Kleissler v. United States Forest Service , 157 F.3d 964 ( 1998 )


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  •                                                                                                                            Opinions of the United
    1998 Decisions                                                                                                             States Court of Appeals
    for the Third Circuit
    9-30-1998
    Kleissler v. US Forest Ser
    Precedential or Non-Precedential:
    Docket 98-3137
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    Recommended Citation
    "Kleissler v. US Forest Ser" (1998). 1998 Decisions. Paper 237.
    http://digitalcommons.law.villanova.edu/thirdcircuit_1998/237
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    Filed September 30, 1998
    UNITED STATES COURT OF APPEALS
    FOR THE THIRD CIRCUIT
    No. 98-3137
    JAMES KLEISSLER; SUSAN CURRY; ARTHUR CLARK;
    RODGER CLARKE; ELOISE GLENN; MICHAEL KAIZAR;
    HEARTWOOD, INC.,
    v.
    UNITED STATES FOREST SERVICE; MICHAEL P.
    DOMBECK, Chief Forester for the Eastern Region, United
    States Forest Service; ROBERT T. JACOBS, Forester for
    the Eastern Region - United States Forest Service; JOHN
    PALMER, Forest Supervisor for the Allegheny National
    Forest - United States Forest Service;
    v.
    RIDGWAY AREA SCHOOL DISTRICT; BRADFORD AREA
    SCHOOL DISTRICT; KANE AREA SCHOOL DISTRICT;
    JOHNSONBURG AREA SCHOOL DISTRICT; SMETHPORT
    AREA SCHOOL DISTRICT; CHERRY GROVE TOWNSHIP;
    HAMILTON TOWNSHIP; HAMLIN TOWNSHIP; HIGHLAND
    TOWNSHIP; WETMORE TOWNSHIP; TOWNSHIP OF
    JONES; BROOKVILLE WOOD PRODUCTS, INC.;
    NORTHEAST HARDWOODS; RIDGWAY LUMBER
    COMPANY; ALLEGHENY HARDWOOD UTILIZATION
    GROUP, INC.,
    Appellants
    PAYNE FOREST PRODUCTS, INC.; SPILKA WOOD
    PRODUCTS COMPANY,
    Intervenor-Defendants
    APPEAL FROM THE UNITED STATES DISTRICT COURT
    FOR THE WESTERN DISTRICT OF PENNSYLVANIA
    (D.C. Civ. No. 97-cv-02187)
    Argued: June 10, 1998
    Before: BECKER, Chief Judge, ALDISERT and WEIS,
    Circuit Judges.
    Filed: September 30, 1998
    James E. Scheuermann, Esquire
    (ARGUED)
    David L. McClenahan, Esquire
    William J. Labovitz, Esquire
    Daniel P. Trocchio, Esquire
    KIRKPATRICK & LOCKHART
    1500 Oliver Building
    Pittsburgh, PA 15222-2312
    Attorneys for Appellants
    William V. Luneburg, Esquire
    (ARGUED)
    3900 Forbes Avenue
    Pittsburgh, PA 15260
    Attorney for Appellees James
    Kleissler; Susan Curry; Arthur Clark;
    Rodger Clarke; Eloise Glenn; Michael
    Kaizar; Heartwood, Inc.
    Amy R. Hay, Esquire
    Bonnie R. Schlueter, Esquire
    Office of the United States Attorney
    633 U.S. Post Office & Courthouse
    Pittsburgh, PA 15219
    Attorneys for Appellees United States
    Forest Service; Michael P. Dombeck;
    Robert T. Jacobs; John Palmer
    2
    OPINION OF THE COURT
    WEIS, Circuit Judge,
    The district court denied a request for intervention by
    local governmental bodies and business concerns in
    litigation brought by environmentalists to restrict logging
    activities in a National Forest. We conclude that the
    proposed intervenors established a threat to their interests
    from the suit and a reasonable doubt whether the
    government agency would adequately represent those
    concerns. Accordingly, we reverse the district court's order
    and remand for further proceedings.
    Plaintiffs are six Pennsylvania and Ohio residents and an
    Indiana organization committed to environmental
    preservation. They filed suit against the United States
    Forest Service ("Service") asserting that the agency had
    violated statutory requirements in approving two projects
    that permitted substantial tree cutting in the Allegheny
    National Forest. Plaintiffs requested an injunction barring
    implementation of the proposed measures, halting all
    logging activity, and suspending or canceling contracts for
    logging in the forest. In addition, plaintiffs sought a
    declaration that approval of the projects was arbitrary,
    capricious, and not in conformity with the law.
    Through the National Forest Management Act of 1976,
    Congress authorized the Secretary of Agriculture to develop
    land and resource plans that are used as a guide to all
    resource activities in a national forest, including timber
    harvesting. See 16 U.S.C. S 1604. The process is described
    in some depth in Ohio Forestry Association v. Sierra Club,
    
    118 S. Ct. 1665
    (1998) and need not be detailed here. The
    statute also imposes procedural obligations on the
    Secretary to ensure that environmental interests will be
    considered in the plan.
    In 1997, the Service, as the Secretary's designee,
    approved the Minister Watershed Project and the South
    Branch Willow Creek Project, both covering areas within
    the Allegheny National Forest in Northwestern
    3
    Pennsylvania. The projects called for substantial tree
    harvesting through "even-aged management." This process,
    in general terms, contemplates clearing designated areas of
    all trees, rather than focusing on individual trees within the
    given tract, the latter being far more costly and time-
    consuming for timber companies. See 36 C.F.R. S 219.3;
    see also Sierra Club v. Espy, 
    38 F.3d 792
    , 795, 798-800
    (5th Cir. 1994) (discussing the technique and Congressional
    approval at some length). In launching the projects, the
    Service concluded that they were consistent with the
    resource plan and would not create a significant
    environmental impact within the forest.
    The plaintiffs' complaint alleges that the projects violate
    the National Environmental Policy Act (NEPA), 42 U.S.C.
    S 4332, because of the lack of an environmental impact
    statement and, among other things, the failure to consider
    more environmentally-protective alternatives. The complaint
    also alleges several violations of the National Forest
    Management Act, including an objection to even-aged
    management and the "landscape corridor approach," which
    endorses the even-aged timber-cutting philosophy.
    A motion for leave to intervene was filed by a number of
    area school districts located near the Allegheny National
    Forest, including Ridgway, Bradford, Kane, Johnsonburg,
    and Smethport. In addition, six townships--Cherry Grove,
    Hamilton, Hamlin, Highland, Wetmore, and Jones--sought
    intervention.
    The school districts and municipalities asserted an
    interest in the suit because they receive funds from receipts
    of logging operations in the forest. By statute, the federal
    government disburses twenty-five percent of the gross
    amounts received from the forest to the Commonwealth of
    Pennsylvania at the end of each fiscal year. 16 U.S.C.
