Dept. of Public Works v. LG INDUS.

• Decision Date: 31 August 2000
• Docket Number: No. 98-CV-1692, No. 99-CV-584., No. 98-CV-1693, No. 99-CV-556
• Citation: 758 A.2d 950
• Parties: DISTRICT OF COLUMBIA, DEPARTMENT OF PUBLIC WORKS, Department of Consumer and Regulatory Affairs, Appellants, v. L.G. INDUSTRIES, INC., USA Waste of DC, Inc., Appellees.
• Court: D.C. Court of Appeals

758 A.2d 950

DISTRICT OF COLUMBIA, DEPARTMENT OF PUBLIC WORKS, Department of Consumer and Regulatory Affairs, Appellants, v. L.G. INDUSTRIES, INC., USA Waste of DC, Inc., Appellees.

Nos. 98-CV-1692, 98-CV-1693, 99-CV-556, 99-CV-584.

District of Columbia Court of Appeals.

Argued June 15, 2000

Decided August 31, 2000.

Harold L. Talisman, Washington, DC, with whom Robert R. Rigsby, Interim Corporation Counsel at the time the brief was filed, and Charles L. Reischel, Deputy Corporation Counsel, were on the brief for appellants.

Andrew D. Levy, Baltimore, MD, with whom Frederick D. Cooke, Jr., Washington, DC, was on the brief for appellees.

Before SCHWELB and FARRELL, Associate Judges, and PRYOR, Senior Judge.

PRYOR, Senior Judge:

Appellants District of Columbia, District of Columbia Department of Public Works, and District of Columbia Department of Consumer & Regulatory Affairs (DCRA) (collectively "the District"), appeal an order of the Superior Court enjoining them from pursuing administrative proceedings against appellees L.G. Industries, Inc. (LGI) and USA Waste of the District of Columbia while appellees' suit against the District is pending in Superior Court.¹ Appellants contend that the court either did not have jurisdiction to issue the injunction or, if it had jurisdiction, should not have exercised its jurisdiction in this case. Appellants also contend that the court failed to consider adequately the required criteria before issuing the injunction, an extraordinary remedy. Because we agree with appellants that the trial court should not have exercised its jurisdiction in this case to stay the administrative proceedings, we reverse.

I.

A. Pretrial Proceedings

On June 16, 1994, LGI filed an application for a certificate of occupancy for premises at 1140 Third Street, Northeast, Washington, D.C. In the application, it stated that the proposed business use would be "Shipping, Freight & Cargo, Transfer Station, Warehousing and Trucking." The application did not mention that LGI proposed to operate a solid waste or trash transfer facility. A certificate of occupancy was issued on July 14, 1994, for "Shipping, Freight & Cargo, Transfer Station, Warehouse and Trucking (Not sexually oriented)."

On December 18, 1995, the District enacted Act 11-177, the Solid Waste Facility Permit Act of 1995, which became effective February 27, 1996. See D.C.Code § 6-3451 et seq. (1996 Supp.). LGI filed suit on January 19, 1996, challenging as unconstitutional and otherwise illegal the laws and regulations establishing the solid waste permit program and the fees applicable to solid waste transfer stations.² In its answer, filed March 22, 1996, the District denied LGI's assertion that it was licensed by the District to operate a solid waste and recyclable material transfer facility, and included a counterclaim requesting a declaratory judgment that LGI's certificate of occupancy did not permit it to operate a trash transfer facility. LGI answered the District's counterclaim on April 15, 1996. A scheduling order entered on April 19, 1996, placed the case on a pretrial track which allowed for discovery to take place over the summer.

Pursuant to the Act and its implementing regulations, LGI filed an application for a solid waste facility permit on June 9, 1996. On July 16, 1996, LGI filed a consent motion for leave to transfer the case to a slower litigation track. LGI stated in the motion that it expected to receive an interim permit, and that it expected the District to issue final regulations shortly, and suggested that the discovery period should be extended beyond those events. The motions court granted the motion, thus extending the discovery period until October. LGI served several written discovery requests on the District over the summer. On August 2, 1996, DCRA issued LGI a Solid Waste Handling Facility Interim Permit, subject to LGI's applying within thirty days for a certificate of occupancy describing the use of the facility as a solid waste handling facility. On September 3, 1996, LGI filed such an application under protest, claiming that it should not be required to apply for a certificate of occupancy because it already held a valid certificate of occupancy. DCRA's Building Land Regulations Administration (BLRA) denied the application because it would require a special exception under the zoning regulations, which only the Board of Zoning Adjustment (BZA) could grant. On February 21, 1997, LGI filed an appeal with the BZA, asserting, inter alia, that "LGI is operating lawfully by right under a valid CO at its existing facility and that CO has never been found invalid." LGI therefore asked the BZA to "declare that LGI's existing solid waste transfer station is grandfathered from any and all requirements" that "might [be] adopt[ed] pursuant to its pending special exception case."

