Drakes Bay Oyster Co. v. Jewell, No. 13-15227 (9th Cir. 2013)
Annotate this CaseDrakes Bay challenged the Secretary's discretionary decision to let Drakes Bay's permit for commercial oyster farming expire according to its terms. Drakes Bay subsequently sought a preliminary injunction under Section 124 of the National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et seq., and various federal regulations. As a preliminary matter, the court concluded that it had jurisdiction to consider whether the Secretary violated constitutional, regulatory, or other legal mandates or restrictions. On the merits, the court concluded that a preliminary injunction was not warranted where the likelihood of success on the merits of these claims was too remote to justify the extraordinary remedy of a preliminary injunction. Congress left the decision to grant or deny an extension to the Secretary's discretion; the Secretary neither violated any statutory mandate nor did he misapprehend his authority under the various statutes raised by Drakes Bay; even if NEPA compliance was required in this instance, the Secretary conducted an adequate NEPA review process; and Drakes Bay lacked standing to challenge the publication of the notice in the Federal Registrar. Further, Drakes Bay has failed to show that the balance of the equities weighs in its favor. Accordingly, the court affirmed the judgment of the district court.
Court Description: Environmental Law / Preliminary Injunction. The panel affirmed the district court’s order denying a preliminary injunction challenging the Secretary of the Interior’s discretionary decision to let Drakes Bay Oyster Company’s permit for commercial oyster farming at Point Reyes National Seashore expire on its own terms. Drakes Bay sought a preliminary injunction, arguing that the Secretary’s decision to let the permit expire violated the authorization in the Department of the Interior Appropriations Act (“Section 124”), the National Environmental Policy Act, and various federal regulations. The panel held that it had jurisdiction to review whether the Secretary violated any legal mandate contained in Section 124 or elsewhere, but that it lacked jurisdiction to review the Secretary’s ultimate discretionary decision whether to issue a new permit. The panel held that Drakes Bay was not likely to succeed in proving that the Secretary violated constitutional, statutory, regulatory, or other legal mandates or restrictions. The panel further held that Drakes Bay was not entitled to a preliminary injunction not only because it failed to raise a serious question about the Secretary’s decision, but also because it had not shown that the balance of equities weighed in its favor. Judge Watford dissented because he would hold that Drakes Bay was likely to prevail on its claim that the Secretary’s decision was arbitrary, capricious, or otherwise not in accordance with law. Judge Watford would hold that injunctive relief preserving the status quo should have been granted.
The court issued a subsequent related opinion or order on January 14, 2014.
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