both countries were doing the same thing. One of Cominco's earliest arguments with the EPA was that they should not be held responsible for actions performed earlier at a time when there was no environmental science and thus no reason to presume harm was being done.
Luke Skywalker
4 years ago
Wouldn't it be nice to live
Wouldn't it be nice to live in a world where instead of Cominco paying a fine all of its shareholders were locked up for polluting the water supply or at least told to get on their hands and knees and clean it up pronto?
Yeah that mess has to be cleaned up... but by the shareholders??
The majority of those shareholders are union pension funds and mom and pop investors in mutual funds who are only looking at their bottom-line annualized return.
Frank
4 years ago
Luke
I would think that a lot of people would support the idea of taking responsibility.
If one wants to make money off a company dumping toxins into the water supply then why shouldn't they also be responsible for cleaning it up?
As it is, the more ignorant someone is of what they're involved in the better, which seems kinda bass-ackwards to me.
Fiat lux
4 years ago
This is another ecellent
This is another ecellent example of the fact that there are no bottom lines in economics, only endless columns from where special interests take out selected numbers for their own benefit, while transferring real costs on other sectors, the environment and the future.
All so called "cost cutting" activities are in reality cost transfers.
As our present irresponsible activities, like DU ammo for example, used for economic control purposes will be poisoning people and the environment for millions of years.
This is now called "wealth creation" by economists and politicians.
Ed Deak.