On October 2, 1996, LGI filed motions in the Superior Court action for partial summary judgment and for a preliminary injunction; both pleadings addressed the $4 per ton tipping fee imposed by the Act. On December 19, 1996, the motions court granted another consent motion to modify the scheduling order, calling for discovery to continue into February 1997. In a status report to the court, the District listed, as a significant issue, "Whether LG has a valid certificate of occupancy to operate a solid waste facility." The District also noted that "The parties are in the intermediate stage of discovery." In response, the court extended discovery until April 24, 1997.

The motions court denied LGI's motions for partial summary judgment and for preliminary judgment on April 23, 1997.³ On April 29, 1997, the case was certified to the Civil I calendar. In a status report filed on May 22, 1997, LGI stated, "Based upon its counterclaim, LGI believes the District intends to submit the following legal issues: (a) Whether LGI possesses an appropriate certificate of occupancy to operate a transfer station. . . ." On May 15, 1997, following the denial of LGI's motion for preliminary injunction, the District sent LGI a letter demanding payment for the solid waste facility charge due under the Act. On June 9, LGI filed a second motion to enjoin the District from enforcing this demand for payment.

On October 24, 1997, LGI filed a verified first amended complaint. In its motion for leave to file the amended complaint, LGI stated, "By the amended complaint, LGI. . . seeks to narrow to one its causes of action in order to focus on the critical issue in this case, which is the constitutionality, legality and enforceability of the $4 per ton fee." LGI served additional discovery requests on the District on October 29, 1997.

On May 4, 1998, this case was consolidated with a second action LGI had filed on January 21, 1997, challenging final regulations issued by DCRA relating to the regulation of operators of solid waste transfer stations. In a status report filed pursuant to the consolidation order, LGI listed as a significant legal issue "Whether plaintiff is operating under a valid Certificate of Occupancy." LGI also stated, "Little discovery has been done." In its status report, filed pursuant to the consolidation order, the District listed as a significant legal issue "Whether plaintiff has a valid certificate of occupancy to operate a solid waste facility." In the same pleading the District requested leave to file a late answer to the first amended complaint. Leave was granted at a status hearing held on June 22, 1998. On July 24, 1998, the District answered the first amended complaint. However, the District's answer did not include a counterclaim.

B. Injunctive Relief

On August 3, 1998, the District served LGI with eleven administrative notices of infraction charging LGI with operating its transfer station without a valid certificate of occupancy. LGI did not pay the fines ($500 for each citation), nor did it request a hearing. On August 13, 1998, LGI filed a motion for temporary restraining order and preliminary injunction, seeking to enjoin the defendants "from using the administrative process to close plaintiff's place of business on the ground that it does not hold a valid Certificate of Occupancy while that very issue is awaiting resolution by this Court." LGI noted that "[e]ach citation requires LG to admit or deny the offense within 15 days of service. Hence, the need for emergency action by this Court on or before August 18, 1998."

The trial judge issued a temporary restraining order on August 17, 1998. On September 21, 1998, following a hearing on the motion, the trial court issued an "Order Staying Administrative Proceedings." The court ordered "that defendants District of Columbia, Department of Public Works, and Department of Consumer and Regulatory Affairs, by and through their employees, agents or representatives, including any administrative law judges in the Office of Administrative Hearings or otherwise are hereby":

A. Enjoined and restrained from conducting any administrative, enforcement or criminal proceedings, making any findings of fact, and/or seeking or imposing any penalties, fines or other sanctions regarding the validity of the Certificate of Occupancy issued to LG Industries in June, 1994, for the operation of a business at 1140 Third Street, N.E B. Enjoined and restrained from proceeding in any way on the 11 Notices of Infraction issued by DCRA against LG Industries, Nos. 028392, 028393, 028394, 028395, 028396, 028397, 028398, 028399, 028400, 033476 and 033477; and

C. Enjoined and restrained from issuing any new Notices of Infraction against plaintiff alleging that it is operating its transfer station at 1140 Third Street, N.E., without a valid Certificate of Occupancy. . . .

The court further ordered that the stay would remain in effect "while decision in this case is pending or until further order of the Court."

In a "Motion to Extend Stay of Administrative Proceedings" filed on February 11, 1999, LGI...