Sierra Club v. Babbitt

In 1985, the Alabama beach mouse (ABM) was listed as an endangered species under the Endangered Species Act (ESA). The Fish and Wildlife Service (FWS) noted at the time that the ABM’s habitat—about 671 acres along the Alabama coast—was being dramatically destroyed through building development, recreational activity, and tropical storms. After 1985, a series of hurricanes and commercial development caused further loss of ABM habitat. In 1995, Aronov Realty Management Inc. (Aronov) applied for incidental-take permits (ITPs) for the construction of two high-density housing complexes (the Aronov and Fort Morgan projects), which would result in the permanent destruction of 7.5 acres and 37 acres of ABM habitat, respectively. Aronov’s habitat-conservation plans for the projects called for $60,000 and $150,000, respectively, to be used to acquire offsite property to minimize unavoidable impacts to ABM habitat (offsite-mitigation funds). FWS noted that Aronov would have to combine the offsite-mitigation funds with funds from unnamed sources to purchase a sufficiently large tract of land for mitigation purposes. Despite some concern within FWS over the adequacy of the offsite-mitigation funds or lack of articulated reasoning to support the amounts, FWS issued ITPs, incorporating the habitat-conservation plans. Sierra Club (plaintiff) sued the government (defendant) under the ESA, challenging the issuance of the ITPs. On summary judgment, Sierra Club argued that the offsite-mitigation funds were too low and unsupported by a rational basis.