ELR Citation: ELR 20210
No(s). s. 02-15907, 04-16210 (9th Cir. Oct 13, 2005)

The court upholds a lower court decision finding a private water company liable for violating public health and safety regulations under the Safe Drinking Water Act (SDWA) and ordering the divestiture of all but the largest of the company's water system as a penalty for those violations. The district court's determination that certain water samples were "routine" and not "special" was reasonable, and the company conceded that it committed the remaining SDWA violations. As for ordering the partial divestiture of the company's water system, the court was authorized to do so, and the record reflects that the court tailored a remedy that took into consideration both the substantial public interest and the company's interest. The regulatory violations were numerous and significant, the company failed to effectively respond to water quality problems, and the company acted in a manner inconsistent with an appreciation for the importance of its obligation to the public. Nor did the court violate the company's due process rights, and the imposition of a $200,000 penalty was proper as well.

[A prior decision in this litigation is published at 31 ELR 20227.]