    S 500. In turn, the Commonwealth forwards these sums to
    counties where the forest is situated, which then pass the
    money on to local municipalities and school districts for the
    benefit of public schools and roads. 72 Pa.C.S.A.
    SS 3541-3543. During the ten years preceding the filing of
    this suit, the federal government disbursed, on average, in
    excess of $4 million per year to the Commonwealth.
    4
    Elimination of logging contracts would deprive the localities
    of this resource.
    Joining the motion for leave to intervene were Brookville
    Wood Products, Inc., Northeast Hardwoods, Ridgway
    Lumber Co., Payne Forest Products, Inc., Spilka Wood
    Products Co., and Allegheny Hardwood Utilization Group,
    Inc. Payne and Spilka have existing contracts to cut timber
    as part of the Minister Watershed Project. Ridgway was the
    successful bidder on a contract under the South Branch
    Willow Creek Project, but the Service has withheld
    awarding the contract pending the outcome of this
    litigation. Brookville Wood Products and Northeast
    Hardwoods are also lumber companies that generate most
    of their income from contracts with the Service. Allegheny
    Hardwood is a nonprofit corporation whose members hold
    existing sales contracts with the Service and expect to bid
    on future timber sales contracts that would be affected by
    this litigation.
    The district court reviewed the prerequisites for
    intervention as set out in Federal Rule of Civil Procedure
    24(a)(2) and denied the motion as to all applicants except
    Payne and Spilka. In those two instances, the court
    determined that intervention was justified because existing
    contract rights would be threatened if plaintiffs prevailed.
    The court observed that the other applicants had
    interests of "an economic nature based on expectation."
    Although those "interests are very important, the court is
    compelled to conclude based on the case law that they are
    not the type of protectable interests that justify intervention
    as of right under Rule 24(a)(2)." The court also denied
    permissive intervention under Rule 24(b)(2). All of the
    unsuccessful applicants have appealed.
    I.
    During the pendency of this appeal, the district court
    entered summary judgment for defendants on most claims
    asserted by plaintiffs with respect to the two projects
    because of the failure to exhaust administrative remedies.
    The district court is presently considering whether claims
    5
    challenging the landscape corridor approach as a
    management philosophy should suffer a similar fate.
    Plaintiffs have secured a certification under Federal Rule
    of Civil Procedure 54(b) and are appealing the adverse
    district court ruling. Because that order and any future
    adverse action on the remaining claim might be reversed by
    this Court or the Supreme Court, the applicants' ability to
    participate remains a viable issue. This appeal
    consequently is not moot. Mausolf v. Babbitt, 
    85 F.3d 1295
    ,
    1297 (8th Cir. 1996); United States Postal Serv. v. Brennan,
    
    579 F.2d 188
    , 190 n.1 (2d Cir. 1978).
    II.
    Federal Rule of Civil Procedure 24 provides in pertinent
    part:
    "(a) Intervention of Right. Upon timely application
    anyone shall be permitted to intervene in an action . . .
    (2) when the applicant claims an interest relating to
    the property or transaction which is the subject of the
    action and the applicant is so situated that the
    disposition of the action may as a practical matter
    impair or impede the applicant's ability to protect that
    interest, unless the applicant's interest is adequately
    represented by existing parties."
    We have interpreted Rule 24(a)(2) to require proof of four
    elements from the applicant seeking intervention as of
    right: first, a timely application for leave to intervene;
    second, a sufficient interest in the litigation; third, a threat
    that the interest will be impaired or affected, as a practical
    matter, by the disposition of the action; and fourth,
    inadequate representation of the prospective intervenor's
    interest by existing parties to the litigation. Mountain Top
    Condo. Ass'n. v. Dave Stabbert Master Builder, Inc., 
    72 F.3d 361
    , 365-66 (3d Cir. 1995); Development Fin. Corp. v. Alpha
    Hous. & Health Care, Inc., 
    54 F.3d 156
    , 161-62 (3d Cir.
    1995); United States v. Alcan Alum., Inc., 
    25 F.3d 1174
    ,
    1181 (3d Cir. 1994); Brody v. Spang, 
    957 F.2d 1108
    , 1115
    (3d Cir. 1992); Harris v. Pernsley, 
    820 F.2d 592
    , 596 (3d
    Cir. 1987).
    6
    We will reverse a district court's determination on a
    motion to intervene as of right if the court has abused its
    discretion by applying an improper legal standard or
    reaching a conclusion we are confident is incorrect. 
    Harris, 820 F.2d at 597
    . The parties to this appeal do not dispute
    the timeliness of the motion for leave to intervene, so we
    move on to consider the other elements.
    To justify intervention as of right, the applicant must
    have an interest "relating to the property or transaction
    which is the subject of the action" that is "significantly
    protectable." Donaldson v. United States, 
    400 U.S. 517
    , 531
    (1971). That observation, however, has not led to a"precise
    and authoritative definition" of the interest that satisfies
    Rule 24(a)(2). Mountain Top 
    Condo., 72 F.3d at 366
    ; see
    also Conservation Law Found. v. Mosbacher, 
    966 F.2d 39
    ,
    41 (1st Cir. 1992) ("no bright line of demarcation exists").
    Some courts treat the "interest" test as a pragmatic process
    that qualifies as many concerned parties as is compatible
    with efficiency. Others reject interests that are
    "speculative." Often the determination of whether an
    interest is significantly protectable is "colored to some
    extent" by the "practical impairment" inquiry. Conservation
    Law 
    Found., 966 F.2d at 41-42
    .
    The nebulous nature of the standard is apparent from
    our precedents. Old Colony Trust Co. v. Penrose Industries
    Corp., 
    387 F.2d 939
    , 941 (3d Cir. 1968), held that in a
    declaratory judgment action over the commercial
    reasonableness of the sale price of collateral, a "would-be
    purchaser" did not have an adequate interest for
    intervention. On the other hand, in EEOC v. AT&T, 
    506 F.2d 735
    , 741-42 (3d Cir. 1974), a union was permitted to
    intervene to contest a proposed consent decree between the
    government and an employer that could have affected the
    terms of a collective bargaining agreement.
    In Harris, the court denied intervention to a district
    attorney in a suit brought to alleviate overcrowding and
    other conditions in the local penal institution. We observed
    that the district attorney did not administer the prison and
    that a consent decree placing a ceiling on the prison
    population would only tangentially affect his ability to
    
    prosecute. 820 F.2d at 599-603
    . By contrast, Alcan
    7
    Aluminum held that an adequate interest for intervention
    had been established where a right of contribution for
    expenses incurred in cleaning up a hazardous waste site
    could have been jeopardized by a proposed consent 
    decree. 25 F.3d at 1183-86
    .
    Brody involved a suit to enjoin religious speech. A group
    of students and parents sought to intervene in opposition
    to plaintiffs. We concluded that the proposed intervenors
    had no interest in litigating the merits of the school's
    policies, but to the extent a remedy fashioned in a decree
    might infringe on their First Amendment rights, the parents
    and students could be eligible for participation in the 
    suit. 957 F.2d at 1116-17
    . We also commented on "our policy
    preference which, as a matter of judicial economy, favors
    intervention over subsequent collateral attacks." 
