United States v. Tex-Tow, Inc.

The Federal Water Pollution Control Act (FWPCA) made dischargers liable for cleanup costs and provided for liquidated damages if cleanup was not possible. Liability under these provisions did not depend on a finding of fault, but the provisions made several defenses, such as an act of God, available to dischargers. Section 1321(b)(6), the civil-penalties provision, did not offer any defenses. Tex-Tow, Inc. (defendant) operated a tank barge for transport of gasoline. Tex-Tow’s barge was being loaded with gasoline at a dock on the Mississippi River owned by Mobil Oil Company. As the barge filled, it settled lower in the water and was impaled on an underwater steel piling that formed part of the dock. As a result, 1,600 gallons of gasoline spilled into the river. Tex-Tow could not have known about the existence of the piling and was not at fault. The United States Coast Guard (Coast Guard) (plaintiff) assessed a $350 civil penalty against Tex-Tow under § 1321(b)(6) of the FWPCA. Tex-Tow appealed the Coast Guard’s decision to federal district court, arguing that defenses should be read into the civil-penalties provision. Tex-Tow also argued that it was not the cause of the spill and that no penalty could be imposed without causation. Tex-Tow argued that imposition of a penalty without fault was irrational and thus violated principles of substantive due process because fear of the penalty would not have deterred the discharge. The district court ruled in favor of the Coast Guard.