The Ninth Circuit Court of Appeals has reinstated the State of Washington's lawsuit against Crown Resources Corporation and its parent company, Kinross Gold USA, Inc. This decision, filed on September 28, 2026, reverses a lower court's dismissal of Washington's claims under the Clean Water Act. The ruling is significant as it allows the state to pursue its case regarding alleged violations of water quality standards at the Buckhorn Mountain Mine.
The case, officially titled State of Washington v. Crown Resources Corporation, arose from two citizen suits filed in 2020. One suit was brought by the Okanogan Highlands Alliance (OHA), an environmental organization, while the other was initiated by the State of Washington itself. Both suits alleged that Crown Resources had violated the terms of its National Pollutant Discharge Elimination System (NPDES) permit, which regulates the discharge of pollutants into U.S. waters.
The dispute escalated when OHA and Washington sought to consolidate their cases, which the district court approved. However, after mediation efforts failed, OHA entered into a settlement agreement with Crown without informing Washington. This agreement led to a consent decree that the district court approved, which Crown argued precluded Washington's claims. The district court sided with Crown, stating that Washington's claims were barred by the earlier settlement.
In its recent ruling, the Ninth Circuit disagreed with the lower court's interpretation. The panel of judges, including Circuit Judges M. Margaret McKeown, William A. Fletcher, and Lucy H. Koh, found that Washington was not a party to the consent decree and did not share a legal relationship with OHA that would justify claim preclusion. Judge William A. Fletcher wrote, "Because Washington was not in privity with OHA, the elements of claim preclusion are not satisfied, and Washington’s suit is therefore not barred."
The ruling emphasized that the Clean Water Act allows any citizen to file a lawsuit to enforce water quality standards. The court noted that Washington's interests in pursuing its claims were not aligned with those of OHA, as the state sought additional remedies that were not covered in the consent decree between OHA and Crown. This included the potential for further penalties and remedial actions that Washington deemed necessary to address the alleged violations at the mine.
The Ninth Circuit's decision has important implications for environmental enforcement in the region. By allowing Washington's lawsuit to proceed, the court reinforces the ability of states to independently pursue legal action against companies they believe are violating environmental laws. This ruling could encourage other states to take similar actions in the future, especially when local environmental groups negotiate settlements that may not fully address the state's interests.
Moreover, the court's opinion clarifies the boundaries of claim preclusion, particularly in cases involving multiple plaintiffs with different interests. The ruling indicates that a consent decree between a private organization and a defendant does not automatically bar a state’s claims, especially when the state has not been involved in the negotiations or settlement process.
Looking ahead, Washington now has the opportunity to continue its lawsuit against Crown Resources, potentially leading to further legal battles over water quality standards and environmental protections in the state. The case has been remanded to the lower court for further proceedings, meaning that Washington can present its claims and seek the relief it deems necessary to protect the environment.
While the Ninth Circuit's ruling is a victory for Washington, it remains to be seen how the case will unfold in the lower court. The decision can potentially be appealed, but details on any related cases or future actions by Crown Resources are not yet available. As the legal landscape evolves, the outcome of this case may set important precedents for environmental law and state authority in enforcing water quality standards.