    Id. at 1123.
    In Alpha Housing, the sole member of a nonprofit
    corporation sought to intervene to protect the continued
    viability and tax exempt status of the corporation. We
    accepted the plaintiffs' concession that these interests were
    significant enough to support 
    intervention. 54 F.3d at 162
    .
    Finally, in Mountain Top Condominium, we concluded that
    the intervenors' interest in the disposition of a specific fund
    was sufficient to justify intervention even though they could
    not challenge the merits of another party's claim to the
    
    fund. 72 F.3d at 367-68
    .
    This brief review of our jurisprudence does not yield a
    pattern that will easily support or defeat intervention in all
    circumstances. Rather, the variety of factual situations and
    their resolution demonstrate our adherence to the elasticity
    that Rule 24 contemplates when compared to the rigidity of
    earlier practice. See Cascade Natural Gas Corp. v. El Paso
    Natural Gas Co., 
    386 U.S. 129
    , 133-34 (1967).
    A leading treatise explains that pragmatism is a
    substantial factor that must be considered: "The central
    purpose of the 1966 amendment was to allow intervention
    by those who might be practically disadvantaged by the
    disposition of the action and to repudiate the view, [under
    the former rule], that intervention must be limited to those
    who would be legally bound as a matter of res judicata." 7C
    8
    Wright, Miller & Kane, Federal Practice and Procedure: Civil
    2d S 1908, at 301 (1986).
    Phraseology such as "mere economic interests," for
    example, has been used but has not proved decisive in
    practice,1 nor have concepts such as "mere expectancies" or
    "indefiniteness" been particularly helpful in identifying the
    nature of the interest required. We have more often relied
    on pragmatic considerations such as the benefits derived
    from consolidation of disputes into one proceeding. Those
    considerations, however, should not prevail if the focus of
    the litigation would be unduly dissipated or case
    management would become exceptionally complex.
    Our survey of the law in other Circuits, particularly as
    applied in environmental litigation, provides some helpful
    background. In Sierra Club v. Espy, 
    18 F.3d 1202
    (5th Cir.
    1994), the case upon which the district court principally
    relied, plaintiffs challenged certain management practices of
    the Service in Texas forests. The Court of Appeals for the
    Fifth Circuit concluded that two trade groups whose
    members included the "major purchasers and processors"
    of timber had an interest sufficient to satisfy Rule 24(a). 
    Id. at 1207.
    In that case, some member companies had
    interests in existing timber contracts. 
    Id. In Sierra
    Club v. Glickman, 
    82 F.3d 106
    (5th Cir. 1996)
    (per curiam), a trade association representing farmers
    sought intervention in a suit to cut off federal subsidies to
    those who pumped water from an aquifer. Plaintiffs
    contended that over-pumping threatened endangered
    species and public health. The court concluded that the
    suit "potentially" interfered with the intervenors' contract
    _________________________________________________________________
    1. That phrase and others like it were mentioned in Mountain Top
    
    Condominium, 72 F.3d at 366
    , and Alcan 
    Aluminum, 25 F.3d at 1185
    .
    The concept was explored in New Orleans Public Service, Inc. v. United
    Gas Pipe Line Co., 
    732 F.2d 452
    , 464-66, 470 (5th Cir. 1984) (en banc).
    The issue in NOPSI was the remoteness of the interest of the city as a
    regulatory agency in a breach of contract suit brought by a public utility
    against one of its gas suppliers. It was not the fact that the city's
    interest
    was financial in nature that disqualified it, but rather, because its
    interest was too attenuated from that of the utility. 
    Id. The city
    failed
    to
    show that it possessed any interest recognized by substantive law.
    9
    rights by disrupting their access to irrigation water. 
    Id. at 109.
    Similarly, intervention was permitted by the Court of
    Appeals for the First Circuit in Conservation Law
    Foundation, where plaintiffs and a government agency
    agreed on a consent decree that set timetables for the
    establishment of a government plan that would impair the
    business of commercial fisheries. As targets of a regulatory
    plan ultimately aimed at reducing over-fishing, the
    commercial fisheries alleged an interest that supported
    
    intervention. 966 F.2d at 43-44
    .
    Some decisions, however, adopt a more mechanical
    approach when evaluating the relevant interests. In
    Portland Audubon Society v. Hodel, 
    866 F.2d 302
    (9th Cir.
    1989), for example, the Court of Appeals for the Ninth
    Circuit held that an economic interest in protecting a
    continuous supply of timber was insufficient to warrant
    intervention in a NEPA case by a trade group and various
    timber companies. Following Wade v. Goldschmidt, 
    673 F.2d 182
    (7th Cir. 1982) (per curiam), Portland Audubon
    held that in a suit to compel an agency to follow NEPA, only
    governmental bodies may be defendants. 
    Id. at 309;
    see
    also Forest Conservation Council v. United States Forest
    Serv., 
    66 F.3d 1489
    , 1499 n.11 (9th Cir. 1995) (citing Sierra
    Club v. EPA, 
    995 F.2d 1478
    , 1485 (9th Cir. 1993)); cf. Collin
    County v. Homeowners Assoc. for Values Essential to
    Neighborhoods (HAVEN), 
    915 F.2d 167
    , 170-72 (5th Cir.
    1990) (plaintiffs lacked standing to sue for a judgment
    declaring governmental compliance with NEPA). But cf.
    Mountain States Legal Found. v. Glickman, 
    92 F.3d 1228
    ,
    1232-33, 1236 (D.C. Cir. 1996) (lumber company has
    standing to sue the Service under the National Forest
    Management Act and challenge its decision to limit timber
    harvesting).
    These cases seem to suggest that NEPA suits are sui
    generis because "only the government" can comply with
    that statute. We are reluctant to endorse a narrow
    approach that makes the onus of compliance the litmus
    test for intervention. Such a wooden standard minimizes
    the flexibility and spirit of Rule 24 as interpreted in
    Cascade Natural Gas. See 
    Espy, 18 F.3d at 1207
    10
    (permitting timber industry organization to intervene as a
    defendant in a NEPA case against the Service).
    The reality is that NEPA cases frequently pit private,
    state, and federal interests against each other. Rigid rules
    in such cases contravene a major premise of intervention--
    the protection of third parties affected by pending litigation.
    Evenhandedness is of paramount importance. See Note,
    Sierra Club v. U.S. Environmental Protection Agency:
    Intervention of Right and the Victories that Come Back to
    Haunt, 7 Tul. Envtl. L.J. 271, 283 (1993).
    The expansion of standing by statute and case law has
    enabled "private attorneys general" and "public interest"
    groups to call governmental agencies to task in litigation.
