Petition for Writ of Certiorari — Fernandes v. Environmental Protection Agency

Supreme Court brief1998

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Supreme Court of the United States

October Term, 1998

Nelson Fernandes,

Petitioner,

V.

EPA, Administrator of the EPA,

Regional Administrator for Region II,

Commissioner of NJDEP,

Rockaway Township Town Council,

Attorney General of the United States,

Respondents.

Petition for Writ of Certiorari

Nelson Fernandes, Pro-Se

9 Fox Run

Denville, N.J. 07834

(973) 627 — 2138

Questions for Review

1. Did appellate panel violate law of the case, stare decisis,

and dismissal without prejudice by affirming res judicata based on

the 95 opinion, overlooking the May 1995 affirmed dismissal

without prejudice (Exh. F). Did it also err by overlooking orders

that show the court relied on its Aug. 95 order for res judicata.

2. Did defendants waive their right to res judicata by not

previously appealing the May 1995 order or March 1995 opinion.

And does law of the case require the courts to honor the

dismissal without prejudice, and limit sanctions to a re-filing of

only those claims listed in the affirmed 1995 opinion.

3. Did district court lack jurisdiction to render its Aug. 1995

order, thus causing a manifest injustice by finding res judicata,

since the 1997 opinion states it relinquished jurisdiction in the

March 1995 opinion on statute of limitations grounds, and by not

vacating the May 95 order to regain jurisdiction.

4. Did a constitutionally protected property interest develop

in the affirmed dismissal when defendants failed to appeal, and

did courts take that interest contrary to law of the case rules. Did

panel err by ruling on the 95 opinion, instead of finding court had

no power to deviate based on orders appellant provided.

5. Does the record show the courts failed to read the

complaint on appellant’s equitable tolling allegation, and the

allegations against Rockaway. And does the findings on the

sanction and statute of limitations represent a denial of due

process or gross abuse by failing to read the complaint.

6. Since the complaint alleges equitable tolling, fraudulent

concealment, and a continuing violation of federal law, was it a

gross abuse of discretion for the appellate court to affirm the bar

of limitations without reading, and reviewing the allegations as

they apply to these doctrines.

7. Does law of the case bar a district court from modifying

the claims listed in the 1995 opinion since they were affirmed.

And can appellant rely on that affirmation to raise claims nine and

ten since they are not in that opinion, and are based on a different

nucleus of facts.

8. If law of the case precludes reexamination of issues

decided on appeal, was appe!lant entitled to file his action because

of the affirmed dismissal without prejudice. And does the sanction

represent an unconstitutional taking of appellant’s property, since

the claims it basis the sanction on are different from those in the

affirmed 1995 opinion that would constitute res judicata.

9. Since EPA admitted not having explicit CWA authority to

impose its grant condition, is EPA in continuing violation of

Supreme Court rulings that require explicit statutory authority,

and does that conduct support equitable tolling and a continuing

violation theory because its grant condition came after those

rulings. And did the appellate court deny due process by not

deciding this question, because it proves the allegations in the

complaint.

10. Did the district court abuse its discretion by not

converting the motion to dismiss into one for summary judgment

since equitable tolling, fraudulent concealment, and a continuing

violation theory are alleged in the complaint. If so, was the court

required to consider appellant’s motion for summary judgment

instead of dismissing it as moot.

11. Was appellant denied due process by affirming res

judicata on the 95 opinion because that error kept the panel from

reaching facts in the record that were pertinent to the appeal. Facts

that prove appellant’s action was timely, that the district court had

no power to find res judicata or impose a sanction contrary to the

affirmed order and opinion, and to avoid appellant’s law of the

case arguments.

12. If the Aug. 95 order is found to be valid, can it be res

judicata against the affirmed dismissal without prejudice, thus

allowing a court to find res judicata on an order that it could have

vacated before it was appealed. Moreover, would that allow a

lesser court to overrule the mandate in the affirmed dismissal, law

of the case rules, aad appellant’s right to file another action in

reliance of the affirmed dismissal without prejudice.

13. Did the appellate court have a duty to review the Aug. 95

order for a manifest injustice or lack of jurisdiction as requested

by appellant, and was it required to render a finding on that

request. Moreover, is that finding also essential to the proceedings

since its res judicata affirmation based on the 1995 opinion

overlooks the Aug. 95 order in a manner that creates the

impression that the district court never relied on that order for res

judicata.

14. Was EPA’s motion for clarification rendered moot by the

district court denial of reconsideration, and its failure to vacate the

May 1995 dismissal without prejudice.

15. If the panel didn’t err on the issues in this petition, would

it have to answer appellant’s question of law on EPA’s continuing

violation of the CWA.

Parties

The caption includes the names of all the parties.

Table of Contents

Official and Unofficial Opinions ...............::ccceceseseeeseseseseneeenenenenenens |

eels Te Fe AT III cvs viiecgsevevcsnresencninorescisenapemmnianonadyocesipencermaneinaetiony 2

Constitutional Provisions and Statutes Involved ................:00++0 3

Dereorntt OF Bae CRIT insist csisss scecesscnsieceeceinnsssacessccovanastcecansesiseoessbvoes 3

I - Appellate Court Erred on Res Judicata..............:cseseeeseeseen 9

II - Gross Abuse by Both Coutts................sscccssssesseresessseeeeessesensness 10

III - Neither Court Read the Complaint ................:cc:ccccecesseeeeeeeeeee 17

IV — Denying Due Process by Avoiding a Question of Law......22

V - Conduct That Shocks the Conscience ............:cc::cccseeeeeeeeees 24

VI - Denying Rehearing Constitutes a Denial of Due Process ...26

COINCLUTSIOING. 0. iscsicscssversnssseivissesstassssnciessensaveveascnsevenatsndeateconeenatey 27

Table of Authorities

Cases

ALA, Inc. v. CCAIR, Inc., 29 F.3d 855 (C.A.3 1994) oo. cccccccccccssseeseees 17

Ariz. v. Calif., 460 U.S. 605, 618 (1983).......4, 9, 10, 11, 12, 14, 16, 24

Bailey v. Glover, 88 U.S. 342, 349-50 (1875); .o....cccccccccescecceceecreeees 7,19

Bd. of Regents v. Roth, 408 U.S. 564, 576 (1971) ..cccccccccscssscccssosess 5, 15

Bd. of Tr. v. Centra, 983 F. 2d 495, 504 (3% Cir.1992).....ccccccccccsccsssosse. 9

Bowen v. Mass., 487 U.S. 879, 892 (1988) ..o.....ccccccccecccsccesescsscssceeeeesees 6

Brenner v. Local 514, 927 F.2d 1283, 1295 (3 Cir.1991 ........0.cc00000-. 21

Bridge v. U.S. Parole Com'n, 981 F.2d 97, 102 (3rd Cir.1992) .......... 14

Briggs v. Pa. R. Co., 334 U.S. 304, 306 (1948) ......ccccccccccccsssesececeeeees 6,9

Bouman w. Wine, 346 U7:5. BAG CIOS oon iiiiisicsccssevcs cs cciccssssscscceesees, 19

Casey v. Plan. Parent., 14 F.3d 848, 856 (3™ Cir. 1994)........ 6, 9, 10, 15

Chev. U.S.A., Inc. v. Traillour Oil Co., 987 F.2d 1138 (C.A.5 1993) .15

Conly v. Gibson, 355 U.S. 41, 45-46 (1957) ..o.ccccccccccccsceseseeseceseseeeeeee 17

Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 405 (1990).......... 9,14

SOV ER , PRIN, DO MI, BO CIOS OD iscsi icscevechcevscsebincs Lacie pekdcnsan ts, 14

Emsheimer v. City of New Orleans, 186 U.S. 33 (1902) .....cccccccecccsseee. 5

Golden Gate Tr. Corp. v. L.A., 493 U.S. 103, 112 (1989) oo... 22

Griffin v. Mich. Dept. of Correct., 5 F.3d 186, 190 (6™.Cir.)........00... 14

Hanna v. U.S.V.A. Hosp., 514 F.2d 1092, 1094 (3d.Cir.1975). .......... 20

Hazel-Atlas Co. v. Hartford Co., 322 U.S. 238, 245 (1943)... 10

Havens Realty Corp. v. Coleman, 455 U.S. 363 (1982) ..........cccc000-. .20

Irwin v. Dept. of V.A., 498 U.S. 89, 100 (1990).............. 5, 6, 12, 15, 20

Juidice v. Vail , 430 U.S. 327, 331-332 (1977).......cccccccscssesceseseseceecees 1]

Leone v. Aetna Cas. & Surety Co., 599 F.2d 566, 567 (3 Cir. 1979). 17

Liddell v. Missouri, 731 F.2d 1294, 1305 (8".Cir.1983). ). ...ccccccccs00.-. 1]

Little Earth of United Tribes v. Dept. of Housing,

ee eae Sek, BOE Or i i ee 14

Lony v. E.I. DuPont de Nemours & Co.,

ae Sean ey Ee CI ats WI OP aia sissicriesssvoadesiiccincdocsancacmccauvearnncs 19

Maryland Cas. Co. v. Jones, 279 U.S. 792, 796 (1929) .o.....ccecccccceeeeee. 21

Mitchell v. Maurer, 293 U.S. 237, 244 (1934) .....o.ccccccccesseeceecceeceeeceee 11

Montana v. U.S., 440 U.S. 147, 153-4 (1979) ooocccccccccccccesecsceeeseeeees 14

Nat. Ass'n. of Metal Fin. v. E.P.A., 719 F.2d 624, 638 (3d.Cir. 1983) .22

Pennhurst St. S&H v. Halderman, 451 U.S. 1, 17 (1981) ..0.0......0... 7,21

Piedmont & N. Ry. Co. v. U.S., 280 U.S. 469 (1930)......ccccceccseceeeee. 13

Pioneer Invest. Svs. v. Brunswick Assoc. Ltd., 507 U.S. 380 (1993) ..25

Ricketts v. Adamson, 483 U.S. 1 (1987) ..........ccccccccccsssscescecscecececeee. 9,14

Robinson & Dalton, 107 F.3d 1018, 1022 (3d.Cir.1997) 0.0... cceceeee. 20

Table of Authorities

Cases

Shanty Town Ass. Ltd. v. E.P.A., 843 F.2d 782, 789 (4" Cir.1988)7, 22

St. of NJ Dept. of Ed. V. Hustedler, 662 F.2d 208, 214 (3 Cir.1981) 22

Taylor v. Freeland & Kronz, 503 U.S. 638 (1992).........ccccceeeeeeneeeenes 7

U.S. v. Camou, 184 U.S. 572 (1902). ...........ccccccceseeee sabia ciel. PEARS. 4

OF We SE re CFs Bias BF ee scttiicacertinsasctssreveasvinds toe 58

U.S. v. Gaubert, 499 U.S. 315, 327 (1991) ...... ccc eeeeeeeeeeeseneee 4,5,17

U.S. v. Glaxo Group Lad., 410 U.S. 52 (1973).......00.:.c200ssrcccesseneseeerees 13

U.S. v. Lehigh Val R Co., 220 U.S. 257 (1911)... eeeeeeeeeeeees hs ky

U.S. v. Minicone, 26 F.3d 297, 300 (C.A.2) .........:ccccccesssseeeesseeeeeeee Dy 14

U.S. v. Salerno, 481 U.S. 739, 746 (1987). ..........c:cccccssseceesreeessreeresrne dd

U.S. v. Stanley, 483 U.S. 669, 674 (1987) .......ccccccccecesereerseeeenens 12, 13

U.S. v. Uccio, 940 F.2d 753, 757 (2d Cir. 1991) ...........cccccsssesssssseeeees 17

U.S., Etc. v. Comm. Science Tech., 574 F.2d 1292, 1296 (1978) ....... 18

Univ. of Texas v. Camenisch, 451 U.S. 390, 399 (1981)... an

Waley v. Johnston, 316 U.S. 101 (1942).......cccccccsseereeeeeseeeeneeneeeeeeees 13

Statutes

Be se PE A Bigin iebdockivenri viet sdeckantits Shsthuatbibs deeahebdopaiemncettiasteeisenatt 12

Sa a cain nlibalinas ave hannieakabiowineninghesnaeniee 8

Rules

Regulations

vil

Official and Unofficial Opinions

Exh. Page Date Subject

A l Apr. 23, 1998 Denial of Petition for Rehearing

B 2-3 Feb. 26, 1998 Appellate Court Judgment

> 4-6 Feb. 26, 1998 Appellate Opinion

D 8-26 Aug. 12,1997 District Court Opinion/Order

7 Oct. 7, 1996 Denial of Petition for Certiorari

E 27 May 13, 1996 Denial of Petition for Rehearing

F 28 Mar. 26, 1996 Affirmation of Orders

G 29-31 Aug. 24,1995 Partial summary judgment

H 32-34 June 19,1995 Order on Reargument

I 35-36 May 11,1995 Dismissal without prejudice.

J 37-43 Mar. 27,1995 District Court opinion

(A, p.12) — A designates the Exhibit letter, p. indicates the page

on which the statement referred to can be found. The page

numbers of the exhibits are sequentially numbered from | to the

last page of the last exhibit, in order to provide precise locations.

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(i)

(ii)

(iv)

(v)

Basis for Jurisdiction

Feb. 26, 1998 Judgement of the Third Circuit (Exh. B).

Feb. 26, 1998 Appellate Opinion (Exh. C).

Aug. 12, 1997 District court opinion and order (Exh. D)

Apr. 23, 1998 Denial of Rehearing Petition (Exh. A).

This Court’s jurisdiction is invoked pursuant to 28 U.S.C.

5 1254(1) By writ of certiorari granted upon the petition

of any party to any civil or criminal case, before or after

rendition of judgment or decree.

Petitioner, referred to as (“appellant”), has served a copy

of this petition on the Solicitor General of the U.S.

pursuant to Rule 29. 4. (a) of this court.

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Constitutional Provisions and Statutes Involved

This case was dismissed on a motion for failure to state a

claim. Therefore, the merits were not reached.

Statement of the Case

Complainant seeks money damages for a civil rights

conspiracy, violations of CWA, and a violation of a Title VI

regulation. EPA denied appellant a federal benefit by imposing a

grant condition not authorized by statute in violation of Supreme

Court rulings. This case on multiple claims was dismissed without

prejudice on May 11, 1995 (Exh, I). That order was affirmed on

review (Exh. F). Appellant filed this action in reliance of the

affirmed dismissal without prejudice, only to have it dismissed on

res judicata and statute of limitations grounds.

District court dismissed appellant’s complaint on 12 issues.

Appellant’s brief reduced that to three (3) issues, which result

from misstated facts in the district court opinion and an appellate

error. Two issues stem from the appellate court’s failure to read

the complaint as the result of prejudicial remarks. The third results

from panel erroneously affirming res judicata based on the 1995

opinion, which overlooks the May 11, 1995 dismissal without

3/27

prejudice (Exh. I) that was affirmed (Exh. F). Moreover, the

district court relied on its Aug. 95 order for res judicata, not the

March 95 opinion. Both courts also disregarded appellant’s

property interest in the affirmed dismissal and took his property

by imposing a sanction in violation of law of the case.

Additional pertinent facts are as follows:

l. The panel overlooked the May 1995 order (Exh. F),

which incorporates the Mar. 1995 opinion (Exh. J) by necessary

implication. Arizona v. Cal., 460 U.S. 605, 609 (1983).

2. Appellate panel errs by affirming res judicata (Exh.

C) based on the 1995 opinion (Exh. J). That opinion resulted in

the May 11, 1995 order that dismissed appellant’s claims without

prejudice (Exh. I). That order was affirmed on review (Exh. F),.

Hence, the 1995 opinion is subject to the law of the case, which

the panel overrides by not honoring the decision of last appellate

review (Exh. F). Arizona v. Cal.. 460 U.S. 605, n.8 (1983), U.S.

v. Camou, 184 U.S. 572 (1902).

3. The 1995 opinion reviewed by the appellate court

listed the claims from the state case (J, p.39). Since cleims nine

and ten are not in that list (K, p.56-57), the imposition of the

sanction and the panel’s affirmation proves it did not read the

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complaint. U.S. v. Gaubert, 499 U.S. 315, 327 (1991). Moreover,

the district court was barred from modifying affirmed orders. U.S.

v. Minicone, 26 F.3d 297, 300 (C.A.2)

4. Both courts finds the statute of limitations has run,

which overlooks allegations of equitable tolling, fraudulent

concealment and a continuing violation theory in the complaint,

further proving they did not read the complaint (K, p.56). U.S. v.

Gaubert, 499 U.S. 315, 327 (1991).

5. By sua sponte overriding the law of the case, the

appellate panel violated stare decisis. Irwin vy. Dept. of V.A., 498

U.S. 89, 100 (1990). (stare decisis demands an attempt to

reconcile prior decisions rather than overruling them).

6. The panel also denied appellant his constitutionally

protected property interest in the affirmed dismissal without

prejudice. Bd. of Regents _v. Roth, 408 U.S. 564, 576 (1971); U.S.

v. G.M.C., 323 U.S. 373, 378 (1945) (Property rights in a physical

thing have been described as the rights "to possess, use and

dispose of it."); Emsheimer v. City of New Orleans, 186 U.S. 33,

48 (1902) (dismissed without prejudice, these claims, 'since

acquired and now held and owned by’ complainant).

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7. Appellate panel finds appellant is re-filing an APA claim,

though money claims are not subject to review under the APA.

Bowen v. Mass., 487 U.S. 879, 892 (1988).

8. The panel's error results in its avoiding facts in the 1997

opinion/order, which shows the district court lacked jurisdiction to

render its Aug. 1995 order. The district court relied on the Aug. 95

order in support of res judicata, though it has no power to deviate

from the mandated issues (Exh. D, p. 13-14). Briggs v. Pa. R. Co..

334 U.S. 304, 306 (1948); Casey v. Plan. Parenthood. 14 F.3d

848, 856 (3 Cir. 1994).

9. Failure to read the complaint keeps the courts from having

to recognize the allegations against Rockaway in this case are

linked to EPA’s violations, proving appellant was not aware of

EPA’s violations during the state case in late 1993. So, late

discovery of EPA’s violations makes appellant’s complaint C.A.

94-338 filed on Jan. 24, 1994 timely against EPA.

10. Appellant’s current complaint is subject to equitable

tolling because appellant actively pursued his judicial remedies.

Irwin _v. Dept. of Veteran Affairs, 498 U.S. 89. 95-6 (1990)

(Equitable tolling applies against government, and treats new

complaint as timely, if the former is filed before limitations runs).

