Gordon-Darby Holdings, Inc. v. NH Department of Safety, Commissioner

In June 2025, New Hampshire enacted a law abolishing the State’s vehicle inspection and maintenance (I/M) program, and the State subsequently took steps to wind down the program effective January 31, 2026. A few days before the effective date, a federal district court in New Hampshire issued a preliminary injunction enjoining State officials from ceasing implementation or enforcement of the program. On April 30, the First Circuit Court of Appeals stayed the preliminary injunction. The First Circuit found that the officials were likely to succeed on the merits of their arguments that the plaintiff—the sole vendor contracted to administer I/M services—failed to meet its burden of alleging that the officials were “in violation of” an emission standard or limitation under the Clean Air Act’s citizen suit provision. The First Circuit was persuaded by the officials’ arguments that the Clean Air Act regulations that they allegedly violated were not emission standards or limitations that could provide the basis for a citizen suit and that termination of the I/M services contract with the plaintiff did not violate Clean Air Act regulations or the state implementation plan. The First Circuit further found that that the officials made a “strong showing” that the district court “likely erred in concluding that [the plaintiff] adequately alleged a violation based on conduct that was, at the time of the complaint, wholly prospective.” In addition, the First Circuit found that the officials demonstrated irreparable harm from being forced to continue a repealed program and that the equities favored the officials, given their likelihood of success on the merits, the demonstrated irreparable harm, and the First Circuit’s conclusion that the only harm the plaintiff faced was a lost opportunity to bid on a new contract.

Filing Year For Action

After the First Circuit granted a stay of the district court's preliminary injunction, the plaintiff voluntarily dismissed its lawsuit, stating that the First Circuit’s procedural concerns could now be “easily remedied” because it was “now undisputed that New Hampshire is currently in violation of an emission standard or limitation under the Clean Air Act due to its failure to implement and enforce its vehicle inspection and maintenance (‘I/M’) program as contained in its federally enforceable state implementation plan.” The plaintiff said it planned to serve notice on State officials of its intent to commence a new action.