United States v. Envirite Corp.

The Environmental Protection Agency (EPA) (defendant) took ground samples from a landfill operated by Envirite Corporation (plaintiff). The EPA’s laboratory tested the samples and found that each sample substantially exceeded permissible limits for four metals. Envirite’s own tests showed that the limits were not exceeded. The EPA initiated proceedings against Envirite. Envirite’s counsel submitted a discovery request, which included a request for all laboratory test documents, but did not pursue the request because the EPA and Envirite had entered settlement negotiations and agreed to a document exchange. During the negotiations, the EPA, concerned about the accuracy of its tests, sent the samples to an independent laboratory. The independent laboratory found that the samples somewhat exceeded permissible limits, but only for one metal. The EPA’s counsel did not report these results to Envirite. Envirite and the EPA entered into a consent decree requiring Envirite to pay a civil penalty of $60,000 and to adopt a more costly method of treating its waste. Envirite then submitted a Freedom of Information Act request to the EPA. In response, the EPA sent documents that included the results of the independent laboratory testing and an EPA memorandum questioning the validity of the original EPA tests and the EPA’s testing method. Envirite petitioned the district court for relief from the consent decree under Federal Rule of Civil Procedure 60(b)(3), which gave a party relief from an order or judgment upon a showing of clear and convincing evidence of misconduct by the opposing party.