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11. EPA admitted to the 4 th. Circuit that it did not have

explicit authority for its grant condition. Shanty Town Assoc. Ltd.

v. E.P.A., 843 F.2d 782, 789 (4™ Cir.1988) (This case was argued

in a motion for summary judgment and in appellant’s question of

law to the Third Circuit).

12. EPA involved the NJDEP, RVRSA, and Rockaway to

fraudulently conceal the fact that it knew it did not have explicit

statutory authority and that it was violating Supreme Court rulings

when it imposed its grant condition in 1983. Pennhurst St. S&H v.

Halderman, 451 U.S. 1, 17 (1981); Univ. of Texas v. Camenisch,

451 U.S. 390, 399 (1981).

13. In support of fraudulent concealment, exhibit B (p. 76) to

complaint, item 6. - Strategy and Timetable, shows EPA

conspired with NJDEP to have them deny grant waivers.

Appellant could not be aware of this conspiracy until EPA filed

this exhibit in the former federal case.

14. EPA concealed the fact that it conspired with the NJDEP

to deny appellant’s class due process and equal treatment since it

lacked statutory authority. Bailey v. Glover, 88-U.S. 342, 349-50

(1875); Taylor v. Freeland & Kronz, 503 U.S. 638 (1992).

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15. Exh. A to comp. (p.67) shows EPA knew its grant

condition prevents building a septic system, thus denying all

practical use of wetland lots in furtherance of its illegal conduct.

16. NJDEP recommended denial of appellant’s waiver

request (Exh. E to comp.) after appellant received an exemption

from the N.J. Wetlands Act (Exh. D to comp.), proving it acted

without jurisdiction in support of EPA’s conspiracy.

17. Exh. C to complaint adopts Region II actions as policy,

making Administrator responsible for the region II conspiracy,

and the illegal grant condition.

18. Denial of reconsideration (Exh. H) found no error to

justify a rehearing, thus declining jurisdiction to grant partial

summary judgement in Aug. 1995.

19. Aug. 24, 1995 order repeats the dismissal without

prejudice proving there was no intent to amend the May order to

regain jurisdiction for partial summary judgment (G, p.30).

20. EPA’s 1995 motion for partial summary judgment was

moot since APA review was time barred (D, p.13).

21. Panel was given all the orders, which should have resulted

in the review of the overlooked affirmed dismissal without

prejudice, and appellant’s law of the case arguments.

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ARGUMENT |

Appellate Court Erred on Res Judicata

Res judicata gives dispositive affect to a prior judgment. Bd.

of Tr. v. Centra, 983 F. 2d 495, 504 (3™ Cir.1992). Whereas, a

dismissal without prejudice allows a plaintiff to file another

action Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 405

(1990); Ricketts vy. Adamson, 483 U.S. | (1987). Hence, the

appellate court erred as a matter of law by affirming res judicata

based on the Mar. 1995 opinion (C, p.4-5) since that opinion

resulted in the overlooked May 11, 1995 order that dismissed

appellant’s claims without prejudice (Exh. | & D). That order was

affirmed, which requires the panel to honor the decision of that

court (Exh. F). Arizona vy. Cal., 460 U.S. 605, n.8 (1983).

The orders show the district court based res judicata on its

Aug. 95 order (Exh. G), not its 1995 opinion. By deliberately

erring on the 1995 opinion, the panel avoids having to find the

district court had no power or authority to deviate from the

mandated dismissal without prejudice and listed former claims

(Exh. F). Briggs v. Pa. R. Co., 334 U.S. 304, 306 (1948); Casey v.

Plan. Parenthood, 14 F.3d 848, 856 (3" Cir. 1994). So, the

foregoing conduct denied appellant due process in three ways.

9/27

ARGUMENT II

Gross Abuse by Both Courts on Law of the Case

Appellant’s brief argued law of the case and that the Aug. 24,

1995 order constituted a manifest injustice. Appellant asked that

EPA be denied the benefit of that order. Hazel-Atlas Co. v.

Hartford Co., 322 U.S. 238, 245 (1943). The appellate court ended

by sua sponte overruling law of the case and stare decisis.

Appellate Court Overrides Law of the Case

The panel finds, “Fernandes has litigated the 1989 denial of

his application for a waiver, as shown in the 1995 opinion of

the district court. He lost on the merits, and cannot continue

to challenge this occurrence by adding new parties and

refiling the action.” The panel errs since the 1995 opinion

resulted in a dismissal without prejudice (Exh. 1), making that

order law of the case when it was affirmed (Exh. F). Ariz. v.

Calif., 460 U.S. 605, 618 (1983)(a decided rule of law should

continue to govern the same issue in the same case). And, in a

closely related case. Casey v. Planned Parenthood, 14 F.3d 848,

856 v.11 3" Cir.1994). The doctrine prevents relitigation of

settled issues in a case, thus protecting the settled expectations of

10/27

parties, ensuring uniformity of decisions, and promoting judicial

efficiency. Montana v. U.S., 440 U.S. 147, 153-4 (1979). The

panel sua sponte affirmed res judicata based on the Mar. 95

opinion, which overlooks the affirmed May 95 order. Except, an

appellate court can only reconsider a previously decided issue if

substantially different evidence is introduced or the decision is

clearly erroneous and works a manifest injustice. Arizona v.

California, 460 U.S. 605, n.8 (1983) Neglecting an order violates

the fundamental purpose of the law of the case. Liddell _v.

Missouri, 731 F.2d 1294, 1305 (8".Cir.1983). The panel neglected

orders, which avoided its duty to sua sponte recognize when a

district court lacks jurisdiction. Mitchell v. Maurer, 293 U.S. 237,

244 (1934). See Juidice v. Vail , 430 U.S. 327, 331-332 (1977).

Order in Support of Res Judicata Should Have Been Vacated

In its review of the March 27, 1995 oral opinion, the current

opinion states (D, p.13), “It also found the challenge to the EPA

grant condition time-barred by a six year statute of limitations

imposed by the APA.” The district court then states (D, p.14),

“By Letter Order dated August 24, 1995, the Court granted

summary judgment in favor of the United States, finding that

the EPA had not acted arbitrarily and capriciously when it

denied Fernandes’s waiver request.” The opinion omits the

word “partial”, and fails to mention its Aug. order was based on

APA 5 U.S.C. 706(2)(A) (G, p.30-31). So, the APA bar that

resulted in the dismissal without prejudice bars the Aug. 24, 1995

order. Hence, the panel’s erroneous ruling on the 95 opinion kept

it from reaching the fact that the district court lacked jurisdiction

to render its Aug. 95 order, thus breaching that duty, denying due

process, and violating stare decisis. Irwin vy. Dept. of V.A., 498

U.S. 89, 100 (1990) (stare decisis demands an attempt to reconcile

prior decisions rather than overruling them).

The Aug. 95 order constituted a manifest injustice since the

May order was never vacated to regain jurisdiction. US. _v.

Stanley, 483 U.S. 669, 674 (1987). So, the court clearly lacked

jurisdiction to grant partial summary judgment on Aug. 24, 1995

(G, p.31). Waley v. Johnston, 316 U.S. 101, 104-5 (1942);

Piedmont & N. Ry. Co. v. U.S., 280 U.S. 469, 476 (1930)(res

judicata does not apply when the court lacked jurisdiction). The

August order also reaffirms the dismissal without prejudice

proving no change was intended (G, p.30). In its denial of

reconsideration, the court also reaffirmed the dismissal without

12/27

prejudice, and expressly rejected jurisdiction since no error was

found (H. p.33). So, EPA’s motion for clarification was moot.

Even if the Aug. order were valid it would bar another APA

claim, not the damage claims that were affirmed. Arizona v.

California, 460 U.S. 605, n.7 (1983) (“A judgment may be final in

a res judicata sense as to a part of an action although the litigation

continues as to the rest”).

The foregoing supports the inference that the court rendered

its Aug. 95 order without jurisdiction, so it could dismiss this

action on res judicata grounds. Misstated facts in the 97 opinion,

and a sanction for claims not listed in the 95 opinion, supports this

inference. This conduct is a gross abuse of discretion that requires

reversal. U.S. v. Glaxo Group Ltd., 410 U.S. 52, 64 (1973); US.

v. Lehigh Val R Co., 220 U.S. 257, 271 (1911).

Panel Acted Arbirarily to Avoid Law of the Case Arguments

The panel realized it could not affirm res judicata based on the

Aug. 95 order, since the court lacked jurisdiction by not vacating

the May 95 order. U.S. v. Stanley, 483 U.S. 669, 674 (1987). It

also realized, defendants did not appeal the May 95 order or the

March 95 opinion, thus waiving their right to challenge either in

13/27

this case. Montana v. U.S., 440 U.S. 147, 153-4 (1979); Bridge v.

U.S. Parole Com’n, 981 F.2d 97, 102 (3 Cir.1992); Griffin v.

Mich. Dept. of Correct., 5 F.3d 186, 190 (6".Cir.); Little Earth of

United Tribes v. Dept. of Housing, 807 F.2d 1433, 1441

(8".Cir.1986). So it avoided; these facts, the affirmed May 95

order, and appellant’s law of the case arguments by arbitrarily

affirming res judicata based on the March 1995 opinion.

The record shows that the May 95 order (Exh. 1)) dismissed

appellant’s claims without prejudice. Appellant relied on that

order as providing him with the right to file another action. Cooter

& Gell v. Hartmax Corp., 110 S.Ct. 2447, 2456, 2460 (1990);

Ricketts v. Adamson, 483 U.S. | (1987); California v. Texas, 437

U.S. 601 (1978). The May 95 order was affirmed by the appellate

court (F, p.28), making it law of the case. Arizona v. California,

460 U.S. 605, 618 (1983) (Dictum); Davis v. O'Hara, 266 U.S.

314 (1924). That affirmation bars the district court from now

reconsidering the dismissal without prejudice, and from amending

the list of claims subject to res judicata. U.S. v. Minicone, 26 F.3d

297, 300 (C.A.2); Chevron U.S.A., Inc. v. Traillour Oil Co., 987

F.2d 1138, 1150 (C.A.5 1993). It also bars the appellate court

from reconsidering its prior ruling, because no new evidence,

14/27

rsapnnial

intervening change in law, or error was brought to the panel’s

attention. Jd. @ 300; id. @ 1150. It limits the court to “issues not

expressly or implicitly disposed of by the appellate decision.”

Casey v. Planned Parenthood, 14 F.3d 848, 856 (3 Cir.1994)

(court had no power to deviate from appellate mandate).

The panel avoided the law of the case arguments by making it

appear that the Merch 95 opinion ended the case, and that district

court’s res judicata ruling was based on that opinion, which

arbitrarily disregards the orders presented by appellant in his brief.

Moreover, the panel cited no facts or authority that would suggest

it was correcting any error, it simply misstates facts to create a

false impression. This conduct overrules law of the case, and stare

decisis. Irwin v. Dept. of V.A., 498 U.S. 89, 100 (1990).

Disregarding the affirmed May 95 order also overrules the

Supreme Court case cited on a dismissal without prejudice, which

grants the right to file a new action. The panel’s conduct denied

appellant due process, and his constitutionally protected property

interest in the dismissal without prejudice that was affirmed on

appeal, which remains uncontested and unchanged (Exh. F). Bd.

of Regents v. Roth, 408 U.S. 564, 576 (1971); U.S. v. GM.C.,

323 U.S. 373, 378 (1945).

15/27

District Court Violated Law of the Case

In the 95 opinion reviewed by the panel (J, p.39), the district

court listed the claims from the state action that would constitute

res judicata; (1) Selling property in violation of N.J.S.A. 40:A12-

13, (2) Policy and custom to sell worthless lots in violation of 42

USC 1983, (3) Township Engineer conspired with Council to sell

worthless lots, (4) Council conspired to sell worthless lots, (5)

Conspiracy to conceal grant condition, (6) Denying requests to

conceal conspiracy to sell worthless lots, (7) Engineer harassed

plaintiff, (8) Engineer discriminated upon plaintiff; (9) Fraud by

selling lots "as is."

Law of the case bars a court from “reconsidering or

modifying any of its prior decisions that have been ruled on by

the court of appeals,” U.S. v. Uccio, 940 F.2d 753, 757 (2d

Cir.1991). Despite this rule, the district court found claims nine

and ten against Rockaway barred by res judicata, though unrelated

to the claims outlined in the 1995 opinion (J, p.39). This violates

the common-law precept that an issue once determined by a

competent court is conclusive. Arizona v. Cal., 460 U.S. 605, 619

(1983) This arbitrary conduct by the district court is consistent

with its rendering the Aug. 95 order without jurisdiction.

16/27

ARGUMENT Iil

Neither Court Read the Complaint

Appellant was denied due process because the appellate court

did not read the complaint or accept its allegations as true. So, its

affirmation is reversible gross abuse of discretion. U.S. v. Lehigh

Val R Co., 220 U.S. 257 (1911).

When a motion to dismiss is based on the statute of

limitations bar “[t]he question to be answered thus becomes

whether the assertions of the complaint, given the required broad

sweep would permit adduction of proofs that would provide a

recognized legal basis for avoiding the statutory bar.” Leone v.

Aetna Cas. & Surety Co., 599 F.2d 566, 567 (3 Cir.1979). The

panel is required to accept facts alleged in the complaint and

attached exhibits, as true. ALA, Inc. v. CCAIR, Inc., 29 F.3d 855

(C.A.3 1994); U.S. v. Gaubert, 499 U.S. 315, 327 (1991).

Allegations of pro se complaint are held to a less stringent

standard. Conly v. Gibson, 355 U.S. 41, 45-46 (1957).

District Court Misleads the Panel

The district court creates the impression that it read the

allegations against Rockaway, as follows; (D, p.23), “No matter

17/27

how plaintiff restates or restyles his bases for relief, the issues

and the claims are based upon the same facts and have been

resolved against him.” This statement prejudiced the panel,

causing it to treat the matter summarily, instead of reading and

accepting the allegations in the complaint as true.

Had the panel not overlooked the affirmed dismissal without

prejudice, and had it read appellant’s allegation of equitable

tolling, it would have answered appellant’s question of law,

proving EPA to be in continuing violation of law. U.S.. Etc. v.

Comm. Science Tech., 574 F.2d 1292, 1296 (1978).

The Panel Erred Several Ways by Affirming the Sanction

Appellant alleged (K, p.56-57); “CLAIM NINE -

Rockaway Township's Ordinance 54-IOOL Denied a Federal

Benefit.” and “CLAIM TEN - Rockaway Township IHegally

Charged an Assessment.” The appellate court found (C, p.5);

“He litigated the merits of his 1985 purchase of the plot of

land in New Jersey state court. As the 1993 opinion of the New

Jersey Appellate Division shows, Fernandes has actually

litigated his claims on the merits in the state courts. He cannot

sue once more concerning this same transaction or

18/27

4

USAR Nand aintes

occurrence.” Since a challenge to an ordinance and illegal

assessment has nothing to do with the 1985 purchase, or any issue

in the 1995 opinion, proves the panel affirmed the sanction

without reading the complaint, in reliance of the court’s

misleading statement, thus breaching its duty. Since appellant's

allegations are based on a different nucleus of facts, the sanction

must be rescinded as inconsistent with the panel’s basis for

affirmation, which were claims related to the 1985 purchase.

By failing to read the complaint, there is no way the panel

could determine if the district court abused its discretion or not.

Lony v. E.1. DuPont de Nemours & Co., 935 F.2d 604, 615 (3d

Cir. 1991). Instead, the panel accepted the court’s conclusions at

face value, which proves both courts failed to read the complaint

in order to determine if appellant’s allegations actually constituted

res judicata. Jd @ 614. Moreover, the courts violate law of the

case by arbitrarily finding res judicata on issues not in the 95

opinion. So, both courts are guilty of a gross error amounting to a

denial of due process that deprives both courts of jurisdiction to

render and affirm this judgment. Burns v. Wilson, 346 U.S. 844

(1953). So, the sanction takes appellant’s property in violation of

due process. U.S. v. G.M.C., 323 U.S. 373, 378 (1945).

19/27

The sanction was imposed to avoid finding the allegations

against Rockaway flowed from EPA’s misconduct, not the claims

in the 95 opinion, proving appellant was unaware of his claims

against the EPA during the state case. Moreover, the sanction

avoids a thorough review of the Aug. 12, 1997 opinion (D, p.12),

which contains facts proving appellant’s complaint was timely

based on late discovery. That opinion states, the district court

found appellant’s petition for certification to the N.J. Supreme

Court was denied on May 13, 1993. The Supreme Court denied

Certiorari on Oct. 4, 1993, and appellant filed his complaint on

Jan. 24, 12°4, which makes it timely based on belated discovery,

since appellant alleged “equitable tolling, fraudulent

concealment and continuing violation.” Bailey v. Glover. 88

U.S. 342, 349-50 (1875).

Denial of Due Process on Statute of Limitations

The appellate panel’s failure to read the complaint is further

evinced by its failure to determine if allegations of any tolling

doctrines existed and could be supported in the complaint. Havens

Realty Corp. v. Coleman, 455 U.S. 363 (1982).

20/27

The appellate court erred by not reading the allegation (K,

p.56); “The statute of limitations is not a bar to this action. .

the doctrines of estoppel, equitable tolling, fraudulent

concealment and continuing violation also apply to all the

defendants.” This allegation appears in the complaint, so EPA’s

statute of limitations defense never appeared on the face of the

complaint. Hanna _v. U.S.V.A. Hosp., 514 F.2d 1092, 1094

(3d.Cir.1975). The district court deliberately abused its discretion

by avoiding this allegation so it didn’t have to convert EPA’s

motion into one for summary judgment, which would require

consideration of appellant’s motion for summary judgment,

instead of dismissing it as moot (D, p.26). Robinson & Dalton,

107 F.3d 1018, 1022 (3d.Cir.1997). The court’s refusal to

consider appellant’s motion for summary judgment resulted in his

including the pertinent facts in a question of law that was

presented to the appellate court.

Since appellant’s former complaint was timely based on late

discovery, equitable tolling requires the current complaint be

treated as timely. Irwin v. Dept. of Veteran Affairs, 498 U.S. 89,

95-96 (1990). The facts are in the record, but were overlooked as

a result of the error on the sanction.

