National Coalition against the Misuse of Pesticides v. Environmental Protection Agency

The administrator of the Environmental Protection Agency (EPA) (defendant) had concerns about the safety and effects of chlordane and heptachlor (collectively, chlordane), a chemical insecticide manufactured and registered by Velsicol Chemical Company and other reformulation companies (collectively, Velsicol). The administrator had not yet consulted with the U.S. Department of Agriculture or a scientific advisory panel regarding chlordane. Before initiating any formal proceeding, the EPA began negotiating with Velsicol to obtain Velsicol’s voluntary agreement to cancel the registration of chlordane. If canceled, chlordane’s sale and use would be prohibited. Velsicol consented to cancellation in exchange for the EPA’s permitting sales and use of existing stocks of chlordane, or about a two months’ supply. The EPA reasoned that if the matter was contested and litigated, chlordane would continue being sold and used during the pendency of litigation, which could last at least six months. The settlement agreement therefore resulted in reduced sales and use of chlordane in the marketplace. The National Coalition against the Misuse of Pesticides and other parties (plaintiffs) sued the EPA, seeking, among other relief, an injunction against the EPA for permitting the use of existing stocks of chlordane. The district court granted the injunction, and the EPA appealed.