    These efforts, though often well-intentioned, sometimes
    concentrate on narrow issues that are of significant
    concern to plaintiffs but have an immediate and deleterious
    effect on other individuals and entities. Rather than barring
    access to these parties, Rule 24 allows the court to give
    them the opportunity to present their positions.
    Thus, we are reluctant to accept the holdings of the
    Court of Appeals for the Ninth Circuit in Portland Audubon
    and Sierra Club v. EPA that, in reliance on Wade, seem to
    adopt a categorical rule in NEPA cases barring private
    support for governmental agencies. Wade did not espouse
    such a rigid position. In that case, the Court denied
    intervention to various municipalities and private parties
    that would have benefitted from a highway project because
    their interests were not directly implicated by the lawsuit.
    The Court cautioned, however, that a different case would
    be presented if the suit would "directly alter contractual or
    other legally protectable rights of the proposed 
    intervenors." 673 F.2d at 186
    n.6.
    The Ninth Circuit inched away from the doctrinaire
    approach in Forest Conservation Council by allowing non-
    federal parties to intervene in a NEPA case, but limited
    their participation to the remedy 
    phase. 66 F.3d at 1499
    &
    n.11. Some of our cases, particularly Harris and Brody,
    have endorsed a bifurcated approach in some
    circumstances. We explored the viability of that form of
    relief with counsel at oral argument, but neither they nor
    11
    we have been able to arrive at a pragmatic application of
    that option here without unduly attenuating the applicants'
    interests.
    The convergence of conservation and timber interests
    that has occurred in this case confirms that the categorical
    approach can be too inflexible. Protecting timber interests
    has been an express Congressional policy since the
    establishment of the national forest system through the
    Organic Administration Act of 1897. 16 U.S.C. S 475. That
    policy was affirmed in the Multiple-Use Sustained-Yield Act
    of 1960, 16 U.S.C. SS 528-31, and reaffirmed in the
    National Forest Management Act of 1976. 16 U.S.C.S 1604.
    The National Forest Management Act also blends logging
    and environmental interests by requiring land management
    plans to be drafted "under the principles of the Multiple-
    Use Sustained-Yield Act" and "in accordance with" NEPA.
    16 U.S.C. S 1604(g)(1).
    Under these circumstances, we think that the decision of
    the Court of Appeals for the Fifth Circuit in Sierra Club v.
    Espy represents a more realistic approach in permitting
    intervention. Timber companies have direct and substantial
    interests in a lawsuit aimed at halting logging or, at a
    minimum, reducing the efficiency of their method of timber-
    cutting.
    Adequacy of interest alone, however, is not enough to
    grant intervention. Because Rule 24(a) envisions a separate
    inquiry into whether the government or other existing
    parties will adequately advocate the applicant's interest,
    courts must be careful not to blur the interest and
    representation factors together. See e.g., Solid Waste
    Agency v. United States Army Corps of Engineers, 
    101 F.3d 503
    , 508 (7th Cir. 1996) (in suit to compel issuance of a
    permit to allow establishment of a landfill, adjacent
    municipality and citizens group could intervene to defend
    the Corps' denial; "stumbling block" would be"proving
    inadequacy of representation" by the government).
    The burden of establishing inadequacy of representation
    by existing parties varies with each case. A government
    entity charged by law with representing a national policy is
    presumed adequate for the task, 
    Brody, 957 F.2d at 1123
    ,
    12
    particularly when the concerns of the proposed intervenor,
    e.g., a "public interest" group, closely parallel those of the
    public agency. In that circumstance, the "would-be
    intervenor [must make] a strong showing of inadequate
    representation." 
    Mausolf, 85 F.3d at 1303
    . But the
    presumption notwithstanding, when an agency's views are
    necessarily colored by its view of the public welfare rather
    than the more parochial views of a proposed intervenor
    whose interest is personal to it, the burden is comparatively
    light. Conservation Law 
    Found., 966 F.2d at 44
    ; accord
    
    Mausolf, 85 F.3d at 1303
    ("when the proposed intervenors'
    concern is not a matter of ``sovereign interest,' there is no
    reason to think the government will represent it"); see also
    Solid Waste 
    Agency, 101 F.3d at 508-09
    (raising concerns
    that workload of Solicitor General's Office could prevent an
    agency's appeal and thus adversely affect proposed
    intervenors).
    This overview demonstrates that Rule 24 demands
    flexibility when dealing with the myriad situations in which
    claims for intervention arise. Nonetheless, the polestar for
    evaluating a claim for intervention is always whether the
    proposed intervenor's interest is direct or remote. Due
    regard for efficient conduct of the litigation requires that
    intervenors should have an interest that is specific to them,
    is capable of definition, and will be directly affected in a
    substantially concrete fashion by the relief sought. The
    interest may not be remote or attenuated. The facts assume
    overwhelming importance in each decision.
    Counseled by these appellate opinions, we assess the
    case before us. The relief sought by plaintiffs, i.e., an
    injunction to bar logging (at least until such time as the
    NEPA process is completed) would have an immediate,
    adverse financial effect on the school districts and
    municipalities. That result is not speculative, intangible or
    unmeasurable, especially when, as other courts have
    observed, NEPA compliance actions can take years. See,
    e.g., Forest Conservation 
    Council, 66 F.3d at 1498
    .
    The school districts and municipalities have direct
    interests in this litigation because state law commands the
    Commonwealth, through its political subdivisions, to
    forward to them federal grant money generated through
    13
    timber harvesting each year, money that they will lose, at
    least temporarily and perhaps permanently, if plaintiffs are
    successful in this lawsuit. To suspend the flow of revenue
    to the school districts and municipalities for even a limited
    period of time would affect spending for essential school
    activities and public projects. We are persuaded that the
    interests jeopardized, which are protected by state law, are
    direct, substantial and of adequate public interest as to
    justify intervention. In these sparsely populated areas with
    limited tax bases, the impairment caused by curtailing
    revenue provided through logging activity would be
    significant.
    Turning to the private-party applicants, the district court
    cited Sierra Club v. Espy for the proposition that only those
    timber companies with existing contracts had an interest
    that would support intervention. From our point of view,
    Sierra Club v. Espy states a rule of inclusion for evaluating
    interests under Rule 24(a)(2), but should not be read to
    exclude similar, contract-related interests of the type
    implicated here.
    Ridgway Lumber had more than a mere expectancy of
    obtaining a contract in the future. It was already a
    successful bidder, and from all that appears in the record,
    would now be a party to a remunerative contract for logging
    but for the institution of this litigation. Realistically,
    Ridgway has as strong an economic stake in the outcome of
    this litigation as do Spilka and Payne, which were
    permitted to intervene.