ARGUMENT IV

Denying Due Process by Avoiding a Question of Law

The appellate panel erred as a matter of fact and law by

finding res judicata on the same opinion that resulted in the

affirmed dismissal without prejudice, and by finding the statute of

limitations had run by not reading appellant’s equitable tolling

allegation. The panel acted arbitrarily to avoid appellant’s

question of law. Maryland Cas. Co. v. Jones, 279 U.S. 792, 796

(1929) (question of law is reviewable, like a motion by plaintiff).

Both courts used judicial tactics to avoid a motion for

summary judgment and a question of law supported by the fact

that EPA’s grant condition continues to violate the CWA since

Feb. 9, 1984 when RVRSA accepted that condition. Brenner v.

Local 514, 927 F.2d 1283, 1295 (3 Cir.1991)(continuing

violation is accepted federal doctrine). Claim Six, alleges

Supreme Court and third circuit required explicit authority, and

Claim Eight alleges a violation of CWA (K, p.52-53). EPA’s grant

condition was imposed three years after rulings that prohibit

EPA’s grant condition. Pennhurst St. S&H v. Halderman, 451

U.S. 1, 17 (1981); Univ. of Texas v. Camenisch, 451 U.S. 390,

399 (1981); St. of NJ Dept. of Ed. V. Hustedler, 662 F.2d 208,

22/27

A itil

, 4 a ee TY oe “ .

LA A CLA G ie SAAD PA ASS AS DROS til ev Let Wie EERIE 8 PA SAS MES BAe RE Sc

NOES Retews acs A Lue 1

214 (3™ Cir.1981) (“terms and conditions of a federal grant must

be set forth clearly and unambiguously in the statute authorizing

the grant.”’).

“EPA concedes that the FWPCA does not give it

authority to regulate sewer service directly.” Shanty Town

Assoc. Ltd. v. E.P.A., 843 F.2d 782, 789 (4" Cir.1988). By

admitting it lacked explicit statutory authority after it imposed its

grant condition disposes of any fact that would bar consideration

of a pure question of law. M..eover, the Administrator of the EPA

excluded residential properties from regulations on polluting

public treatment works 40 CFR § 403.1. Nat. Ass'n. of Metal Fin.

v. E.P.A., 719 F.2d 624, 638 (3d.Cir.1983) (Conduct admitting a

lack of authority over residential properties prior to imposing the

grant condition, proving a deliberate and continuing violation of

the CWA and owner’s property rights).

EPA's grant condition amount to a "violation of a federal

right that has been found to be implicit in a statute's language

and structure is as much a "direct violation" of a right as is

the violation of a right that is clearly set forth in the text of the

statute." Golden Gate Tr. Corp. vy. L.A., 493 U.S. 103, 112

(1989).

23/27

ARGUMENT V

Conduct That Shocks the Conscience

The facts clearly show that the appellate court did not read

appellant’s complaint though the standards of review require it be

read. This supports the inference of a policy that precludes reading

the primary document to a review of a dismissal for failure to state

a claim, or it proves the panel was prejudiced by the district

court’s misleading statement that these were the same claims that

it formerly dismissed.

Furthermore, the appellate court affirmed res judicata based

on the 95 opinion, which violates the law of the case by

disregarding the May 95 order (Exh 1) and the Appellate

affirmation of that order (Exh. F), which appellant provided. The

panel acted arbitrarily so it could avoid the record, two law of the

case arguments, and a question of law. Moreover, the panel fails

to cite one fact or authority that would even remotely suggest that

it was correcting some error by the former appellate court, thus

proving it overlooked these orders. Consequently, the arbitrary

affirmation of res judicata denied appellant due process.

There is a third and equally important issue to be considered

by this Court. That is the issue of a district court avoiding a

24/27

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summary judgment motion by “abusing its discretion” with

misstated findings, misleading facts, and unsupportable sanction.

Not to mention its failure to convert the motion to dismiss into

one for summary judgment by deliberately avoiding appellant’s

allegation of equitable tolling.

The policies of both courts have denied appellant due process.

Moreover, it encourages further violations by EPA because it now

thinks the courts are incompetent, or support agency violations in

order to conceal EPA’s misconduct from the public. It further

appears that the courts have no compunction about leaving the

public injured by illegal agency conduct, and by imposing

sanctions to deprive the public of even more property as an

oppressive act, and to punish appellant for attempting to correct

the misconduct of the EPA and Rockaway. The foregoing clearly

constitutes conduct that shocks the conscience. U.S. v. Salerno,

481 U.S. 739, 746 (1987).

25/27

ARGUMENT VI

Denying Rehearing Constitutes a Denial of Due Process

The Appellate Court’s denial of appellant’s petition for

rehearing is a refusal to comply with FRAP 40, which amounts to

a denial of due process. Appellant filed a petition for rehearing in

conformance with that section of FRAP 40 that states: “The

petition must state with particularity the points of law or fact

which in the opinion of the petitioner the court has overlooked

or misapprehended. . .”

Appellant’s petition for rehearing, stated: “Appellant’s

complaint alieged; fraudulent concealment, equitable tolling,

waiver and a continuing violation.” On the issue of the sanction,

appellant included copies of the overlooked documents in the

petition, and stated; “The panel overlooked these exhibits,

which proves its affirmation [of the sanction] is wrong and

unjust.” Denying a petition to refuse to reconsider factual errors

is to state these facts are not in the record, which is not true.

Pioneer Invest. Svs. v. Brunswick Assoc. Ltd., 507 U.S. 380

(1993) (Supreme Court is not obligated to accept findings when

they are not supported by the record).

26/27

CONCLUSIONS

Appellant filed a complaint to address the violations of the

EPA, only to be denied due process by the courts. This petition

clearly shows both courts erred in ways that supports the inference

of deliberate gross abuses aimed at disposing of a pro se litigant,

or possibly any litigant because of a predisposed inclination

toward federal agencies, regardless of their actions, which proves

a gross abuse by way of oppression.

When a district and appellate court willingly abuses their

discretion with judicial trickery, it reflects on this Court as the

supervisor of the lesser courts. It conveys the impression that the

law is what the courts will allow it to be by judicial trickery to

avoid facts and circumvents legal arguments, instead of based on a

forthright assessment of the facts and the-law.

Appellant filed this petition in order to correct these abuses,

and to determine if the courts are truly governed by law or merely

the perception of law created by artifice. I truly pray that you will

vindicate my belief that the conduct to this point is not is

indicative of the conduct to be expected in this Court, or accepted

by this Court, when it involves agency violations.

27/27

sahil ork ae al

a Ee a Se

Table of Exhibits

Exh. Page Date Subject

A Apr. 23, 1998 Denial of Petition for Rehearing

B 2-3 Feb. 26, 1998 Appellate Court Judgment

C 4-6 Feb. 26, 1998 Appellate Opinion

D 8-26 Aug. 12,1997 District Court Opinion/Order

7 Oct. +, 1996 Denial of Petition for Certiorari

E 27 May 13, 1996 Denial of Petition for Rehearing

F 28 Mar. 26, 1996 Affirmation of Orders

G 29-31 Aug. 24,1995 Order “partial summ. judgment”

H 32-34 June 19,1995 Order on Reargument

I 35-36 May 11,1995 Order dismissing without prej.

J 37-43 Mar. 27, 1995 District Court opinion

Complaint and Attached Exhibits

K

Q

Q.

44-64

65-69

70-76

77-78

79-81

82-83

84-85

Feb. 27, 1997

Apr. 23, 1979

May 25, 1979

July 11, 1980

Oct. 21, 1988

Apr. 1, 1989

May 5, 1989

Amended Complaint

EPA document

EPA document

EPA document

Wet.exemption

Recom. Denial

EPA letter

EXH.-A April 23, 1998 Denial of Petition for

Rehearing

IN THE UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

NO. 97-5579

NELSON FERNANDES, Appellant

V.

EPA; ADMINISTRATOR OF THE EPA;

REGIONAL ADMINISTRATOR FOR REGION II;

COMMISSIONER OF NJDEP; ROCKAWAY TOWNSHIP

COUNCIL; ATTORNEY GENERAL, Appellee

(D.C. Civ. No. 96-cv-05791)

Present: BECKER, Chief Judge, SLOVITER, STAPLETON,

MANSMANN, GREENBERG, SCIRICA, COWEN,

NYGAARD,

ALITO, ROTH, McKEE, RENDELL and GARTH,” Circuit

Judges,

SUR PETITION FOR PANEL REHEARING

WITH SUGGESTION FOR REHEARING IN BANC

The petition for rehearing filed by appellant having been

submitted to the judges who participated in the decision of this

Court, and to all the other available circuit judges in active

service, and no judge who concurred in the decision having asked

for rehearing, and a majority of the circuit judges of the circuit in

regular active service not having voted for rehearing by the court

in banc, the petition for rehearing is DENIED.

BY THE COURT:

“s/BECKer”

Chief Circuit Judge

DATED: APR 23, 1998

EXH. - B Feb. 26, 1998 Appellate Court Judgment

IN THE UNITED STATES COURT OF APPEALS

NO. 97-5579

NELSON FERNANDES, Appellant

V.

EPA; ADMINISTRATOR OF THE EPA:

REGIONAL ADMINISTRATOR FOR REGION II:

COMMISSIONER OF NJDEP; ROCKAWAY TOWNSHIP

COUNCIL; ATTORNEY GENERAL

On Appeal From the United States District Court

For the District of New Jersey

(D.C. Civ. No. 96-cv-05791)

District Judge: Honorable William H. Walls

Submitted Under Third Circuit LAR 34. l(a)

February 13, 1998

Before: BECKER, Chief Judge, ALITO and GARTH,

Circuit Judges.

(Filed Feb. 26 1998)

JUDGMENT

This case came on to be heard on the record from the

United States District Court for the District of New Jersey and

was submitted on February 13, 1998. On consideration whereof it

is now here

ORDERED AND ADJUDGED by this court that the order of the

district court of August 12, 1997 be and the same is hereby

affirmed.

2

Costs taxed against appellant.

ATTEST:

“s/P. Douglas Sisk”

Clerk

DATED: Feb. 26, 1998

~

A

EXH.-C Feb. 26, 1998 Appellate Opinion

NOT-FOR-PUBLICATION

IN THE UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

NO. 97-5579

NELSON FERNANDES.

Appellant

V.

EPA; ADMINISTRATOR OF THE EPA:

REGIONAL ADMINISTRATOR FOR REGION II;

COMMISSIONER OF NJDEP; ROCKAWAY TOWNSHIP

COUNCIL; ATTORNEY GENERAL

On Appeal From the United States District Court

For the District of New Jersey

(D.C. Civ. No. 96-cv-05791)

District Judge: Honorable William H. Walls

Submitted Under Third Circuit LAR 34. l(a)

February 13, 1998

Before: BECKER, Chief Judge, ALITO and GARTH,

Circuit Judges.

(Filed Feb. 26, 1998)

MEMORANDUM OPINION

BECKER, Chief Circuit Judge.

The order of the district court will be affirmed. As to the

merits of Fernandes’ claim, his claims are barred by res judicata.

3

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ed

5

He litigated the merits of his 1985 purchase of the plot of land

in New Jersey state court. As the 1993 opinion of the New

Jersey Appellate Division shows, Fernandes has actually

litigated his claims on the merits in the state courts. He cannot

sue once more concerning this same transaction or occurrence.

See, e.g., Board of Trustees V. Centra, Inc., 983 F.2d 495, 504

(3d Cir. 1992). Similarly, Fernandes has litigated the 1989

denial of his application for a waiver, as shown in the 1995

opinion of the district court. He lost on the merits, and cannot

continue to challenge this occurrence by adding new parties

and refiling the action. Id. Further, Fernandes has filed this

action in 1997, between 8 and 12 years after the relevant

events. His actions are barred by the applicable statutes of

limitations.

As to the district court's Rule | 1 sanctions, we review for

abuse of discretion. Lony v. E.l. DuPont de Nemours & Co.. 935

F.2d 604, 615 (3d Cir. 1991). However, this standard may

incorporate other standards of review, for the Supreme Court has

indicated that a district court "would necessarily abuse its

discretion if it based its ruling on an erroneous view of the law or

on a clearly erroneous assessment of the evidence." Cooter & Gell

v. Harrmarx Corp., 496 U.S. 384, 405 (1990). Given the facts of

this case, the district court's sanctions are not an abuse of

discretion. Fernandes has been pursuing claims against Rockaway

for almost a full decade. He has appealed the clearly merited

dismissals of his claims all the way to the United States Supreme

Court twice, and yet still has come back for more. The district

court did not abuse its discretion in forcing Fernandes to pay a

modest amount of attorney's fees, and in enjoinnig him from

bringing even more suits arising from these same events. The

order of the district court wil] be affirmed.

TO THE CLERK:

Please file the foregoing opinion of the court.

BY THE COURT:

“S/ Becker”

Chief Circuit Judge

\ Cah

The Supreme Court denied a petition for Certiorari on October 7,

1996 that appellant was unable to find in order to present it in this

spot.

EXH.-—D August 12, 1997 District Court Opinion & Order

UNITED STATES DISTRICT COURT

District of New Jersey

Chambers of Martin Luther King Jr.

William H. walls 50 Walnut Street

District Judge Newark, New Jersey 07101

(201) 645-2564

(201) 645-6467 Fax

NOT FOR PUBLICATION

LETTER ORDER

ORIGINAL ON FILE WITH CLERK OF THE COURT

Nelson Fernandes

9 Fox Run

Denville, New Jersey 07834

Plaintiff pro se

Susan Handler-Menahem

Assistant United States Attorney

United States Attorney’s Office

District of New Jersey

970 Broad Street

Newark, New Jersey 07102

Attorney for Federal Defendants

Kim L. Simmons

Environment and Natural Resources Division

Environmental Defense Section

Department of Justice

P.0. Box 23986

Washington, DC 20026-3986

Attorney for Federal Defendants

Neca PRS ie EIS eM SCAN Ae! ntred “

MM gales Sept gioom.

Pts iar SOME id CASS Ness AMES RN Reon hewtic ty

James J. Higgins

Boyar, Higgins & Suozzo, P.A.

10 Park Place, Suite 415

Morristown, New Jersey 07960

Attorney for Defendant Rockaway

Township Town Council

Re: Fernandes V. EPA, et als. Civil No. 96-5791

Dear Counsel and Litigant:

For the fourth time in seven years, plaintiff Nelson Fernandes

(“Fernandes”) has brought suit against various parties for the 1989

denial of permission to connect his property in Rockaway

Township to the township sewer line. Defendants United States

Environmental Protection Agency (the EPA”), Administrator of

the EPA, Administrator of Region II of the EPA, and the Attorney

General of the United States (collectively, "the federal

defendants") move for dismissal of the Complaint. Defendant

Rockaway Township Town Council ("Rockaway") moves for

dismissal of the Complaint and also for sanctions against

Fernandes under Rule 11 of the Federal Rules of Civil Procedure.

Fernandes cross moves for summary judgment. Pursuant to Rule

78 of the Federal Rules of Civil Procedure, the Court decides this

matter on the basis of the written submissions of the parties.

Factual Background

On August 6, 1985, Rockaway Township held a public

sale of real property by auction. The terms of the public auction

were that the property was sold "as is" and that "no representations

of any kind are made by the Township of Rockaway as to the

Rockaway as to the condition, area, or boundaries of the property

herein relevant."

Lot 8 was one of the land parcels on which the public bid.

A portion of Lot 8 was covered by environmentally sensitive

freshwater wetlands. On September 21, 1985, plaintiff won

ownership of Lot 8 by bidding $10,000.00. Plaintiff had a title

search done at the time of purchase. On November 15, 1985,

plaintiff took title to Lot 8 by deed recorded with the Morris

County Clerk. Plaintiff later purchased Lot 9, which is adjacent to

Lot 8, at a tax sale. He planned to subdivide the two lots and

build a single family dwelling and hoped to connect the single

family home to the municipal sanitary sewer line that ran adjacent

to his lots. However, his application was rejected because of a

grant condition imposed by the federal government.

The Rockaway valley Regional Sewer Authority

("RVRSA") operates a sewer system in Morris County, New

Jersey. In 1983, the federal government gave RVRSA a grant to

fund in part a sanitary sewer system. According to Grant

Agreement No. C340389- 04-02, lots within an environmentally

sensitive area (such as wetlands) cannot be connected to federally

funded sewers without a written waiver from the EPA Regional

Administrator. The purpose of the condition is to protect the

surrounding wetlands. —-

Plaintiff's lots are two of approximately 140 lots in the

Township which were impacted by the EPA grant condition.

10

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In 1989, at Fernandes' request, the RVRSA submitted a

waiver application to the EPA for Lot 8. The Army Corps of

Engineers and the NJDEP determined that Lot 8 contained

wetlands areas. After reviewing the application, defendant New

Jersey Department of Environmenta! Protection ("NJDEP")

recommended that the waiver be denied and forwarded the

application and recommendation to the EPA. On May 5, 1989,

after reviewing the application and NJDEP's recommendation, the

EPA denied Fernandes' request for a waiver.

Procedural Background

On July 19, 1990, Fernandes filed an Amended Complaint

in the United States District Court for the District of New Jersey

against Rockaway Township Town Council and the Township

Engineer alleging that he was fraudulently induced into

purchasing the two lots without Rockaway disclosing a sewer use

ban imposed on those properties because of the EPA grant

condition. Fernandes v. Rockaway Township Town Council, Civ.

No. 90-0830 (MTB). On November 28, 1990, the Hon. Maryanne

Trump Barry, U.S.D.J., dismissed the case without prejudice for

failure to state a claim for violation of any constitutional right.

On December 4, 1990, Fernandes filed another action

against the same defendants in the Superior Court of New Jersey,

Law Division, Morris County. Fernandes v. Rockaway Township

Town Council, Docket No. MRS-L-5845-90. On July 10, 1991,

the court dismissed all but two counts of the complaint; the

1]

remaining two were dismissed on January 3, 1992. On January

22, 1993, the Appellate Division affirmed the dismissal of

Fernandes' state court complaint, and on March 15, 1993, the

New Jersey Supreme Court denied Fernandes' petition for

certification. Fernandes' motion for reconsideration from the

state supreme court was denied on May 11, 1993, and on

October 4, 1993, the United States Supreme Court denied

plaintiff's petition for a writ of certiorari.

Undaunted, Fernandes brought another suit in federal

court on January 24, 1994, which was assigned to the

undersigned. Fernandes v. Rockaway Township et al., Civ.

