Lighthouse Resources, Inc. v. Inslee

After the developer of a proposed coal export terminal in Washington filed for bankruptcy and rejected its rights to the development site, the Ninth Circuit Court of Appeals dismissed the developer’s appeal of a district court decision in the developer’s lawsuit asserting that Washington officials’ actions denying a Section 401 water quality certification and a sublease of aquatic lands were preempted by federal law and in violation of the dormant Commerce Clause. The district court dismissed the preemption claims and abstained from considering the dormant Commerce Clause claims. In their motion to dismiss the appeal, the Washington officials and environmental groups that intervened on their behalf argued that the developer’s bankruptcy made the case moot.