    Brookville Wood Products and Northeast Hardwoods may
    not have received contracts under the projects challenged
    by plaintiffs, but the district court found that they are "very
    dependent on timber contracts with the [Service] to cut
    timber" in the Forest and "their continued existence may be
    jeopardized" if plaintiffs prevail. Dist. Ct. Op. at 5. In
    addition, like the other timber companies, they have a
    considerable stake in ensuring that the landscape corridor
    approach to forest management remains in place. Congress
    has designated our national forests for multiple uses, but it
    has also emphasized that those uses are "not in derogation
    of" timber harvesting. 16 U.S.C. S 528. This statement of
    policy, when viewed in light of the district court's finding
    14
    that a victory for plaintiffs could destroy their business,
    satisfies us that Brookville and Northeast Hardwoods have
    a substantial interest, directly related to and threatened by
    this litigation, that meets the requirements of Rule 24(a).
    Allegheny Hardwood falls within the category of those
    trade associations representing threatened businesses
    granted intervention in such cases as Sierra Club v.
    
    Glickman, 82 F.3d at 108
    , Sierra Club v. 
    Espy, 18 F.3d at 1203
    , and Conservation Law 
    Foundation, 966 F.2d at 40
    .
    We find the rulings in those cases persuasive and
    applicable to Allegheny Hardwood.
    Therefore, we conclude that the interests of the private-
    party applicants are direct, not remote. In other words, they
    have more than mere attenuated economic interests
    because, as we have outlined, their longstanding
    dependence on contractual relations with the Service is
    unique to them.
    Although plaintiffs assert that the proposed intervenors'
    interests are adequately protected by the government
    defendant, the district court found otherwise with respect
    to Payne and Spilka. The court pointed out that in a
    companion case, Curry v. United States Forest Service, 
    988 F. Supp. 541
    (W.D. Pa. 1997), the agency chose not to
    appeal an adverse ruling in connection with timber sales in
    other projects in the Allegheny National Forest.
    Consequently, that litigation gave legitimate pause to the
    lumber companies' confidence in adequate representation
    by the Service.
    In addition, the government represents numerous
    complex and conflicting interests in matters of this nature.
    The straightforward business interests asserted by
    intervenors here may become lost in the thicket of
    sometimes inconsistent governmental policies. See Sierra
    Club v. 
    Glickman, 82 F.3d at 110
    ; Forest Conservation
    
    Council, 66 F.3d at 1499
    ; Sierra Club v. 
    Espy, 18 F.3d at 1207
    -08; Conservation Law 
    Found., 966 F.2d at 44
    -45.
    Although it is unlikely that the intervenors' economic
    interest will change, it is not realistic to assume that the
    agency's programs will remain static or unaffected by
    unanticipated policy shifts.
    15
    Plaintiffs contend that whatever the doubts about the
    vigor of the government's representation, Payne and
    Spilka's interests are aligned with those of the proposed
    intervenors. We disagree. It does not strain the imagination
    to conjure up situations in which Payne and Spilka may
    face the irresistible temptation to work out settlements that
    benefit themselves and not the other, competing timber
    companies. Compromises of that nature might also harm
    the school districts and municipalities, which have interests
    inextricably intertwined with, but distinct from, those of the
    timber companies. See Lake Investors Dev. Group, Inc. v.
    Egidi Dev. Group, 
    715 F.2d 1256
    , 1261 (7th Cir. 1983).
    In Solid Waste Agency, the Court of Appeals for the
    Seventh Circuit discussed the value of a "wait and see"
    approach in which proposed intervenors would file a
    conditional application with the understanding that the
    district court would defer consideration until requested to
    do 
    so. 101 F.3d at 508-09
    . Such a procedure may work in
    some cases, but on balance, intervenors and the public
    interest in efficient handling of litigation are better served
    by prompt action on a intervention motion. See
    Conservation Law 
    Found., 966 F.2d at 44
    ("An intervenor
    need only show that representation may be inadequate, not
    that it is inadequate."). The early presence of intervenors
    may serve to prevent errors from creeping into the
    proceedings, clarify some issues, and perhaps contribute to
    an amicable settlement. Postponing intervention in the
    name of efficiency until after the original parties have
    forged an agreement or have litigated some issues may, in
    fact, encourage collateral attack and foster inefficiency. In
    other words, the game may already be lost by the time the
    intervenors get to bat in the late innings.
    III.
    We conclude that in the circumstances of this case, the
    motion for leave to intervene should have been granted.
    Each applicant has a significantly protectable interest in
    the transaction that may be jeopardized by the lawsuit.
    None of the existing parties will adequately represent their
    interests. Although there are a number of intervenors, we
    are confident that the very able district judge will effectively
    16
    handle any case-management problems that may arise.
    Accordingly, we will reverse the order denying intervention
    and remand the case to the district court for further
    proceedings consistent with this Opinion.2
    _________________________________________________________________
    2. In light of our holding that the applicants should have been granted
    leave to intervene as of right under Rule 24(a), we need not decide
    whether the district court should have granted permissive intervention
    under Rule 24(b).
    17
    BECKER, Chief Judge, Concurring.
    Although I believe the question to be close as to the
    intervention of Brookville Wood Products, Inc. and
    Northeast Hardwoods, I agree with the majority that the
    district court should have granted the request of the
    appellants to intervene as of right, hence I concur in the
    judgment. I fear, however, that the majority's analytic
    framework departs from the doctrinal view that this Court
    has taken of Rule 24(a)(2), will create mischief in this area,
    and will open intervention as of right to an amorphous "I
    know it when I see it" approach. I therefore write separately
    to set forth my view of the correct governing principles.
    I.
    Contemporary litigation--particularly environmental
    litigation--frequently affects numerous individuals, groups,
    communities, and business interests, including those not
    originally made party to the litigation. The question often
    arises, as in this case, whether any of these outsiders has
    a right to intervene and to be made a party to the case.
    Plaintiffs have requested an injunction halting all logging
    activities in the Allegheny National Forest ("ANF"), canceling
    all existing contracts for logging in the Forest, and
    preventing the United States Forest Service from entering
    into new contracts. The Forest Service is a party to
    contracts with certain logging companies and, if not
    prevented by the present litigation, would enter into
    contracts with other companies for logging in the ANF. The
    proceeds from these contracts redound not only to the
    benefit of the federal government, but also, pursuant to
    federal and state law, to the benefit of the local school
    districts and municipalities in which the ANF is located.
    Should the requested injunction issue, not only will logging
    jobs be lost and municipal tax revenues from workers'
    incomes and company profits be reduced, but negative
    economic effects also would be felt by logging supply
    companies and even by other local businesses (food
    establishments, real estate developers, etc.). The issue
    before us is whether the district court erred when it
    concluded that, of all of these individuals and groups, only
    two logging companies with existing contracts with the
    18
    Forest Service met the requirements for intervention as of
    right pursuant to Rule 24(a)(2).1
    Federal Rule of Civil Procedure 24(a)(2) provides that:
    (a) Intervention of Right. Upon timely app lication
    anyone shall be permitted to intervene in an action:. . .
    (2) when the applicant claims an interest relating to
    the property or transaction which is the subject of the
    action and the applicant is so situated that the
    disposition of the action may as a practical matter
    impair or impede the applicant's ability to protect that
    interest, unless the applicant's interest is adequately
    represented by existing parties.