No. 94-338 (WHW). He asserted claims against the EPA, the

Regional Administrator, Rockaway Township Town Council and

Township Engineer, RVRSA, RVRSA|s Executive Director, the

law firm of Dorsey & Bell, and John Dorsey and Joseph Bell,

individually. The 1994 complaint, as amended, alleged a

conspiracy and other wrongdoing by all defendants relating to the

1984 EPA grant condition imposed pursuant to the Clean Water

Act, 33 U.S.C. §§ 1251 et seq. The complaint set forth thirty-

nine claims in all, including federal civil rights claims,

contract claims, takings claims, and challenges to agency

action under the Administrative Procedure Act ( "APA"),5

U.S.C. §§ 701 et seq.

The federal defendants moved for dismissal of the

Complaint on the basis of the doctrine of sovereign immunity,

4

4

4

;

failure to state a claim upon which relief could be granted, lack of

subject matter jurisdiction, and failure to comply with the statute

of limitations. The Rockaway defendants, including Dorsey &

Bell, John Dorsey, and Joseph Bell, moved for dismissal on res

judicata grounds, citing the state court suit which concluded in

their favor.

The Court heard oral argument on March 27, 1995 and

ruled that Fernandes’ claims against Rockaway Township, the

Town Council and Township Engineer were barred by res judicata

by virtue of the previous state court action against those parties.

The Court further ruled that the claims against Dorsey & Bell and

John Dorsey and Joseph Bell were also precluded by res judicata,

"identical issues hav[ing] been decided on prior adjudication."

With regard to the federal defendants, the Court noted

that sovereign immunity barred the claims. The Court refused

to find a waiver under the Federal Tort Claims Act ("FTCA"), 28

U.S.C. §§ 1346 (b), 2671-2680 because Fernandes had not

complied with the administrative claim requirement. It also

found the challenge to the EPA grant condition time-barred

by a six year statute of limitations imposed by the APA.

On May 11, 1995, this Court dismissed all of plaintiff's

claims against Rockaway, Rockaway's Township Engineer, the

law firm of Dorsey & Bell, John Dorsey and Joseph Bell,

individually, RVRSA, and RVRSA's Executive Director,

dismissed without prejudice all of plaintiff's claims against the

EPA and the Regional Administrator of Region II and denied

plaintiff's motion for partial summary judgment. On June 20,

1995, the court denied Fernandes's motion for reargument. By

Letter Order dated August 24, 1995, the Court granted

summary judgment in favor of the United States, finding that

the EPA had not acted arbitrarily and capriciously when it

denied Fernandes's waiver request.

Fernandes appealed the Court's rulings to the United

States Court of Appeals for the Third Circuit. The Third Circuit

affirmed the three orders by Judgment Order dated March 26,

1996. The United States Supreme Court denied certiorari on

October 7, 1996.

Not to be discouraged by this turn of events, on February

24, 1997, Fernandes filed the instant Complaint against

Rockaway, the EPA, the Regional Administrator, the Attorney

General of the United States, the EPA Administrator and the

Commissioner of the NJDEP. In his Amended Complaint,

Fernandes sets out twelve claims for relief arising from the denial

of the waiver, including denial of due process and equal treatment;

conspiracy by the EPA and NJDEP in violation of 42 U.S.C. §§

1983 and 1985; violations of his civil rights pursuant to 42 U.S.C.

§ 1983; a claim entitled "Third Circuit and Supreme Court

Limited EPA's Use of Grant Conditions;" violation of EPA

regulations and Title VI; failure to comply with the Clean Water

14

oe ena

56 pe 62 ee ABE RASTER SE SORA A eG i it lets ie eh

Act, 33 U.S.C. §§ 1251 et seq.; denial of federal benefits; illegally

charging an assessment; failure of the Attorney General to ~

perform her duty, and intentional infliction of emotional distress.

Fernandes seeks mandamus, declaration of the parties’ rights, and

millions of dollars in damages.

Analysis

I. Whether Claims Against the Federal Defendants Should

Be Dismissed.

The federal defendants move for dismissal of Fernandes’

Complaint on the grounds of res judicata, lack of subject matter

jurisdiction, failure to state a claim upon which relief may be

granted, and the applicable statutes of limitations. The Court has

considered all the arguments raised by Fernandes in opposition to

the motion and finds them to be without merit. Therefore,

dismissal is warranted.

The doctrine of res judicata refers to the "distinctive

effects of a judgment separately characterized as ‘claim preclusion’

and issue preclusion." 5 Charles A. Wright, Arthur R. Miller, &

Edward H. Cooper, Federal Practice and Procedure § 4402, at 6

(1981). Issue preclusion is based upon the notion that "later

courts should honor the first actual decision of a matter that

15

has already been litigated." Burlington Northern R. v. Hyundai

Merchant Marine, 63 F.3d 1227, 1231 (3d Cir. 1995). "[0] nce an

issue is actually and necessarily determined by a court of _

competent jurisdiction, that determination is conclusive in

subsequent suits based on a different cause of action involving a

party to the prior litigation." Montana V. United States, 440 U.S.

147, 153 (1979). Issue preclusion is applied when "(1) the issue

sought to be precluded [is] the same as that involved in the prior

action; (2) that issue [was] actually litigated; (3) it [was]

determined by a final and valid judgment; and (4) the

determination [was] essential to the prior judgment." Burlington

Northern, 63 F.3d at 1232 (citations omitted)

Claim preclusion derives from the principle that "prior

judgments may preclude later litigation both as to matters that

have actually been litigated and decided and as to matters that

have never been litigated or decided." 5 Wright, Miller & Cooper,

supra § 4406, at 44. Application of the doctrine requires (1) a

final judgment on the merits in a prior suit involving; (2) the same

parties or their privities; and a (3) subsequent suit based on the

same cause of action. Board of Tr. of Trucking Emp. Pension

Fund v. Centra, 983 F.2d 495, 504 (3d Cir. 1992) (citattons

omitted). When deciding if claim preclusion bars the second

action, a court should consider, among other things, whether the

acts complained of and the demand for relief are the same (that is,

whether the wrong for which redress is sought is the same in both

actions), whether the theory of recovery is the same, and whether

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the material facts alleged are the same. United States V. Athlone

Indus.. Inc., 746 F.2d 977, 983 (3d Cir. 1984). A later claim may

be precluded even if different statutes or theories are cited by the

claimant. Id.

The 1994 suit before this Court culminated in a final

judgment on the merits. Essentially, Fernandes seeks the same

relief as he pursued before this Court in the 1994 complaint --

damages and a voiding of the denial of the waiver. The facts have

not changed in the meantime, and the parties remain the same.

Even though Fernandes has cobbled together different claims and

theories as alleged grounds for relief, this Court has already- held

that the EPA's denial of the grant waiver was not arbitrary,

capricious, an abuse of discretion, or otherwise not in accordance

with the law. - Such a conclusion necessarily includes a finding

that the decision io deny the grant waiver was not illegal and did

not violate any prevailing law or regulation.

Among the issues raised by Fernandes on his appeal to the

Third Circuit was whether "the EPA grant condition represent[ed]

a continuing violation by violating the holdings of Cape May

Greene [Inc. V. Warren, 698 F.2d 179 (3d Cir. 1983)], other case

law and regulations that preceded the grant condition." Reply Aff.

of James J. Higgins, Exh. G. In affirming the District Court, the

Court of Appeals implicitly concluded that there was no violation.

These holdings cannot be relitigated under the guises raised by

Fernandes in the present Complaint.

Even if res judicata did not preclude Fernandes’ claims,

Fernandes’ Complaint is deficient for several other reasons. The

17

barrier of sovereign immunity discussed by the Court in its

previous opinion has not been surmounted by Fernandes' filing of

an administrative claim under the Federal Tort Claims Act

because the applicable statute of limitations of two years has run.

See 28 U.S.C. § 2401(b); Zeleznik V. United States, 770 F.2d 20,

22 (3d Cir. 1985). ("[A] suit against the United States under the

Federal Tort Claims Act is the exclusive remedy for tort claims

arising from the actions of government officials or employees."),

cert. denied, 475 U.S. 1108 (1986). Moreover, although

Fernandes has invoked the FTCA, he has not named the United

States as a defendant, even though the United States is the only

proper party in an FTCA suit. See. e.g.. Galvin V. OSHA, 860

F.2d 181, 183 (Sth Cir. 1983). Therefore, Fernandes cannot

pursue claims against the EPA, the Administrator, or the Region II

Administrator under the FTCA.

Fernandes also styles his Complaint as stating a claim

under the citizen suit section of the Clean Water Act, 33 U.S.C. §

1365 (a) (2) , which permits a suit against the Administrator

where there is alleged a failure of the Administrator to perform

any act or duty under the Act which is not discretionary.

However, any claims he may raise under the purview of the

citizen suit provisions must fail due to res judicata. The Court has

already concluded, in its finding that there was no clear error in

the denial of the waiver, that the EPA did not fail to perform any

mandatory duty. To the extent that Fernandes challenges the EPA

At CALE tee 8

regulations authorizing the grant condition, his claims are also

barred by the statute of limitations governing challenges to agency

action. See 5 U.S.C. §§ 701-706, Bench Opinion of March 27,

1995 ("Bench Op.") at 9-10.

To the extent that Fernandes asserts claims for violations

of his civil rights pursuant to 42 U.S.C. §§ 1983, 1985, and 2000d,

those claims are barred by the two year statute of limitations

applicable to civil rights claims brought in this district. See

N.J.S.A. 2A:14-2 (West 1990); Wilson V. Garcia, 471 U.S. 261

(1985) (holding that the statute of limitations for civil rights

actions is the same as the state statute of limitation for personal

injuries). Fernandes' state law tort claims are similarly barred by

the two year limitation for bringing an action under state law.

However, Fernandes’ complaints of civil rights violations

fail for more substantive reasons. First, Fernandes has failed to

allege that these federal actors acted under color of state law -- a

requirement for maintaining a § 1983 action based upon denial of

due process or equal protection. See U.S. Const. amend. XIV, §

1;' Artway V. Attorney General, 87 F.3d 1235, 1251, 1268 (3d

Cir. 1996) . Second, his claims under Title VI of the Civil Rights

Act of 1964, 42 U.S.C. § 2000d must fail because contrary to

Fernandes’ position, such a claim requires an alleged

discrimination based upon race, color or national origin.

Fernandes’ argument that equal protection applies when "any

person" is denied a benefit simply lacks merit. Therefore, those

claims would have to be dismissed for failure to state a claim

upon which relief can be granted. Fernandes also claims that

19

Executive Order 12250, 45 Fed. Reg. 72995 (Nov. 2, 1980)

requires the Attorney General to find that the regulations

appearing at 40 C.F.R. §§ 35.925-8(b) and 35.925.13(e) exceeded

the EPA's statutory authority. The Court does not pass on the

question of whether Executive Order No. 12250 provides

Fernandes with an independent right to sue. Instead, it notes that

a government agency's "decision not to prosecute or enforce . . . is

a decision generally committed to an agency's absolute

discretion." Heckler V. Chaney, 470 U.S. 821, 830 (1985). The

presumption against review may be rebutted "where the

substantive statute has provided guidelines for the agency to

follow in exercising its enforcement powers," (id. at 832-33), a

situation not present here.

Moreover, Executive Order 12250, which generally prohibits

discrimination in federally funded programs, is modeled upon Title

VI. Thus, a claim based upon the Executive Order thus depends

upon the viability of Fernandes’ claim for relief under 42 U.S.C. §

2000d. As the Court has already stated that Fernandes has failed to

state a claim under this statute, Count Eleven must also be dismissed.

Lastly, to the extent that Fernandes seeks damages for an

alleged taking, his claims must be dismissed for lack of subject

matter jurisdiction for the reasons stated on the record at the hearing

of March 27, 1995. See 28 U.S.C. §§ 1346 (a) (2) and 1491(a) (1),

Bench Op. at 17-22. For all of these reasons, the Complaint is

dismissed with prejudice as to the federal defendants.

II. Whether the Claims Against Rockaway Should Be

Dismissed And Whether Rule 11 Sanctions Should Be

20

Imposed.

Fernandes asserts that Rockaway's ordinance "denied a

federal benefit," illegally charged an assessment, and intentionally

inflicted emotional distress on him. Fernandes has already brought

three separate lawsuits against Rockaway Township on various

claims stemming from the same underlying facts -- the denial of the

waiver and the limitations placed upon the property sold to him as a

result of the EPA grant condition. All three lawsuits were concluded

unfavorably to plaintiff, and the most recent dismissal of these claims

was with prejudice. Fernandes appealed two of the three dispositions

all the way to the United States Supreme Court; at all points, the

matters were resolved against Fernandes.

It is clear that these claims against Rockaway Township

are barred by res judicata. To the extent that they are not, they are

also barred by New Jersey's entire controversy doctrine, which

1. ‘It appears that Fernandes has a potential remedy.

The federal defendants renew their position that

Fernandes should submit a completed application for a

waiver. They state that EPA's willingness to consider a

completed application [with further information relating

to the impact of the proposed activities] has not

changed." Federal Defendants' Reply Brief at 6. The

Court suggests that this route, while not a guarantee of

success, is preferable to the continued litigation which

has so far proven fruitless for plaintiff.

requires joinder of "all parties with a material interest, one that

can affect or be affected by the judicial outcome of a legal

controversy." Cogdell V. Hospital Ctr. at Orange, 116 N.J. 7, 23

21

. PUBLISHER’S NOTE:

THE FOLLOWING PAGE WAS UNAVAILABLE FOR FILMING:

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transaction. Bennun V. Rutgers the State Univ., 941 F.2d 154,

163 (3d Cir. 1991) , cert. denied, 502 U.S. 1066 (1992)

nonfrivolous argument for the extension, modification, or reversal

of existing law or the establishment of new law([.]" Fed. R. Civ. P.

11(b) & (c)

Having brought four separate and unsuccessful suits

against various Rockaway defendants, it is clear that Fernandes has

had more than the proverbial two bites of the apple.3 This Court

ruled in 1995 that the claims against Rockaway were barred by res

judicata. No matter how plaintiff restates or restyles his bases

for relief, the issues and the claims are based upon the same

facts and have been resolved against him. To the extent that

they have not, the claims are barred by the entire controversy

doctrine. Plaintiff's dogged pursuit of claims against Rockaway,

claims which have been dismissed by two different courts and

passed on by the United States Supreme Court, can only be

considered harassment this time. Accordingly, Rule 11 sanctions

are appropriate.

Rule 11 instructs that a sanction "shall be limited to what

is sufficient to deter repetition of such conduct." Fed. R. Civ. P.

11(c) (2). Such sanctions may consist of "directives of a

nonmonetary nature, .. . or, if imposed on motion and warranted

for effective deterrence, an order directing payment to the movant

of some or all of the reasonable attorneys’ fees and other expenses

incurred as a direct result of the violation." Id.

5 ea a cc

31n fact, one may argue that he has sampled the whole

orchard.

Rockaway should be compensated for the costs it has

expended in defending this baseless action. According to the

Affidavit of Legal Services and Disbursements submitted by

counsel for Rockaway, such costs total $3,168.51. However,

' because the Court is not persuaded that an award of costs is an

adequate deterrent in this case, the Court will enter an order

enjoining Fernandes from bringing any more complaints against

Rockaway Township, its attorneys, the Rockaway Township

Town Council, RVRSA, or any of their agents which arise from

the denial of the Fernandes’ grant waiver application in 1989 or

the earlier sale of the property to Fernandes. It is the Court's view

that only this type of sanction can deter future attempts at

relitigation of this matter.

Il. Whether A Default Judgment Should Be Entered Against

Defendant NJDEP.

Fernandes notes that defendant NJDEP has not responded to

his Complaint and moves for a default judgment against it. The

Court is tempted to grant the relief sought by Fernandes against this

party. However, a review of the Complaint reveals that the claims

} against NJDEP rely upon findings that the denial of the grant waiver

or the grant condition were illegal or improper, or that NJDEP was a

party to a violation of Fernandes' civil rights. These claims all fail for

reasons discussed more fully above. Therefore,

the Complaint must also be dismissed as to the NJDEP.

Moreover, claims against the NJDEP should have been

brought in either of the last two lawsuits concerning this subject

matter. Because they were not, the entire controversy doctrine

prevents Fernandes from being able to assert claims against this

defendant now.

Nw

Ww

Conclusion

Having considered the arguments of counsel and litigant,

and for the reasons stated above;

IT IS on this 12 th. day of August, 1997;

ORDERED that the Amended Complaint of plaintiff

Nelson Fernandes and all the claims within be and hereby are

dismissed with prejudice; and it is

FURTHER ORDERED that plaintiff's motion for

summary judgment be and hereby is dismissed as moot; and it is

FURTHER ORDERED that judgment be entered against

Fernandes and in favor of defendant Rockaway Township Town

Council in the amount of. $3,168.51; and it is

FURTHER ORDERED that plaintiff be and hereby is

enjoined from instituting any further suits against Rockaway

Township, its attorneys, the Rockaway Township Town Council,

RVRSA, or any of their agents, which arise from the denial of the

grant waiver in 1989 or the sale of the subject property to

Fernandes.

SO ORDERED:

“s/ William H. Walls, U.S.D.J.”

26

sae, ata

EXH.-—E May 13, 1996 Denial of Petition for Rehearing

UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

NELSON FERNANDES,

Appellant

v.

ROCKAWAY TOWNSHIP, TOWN COUNCIL, AND

TOWNSHIP ENGINEER; R.V.R.S.A (ROCKAWAY VALLEY

REGIONAL SEWERAGE AUTHORITY);

E.P.A. (ENVIRONMENTAL PROTECTION AGENCY);

DORSEY & BELL; JOHN H. DORSEY; JOSEPH BELL

(D.C. Civ. No. 94-cv-00338)

SUR PETITION FOR REHEARING

Present: SLOVITER, Chief Judge,

BECKER, STAPLETON, MANSMANN, GREENBERG,

SCIRICA, COWEN, NYGAARD, ALITO, ROTH,

LEWIS, McKEE and SAROKIN, Circuit Judges.

The petition for rehearing filed by appellant in the above-

entitled case having been submitted to the judges who participated

in the decision of this Court and to all the other available circuit

judges of the circuit in regular active service, and no judge who

concurred in the decision having asked for rehearing, and a

majority of the circuit judges of the circuit in regular service not

having voted for rehearing, the petition for rehearing by the panel

and the Court in banc, is denied.

BY THE COURT,

Circuit Judge

Dated: May 13, 1996

27

EXH.—F Appellate Affirmation of the District Court Orders

UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

Nos. 95-5433 & 95-5646

NELSON FERNANDES,

Appellant

v.

