Court of Appeals for the Ninth Circuit

Friends of the Earth, Inc. v. Claude S. Brinegar

1975 U.S. App. LEXIS 15645 · 518 F.2d 322 · 5 Envtl. L. Rep. (Envtl. Law Inst.) 20223 · 7 ERC 1815

March 17, 1975 · Docket 74-3490

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Headnotes

Generated summaries
  1. Headnote 1

    The appellate court remanded to determine bond requirements and held the injunction would take effect only after the bond was posted, citing NRDC v. Morton for the equitable power to require a bond.

  2. Headnote 2

    The court found the $4,500,000 bond unreasonable and imposed a $1,000 bond, emphasizing that an excessive bond would bar enforcement by environmental groups with limited resources.

  3. Headnote 3

    The Ninth Circuit notes that equitable power permits requiring a bond when granting injunctive relief, citing prior environmental decisions that recognize such authority.

  4. Headnote 4

    Equitable authority permits courts to protect the enjoined party from potential loss by imposing a bond when issuing a preliminary injunction, and this power has been applied in environmental litigation under NEPA.

  5. Headnote 5

    The court’s equitable power includes requiring security when granting injunctive relief, a principle applied in environmental litigation to balance the interests of the parties and the public.

  6. Headnote 6

    The appellate court remanded to determine bond requirements and recognized that injunctions may be conditioned on a bond to protect the enjoined party, citing prior authority that such equitable power exists.

  7. Headnote 7

    The appellate court held that its equitable authority permits conditioning injunctive relief on a bond or indemnity to protect the enjoined party from potential loss, as recognized in prior environmental cases.

  8. Headnote 8

    The court recognized that equity permits requiring security to protect the enjoined party from loss, and cited Natural Resources Defense Council v. Morton for the principle that such bonds are permissible but must be reasonable.

  9. Headnote 9

    The court found the $4,500,000 bond unreasonable and ordered a $1,000 bond, emphasizing that excessive security defeats the purpose of NEPA enforcement by inaccessible plaintiffs.

  10. Headnote 10

    The appellate panel had already granted an injunction, indicating a likelihood of success, and the court therefore deemed a $1,000 bond reasonable and appropriate.

  11. Headnote 11

    The court characterized the $4,500,000 bond as unreasonable and exercised its authority to reduce it to $1,000, highlighting the abuse‑of‑discretion standard for bond determinations in NEPA cases.

  12. Headnote 12

    The court recognized its authority to require a bond to protect the enjoined party from potential loss, citing prior environmental case law on the propriety of such conditions.

  13. Headnote 13

    The court affirmed its authority to require a bond as a condition for injunctive relief in environmental cases, emphasizing that such authority stems from traditional equitable powers.

  14. Headnote 14

    Appellants argued that substantial bonds would preclude environmental groups from enforcement, and the court agreed that a $4.5 million bond was unreasonable in this context.

  15. Headnote 15

    The court balanced the parties’ interests, noting the plaintiffs’ demonstrated likelihood of success and the need to avoid undermining NEPA’s enforcement mechanisms.

  16. Headnote 16

    The court noted that another panel had already granted an injunction, indicating a high likelihood of success, and therefore ordered a $1,000 bond as reasonable.

  17. Headnote 17

    The Ninth Circuit affirmed that equitable powers allow a court to require a bond as a condition of injunctive relief, citing prior environmental cases that recognized this authority.

  18. Headnote 18

    The court found the $4.5 million bond excessive and ordered a $1,000 bond, emphasizing that reasonableness balances potential damages, likelihood of success, and public interest in enforcing NEPA.

  19. Headnote 19

    The court noted that another panel had already granted an injunction, indicating a likelihood of success, and therefore imposed only a nominal bond as reasonable.

  20. Headnote 20

    On remand the appellate court granted the motion to reduce the bond, finding the $4.5 million requirement unreasonable and ordering a $1,000 bond instead.

Opinion

PUBLISHED ORDER

Before KOELSCH, BROWNING and WALLACE, Circuit Judges.

Appellants are a non-profit environmental organization and thirteen individuals who live near the San Francisco International Airport. They seek to compel preparation of an environmental impact statement for the airport’s expansion program, contending that such a statement is required by the National Environmental Policy Act (NEPA), 42 U.S.C. § 4321 et seq. Specifically, appellants seek to enjoin certain federal officials from committing any more funds to the airport’s expansion program and the City of San Francisco from further constructing a parking garage and a new terminal until an impact statement is prepared. The district court issued a preliminary injunction against the federal officials but declined to enjoin construction of the new terminal and garage, concluding that these projects were not part of the overall expansion program and would not have a substantial environmental impact.

Appellants appealed from the denial of a preliminary injunction against the city. On January 22, 1975, we granted appellants’ motion for an injunction pending appeal. However, we remanded the case to the district court to determine whether appellants should be required to post bond or provide indemnity as a condition of the injunction and, if so, to fix the amounts and terms. The injunction pending appeal was to take effect only after the district court made that determination and appellants complied with any bond or indemnity requirements imposed.

On remand, the district court determined that a $4,500,000 bond was required to protect the City of San Francisco against losses in the form of increased construction costs due to inflation, lost rental income and temporary construction that might be necessary be cause of the delay. Appellants now move for an order reducing the bond and we grant the motion.

Appellants assert that environmental interest groups and individual plaintiffs usually have limited resources. They contend that if public interest groups and citizens are required to post substan-, tial bonds in NEPA cases in order to secure preliminary injunctions or injunctions pending appeal, plaintiffs in many NEPA cases would be precluded from effective and meaningful appellate review. More importantly, they argue, such bonds would seriously undermine the mechanisms in NEPA for private enforcement. Cf. Natural Resources Defense Council, Inc. v. Morton, 337 F.Supp. 167, 168-69 (D.D.C. 1971).

We recognize that in NEPA, Congress sacrificed some efficiency and economy in order to further a strong policy of environmental protection. However, we need not reach the question of whether no more than a nominal bond may be required in any NEPA case in which environmental groups or individuals procure an injunction pending appeal. Here, we are impressed that another panel of this court has already granted an injunction and thus implicitly concluded that appellants have a likelihood of success. Balancing the conflicting interests, we are persuaded that a $4,500,-000 bond is unreasonable. A bond in the amount of $1,000 is reasonable and we order that such bond be imposed. All other terms of the bonds set by the district court will remain in effect.

True, in pending appeals in People of the State of California v. Tahoe Regional Planning Agency we adopted a district court’s order requiring an appeal bond of $3,500,000. However, these are not NEPA cases. Moreover, there, the State of California, which has ample resources to post bond, obtained an interlocutory injunction against construction by private developers. Here, the situation is materially different: a private organization and citizens, with limited resources, obtained an interlocutory injunction against construction by a governmental entity.