    As the majority notes, we have required proof of four
    elements for intervention under Rule 24(a)(2): (1) a timely
    application; (2) sufficient interest in the liti gation; (3) which
    might be impaired, as a practical matter, by disposition of
    the action; and (4) inadequate representation of t he
    applicant's interest by existing parties to the litigation. See
    Mountain Top Condo. Ass'n v. Dave Stabbert Master Builder,
    Inc., 
    72 F.3d 361
    , 365-66 (3d Cir. 1995). A district court's
    denial of intervention as of right will be reversed only if the
    court has abused its discretion by applying the wrong legal
    standard or reaching a conclusion we are confident is
    incorrect. See Harris v. Pernsley, 
    820 F.2d 592
    , 597 (3d Cir.
    1987).
    One prominent source has suggested that the inquiry
    under Rule 24(a)(2) must be "flexible," with a"balancing
    and blending" of the individual elements, and that "[t]he
    criteria should be considered together rather than
    discretely." 6 James Wm. Moore, Moore's Federal Practice
    S 24.03[1][b] (3d ed. 1998). The majority appears to adopt
    such a "flexible" and "blending" approach to Rule 24(a)(2),
    endorsing what it sees as the Rule's "elasticity," Maj. Op. at
    8, and calling for "pragmatic considerations" when
    evaluating a petition for intervention. Maj. Op. at 9. I
    _________________________________________________________________
    1. Because I conclude that the appellants are entitled to intervention as
    of right under Rule 24(a)(2), I agree with the majority that we need not
    reach the question of whether they are entitled to permissive intervention
    under Rule 24(b)(2).
    19
    acknowledge, with my colleagues in the majority, that
    "pragmatic considerations such as the benefits derived from
    consolidation of disputes into one proceeding," 
    id., are relevant
    in the Rule 24(a)(2) analysis, and that excessive
    rigidity is neither desirable nor likely what the rulemakers
    intended in adopting the amended Rule 24 in 1966. I fear,
    however, that the majority has taken the pragmatism that
    the 1966 amendments introduced to Rule 24 too far--well
    past the intentions of the Rule's framers, and past any
    recognizable standard to guide trial courts when faced, as
    they frequently are, with petitions for intervention by
    parties with varying degrees of interest in the litigation
    before the court. I also am concerned that this"blending"
    approach opens the intervention door to parties with a
    minor interest or a small likelihood of impairment--as long
    as they can make up for the shortfall in one element with
    strength in another. More importantly, I do not believe that
    the text of the Rule will support the majority's gloss.
    II.
    The most difficult question in many intervention cases,
    and I believe in this one as well, is the nature of the
    proposed intervenors' interest and whether this interest is
    sufficient to meet the requirements of Rule 24(a)(2).2 The
    starting point for this analysis must be Donaldson v. United
    States, 
    400 U.S. 517
    (1971). In Donaldson, the Supreme
    Court held that the interest under Rule 24(a)(2) must be
    one that is "significantly protectable." 
    Id. at 531.
    Although
    the Supreme Court has failed to provide further guidance
    as to the meaning of this phrase, we have decided a
    number of cases in which the nature of the necessary
    interest has been explored. In my opinion, the majority errs
    in viewing these precedents as creating a "nebulous"
    standard. Maj. Op. at 7.
    In 
    Harris, supra
    , we said that a would-be intervenor
    "must demonstrate that there is a tangible threat to a
    legally cognizable interest." 
    Harris, 820 F.2d at 601
    . In
    _________________________________________________________________
    2. Like the majority, I do not discuss the timeliness requirement, as no
    party to this appeal contests the timeliness of the proposed intervenors'
    petition.
    20
    Mountain 
    Top, supra
    , we held that "a mere economic
    interest" is 
    insufficient. 72 F.3d at 366
    . While these cases
    do not give us a bright-line standard, they do flesh out the
    contours of the doctrine. They reduce the analysis to a two-
    part inquiry, i.e., we must examine (1) the reality of the
    interest--does the litigation pose a "tangible threat" to the
    applicant or simply a speculative one?--and (2) the nature
    of the interest, e.g., is it a "mere economic interest"? We
    have found an interest insufficient when a party's status
    was simply "would-be purchaser" of collateral, see Old
    Colony Trust Co. v. Penrose Indus. Corp., 
    387 F.2d 939
    , 941
    (3d Cir. 1968), or when a district attorney's ability to
    prosecute cases would not be directly affected by a prison
    consent decree, see 
    Harris, 820 F.2d at 599-603
    . In
    contrast, we have found a sufficient interest when a
    proposed consent decree directly impinged on an existing
    contractual right, see EEOC v. AT&T, 
    506 F.2d 735
    , 741-42
    (3d Cir. 1974), or on a statutory right of contribution, see
    United States v. Alcan Aluminum, Inc., 
    25 F.3d 1174
    ,
    1183-86 (3d Cir. 1994). As these cases demonstrate, when
    the interest at issue is both real and legally cognizable
    (through contract, statute, or a property right), we have
    found it to meet the requirements of Rule 24(a)(2) and
    Donaldson. See also Brody v. Spang, 
    957 F.2d 1108
    , 1117
    (3d Cir. 1992) (finding an interest sufficient when a consent
    decree altered "legal rights and responsibilities of the
    applicants for intervention").
    Other courts have distinguished interests sufficient
    under Rule 24(a)(2) from those not sufficient for
    intervention as of right in a similar manner. In Scotts Valley
    Band of Pomo Indians v. United States, Indian bands
    brought suit against the federal government to restore the
    trust status of certain land. See 
    921 F.2d 924
    (9th Cir.
    1990). The Ninth Circuit concluded that the City of Chico
    had an interest sufficient for intervention because the
    litigation could result in the removal of certain property
    from the city's tax rolls and from under its regulatory
    purview. See 
    id. at 927-28.
    In contrast, the Second Circuit
    found the interest of proposed intervenors to be too
    speculative in a case in which plaintiffs sought to force the
    Environmental Protection Agency to promulgate new air
    quality standards. See American Lung Ass'n v. Reilly, 962
    
    21 F.2d 258
    (2d Cir. 1992). There, although the proposed
    intervenors, electric utilities and trade associations, had an
    interest in the regulations themselves, the plaintiffs did not
    seek to enjoin any activities in which the utilities had a
    direct interest and therefore the utilities had no legally
    cognizable interest that would be altered by the litigation
    itself. See 
    id. at 261.
    In similar situations, other courts have found a sufficient
    interest for intervention because the proposed intervenors
    would be directly affected by the litigation seeking changes
    in federal agency rulemaking. See, e.g., Sierra Club v.