ROCKAWAY TOWNSHIP, TOWN COUNCIL, AND

TOWNSHIP ENGINEER; R.V.R.S.A (ROCKAWAY VALLEY

REGIONAL SEWERAGE AUTHORITY);

E.P.A. (ENVIRONMENTAL PROTECTION AGENCY);

DORSEY & BELL; JOHN H. DORSEY; JOSEPH BELL

Appeal from the United States District Court

for the District of New Jersey

D.C. Civil Action No. 94-cv-00338

(Honorable William H. Walls)

Submitted Pursuant to Third Circuit LAR 34.1(a)

March 15, 1996

Before: STAPLETON, SCIRICA and COWEN, Circuit Judges

JUDGMENT ORDER

After consideration of all contentions raised by appellant, it is

ADJUDGED AND ORDERED that the district court's

order entered May 15, 1995, letter-order entered June 20, 1995,

and letter-order entered August 28, 1995, be and are hereby

AFFIRMED.

Costs taxed against appellant.

BY THE COURT,

Circuit Judge

fi

Attest:

DP. Douglas Sisk, Clerk, March 26, 1996

28

Senne eee aN RE ee

EXH.—G Aug. 24, 1995 Order

Re: Nelson Fernandes v. Rockaway Town Council and Township

Engineer, et al. Civil Action No. 94-338 (WHW)

Dear Counsel:

This matter is before the Court on Defendant Environmental

Protection Agency's motion for clarification.

INTRODUCTION

On August 6, 1985, Rockaway Township held a public sale

of real property by auction. Rockaway Township sold all property

"as is" without any representations "as to the condition, area, or

boundaries." Lot 8 was one of the land parcels on which the public

bid. A portion of lot 8 was covered by environmentally sensitive

freshwater wetlands.

On September 21, 1985, Plaintiff Fernandes won ownership

of lot 8 by bidding $10,000.00. Fernandes had a title search done

at the time of purchase. On November 15, 1985, Fernandes took

title to lot 8 by deed recorded with the Morris County Clerk.

Planning to build a single family dwelling, Fernandes hoped to

connect the home to an adjacent municipal sanitary sewer line.

However, his application for the connection was rejected because

of a grant condition imposed by the federal government.

In 1983, the federal government gave Rockaway Township a

grant so that the Township could build a sanitary sewer system.

According to Grant Agreernent No. C340389-04-02, lots within an

environmentally sensitive area ("ESA") cannot be connected to

federally funded sewers. The purpose of the condition is to protect

the surrounding wetlands. Fernandes’ request for a waiver from

EPA's ban to connect to the sewerage system was denied.

In January 1994, Fernandes filed a Complaint naming the

following defendants: the Environmental Protection Agency

("EPA"), the EPA" Regional Administrator ("Regional

Administrator"), Rockaway Township, Rockaway Town Council,

Rockaway Township Engineer, Rockaway Valley Regional

Sewerage Authority ("RVRSA"), Dorsey & Bell Law Off ice, John

Dorsey and Joseph Bell. All of the above-named defendants

moved to dismiss plaintiff's Complaint. Fernandes cross-moved for

a partial summary judgment. The EPA and the EPA Regional

29

Administrator then moved for a partial summary judgment.

In its May 11, 1995 Order, this Court (1).dismissed with

prejudice all of plaintiffs claims against defendants Rockaway

Township Town Ceuncil and Township Engineer, Dorsey and

Bell, John Dorsey and Joseph Bell, and Rockaway Valley

Regional Sewerage Authority and its Executive Director, (2)

dismissed without prejudice all of plaintiff's claims against

United States Environmental Protection Agency and Regional

Administrator of Region II and (3) denied plaintiffs motion for

partial summary judgment. EPA's motion for partial summary

judgement was not decided. EPA presently moves for clarification

as to the status of its motion for partial summary judgment. The

motion for clarification is granted and this Court will now proceed

with its determination of the partial summary judgment motion.

DISCUSSION

The EPA requests a finding that its denial of Fernandes |

grant waiver was not arbitrary and capricious. A reviewing court

must set aside agency action deemed " to be arbitrary, capricious,

and abuse of discretion, or otherwise not in accordance with law."

5 U.S.C. sec. 706(2) (A). The court must "consider whether the

decision was based on a consideration of the relevant factors and

whether there has been a clear error of judgment." Stoeco Dev. .

Ltd. V. Department of Army Corps of Eng'rs, 701 F.Supp 1075,

1080 (D.N.J. 1988), appeal dismissed, 879 F.2d 860 (1989)

(quoting Citizens to Preserve Overton Park V. Volpe, 401 U.S.

402, 415-16 (1971)). However, the court is "not empowered to

substitute its judgment for that of the agency." Td. The standard

of. review is "highly deferential"; agency findings are "entitled to

a presumption of regularity." Id.

Before granting a waiver application, the EPA must be

assured that the proposed activities do not violate the Clean Water

Act ("CWA"), 33 U.S.C. §§ 1251-1387. Congress enacted the

CWA in order to "restore and maintain the chemical, physical, and

biological integrity of the Nation's waters." 33 U.S.C. sec. 1251

(a). Thereafter, the discharge of dredged or fill materials from a

point source into wetlands without a section 404 permit issued by

the U.S. Army Corps of Engineers became prohibited. See 33

U.S.C. §§ 1311 (a), 1344.

Before granting a waiver application, the following factors

are to be considered: (1) area extent of vacant parcel(s) which

contain ESAs (i.e., floodplains and/or wetlands); (2) extent and

ecological quality of ESAs affected; and (3) amount of existing

development surrounding the parcel(s). See Exhibits to

Declaration of Robert W. Hargrove, Exh. D. To obtain the

necessary information, an inspection of the property was

conducted in March 1989 at the request of the EPA. Id. at Exhs.

N, 0. The inspection revealed extensive wetlands, several small

streams running from the property into White Meadow Lake, and

significant development of surrounding lots. Id. Based on the

above data, the EPA denied Fernandes’ waiver application. The

EPA has offered to

reevaluate Fernandes’ application provided that a more

recent site inspection is performed and information demonstrating

that any sewer system connections will not jeopardize the

wetlands is provided.. Id. at Exhs. Q, R.

Based on the above, this court finds that the EPA considered

the relevant factors and made no "clear error" when reaching its

decision. The site inspection conducted in 1989 did not reveal a

significant decrease in wetlands warranting reclassification. The

property continues to be predominantly wetlands and therefore

continues to be protected under the Clean Water Act. The EPA's

decision to protect the wetlands is rationally based on the

available information. No contravening evidence is offered by the

plaintiff.

Accordingly,

IT IS on this 24 th. day of August 1995 ;

ORDERED that the EPA's motion for clarification is

granted; and it is further

ORDERED that EPA's motion for partial summary

judgment is granted.

WILLIAM H. WALLS, U.S.D.J.

—

EXH.—H June 19, 1995 Denial of Reargument

Dear Counsel:

This matter is before the Court on plaintiff's

motion for reargurnent.

INTRODUCTION

On August 6, 1985, Rockaway Township held a

public sale of real property by auction. The terms of the public

auction were that the property was sold "as is" and that "no

representations of any kind are made by the Township of

Rockaway as tQ the condition, area, or boundaries of the property

herein relevant. " Lot 8 was one of the land parcels on which the

public bid. A portion of lot 8 was covered by environmentally-

sensitive freshwater wetlands. On September 21, 1985; plaintiff

won ownership of lot 8 by bidding $10,000.00. plaintiff had a

title search done at the time of purchase. On November 15, 1985,

plaintiff took title to lot 8 by deed recorded with the Morris

County Clerk. Plaintiff later purchased lot 9 which is adjacent to

lot 8. He planned to subdivide the two lots and build a single

family dwelling. plaintiff hoped to connect the single family

home to the municipal sanitary sewer line that ran adjacent to his

lots. However, his application was rejected because of a grant

condition imposed by the federal government. In 1983, the federal

government gave Rockaway Township a grant so that the

Township could build a sanitary sewer system. According to

Grant Agreement No. (C340389-04-02, lots within an

environmentally sensitive area could not be connected to federally

funded sewers. The purpose of the condition is to protect the

surrounding wetlands. plaintiffs lots are two of approximately

140 lost in the Township which were impacted by the EPA grant

condition. plaintiff attempted to obtain a waiver from EPA's ban,

but defendant Rockaway Valley Regional sewage Authority

received a letter on May 5. 1989 from the EPA's Acting Regional

Administrator denying the request.

All of the defendants moved to dismiss plaintiff's various

claims against them. plaintiff cross-motioned for partial summary

judgment. EPA, in addition to its motion to dismiss, moved for

partial summary judgment against the plaintiff.

2, _—

In its May 11, 1995 Order, this Court (1) dismissed with

prejudice all of plaintiff's claims against defendants Rockaway

Township Town Council and Township Engineer, Dorsey and

Bell, John Dorsey and Joseph Bell, and Rockaway Valley Regional

Sewerage Authority and its Executive Director, (2) dismissed

without prejudice all of plaintiff's claims against United States

Environmental Protection Agency and Regional Administrator

of Region II and (3) denied plaintiff's motion for partial summary

judgement. EPA's motion for partial summary judgement was not

decided.

Discussion

Under Rule 12(1) of the United States District Court Rules, the

party moving for reargument must state "concisely the matters or

controlling decisions which [said party believes the Judge or

Magistrate has overlooked." Id. If the motion is granted, "the

matter shall be reargued orally." Id.

The primary determination in a motion for reargument is

whether "dispositive factual matters or controlling decisions of

law" were overlooked by the Court. Pelham v. United States, 661

F.Supp. 1063, 1065 (D.N.J. 1987). A motion for a reargument is

not an opportunity for a party to presen't new arguments. Florham

Park Chevron, Inc. v. Chevron U.S.A.., Inc., 680 F. Supp. 159, 162

(D.N.J. 1988). Where the Court has not overlooked facts and cases

properly presented at the time of the motion, the Third Circuit has

consistently denied relief. See Egloff+. New Jersey Air National

Guard, 684 F. Supp. 1275 (D.N.J. 1988). A party's disagreement

with the Court's decision "should be dealt with In the normal

appellate process, not on a motion for reargument." Florham Park

Chevron, 680 F. Supp. at 163.

Simply stated, plaintiff sets forth no matter or controlling

decision which was overlooked by this Court. Therefore, plaintiff's

motion for reconsideration is denied.

CONCLUSION

For the reasons set forth in this Letter Opinion, it is on this

19 th. day of June 1995

ORDERED that Plaintiff's motion for reargument be and

hereby is denied.

33

“s/ William H. Walls, U.S.D.J./

0 ON

EXH.-I May 11, 1995 Order

BOYAR, HIGGINS & SUOZZO, P.A. (JH 8207)

A Professional Corporation

10 Park Place, Suitte. 415

Morristown, New Jersey 07960

(201) 538-8008

Attorneys for Defendants, Rockaway Townshi p

Town Council and Township Engineer

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW JERSEY

NELSON FERNANDES, Civil Action # 94-338(WHW)

Plaintiff,

ROCKAWAY TOWNSHIP TOWN

COUNCIL AND TOWNSHIP

ENGINEER, et al

Defendants .

Xx

ORDER DISMISSING AMENDED COMPLAINT

AS TO ALL DEFENDANTS

THIS MATTER having been opened to the Court on March

27, 1995, honorable William H. Walls, U.S.D.J. presiding, upon

defendants' motions brought pursuant to Fed.R.Civ.P.12(b)(1),

Fed..R.Civ.P.12(b) (6) and Fed.R.Civ.P.56 to dismiss the Amended

Complaint, by defendants, Rockaway Township Town Council and

Township Enginee:r by Boyar, Higgins & Suozzo, P.A. (James

J.Higgins,~ Esq. appearing); by defendants, United States

Environmental Protection Agency and Regional Administrator of

Region II, by the United States Department of Justice (Mark A.

Rigau, Esq. appearing); by defendants, Dorsey & Bell, John

Dorsey and Joseph Bell by Dorsey & Fisher (Douglas R. Cabana,

Esq. appearing); and by defendants, Rockaway? Valley Regional

Sewerage Authority and Executive Director, by McManimon &

Scotland (Joseph Maraziti, Esq. appearing); and on cross-motion of

plaintiff, Nelson Fernandes for partial summary judgment (Nelson

Fernandes, pro se appearing), and the Court having considered the

papers filed by the moving parties and those submitted in

opposition, having heard oral argument on March 27, 1995 and for

good cause shown, all as set forth on the record, 1995:

IT IS on this 11 th. day of May, 1995:

ORDERED, that the motion of all defendants be and the

same are hereby granted; and it further

ORDERED, that the Amended Complaint be and the same is

hereby dismissed with prejudice as to defendants, Rockaway

Township Town Council and Township Engineer; Dorsey & Bell,

John Dorsey and Joseph Bell; and Rockaway Valley Regional

Sewerage Authority and its Executive Director, with no costs; and

it is further

ORDERED, that the Amended Complaint be and the

same is hereby dismissed without prejudice, as to defendant,

United States Environmental Protection Agency and Regional

Administrator of Region II; and it is further

ORDERED, that plaintiffs motion for partial summary

judgment be and the same is hereby denied; and it is further

ORDERED, that counsel for defendants, Rockaway

Township Town Council and Township Engineer, shall serve a

copy of this Order upon plaintiff pro se and all counsel appearing

within 10 days of it having been entered.

“s/WILLIAM H. WALLS, U.S.D.J.”

EXH. - J Mar. 27, 1995 District Court Opinion

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW JERSEY

Civil No. 94-0338(WHW)

TRANSCRIPT OF PROCEEDINGS - March 27. 1995

FERNANDES, Plaintiff,

-VS-

ROCKAWAY TOWNSHIP, ET AL, Defendants.

BEFORE:

THE HONORABLE WILLIAM H. WALLS.

UNITED STATES DISTRICT JUDGE

APPEARANCES:

NELSON FERNANDEZ, PRO SE.

BOYAR, HIGGINS & SUOZZO, P.A.

BY: JAMES J. HIGGINS, ESQ.,

-and-

MC MANIMON & SCOTLAND, ESQS.,

BY: JOSEPH J. MARAZITI, JR., ESQ..

-and-

DOUGLAS R. CABANA, ESQ.,

Attorneys for Defendants.

Pursuant to Section 753 Title 28 United States Code, the following

transcript is certified to be an accurate record as taken

stenographically in the above-entitled proceedings.

PHYLLIS T. LEWIS, C.S.R.

OFFICIAL COURT REPORTER - U.S. DISTRICT COURT

P.O. BOX 25588, Newark, New Jersey, 07101

(201) -645-3677

Start of Page 2

37

(March 27, 1995)

(The foregoing was not ordered at this time.)

THE COURT: In August of 1985 Rockaway

Township held a public sale of real property. That was done by

auction. Property was sold "as is." No representations of any

kind were made by the Township of Rockaway as to the

condition, area or boundaries of the property sold.

Lot 8 was one of the land parcels which was

' available for bidding by the public. A portion of that lot was

covered by the environmental sensitive fresh water wetlands.

The present plaintiff, Mr. Fernandez, won by

bidding $10,000 for Lot 8, and he had a title search done at time

of purchase and took title by deed recorded with the Morris

County Clerk.

: He later purchased Lot 9 adjacent to Lot 8, and

according to his representations, planned to divide the two lots

and build a single-family dwelling. He hoped to connect it to the

sanitary sewer line that ran adjacent to his lots. However, his

application was rejected because of a grant condition imposed by

the federal government.

In 1983 the federal government had given or gave

Rockaway Township a grant in order that the Township could

build a sanitary sewer system.

Acording to that grant agreement, lots within that

Start of Page 3 ‘

' environmental sensitive area could not be connected to federally

funded sewers. The purpose of the condition was to protect the

surrounding wetlands.

Unfortunately, plaintiff's lots are two of

approximately 140 lots in the Township which were impacted by

that grant condition.

Mr. Fernandez attempted to obtain a waiver from

that ban of the EPA, but in 1989 Rockaway Valley Regional

Sewerage Authority received a letter from the EPA's Acting

Regional Administrator denying the request.

Consequently, Mr. Fernandez sought the aid of

Federal Court, U.S. District Court for this district, and brought a

38

asin ae re canter EE eR ne ue mera ane RT aS

Stn’ aie man Tie RW Hrs Malek «tas Mors Mates

et mine Del a nla le Gis 7B:

complaint against Rockaway Township Town Council and the

Township Engineer, and that complaint or a later amended

complaint alleged ten causes of action, including alleged material

misrepresentation, violation of statute and fraudulent concealment.

That was dismissed by Judge Barry of this Court on

November 28, 1990 determining that it might be better for plaintiff

to commence his action before the State Court, which he did.

Apparently in 1991, and again in 1992, his State

Court actions were dismissed by the Superior Court of New Jersey.

Start of Page 4

He had in the amended complaint before the

State Court alleged:

(1) That the sale of property to him by Rockaway

Township was in violation of state statute 40:A 12-13.

(2) That there was a malicious policy and custom of

Rockaway Township Town Council to sell worthless lots in

violation of 42 USC section 1983.

(3) That the Township Engineer had conspired with the

Town Council in carrying out this policy with regard to the sale of

lots.

(4) That the Township Council members conspired among

themselves to effect the sale of lots which represented a malicious

abuse of governmental power.

(5) That there was, in addition, conspiracy to have the

Township conceal the EPA grant condition.

(6) That the Township arbitrarily denied requests from

owners of wetland lots to conceal the original conspiracy.

(7) That the Rockaway Township Engineer harrassed

plaintiff in violation of his constitutional rights.

(8) That such rights were infringed by the Township

Engineer, which represented discrimination upon plaintiff who was

a member of a minority.

(9) That there was fraud committed upon him and the

public when the Rockaway Township made an "as is" sale, making

it appear to conform to statutes.

Start of Page 5

39

And lastly, that the Township sale of the lots contrary to the

statute represents a taking and implied promise to pay

compensation.

As I said before, this complaint was dismissed in

two parts really by two Superior Court Judges, and thereafter

exercising the right of automatic appeal to the Appellate Division.

Again, Mr. Fernandez lost. The Appellate Division asserting in

dismissing the matter, "We see no basis for breach of contract

: claims advanced by plaintiff to the extent he relies upon tort

claims because of the personal injury aspect of the federal claims.’

He was barred by the statute of limitations, and also, that the

claims pursuant to 42 USC section 1983 were barred by the New

Jersey's two-year statute of limitations.

