Daimler Challenge to EPA Diesel Certificates Is Tossed

A challenge by four truckmakers including Daimler AG (DAI) to an Environmental Protection Agency rule allowing Navistar International Corp. (NAV) to continue producing engines that didn’t comply with pollution standards by paying a fine was thrown out by an appeals court

A new EPA rule eliminated the objectionable mechanism, making the lawsuit moot, the U.S. Court of Appeals in Washington ruled. The new EPA rule is the subject of a separate suit by Daimler and its co-plaintiffs Detroit Diesel Corp., Mack Trucks Inc. and Volvo AB. (VOLVB)

While acknowledging that Navistar, based in Lisle, Illinois, no longer has EPA-issued certificates of conformity that let it produce noncompliant engines, the other truckmakers asked the court to declare the waivers invalid to bolster their case that they suffered economic harm. The court declined.

“The prospect of such relief in an EPA enforcement action or citizen suit by Daimler is unduly speculative,” Circuit Judge Karen LeCraft Henderson wrote for a three-judge panel.

The case is Daimler Trucks North America LLC v. U.S. Environmental Protection Agency, 12-1179, U.S. Court of Appeals, District of Columbia (Washington)>

To contact the reporter on this story: Andrew Zajac in federal court in Washington at azajac@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

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