    Glickman, 
    82 F.3d 106
    , 109 (5th Cir. 1996) (farm group had
    sufficient interest in suit which sought to prevent
    government agency from expending funds to, or fulfilling
    contracts with, farmers); Sierra Club v. Espy, 
    18 F.3d 1202
    ,
    1207 (5th Cir. 1994) (timber purchasing companies with
    existing contracts had legally cognizable interest sufficient
    to intervene in challenge by environmental groups to Forest
    Service policies regarding logging procedures); Sierra Club v.
    United States Envtl. Protection Agency, 
    995 F.2d 1478
    , 1482
    (9th Cir. 1993) [U.S. EPA] (relief sought by plaintiffs would
    directly impinge on intervenor-city's existing permit rights
    under Clean Water Act); Conservation Law Found. v.
    Mosbacher, 
    966 F.2d 39
    , 43 (1st Cir. 1992) (Weis, J.)
    (consent decree requiring promulgation of new fishing plan
    would directly affect intervening fishing groups because it
    would require not only a new plan but specifically a plan to
    reduce overfishing).3
    _________________________________________________________________
    3. I note that, while I agree with the majority that it would be
    inappropriate to adopt a categorical rule that non-governmental bodies
    cannot intervene in NEPA cases, I believe that the Ninth Circuit has
    clarified its holding in Portland Audubon that "governmental bodies
    charged with compliance can be the only defendants" in a NEPA action.
    Portland Audubon Soc'y v. Hodel, 
    866 F.2d 302
    , 309 (9th Cir. 1989)
    (internal quotations omitted). In U.S. 
    EPA, supra
    , as well as in more
    recent cases, the Ninth Circuit has explained its holding in Portland
    Audubon as simply requiring that the intervenor have some interest
    protected by statute, contract, or property rights other than the
    statutory
    scheme of NEPA itself, which by its terms only applies to the federal
    government. U.S. 
    EPA, 995 F.2d at 1483-84
    . In Portland Audubon, the
    proposed intervenors' interest "appears to have been an economic
    22
    III.
    I turn to applying the foregoing analytic framework (and
    case law) to the parties seeking intervention in this case.
    While my approach differs from the majority's, it leads to
    the same conclusion, that all potential intervenors have a
    sufficient interest for intervention as of right. Two proposed
    intervenors, Payne Forest Products, Inc. and Spilka Wood
    Products Company, have existing contracts with the Forest
    Service which could be suspended or canceled as a result
    of the present litigation. There can be no doubt that
    interference with existing contractual rights constitutes the
    necessary "tangible threat to a legally cognizable interest"
    that we have required for intervention as of right. Allegheny
    Hardwood, the trade association, also represents lumber
    companies with existing contracts, see Dist. Ct. Op. at 6,
    and therefore, as a representative of these companies, has
    a legally cognizable interest which will be directly affected
    by the present litigation. See, e.g., 
    Espy, 18 F.3d at 1207
    (existing timber contracts of member companies give trade
    association "legally protectable property interests"
    necessary to satisfy intervention as of right).
    Ridgway Lumber Company, while without an existing
    lumber contract, had successfully bid on one and would
    have entered into a contract with the Forest Service absent
    the present litigation. Its successful bid is a tangible
    interest which could be--indeed, has been--directly affected
    by the present litigation, whatever its eventual outcome.
    See, e.g., Forest Conservation Council v. United States Forest
    Serv., 
    66 F.3d 1489
    , 1494 (9th Cir. 1995) (when suit has
    "direct, immediate, and harmful effects" on third party's
    legally protectable interests, this satisfies the "interest"
    prong of Rule 24(a)(2)).
    A more difficult case is presented with respect to
    proposed intervenors Brookville Wood Products, Inc. and
    _________________________________________________________________
    interest based upon a bare expectation, not anything in the nature of
    real or personal property, contracts, or permits." U.S. 
    EPA, 995 F.2d at 1482
    ; see also 
    id. at 1485
    ("The loggers in Portland Audubon had an
    interest in securing timber, but no existing legal right to it . . . ."
    (emphasis added)).
    23
    Northeast Hardwoods. Neither of these companies has an
    existing contract for cutting timber in the ANF, nor have
    they successfully bid on a contract which would have been
    consummated but for the present litigation. However, the
    district court found that these companies "generate the
    majority of their revenues from timber contracts with the
    [Forest Service] to cut timber in the Allegheny National
    Forest" and that they "are very dependent on[these] timber
    contracts." Dist. Ct. Op. at 5. I understand thisfinding, in
    light of the record, to mean that these companies have
    consistently been successful bidders in ANF logging
    contracts, that it is only an accident of timing that they do
    not have contracts at this juncture, and that--particularly
    given the remoteness of the area in which the companies
    operate--they are very likely to secure contracts in the near
    future if logging contracts are there to be bid (which will
    depend on the outcome of this litigation). In evaluating the
    interest of the companies without existing contracts, it is
    apparent that it is not an "actual" interest, but neither is it
    speculative. Under these circumstances, I cannot say that
    the majority is wrong when it finds that these companies
    also have the sufficient interest to meet our requirements
    for intervention as of right.
    Finally, the government intervenors have an actual,
    direct interest in this litigation by virtue of their statutory
    right to a portion of the proceeds from contracts between
    logging companies and the Forest Service. The local
    governments are effectively limited partners with the named
    defendant in this case, having no control over the formation
    of the logging contracts but a vested right to a portion of
    the proceeds therefrom. Without this piggybacking on the
    named defendants, I would question whether the
    municipalities have a sufficient interest to intervene, solely
    based on their loss of revenue from reduced tax receipts.
    The majority is not clear about this distinction,
    emphasizing the "limited tax bases," Maj. Op. at 14, of the
    municipalities in question. In my view, it is only the
    statutory right to logging proceeds that gives the
    municipalities here a sufficient interest to intervene and to
    protect that interest from interference that could arise from
    this litigation.
    24
    IV.
    As noted above, the majority does not clearly draw the
    line between interests sufficient for intervention under Rule
    24(a)(2) and those not sufficient. To better illustrate where
    I believe this line is drawn, I consider the proposed
    intervention of hypothetical parties to the present case. The
    logging companies to whom we grant intervention today
    purchase supplies from other companies for the products
    they need to carry out their timber-cutting business. If the
    logging companies' contracts with the Forest Service are
    suspended or canceled, the supply companies could suffer
    a loss of business as the logging companies no longer need
    purchase supplies for timber-cutting. In addition, the
    logging companies employ workers who use their wages to
    purchase products and services in local establishments,
    such as gas stations, grocery stores, etc. Assume one of
    these establishments is a diner frequented by logging
    company employees. When the logging companies'
    contracts with the Forest Service are disrupted by this
    litigation, these employees may be laid off or their wages
    reduced. With less income, they might gather at the diner
    with less frequency. The diner clearly will suffer an
    economic harm, formally (if not directly) caused by the
    present litigation. The same would be true of local
    municipalities if they did not have the statutory right to a
    portion of the logging contract proceeds; they too would
    suffer an economic harm caused indirectly by the present
    litigation.