Thereupon, Mr. Fernandez sought relief from the

New Jersey Supreme Court, which denied certification in March

of 1993. He petitioned tie Court for reconsideration which again

was denied in May in 1993.

Thereafter he sought writ of certiorari from our

United States Supreme Court, which was denied in October of

1993.

I think I fairly represented the procedural history,

and now he commences this present action before this Court,

having done so in January of last year, January 24, 1994.

Start of Page 6

As I said originally to him, I repeat to all parties,

with regard to the claims brought against Rockaway Township,

the Town Council and Township Engineer, all of those, in my

: opinion, have been the subject of res judicata. His claims against

Rockaway Township, the Town Council and the Township

Engineer have been adequately and fully, in my opinion,

presented and tested before trial judges and through the process of

appellate review.

' These matters, as I said, were denied. The merits

of them were found to be wanting by two Superior Court judges

and later by the Appellate Division, which action was reviewed by

our highest tribunal. Because these claims have already been

adjudicated, they are therefore barred. All of the elements of res

judicta are satisfied, and his claims against these parties are

dismissed.

40

i atid Dated eae

Plaiatiff's claims brought against defendants

Dorsey & Bell Law Office, John Dorsey and Joseph Bell, are

dismissed by the doctrine of collateral estoppel. The thrust of that

type of determination is that identical issues have been decided on

prior adjudication. There has been a final judgment on the merits

The party against whom the bar has been asserted

either was a party or in privity with a party of the former

adjudication, and the party against whom the bar is associated had

a full and fair opportunity to litigate the

Start of Page 7

issues in question.

Defendants John Dorsey and Joseph Bell of the

Dorsey & Bell law firm represented Rockaway Township in the first

action. Plaintiff alleged in discovery, that said defendants were

aware of the Rockaway Township's policy to sell wetland lots.

Furthermore, plaintiff contends defendant Joseph

Bell admitted alleged concealment before the Superior Court. The

issue of whether Rockaway Township concealed the grant petition

has already been adjudicated.

The claim asserting knowledge of Rockaway

Township's concealment made against the attorneys in the law

office must per force fail if a court already determined that

Rockaway Township did not conceal the grant condition, or that

the burden of proof with regard to this assertion has not been met.

Therefore, taese matters having already been

adjudicated adversely against him, they have to be dismissed, as |

do now dismiss them, against the individual attorneys.

Now, Mr. Fernandez comes with an attack upon

the actions of the EPA and Regional Administrator. Basically

he seeks $20 million against the EPA aud the Regional

Administrator. I will be very succinct about it. The

Government only permits itself to be sued under sovereign

Start of Page 8

immunity, and here there has been no waiver of sovereign

immunity. Therefore, any seeking of $20 million must be

dismissed because such claims are barred by the doctrine of

sovereign immunity. The United States is immune from suit

except if it consents to be sued.

4]

In relation to his claim against the Regional

Administrator of Region II, he does not name a particular person.

No individual is on notice of a lawsuit against him personally, and

no one is aware of an obligation to defend. Should we treat this

then as an official capacity claim, official capacity suits are

pleaded as actions against the entity because the entity is the real

party in interest. Under those circumstances, the plaintiff can only

recover damages from such an entity, unlike a circumstance of

where an individual has been named in the complaint specifically.

Here the plaintiff does not even name an

individual. It appears that he is simply using this in an attempt to

recover more money from the Government.

However, as I said before, the Government only

can consent to be sued, and in this capacity claim for better status,

we note that the Government has not waived immunity.

Plaintiff arguzs that immunity is waived under the

Federal Tort Claims Act 28 USC sections 1346(b), 2671-2680.

However, he has not complied with the Federal Tort Claims

administrative claim requirement which is a jurisdictional

Start of Page 9

prerequisite to maintaining a suit. See Livera vs. First National

State Bank of New Jersey, 879 F.2d 1186, 1194, a Third Circuit

decision in 1989, which has been reviewed by our own United

States Supreme Court in denying cert, 493 U.S. 937.

Mr. Fernandez also argues that immunity is waived

under the National Environmental Protection Act, but again, the

government must waive sovereign immunity, particularly where

he seeks damages because of a violation of that act does not give

rise to monetary damages. Fund for Animals, Inc. vs. Espy, 814

F. Supp. 142, 151, a 1993 case from the District of Columbia

teaches us so.

Plaintiff brings claims under 42 USC 1981,

1982, 1983 and 2000(d), claiming immunity having been

waived under the Federal Tort Claims Act, but as | noted, he

has not complied with the jurisdictional prerequisite.

Additionally, plaintiff says that he wants $20

million in damages, and he makes a takings claim. Under the

42

Tucker Act, soverign immunity is waived and recovery on a

takings claim is permissible in Federal District Court if the

recovery is limited to $10,000. Otherwise, he must seek the

forum of the United States Court of Federal Claims. However.

again, there has been no waiver of immunity.

With regard lastly to his challenge to the EPA grant

condition, that is subject to a six-year statute of

Start of Page 10

limitations found in 28 USC section 2401(a). That cause of

action consists of the plaintiff's rights claimed and the

defendant's infringement of that right. The grant of that right

accrued when the condition became final, when it was

accepted in February of 1984. The statute of limitations began

to run then. Plaintiff's complaint was filed on January 27,

1994. His challenge is barred by the statute of limitations and

is dismissed.

Plaintiff's claims against the EPA and the Regional

Administrator are dismissed so, too, against Rockaway Valley

Sewerage Authority, because there is no evidence that would

independently link RVRSA, which is Rockaway Valley Regional

Sewerage Authority to any claimed acts.

Any claimed acts against that authority are

dependent upon any cognizable acts that plaintiff could make

against other defendants, which unfortunately he failed to do. For

those reasons, the matters are dismissed.

(The matter was concluded.)

43

EXH.— K Amended Complaint

Nelson A. Fernandes, Pro Se

9FoxRun

Denville, N.J. 07834

UNITED STATES DISTRICT COURT

DISTRICT OF NEW JERSEY

Civil Action No: 96-5791 (WHW)

CIVIL ACTION

AMENDED COMPLAINT

Nelson Fernandes,

Plainflff,

-VS-

EPA , Administrator of the EPA,

Regional Administrator for Region II,

Commissioner of NJDEP,

Rockaway Township Town Council,

Attorney General,

Defendants.

i i i i a a a

—

PARTIES

Plaintiff: Nelson Fernandes, 9 Fox Run, Denville, N.J.

07834, (201) 627-2138 (Pro-Se)

Defendants: Administrator of EPA, 401 M.St. S.W..,

Washington, D.C. 20460,

Reg. Admin. for Region II, Rm. 937A, 26 Federal

Plaza, IY. Y., N.Y. 10278, Commissioner of

N.J.D.E.P., CN402, Trenton, N.J. 08625-0029,

Rockaway Township Town Council, 65 Mt. Hope

Rd., Rockaway 07866-1698.

Attorney General, USD of Justice, 950

Pennsylvania NW, Wash., DC 20530

44

JURISDICTION

Federal Tort Claims Act, 28 U.S.C. §§ 1346(a) (b); 2671-2680

(1988) ("FTCA").

42 U.S.C.§ 1983 42 U.S.C.§ 1985(3) 33 U.S.C.§ 1251 et eq.

28 U.S.C. § 1331 28 U.S.C. § 1332 28 U.S.C. § 1366

28 U.S.C. § 1343 42 U.S.C. § 2000d et seq.

5 U.S.C. §701 et seq.

28 U.S.C. § 2201 28 U.S.C. § 1361 28 U.S.C. §1651

Pendent jurisdiction of pendent state claims that arise out of the

same nucleus of operative facts. United Mine Workers V. Gibbs,

383 U.S. 715 (1966).

PLAINTIFF DEMANDS A JURY TRIAL

Each fact or allegation is to be considered a pertinent part of

any other claim if needed to complete that claim, so that claim is

not considered defective by its absence.

Rockaway Township will be referred to as “Rockaway”, the

Rockaway Valley Regional Sewer Authority will be referred to as

“RVRSA”, the Environmental Protection Agency will be referred

to as "EPA", the N.J. Department of Environmental Protection will

be referred to as "NJDEP", the Clean Water Act will be referred to

as "CWA".

PERTINENT FACTS AND STANDING.

1. Rockaway Township knew its ordinance denying sewer

service was illegal. So it fraudulently concealed the fact that it

relied on its ordinance. Rather than disclose this fact, it sold land

affected by said ordinance to plaintiff. The township then approved

plaintiffs subdivision although it could not be connected to the

sewer, nor be granted a permit to build a septic system. After the

subdivision was approved, the township denied plaintiff building

permits by making it appear that said grant condition occurred after

the subdivision was approved.

2. Plaintiff was denied the right to build as the result of said

grant condition. However, the only authority that existed to deny

connection was the town's ordinance that was concealed to make it

45

appear that Rockaway was acting in support of federal authority.

After being denied the right to build, plaintiff followed the

procedures provided by Rockaway to obtain a grant waiver.

3. On October 21, 1988 the NJDEP, Division of Coastal

Resources exempted plaintiffs property from having to obtain a

freshwater wetlands permit.

4. On April 1, 1989, plaintiff received a letter from the

NJDEP, Division of Water Resources stating that it was

reconfirming its recommendation to deny plaintiffs waiver,

_ although plaintiff never received the original recommendation to

deny his waiver.

5. On May 5, 1989, plaintiff received a copy of EPA's

official denial of his grant waiver that relied on NJDEP's

recommendation,

6. Plaintiff met with the EPA and NJDEP on May 30, 1989.

During that meeting, Mr. Llewellyn, EPA's attorney, admitted

plaintiff could fill his lots based on an ACOE permit, thus

destroying the wetlands on his lot, but refused to allow plaintiff to

connect to the sewer. There was no mention of nonpoint source

mnoff.

STANDING

7. Plaintiff was provided sewer ~connection slips by

Rockaway's Engineering Dept. to show that connection points

were provided to service his lots.

8. Plaintiff paid a sewer assessment in detrimental

reliance of these slips, thus entitling him to sewer service, that

was later denied by Rockaway Township, RVRSA, NJDEP,

and EPA.

9. Plaintiff had the lots subdivided in detrimental reliance

of the sewer connection slips and the assessment that he paid.

10. Rockaway Township, RVRSA, NJDEP, and EPA dealt

with plaintiff as a person entitled to sewer service, but denied the

right by the grant condition. Processing plaintiffs grant waiver

appeal until denied on May 5, 1989, represents an affirmative act

amounting to a waiver of their right to challenge plaintiffs right to

enforce a Title VI regulation, or challenge the validity of the

regulation they rely on.

11. Plaintiff is a third party bencficiary to Grant No.

C340389-04.

46

ae

PAGE 1

12. Plaintiff is entitled to service since 40 CFR Ch. I,

Subpart. F, §30.600 (E) requires: These authorities prohibit you

from excluding any person from paflicipating in, denying them the

benefits of. . . any program or activity involving federal financial

assistance.

13. Plaintiff filed a notice of intent to sue in accordance

with the citizen's suit provision of the Clean Water Act, which

provides a waiver of EPA's sovereign immunity.

CLAIM ONE - EPA's, Mr. Hargrove, proposed a Denial of Due

Process & Equal Treatment.

1. Robert Hargrove, as a soils conservationist, wrote a memo on

4/23/79 on "Limited access interceptor sewers as they_relate to the

construction grant program in New Jersey" (Exh. A).

2. His memo went beyond the concept in the article that it

was based on, by recommending a grant condition to limit sewer

hook-ups that is part of Grant No. C340389-04.

3. He reviewed cases related to sewer service but never

considered the Title VI regulation or other federal court rulings

that bar the grant condition that he recommended.

4. His "EPA Authority Section" contained no statutory,

regulatory, or judicial authority to support EPA using a grant

condition, nor did it present the federal law that prohibits its use.

5. Mr. Hargrove knew N.J. septic regulations would not

allow permits for septic systems on lots within 100' of a sewer

line (Exh. A, p.2). Hence, the grant condition caused plaintiff a

denial of state rights and a due process violation, since no

procedure is adequate to protect his right.

6. Mr. Hargrove's failure to address a large body of federal

law that would be violated, shows he recklessly disregarded

plaintiffs rights.

7. Regional Administrator abdicated his duty by failing to

have the Attorney General determine if Mr. Hargrove's concept

complied with federal and state law, thus failing to perform the

nendiscretionary duty of complying with enabling authorities.

8. Plaintiff asks the court to review the allegations in this

claim.

47

CLAIM TWO - Mr. Sullivan Instituted a Policy to Deny Due

Process and Equal Treatment.

1. Mr. Sullivan, Chief of EIS Preparation Branch, wrote a

policy memo dated 5/25/79 on the subject of "Grant and Permit

Conditions to Restrict Sewer Hookups in Environmentally Critical

Areas" (Exh. B). His memo required the initial use of the grant

condition to deny sewer hookups in grants to be provided to Cape

May, New Jersey and two others areas, which precede the grant

provided to the RVRSA that affects plaintiff.

2. Mr. Sullivan relied on Mr. Hargrove's memo although on

its face it results in a denial of due process and equal treatment

(Exh. A, p. 2).

3. Mr. Sullivan also relied on regulation 35.925-8(b) that

appears in Attachment | to his memo as the authority for

imposing grant conditions (Exh. B, p.6).

4. This regulation exceeds EPA's statutory authority by

disregarding federal law that prevents conditions relating to

plaintiffs rights, unless there is explicit statutory authority.

5. Mr. Sullivan also relied on regulation 35.925-13(e) as

providing authority to impose a grant condition to restrict sewer

hook-ups (Exh. B, p.7). This regulation exceeds EPA's statutory

authority, thus denying due process and equal treatment, when

that condition was used. ig

6. Plaintiff asks the court to declare whether the preceding

regulations fail to stay within the authority of the enabling statute.

PAGE 2

7. Mr. Sullivan knew these regulations were inadequate

by recognizing conditions of this type were only accepted when

instituted by the state (Exh. B, p. 2). However, no such law

existed in New Jersey.

8. Mr. Sullivan then instituted a scheme to deny due

process in his memo, under "Strategy and Timetable" (Exh.B,

p.5) "6. Negotiate with State to require them to amend its

review procedure to reject grant applications and deny sewer

extension permits.

9. EPA had NJDEP deny waiver requests, so EPA could

deny plaintiffs waiver on the grounds that it was supporting state

action, in order to fraudulently conceal their own violations.

48

10. This conspiracy represents an affirmative act amounting

to a waiver of EPA's and NJDEP's right to rely on statute of

limitations or other defense that would bar judicial review.

11. Mr. Sullivan's policy constitutes a "conscious and

express" abdication of EPA's enforcement duties under the

Clean Water Act (CWA).

12. EPA failed to perform a nondiscretionary duty by

creating a wetland lots classification in a grant condition instead of

the manner provided by 33 U.S.C. § 1316.

13. EPA failed to perform a nondiscretionary duty by

invading this state's independence when it negotiated a denial of

due process with NJDEP, to affect its quasi judicial proceedings.

14. On July 11, 1980, Eckardt C. Beck, Assistant

Administrator for Water and Waste Management, wrote a memo

approving the use of Mr. Sullivan and Mr. Hargrove's concept,

making this an official EPA discriminatory policy (Exh. C).

15. Endorsizg a policy that negotiates a denial of due process

and equal treatment with a state agency is a failure to perform the

nondiscretionary duty of constitutional conduct.

16. The EPA proceeded with it plan to cause plaintiff

intentional infliction of emotional distress as the means that would

prevent him from challenging their action.

17. Plaintiff prays the court review the above and declare the

rights of the parties on each of the above issues.

CLAIM THREE - EPA and NJDEP's Conspiracy.

1. The underpinnings of this conspiracy are contained in

Mr. Sullivan's 5/25/79 memo (Exh. B, p. 5) "6. Negotiate with

State to require them to amend its review procedure to reject

grant applications and deny sewer extension permits.

2. Presenting this memo in the earlier case represents the

first disclosure of this ongoing concealment of EPA's conspiracy

with the NJDEP.

3. Mr. Sullivan's policy led EPA to "consciously and

expressly" abdicate its enforcement duties under the Clean Water

Act (CWA) by conspiring with the NJDEP to have them review

and recommend denial of plaintiffs grant waiver appeal in

violation of due process. This conspiracy was done in violation of

42 U.S.C. 1983 and 1985.

4. The EPA failed to perform a nondiscretionary duty by

49

involving the NJDEP in the grant waiver review process.

5. The EPA directed the RVRSA to submit grant waiver

appeals to the NJDEP.

6. NJDEP, Division of Water Resources recommendation to

deny plaintiffs grant waiver amounted to an affirmative act

waiving its right to claim the protection of the statute of

limitations and any other affirmative defense that would bar a

judicial review.

PAGE 3

7. NJDEP, Division of Water Resources acted in

furtherance of this conspiracy by reviewing Title VI grant

waiver appeals, doing a field study, preparing its report, and

by recommending the EPA deny plaintiffs appeal as Mr.

Sullivan had planned (Exh. E).

8. The review done by the Division of Water Resources,

Municipal Waste Water Assistance Element was done at the

direction of the Commissioner, making him a party to for this

ongoing conspiracy.

9. Plaintiff seeks a declaratory judgment as to the rights of

the NJDEP, EPA and plaintiff, or in the alternative, to compel the

EPA and NJDEP perform its statutory duties. Plaintiff seeks

damages for EPA and NJDEP's invidious discrimination that has

damaged plaintiff.

10. NJDEP's ongoing participation in this conspiracy

abrogates its Eleventh Amendment Immunity in accordance

with 42 U.S.C. § 2000d-7(b), for NJDEP's denial of equal

treatment by recommending a denial of plaintiffs grant waiver

to further the conspiracy.

11. This statute abrogates immunity for violations after

October 21, 1986.

12. Plaintiffs complaint against all the defendants is timely

by virtue of the doctrines of waiver, estoppel, fraudulent

concealment and the continuing violation theory.

13. EPA denied plaintiffs grant waiver in support of

NJDEP's recommendation in furtherance of ifs conspiracy to

make it appear that it was acting in support of state action, which

amounts to a fraudulent concealment and denial of equal

protection that resulted from their joint effort (Exh. F).

50

14. 33 U.S.C. §§§ 1316,1317, & 1319 do not provide the

EPA with authority to deny sewer service via a grant condition or

to make the NJDEP a party to such a denial.

15. This conspiracy was designed to mask the existence of

a cause of action by creating a facade of joint federal and state

action, requiring both the EPA and NJDEP be parties in this

lawsuit in order to show that each lacks the requisite authority

and to prove the recommendation of the NJDEP, taken with

EPA denial of a grant waiver represents the conspiratorial act.

16. Plaintiff asks the court to declare whether EPA and

NJDEP conspired to deny his rights.

CLAIM FOUR - NJDEP's Violation of 42 U.S.C. 1983.

1. NJDEP, Division of Coastal Resources granted

plaintiff a freshwater wetlands exemption on 10/21/88 (Exh.D).

This exemption ended NJDEP's state authority to act further.

2. EPA conspired with NJDEP, Division of Water

Resources to have them recommend denying plaintiff sewer

service under the color of state law, in order to deny plaintiffs

property right to a Title VI benefit, and to deny him equal

treatment, thus violating 42 U.S.C. 1983.

3. NJDEP discriminated against plaintiff by recommending a

denial of sewer service in furtherance of its conspiracy with the

EPA, so EPA could deny the waiver in reliance of their act.

4. Plaintiff asks the court to declare whether NJDEP violated

plaintiffs federal rights.

CLAIM FIVE - Equal Protection Violation.

1. Regulations 35.925-8(b) and 35.925-13(e) rely on implied

CWA authority.

2. U.S. Supreme Court held that grant conditions require

explicit statutory authority several years before the EPA imposed

its grant condition of the RVRSA.

3. The EPA used it rightful authority to impose grant

conditions to make the United States liable for an act that was

carried out in the name of the government, and has injured people

who

PAGE 4

5]

were intended beneficiaries of a federal program, so that the

government must stand behind the injury done to those who were

supposed to benefit, not be injured.

4. The EPA failed to perform its duty by attaching their

grant condition to the grant provided to the RVRSA.

5. EPA failed to perform its duty in accordance with its

authority, which has resulted in a denial of both; due process

and equal protection by instituting regulations that exceed the

' explicit authority of the Clean Water Act, and constitutional

limitations.

6. Plaintiff asks the court to declare whether EPA violated

equal protection.

CLAIM SIX - Third Circuit and Supreme Court Limited EPA's

Use of Grant Conditions.

1, EPA's Cape May grant condition led to a Third Circuit

case, which EPA actively participated in. That case held that EPA

exceeded CWA authority, and was exercising authority over

people who are not directly subject to EPA authority.

2. That holding acts as a conclusive bar to EPA's imposing it

grant condition in any grant in the Third Circuit. The decision of

which predates EPA's grant condition on the RVRSA.

3. The Regional Administrator's grant condition imposed

on the RVRSA on 2/9/84, represents a failure to perform the

nondiscretionary duty created by the Third Circuit holding.

4. EPA's grant condition caused RVRSA members to pass

ordinances in support of a contract condition that fails to provide

explicit statutory authority and also violates the law of this

Circuit.

5. EPA was fully aware of these holdings, so its imposition

of the same condition on the RVRSA amounted to an intentional

constitutional discrimination aimed at causing plaintiff damage

and intense emotional distress.

6. Plaintiff asks the court for a declaratory judgment on this

claim.

CLAIM SEVEN - The EPA Grant Condition Violates an EPA

Regulation and Title VI.

1. EPA failed to perform the nondiscretionary duty in 40

CFR Ch. I, Sub. F, §30.600 (E), by requiring the RVRSA violate

52

this regulation by complying with its grant condition, after it

imposed a cuty to not violate the regulation.

2. Publishing this regulation in the annual release of the

federal register up to 1995, shows this was the prevailing

regulation that should have governed EPA's conduct.

3. EPA's "failure to comply with regulations is a fatal flaw

to administrative action"

4. Plaintiff as a third party beneficiary seeks to enforce this

regulation. Plaintiff also seeks compensatory damages for EPA's

intentional discrimination and intentional emotional distress.

5. The violation of this regulation represents a violation of

the principles in Title VI upon which this regulation and plaintiffs

alternative right to enforce this regulation are based.

6. The foregoing regulation provides a constitutionally

protected property interest that EPA's grant condition denies, thus

representing a denial of equal protection.

7. 1f plaintiff is foreclosed from enforcing this regulation

then the procedural safeguards to protect his interest are

insufficient to protect it, thus resulting in a due process violation.

8. Plaintiff asks the Court to declare plaintiffs rights on this

Claim.

PAGE 5

CLAIM EIGHT - Administrator / Regional Administrator Failed

to Comply with the CWA.

—_—

|. EPA's violation of a U.S. Supreme Court ruling that bars

using a grant condition without explicit statutory authority renders

the condition "void ab initio." Hence, EPA is subject to a damages

remedy, including extraordinary damages. Those violations are

recapped, as follows:

(a) Taking private property without paying compensation

contrary to Court of Claims holding, although EPA's conduct

forecloses compensation for a taking.

(b) 40 CFR 35.925-13(e) denies intended beneficiaries due

Process and equal treatment in violation of the V and XIV

Amendments.

(c) Regional Administrator failure to verify that Mr.

Hargrove's memo was within the limits of CWA authority.

(d) 40 CFR 35.925-8(b) and 35.925-13(e) exceeds the

statuory authority in 33 U.S.C. § 1319.

(e) The EPA exceeded Title VI authority by involving the

NJDEP in the review of plaintiffs grant waiver appeal.

(f) Classification "wetland lots" without legal authority.

(g) The Administrator ratified an equal treatment and due

process violation.

(h) That violation of equal protection represents a waiver

of EPA's sovereign immunity.

(i) Imposing the grant condition without explicit statutory

authority.

(j) EPA's conspiracy with the NJDEP.

(k) Violating the holdings of Cape May Greene.

(1) Violating 40 CFR Ch. I, Subpart F, §30.600 (E.

2. Not withstanding the foregoing reasons, EPA also failed

to perform the nondiscretionary duty in § § § 1316, 1317 and 1319

which requires identification, regulation and enforcement, not a

denial of a federal benefit that fails to comply with these statutes,

while it violated a regulation.

3.The grant waiver process denies plaintiff due process

since its procedural safeguards are insufficient to protect plaintiffs

third party right to connect to the sewer. The grant waiver process

subjects plaintiff to EPA's discretion as affected by its conspiracy,

instead of the explicit statutory requirements in §§§ 1316,1317

and 1319.

4.EPA's grant condition evinces a belief by the

Administrator tuat wetland lots are introducing pollutants into

publicly owned treatment works, since EPA's authority to deny

the effluent standard is limited to that reason. Hence, EPA

Regional Administrator failed to perform his nondiscretionary

duty in accordance with § § 1316 and 1317, which calls for the

identification of "new sources’ that will be subject to regulatory

guidelines and enforcement. Instead, he imposed a grant condition

that circumvents the nondiscretionary enforcement duties in §

1319.

5.Or, the Administrator believes that wetland lots increases

"nonpoint source" runoff pollution. Hence, denying connection to

the sewer, prevents construction in order to prevent the runoff,

which fails to perform the duty in 33 U.S.C. § 1316 that allows

classification and subsequent regulation and enforcement in

accordance with sections 1317 and 1319.

54

6. EP 4 believes that preventing connection to the sewer

prevents runoff pollution by preventing development of vacant

wetland lots. This theory fails to address the runoff from existing

homes built on wetland lots that are allowed to connect to the

sewer. Hence, the grant condition bears no relation to the

objective sought by treating members of the same class

differently, amounting to a denial of equal treatment.

= PAGE 6

7. EPA's failure to require home owners on wetland lots to

obtain a permit for the runoff that EPA considers damaging to the

waters of the United Stated represents a waiver of its right to

argue that said runoff is damaging to said waters. EPA's failure to

exercise its authority against these owners further proves the

denial of sewer service to vacant wetland lot owners was aimed at

taking private property under the guise of regulation.

8. 33 U.S.C. § 1365(a)(2) provides a waiver of immunity

to file an action against the Administrator and Regional

Administrator where there is alleged a failure to perform any act

or duty under this chapter which is not discretionary.

9. 33 U.S.C. § 1365(b) on notice, provides that an action

can begin with notification in the case of an action under this

section respecting a violation of sections 1316 and 1317(a) of this

title. Plaintiff moved in accordance with this «OVision.

Furthermore, notice was given in the manner prescribed by

regulation.

10. 33 U.S.C. § 1365(e) also provides a waiver of immunity

without the need for notice when an action is brought under

another statute. Plaintiff having brought this action under 42

U.S.C. § 2000d et seq., as well.

11. Plaintiff also requests the review contemplated by

citizen suit provision, APA, and the review contemplated by Title

VI, and any other applicable statute.

12. The Court must enforce the effluent standard applicable

to residential lot owners since to distinguish between owners of

vacant wetland lots versus developed wetland lots represents an

arbitrary discrimination that amounts to a constitutional denial of

equal treatment, and a deliberate denial of a federal benefit.

55

13. The statute of limitations is not a bar to this action,

since the EPA has waived its right to rely on the statute of

limitations, not withstanding the doctrines of estoppel,

equitable tolling, fraudulent concealment and continuing

violation also apply to all the defendants.

i4. Plaintiff seeks damages as provided by 33 U.S.C. §

1365(a(2) in the phrase “amount in controversy," and in

accordance with Title VI for plaintiffs compensatory damages, the

intentional discrimination, and plaintiffs emotional distress, as

provided by 33 U.S.C. § 1365(e).

CLAIM _NINE - Rockaway Township's Ordinance 54-IOOL

Denied a Federal Benefit.

1. Rockaway Township is a member of the RVRSA.

2. Rockaway agreed to comply with 40 CFR Ch. I, Subpart

F, §30.600 (E, as a member of the RVRSA, in order to get the

federal grant.

3. EPA's grant condition is a contract condition since it fails to

present explicit federal statutory authority that Rockaway could

act upon.

4. Rockaway pasved ordinance §54-IOOL in support of the

grant condition, which constitutes local action, since no federal

authority was provided to support Rockaway's actions.

5. Rockaway's passage of ordinance §54-IOOL to deny

wetland lot owners the right to connect to the sewer in support of

EPA's grant condition represents a failure to perform the duty

called for by 40 CFR Ch. I, Subpart F, §30.600 (E.

6. Rockaway Township violated a federal regulation that

preempts its ordinance, thus proving Rockaway violated federal

' law.

7. By violating the regulation and Title VI,

Rockaway Township violates NJSA 40A:48-2, thus exceeding the

authority in an enabling statute, which renders its ordinance "void

ab initio".

PAGE 7

8. Passing an ordinance that denied plaintiff the right to

connect to the sewer represents a breach of both; the duty

created by regulation, and the duty to protect the public.

9. Passing an ordinance that continues to affect plaintiffs

56

)

class to this date in violation of an enabling statute, Title V1

regulation, and their duty, represents a continuing violation.

10. Rockaway's intentional discrimination of a policy

Congress considers vital, amounts to a waiver of its affirmative

defenses in accordance with federal law.

11. Rockaway's passage of this ordinance represents a

violation of 42 U.S.C. 1983 since the town denied plaintiff equal

treatment and property rights protected by the Constitution.

12. Plaintiff makes Rockaway Township a party in order to

have this court declare the rights of the parties with respect to the

ordinance passed in support of a contract condition that fails to

provide explicit federal authority.

13. Rockaway Township knew this ordinance violated the

law, so it took extraordinary steps to conceal that its actions were

in support of local law.

CLAIM TEN - Rockaway Township Illegally Charged an

Assessment.

1. Rockaway provided plaintiff with sewer connection slips

to lead plaintiff to believe that he could connect to the sewer while

concealing the ordinance that would prevent connection.

2. Rockaway sold plaintiff a lot it knew was affected by that

ordinance.

3. Rockaway charged plaintiff an assessment though his lots

did not appear in the ordinances applicable to the area where they

are located.

4. State law provides for a refund of assessments when the

benefit for which they were paid was not provided.

5. Rockaway's planning board approved plaintiffs minor

subdivision to fraudulently conceal its illegal ordinance and

assessment.

6. State regulations preclude septic system within 100’ feet

of a sewer line. The regulation and grant condition prevents

development.

7. Upon plaintiffs application for building permits,

Rockaway made it appear that the grant condition was recently

imposed in order to conceal that said denial was based on

ordinance.

8. Rockaway's acts in furtherance of the grant condition and

it nonexistent assessment represent affirmative acts amounting to a

57

a waiver of its right to claim the protection of the statute of

limitations, res judicata, and claim preclusion in accordance with

federal law.

9. Plaintiffs N.J. freshwater wetlands exemption and Army

Corp of Engineer's fill permit have long expired, thus preventing

plaintiff from developing.

10. Plaintiff is entitled to damages for being denied the right

to build at that time.

11. Plaintiff asks the court to declare plaintiffs rights on

these issues

CLAIM ELEVEN - The Attorney General failed to perform their

duty.

1. The Attorney General of these United States failed to

perform his or her duty in accordance with E.O. 12250 by not

recognizing that Regulations 40 CFR 35.925-8(b) and 35.925-

13(e) are inadequate since they exceed EPA's statutory authority,

in whole or in part. The failure of which creates an implied

authority that does not exist.

2. The Attorney General failed to catch the fact that

regulation 35.925-13(e) violates federal law, thus exceeding

EPA's statutory authority.

PAGE 8

3. Attorney General's failure, has resulted in EPA claiming

implied authority to impose its grant condition, thus making the

Attorney General partially responsible for plaintiff and his class

being denied their federal entitlement.

4. The Attorney General's sovereign immunity is waived in

33 U.S.C. § 1 365(a)(2) citizen's suit section of the CWA, since

the Attorney General's failure to review the regulations in relation

to standing federal law has contributed to EPA's violation of the

Clean Water Act.

5. The Attorney General's conduct is subject to review

under the APA since the Attorney General failure to perform her

duty, has contributed to EPA's violation of law.

6. Plaintiff asks the Court to review this claim in

accordance with the APA.

58

CLAIM TWELVE - Intentional Emotional Distress.

1. EPA, NJDEP and Rockaway has caused plaintiff severe

intentional emotional distress by acting in violation of federal law

in support of a grant condition that has denied plaintiff equal

protection of the law, in order to prevent him from developing his

lots.

2. Their deliberate violation amounts to an affirmative act

that waives their right to affirmative defenses to prevent a judicial

review.

3. Rockaway has contributed to plaintiffs severe emotional

distress by passing a local ordinance to deny plaintiff a federal

benefit contrary to a regulation that it was obligated to follow. This

deliberate violation is outrageous since it constitutes a denial of

equal protection. It requires plaintiff to bring an action against the

EPA, NJDEP and Rockaway, in order to show that neither EPA or

NJDEP has authority that Rockaway can rely on to jusflty its

conduct.

4. EPA created a procedure for grant waivers that included

Rockaway, RVRSA, NJDEP and finally the EPA. This procedure

is illegal since EPA was violating federal law to impose its grant

condition in the first place. This procedure was intended to cause

intense emotional distress in each applicant for a waiver, as

supported by the fact that the EPA negotiated denials of these

waivers with the NJDEP. Therefore, this procedure was designed

to deny the very waiver for which the procedure was created,

proving deliberate intentional emotional distress.

5. The deliberate denial of due process evinced by EPA's

conspiracy with NJDEP proves the procedure to vindicate

plaintiffs rights was inadequate, to protect plaintiff from this

conspiracy, thus denying plaintiff due process. This conspiracy

being extreme and outrageous.

6. EPA's conspiracy continues to this date, proving plaintiff

continues to be denied the right to connect, even if he were to file

another waiver. Plaintiff class being denied all profitable use of

their property while this conspiracy continues.

7. The conduct of EPA, NJDEP and Rockaway is of such a

deliberate nature that plaintiff has suffered intense emotional

distress in the form of anger, rage, frustration, severe headaches,

and other symptoms that include, but is not limited to fear for his

life for bringing this action, which has only added to plaintiffs

59

emotional distress.

8. Since EPA's conduct is outlined in a memo that was not

available to plaintiff or his class, constitutes a fraudulent

concealment of a due process and equa! protection. This

conspiracy tolls the statute of limitations. EPA and NJDEP's

conduct on this point is so outrageous that it amounts to an

affirmative waiver of every conceivable affirmative defense that

could be raised to block a judicial review of this conduct.

PAGE 9

DEMANDS

DEMAND ONE

Plaintiff asks the Court to review the foregoing claims in

accordance with the statutes on declaratory judgment, APA

review, the review contemplated by 42 U.S.C. 2000d et seq., and

whatever review is called for by the citizens suit section of the

Clean Water Act, as well as any other relief that is within the

court's power to grant, beside the zelief requested in the following

demands.

Any alternative request for relief that the court is not able to

grant that must be stricken should only affect the offensive relief

without its affecting the relief remaining in that demand.

Each portion of a demand is severable from the rest, so if

any is deemed offensive, then the offensive portion can be freely

stricken by the Court, while the remaining portion survives.

DEMAND TWO

Plaintiff asks the court to exercise its powers of mandamus

within the limits of its discretion as it applies to any violation.

Plaintiff asks the court to exercise its powers of mandamus

within the limits of its discretion as it applies to the relief

requested.

DEMAND THREE

Plaintiff asks the court to declare the rights of the parties

60

with respect to Rockaway Township's ordinance § 54-1 OOL, since

that ordinance represents local action that denies a federal benefit

in violation of a federal regulation that preempts the ordinance.

Plaintiff also seeks a declaration of his rights with respect to

the pendent claim of Rockaway charging an assessment for a lot

that does not appear in the assessment ordinance, and his right to

recover the assessment paid.

Plaintiff further asks the court to declare whether plaintiff is

entitled to prejudgment interest on the assessment paid, since the

assessment was part of a fraudulent concealment that would make

it appear as though plaintiff would be able to connect, in order to

have the statute of limitations run out.

DEMAND FOUR

Plaintiff prays the jury grant him an award of one million

dollars or whatever amount the jury deems appropriate for

Rockaway Township's intentional infliction of severe emotional

distress caused by Rockaway’s intentional denial of a federal right,

its breach of duty to the public, its violation of 42 U.S.C. 1983 and

2000d et seq., and for deliberately concealing material facts from

plaintiff over a prolonged period of time to run the statute of

limitations.

PAGE 10

DEMAND FIVE

Plaintiff prays the Court declare or render its findings with

respect to EPA, NJDEP, Rockaway Township, and Attorney

General failed to perform their duty, breach their duty, otherwise

violate federal law, and the Constitution as it applies to each

allegation, claim, and issue.

DEMAND SIX

Plaintiff prays the jury award him compensatory damages

from either the EPA, Rockaway, or NJDEP, individually or

61

collectively in accordance with the respective percentage of

culpability.

Plaintiff prays for the loss of profit from the sale of two

houses that would have taken place in 1986, in the amount of Two

Hundred and Sixty Thousand Dollars ($ 260,000.), plus the

recovery of out of pocket costs of approximately forty five

thousand dollars ($ 45,000). The percentage of liability to be

determined by the jury, or court, if this is not a proper jury issue.

Plaintiff prays the jury award him prejudgment interest at

the prevailing rate that is paid in this state or by the federal

government, for each of the intervening years that plaintiff has

been denied the use of the profit and his costs. This award to be

paid by the parties in accordance with the disposition of liability

in the preceding paragraphs.

DEMAND SEVEN

Plaintiff prays the jury award him compensatory damages

for severe intense emotional distress in an amount the jury deems

appropriate. The jury being asked to fix the percentage of liability

for the EPA and NJDEP. If the jury is not entitled to set the

percentage of liability, then plaintiff asks the court to set it.

DEMAND EIGHT

Since plaintiff is not entitled to bring a class action suit,

plaintiff prays for extraordinary damages in the amount of twenty

five million $25,000,000. dollars or whatever amount a jury

deems appropriate. These moneys are to be put into an interest

bearing trust fund that will be used to compensate individual lot

owners for damages beyond the compensation for a taking as it

applies to a grant condition that prevents sewer connection in any

grant provided by the EPA. Compensation; for intense emotional

distress will be limited to $ 5,000. and compensatory damages

will also be limited to $5,000. as well. Every claim will be

supported by a court order that reviewed the damages before the

foregoing claims are paid. Plaintiff or the executor of his estate

wil! review and approve each claim before it is paid. A reviewing

fee of six percent will to be paid from the trust fund for that

review.

Each owner seeking damages for EPA's taking is to be

62

advised of this trust and its terms in order that they may take full

advantage of it. The fund will terminate ten year after it is begun

with the remaining funds to revert to plaintiff or his estate.

PAGE 11

If this action is successful, it may foreclose the use of these

waivers in future actions, thus denying other injured parties the

opportunity to recover damages beyond that of a taking. Therefore,

plaintiff asks for this award to heal his injury, and by realizing

others affected by this condition need recognition of their injury in

order to heal.

DEMAND NINE

Plaintiff asks the Court to allow him to further amend his

complaint, after he retains an attorney, based on the outcome of the

motions that will result from this complaint. If plaintiff is able to

prove a prima facie case, then attorneys may be willing to handle

this matter on a contingent fee arrangement. Since plaintiff cannot

afford the estimated fees for dealing with this case, he is forced to

handle the matter pro se.

DEMAND TEN

Plaintiff asks the jury for an award of punitive damages

against the EPA, NJDEP, and Rockaway, either individually or

collectively, in any amount it deems appropriate for defendant's

intentional violations. If percentage of culpability is needed, then

plaintiff asks the jury or the court to determine the percentage of

culpability

DEMAND ELEVEN

Plaintiff prays the court award him legal fees for the attorney

that will be used to deal with this matter after plaintiff makes a

prima facie showing that he has been denied due process, equal

treatment and for defendants violation of 42 USC 1983 and 2000d

et seq. Plaintiffs request for attorney's fees is further supported by

42 USC 1988.

63

February 27, 1997

Nelson A. Fernandes

EXHIBIT A TO COMPLAINT

U.S.E.P.A.

DATE: APR 23, 1979

SUBJECT: Limited access interceptor sewers as they relate

to the Construction Grant Program in New Jersey

FROM: Robert W. Hargrove, Soil Conservationist

NJ/PR Section, 2-WA-EI

TO: Daniel Sullivan, Chief

EIS Preparation Branch

THRU: Stephen Y. Arella, P.E., Chief

NJ/PR Section, 2-WA-EI

Limiting access to intercepting sewers is a complicated issue

because of the broad latitude for varying legal Interpretations. If

suitable controls could be implemented, it could be of great help to

prevent Induced growth in environmentally sensitive areas.

This paper will deal with an overview of the situation. Court cases

and New Jersey's State regulations and statutes will be explored.

EPA options as they pertain to this subject will be explained.

These options will be further illustrated by case studies In several

EPA regions.

Sewage Disposal as a Public Service

The question of whether or not sewage disposal is a public service

is an importent consideration in determining the legality of limiting

access. One important aspect is the source of funds. If, as in the

past, the funds arise from local taxes, it is likely to be considered a

public utility and limiting access would be difficult. However,

since passage of the Clean Water Act, most of the design and

construction of wastewater treatment facilities are financed by

Federal grants. The remainder comes from state grants and bond

issues which are recovered through user charges. Theoretically,

facilities built using such financial backing could limit sewer hook-

ups.

The issue of sewage disposal as a public service was also

65

addressed in the courts. In Cloyes vs. Delaware Township it was

noted "Sewage disposal is not one of the public services anciently

furnished by local governments, nor Is it uniformly so furnished

today." This was further substantiated in Pleasure Bay Apartments

vs. City of Long Branch, "Neither statutory nor case law impose;

a mandatory duty on a municipality to furnish municipal service

for disposal of garbage or other wastes:" These cases deal

primarily with a municipality not being required to provide such

service if none was provided in the first place.

New Jersey State Law

New Jersey's Sewerage Authority law enables counties or

municipalities, either alone or in combinations, to establish a

sewerage authority. Sewerage authorities are empowered to

construct, operate and maintain facilities to collect, treat and

dispose of sewage. The law specifies that these authorities have

the power, "to enter into any and all contract, execute any and all

instruments, and do and perform any and all acts or things

necessary, convenient or desirable for the purpose of the sewerage

authority or to carry out any power expressly given in this act."

The question of allowing hook-ups rests with both the authority

and the municipalities. The authority is free to reasonably fix the

terms and conditions oft service. The key word in this statement

seems to be reasonably. A case from Arizona is a good example of

this. In Travaini vs. Maricopa County the county concluded that

the county "having installed and maintained a sewer line past the

property in question, the city is thereafter required to allow any

abutting property owner to use said sewer subject only to

reasonable limitations." The "reasonable limitations" in this case

being the capacity of the line.

The Arizona case deals with a collection system in a populated

area, not an interceptor away from the population, and quite

possibly in a sensitive environmental area.

It should be noted that in the case of Southern-Burlington County

NAACP vs. Township of Mt. Laurel the courts have concluded

that limited access interceptors can not be used as a means of

exclusionary zoning.

i=w Jersey law states that sewerage authorities can be formed.

xe only stipulztion concerning hook-ups is the abatement of

pollutioi and related health hazards. Another consideration

stemming from EPA's cost effectiveness guidelines is that hook-

ups may be necessary for a system to be economically feasible.

State law does give to the authority the ability to enter into

contracts. These contracts are primarily with municipalities for

sewage collection and disposal. It seems to imply that they can also

enter into contracts with EPA through grant agreements. These

contracts stand on the same footing as contracts between natural

persons or municipalities.

New Jersey Septic System Regulations

The Septic System Regulations of New Jersey also affect the

issue. The state will not authorize the building of a septic

system on a property If a sewer line is within 100 feet of it.

With the exception of the general guidelines for sewer hook-

ups, the sewerage authority determines sewer use.

EPA Authority

Protection of environmentally sensitive. areas is mandated by

Federal policy. Certain actions can be taken to promote this policy

with respect to the Construction Grants Program. The first and

easiest mechanism is. to limit the capacity of the system to exlude

development in environmentally sensitive areas. This is an attempt

to limit the number of hook-ups to the system to areas where

growth will not impact critical areas.

There will be some small projects that can not be limited with

. fespect to carrying capacity because of minimum Sizing of unit

processes for treatment. Projects such as these might require grant

conditions. The conditions will have to be met in order to insure

receipt of a. 201 grant.

The subject of grant conditions was addressed in PRM 75-26

which dealt with mitigating secondary impacts in the Construction

Grants Process. The Regional Administrator can withhold of Step

and 3 grants until effects, or agrees to conditions in the grant

document requiring actions to minimize the effects.

Some actions to mitigate these secondary effects include, but are

not limited to: phasing and orderly extension of sewer service,

project changes improved land use planning, and sewer use

restrictions. It goes on to say that conditions on a grant must be

reasonable and the applicant must demonstrate "good faith" and be

moving toward mitigative action before the grant is awarded.

67

Actions that can be taken if the applicant refuses to abide by the

grant agreement are: withhold payments, refuse to process

subsequent grant applications from the municipality, refuse to

approve grants for future phases of the projects, enter an

injunction against the grant recipient, suspend project work or

terminate the grant and recover unexpended EPA funds.

The new regulations (9/27/78) on Municipal Wastewater

Treatment Works also contain provisions for conditions on grants.

Section 35.935-16 on page 44073 states that "the Regional

Administrator shall not pay more than 80% of the Federal-share of

any Step 3 project unless he has approved the grantee’s sewer use

ordinance." This means 15% or more of the total project costs

could be held if this is condition wasn't met. However, since this

process now entails just a review of the ordinance for compliance

with the regulation this may be of minimal value to us at this time.

Case Study Evaluation

Case studies from EPA regions show the various techniques that

a can be used to mitigate adverse impacts in the Construction

Grants Program.

In 1975 a project from Region I on Block Island, Rhode Island

could have encroached on environmentally sensitive areas. That

region first scaled down the project. Then a grant condition was

imposed to accept no new hook-ups from wetlands in accordance

with the State law.

That same Year a project from Region III in Falling Creek, VA

which involved the eutrophication of reservoirs and induced

secondary effects on Swift Creek Reservoir. Plant size was

reduced and the Step II grant was conditioned on the development

of a Swift Creek Watershed Management Plan.

In 1975 a Region VIII project in Renner, SD was leading to new

development on a floodplain. A grant condition, based on the

county floodplain ordinance, that said no new hook-ups from the

100 year floodplain. The Region also recommended that capacity

be limited to existing population plus a moderate increase.

In 1974 a Region IX project in Fairfield, CA included pressure to

increase industrial and low density residential land on or near

Suisun Marsh and pressure to develope agricultural land with

.. Yacts on air quality and wildlife. The Step 3 grant was

conditioned to not provide service to new development

68

immediately adjacent to the marsh based on pending State

protection legislation..

In 1976 a Region X project in North Fremont, SD was leading to

pressures to increase development in environmentally sensitive

areas. These areas included fishing and wildlife management areas.

The project was altered to have four small sub area facili.'es

instead of one large Regional plant with long interceptors. The

Step 2 and 3 grants were conditional on County compliance with

State law requiring development of growth controls and a

comprehensive land use plan.

Summary

Case studies show that EPA can and does use grant conditions and

project changes to limit development due to funded projects. It

should be said that if it is possible to base the grant condition on a

state or local law then do it. This will take a lot of heat for such an

action away from falling directly on EPA. Those laws could

include floodplain ordinances (Block Is., RI) or complying with

State requirements for land controls (North Fremont,’ SD). Such

conditions could be based on Federal law but this tends to foster

the public opinion that the Federal government is just trying to

control 'local zoning. State or local laws that apply to such

situations should be added ix to direct the public rage away from

EPA, when possible.

Limited access interceptors is a question that has never formally

been answered in the courts. to do so might require upwards of 3-4

years to make it through all appeals. The ‘question is not entirely

addressed in New Jersey State law either. The policy of protecting

sensitive environmental areas can be fostered by changing the plan

or imposing grant conditions. EPA has done this in the past and an

analysis t-f these cases show how such problems can be handled in

the future.

Recommended Regional Policy Options

1) Grant Conditions with 3rd party enforcement after grant

expiration.

2) 208 plan inclusion of model local sewer use ordinance and

adoption by local municipalities.

3) Approval of Sewer Use Ordinances by EPA.

4) Constraining service. agreements between MUA's and member

municipalities.

69

EXHIBIT B TO COMPLAINT

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

DATE MAY 251979

SUBJECT Grant and Permit Conditions to Restrict Sewer

Hookups in Environmentally Critical Areas

FROM _ Daniel Sullivan, Chief

EIS Preparation Branch

TO Conrad Simon, Director

Water Division

Scope of the Problem

EPA's funding of wastewater treatment works through the

Construction Grants Program has been criticized for not

adequately discouraging growth in environmentally sensitive

lands (i.e. floodplains, wetlands, and significant wildlife habitats).

In the past, the Agency's policy has been to eliminate any capacity

in proposed systems that would serve these sensitive lands.

However, in several cases this mitigating measure has proven to

be inadequate to curb unsound growth.

Issue

Should EPA-Region ii begin to affix special conditions to Step 2

and 3 construction grants, 208 areawide plans, and 402 permits to

prohibit development in environmentally critical areas?

Salient Factors

The September 27, 1978 Construction Grants Program Rules and

Regulations specifically encourages the use of grant conditions

restricting sewer hookups to protect environmentally sensitive

land from new development. However, because some of the legal

complexities associated with such grant conditions, Region II has

70

never exercised this control. We now have several Ideal examples

where such conditions are both appropriate and easily justified.

Unfortunately, merely limiting the size of wastewater treatment

facilities does not adequately protect sensitive areas. An excellent

example of how a reduction in facilities capacity has a very limited

influence on where housing and sewer hookups can occur Is the

proposed Cape May Region project. The EPA had reduced the

size of the proposed facilities to specifically exclude wetlands,

flood hazard areas, and significant wildlife habitat areas from

development. Yet, an application for a 250 unit residential

development (in the flood hazard area - see attached Map 1) is

currently before the New Jersey Department of Environmental

Protection. Discussions with DEP personnel reveal that the

developer intends to rely on the proposed regional- sewer system

to satisfy the wastewater treatment need of the proposed housing

project.

a

Major Actors

1. USEPA-Region II (RA, WDD, RC)

2. U.S. Fish and Wildlife Service

3. New Jersey Department of Environmental Protection

4. _ Loc-al Municipalities

5. 208 Agencies

6. Natural Resources Defense Council

7. American Littoral Society

8. Na;tional Wildlife Federation

Political Considerations

Grant conditions of this type have been used in other regions but

have relied heavily upon State Law for their enforcement (see

Attachment |).New Jersey State Law does not adequately protect

environmentally sensitive areas primarily because federal

regulations encompass more types of sensitive areas. However,

there are strong statements in the New Jersey Water Pollution

Control Act (NJWPCA) Reguiations which mandate conformance

71

of future 201 grants with applicable 201, 208 and 303 plans.

EPA has a clear mandate in law, regulation, executive orders and

EPA Policy (see Attachment 2) to protect the following critical

areas:

|. Significant Habitats of Wildlife, including Rare and

Endangered Species Habitats - Endangered Species

Act and Fish and Wildlife Coordination Act

2. Floodplains - Executive Order 11988

3. | Wetlands - Executive Order 11990

We also have some rather strict policies on protection of prime

agricultural lands (EPA Policy Statement - September 26, 1978)

and less strict policies on other sensitive areas, such as steep slope

areas and unique vegetational communities.

There- are a number of Influential national interest groups that

have been actively prodding EPA to apply such conditions.

Among these are:

1. Natural -Resources Defense Council

2. American Littoral Society

3. National Wildlife Federation

In addition, the U.S. Fish and Wildlife Service has also expressed

their opinion that grant conditions of this type should be used to

protect the unique ecological nature of the Cape May Region.

: a 3

Background

EPA-Region II has been reticent in applying such conditions in

| the past for several reasons. Most New Jersey facility planning

grants are given to Municipal Utility Auth. (MUAs) established

| through State Law. Some questions have been raised as to whether

|

or not an MUA can accept * condition which affects land use

controls and, If they can, whether the condition is enforceable

' against its member municipalities The NJSA 40:14A-23 (see

72

FN

Attachment 3) appears to permit the MUA to accept such

conditions. Another frequent objection to the use of the grant

conditions has been that the duration of the enforcement of a grant

condition expires at the end of the grant period. However, since

many of our grants are phased, the applicability may well be

extended for considerably longer period than the Initial grant.

Admittedly, limiting access to interceptors or collection Systems

via grant conditions themselves will not guarantee better iand use

planning. However, it is an essential element of a multi-proaged

approach to resolving this problem.

The NPDES Proposed Revision of Existing Regulation published

in the August 21, 1978 Federal Register requires discharge permits

to be consistent with the reflective of the Clean Water Act and any

appropriate Federal Executive Orders. It also states that permits

should include more stringent requirements where necessary to

insure consistency with areawide waste treatment management

(208) plans (AW'TMP). Many existing permits are expiring in the

near future and, prior to reissuance, considerable effort is

anticipated to assure consistency with both 201 facilities plans and

208-funded AWTMP’s

Recommendations

Based on the May 24 briefing on the Cape May regional project,

the following represents my understanding of the direction set by

Eckardt C. Beck. The activities proposed can and should be

initiated concurrently and are not necessarily contingent upon the

success of the other parts for their effectiveness.

First, where the review of 201 facility plans (including EASs)

identifies environmentally sensitive areas requiring protection,

grant conditions should be affixed specifically constraining sewer

hookups. We anticipate that detailed maps of the facility planning

area will be used to identify sensitive areas and existing discharges

(I.e. homes and subdivisions) There are two New Jersey 201s In-

house that are excellent examples of the need for such conditions:

Jakes's Branch Interceptor and Stafford Township Collection

System.

we

73

The proposed Cape May Region Wastewater Treatment Facilities

Plan requires a slightly different approach. A negative declaration

was issued on January 25, 1979. The use of a special conditlon

restricting sewer hookups represents a substantial change from the

statements made in the negative declaration. Once the facility plan is

revised to show which specific lots will Le served by the proposed

facility, we will issue an addendum to the negative declaration

specifically detailing our intent to use grant conditions. The

addendum will allow far a 30 calendar day comment period.

Second, the 208-funded areawide waste treatment management

plans (AWTMP) for these areas should be required to reflect the

need to protect these sensitive areas. In order to accomplish this

in the Cape May Region, the 208 agency should adopt the revised

201- plan as part of the AWTMP. No Step 3 grant will be awarded

to the CMCMUA until this portion of the AWTMP is approved by

EPA. We intend to send a letter to the Cape May 208 agency

informing them of this requirement.

Third, the Permits Branch, In coordination with Regional Council,

should develop permit conditions to reflect sewer hookup

restriction which are detailed in the special grant condition for the

Step 2 201 grants. Permits 8ranch should also develop a strategy

for indentifying future permit violations, e.g., if a

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Petition for Writ of Certiorari — Fernandes v. Environmental Protection Agency · 525 U.S. 869 | Frix