    If the logging supply companies or the local diner were to
    petition for intervention as of right, should the district court
    find their interest sufficient to warrant intervention under
    Rule 24(a)(2)? I believe the majority's "elastic" approach at
    once gives the district court little guidance in answering
    this question, and gives it license to do whatever it wants.
    In contrast, I think it is clear that neither the Rule nor our
    prior jurisprudence in this area would permit the supply
    company or the diner to intervene as of right. While both of
    these businesses likely will suffer an economic harm from
    the litigation, in terms of both the nature and the reality of
    the interest, this harm is both too contingent and too
    remote from the litigation itself to be a legally cognizable
    25
    interest sufficient for intervention under Rule 24(a)(2). See,
    e.g., City of Stilwell v. Ozarks Rural Elec. Coop. Corp., 
    79 F.3d 1038
    , 1042 (10th Cir. 1996) (supplier of electrical
    power to defendant had insufficient interest for intervention
    even though it would "benefit financially if[defendant] is
    allowed to continue to service its customers").
    Unlike the logging companies and the local governments,
    which suffer an immediate, direct harm when the logging
    contracts are suspended--even if they somehow can replace
    their canceled contracts or lost revenue from some other
    source--the diner and supply company suffer any loss only
    down the line, after the logging companies have reduced
    their workers' wages or stopped ordering logging supplies.
    See, e.g., Montana v. United States Envtl. Protection Agency,
    
    137 F.3d 1135
    , 1142 (9th Cir. 1998) (potential effect on
    property values from promulgation of new water quality
    standards is "a speculative and purely economic interest
    [which] does not create a protectable interest in litigation
    concerning a statute that regulates environmental, not
    economic, interests"). Further, such losses that the diner or
    supply company may suffer are not grounded in a legal
    right--contractual, property, or statutory--which is related
    to the litigation at hand. See, e.g., Forest Conservation
    Council v. United States Forest Serv., 
    66 F.3d 1489
    ,
    1495-97 (9th Cir. 1995) (only "tangible, concrete rights
    protected by" statute or contract constitute a sufficient
    interest under Rule 24(a)(2); purely economic injuries,
    pecuniary losses, or frustrated financial expectations are
    not sufficient interests).4
    In a different context--the interpretation of the nation's
    antitrust laws--the Supreme Court has distinguished
    between parties injured by direct actions of an antitrust
    violator and those injured down the line (i.e., purchasers
    _________________________________________________________________
    4. The same analysis holds for municipalities without a piggyback right
    who may suffer losses when the citizens (lumber company employees) or
    businesses (logging companies, supply companies, local establishments)
    within their communities have less income and pay fewer taxes. Unlike
    the actual municipalities and school districts at issue here, local
    governments without a direct statutory right to a share of the proceeds
    from logging contracts have neither the tangible interest nor the direct
    link to the litigation necessary for intervention under Rule 24(a)(2).
    26
    from the directly injured parties). See Illinois Brick Co. v.
    Illinois, 
    431 U.S. 720
    (1977). In Illinois Brick, the Court
    reasoned that "allowing indirect purchasers to recover
    using pass-on theories . . . would transform treble-damages
    actions into massive multiparty litigations involving many
    levels of distribution and including large classes of ultimate
    consumers remote from the defendant." 
    Id. at 740.
    Despite
    Rule 24's pragmatic underpinnings, the concern the Court
    expressed in Illinois Brick is instructive in the present
    context. Environmental litigation of the present type could
    potentially involve multiple layers of plaintiffs and
    defendants. The indirect effects from the alleged
    wrongdoing by the federal agency, as well as the collateral
    effects from the litigation itself, touch the lives of residents
    of the communities near the forests, visitors to the area,
    local businesses, municipalities and school districts,
    logging companies and their employees and suppliers,
    consumers of wood and paper products, transportation
    companies which have contracts to move the timber to
    mills, and so on. As in Illinois Brick, some line must be
    drawn lest these environmental cases (and other public law
    cases) become "massive multiparty litigations." We can--
    and should--draw this line without sacrificing the
    pragmatism of Rule 24.
    V.
    Once we have established that a party has a sufficient
    interest for intervention as of right, we must determine
    whether "the disposition of the action may as a practical
    matter impair or impede the applicant's ability to protect
    that interest." Fed. R. Civ. P. 24(a)(2). I note again that the
    majority fails to treat the interest prong and the impairment
    prong as separate requirements. The Rule, however,
    requires both a sufficient interest and that this interest
    might be impaired by disposition of the action in the party's
    absence. Therefore, I believe that the analysis, while
    remaining flexible and pragmatic, must be performed in
    such a manner as to ensure that intervention as of right is
    granted only to those parties meeting both requirements.
    In the present case, it is clear that this litigation itself
    could practically impair the interests of all of the proposed
    27
    intervenors if the district court were to grant the injunctive
    relief sought by the plaintiffs pending a decision on the
    underlying dispute. See Appellees' Brief at 3 ("[T]he initial
    result of success in the litigation below will be a pause in
    timber cutting with regard to the two projects and in other
    areas of the [ANF] . . . ."). The logging companies' interest
    is in contracts to cut timber, either existing or certain to be
    entered into in the near future (absent the litigation). An
    injunction that suspends, cancels, or prevents future
    contracting by the Forest Service will directly and
    immediately affect this interest.5 Similarly, the local
    governments would immediately lose the income to which
    they are entitled from these contracts.
    The only hope of preventing impairment would be if the
    proposed intervenors filed their own suit and argued that
    the Forest Service has acted in compliance with the
    relevant statutes and that, therefore, no injunction should
    issue. However, a contrary determination in the present
    case would have a stare decisis effect on this potential
    future litigation, leaving the proposed intervenors without
    legal recourse to protect their interests. As we said in
    
    Brody, supra
    , the practical impairment prong is satisfied if
    a judgment
    will have a significant stare decisis effect on
    [applicants'] claims, or if the applicants' rights may be
    affected by a proposed remedy.
    An applicant need not, however, prove that he or she
    would be barred from bringing a later action or that
    intervention constitutes the only possible avenue of
    relief. The possibility of a subsequent collateral attack
    does not preclude an applicant from demonstrating that
    his or her interests would be impaired should
    intervention be denied.
    _________________________________________________________________
    5. This is not a case like ManaSota-88, Inc. v. Tidwell, 
    896 F.2d 1318
    (11th Cir. 1990), in which proposed intervenors could not point to any
    direct effect from the relief sought by plaintiff-environmental groups--
    the
    promulgation of new regulations by a federal agency--as it was "purely
    a matter of speculation" whether the proposed intervenors would be in
    violation of any new regulations, thereby increasing their costs of
    compliance. 
    Id. at 1322.
    28
    957 F.2d at 1123 
    (citations omitted). All of the proposed
    intervenors meet this requirement in the present case.6
    VI.
    In sum, I believe that an increasingly clear, ifflexible,
    standard has developed in our Rule 24(a)(2) case law, which
    we should adhere to in this case and in future intervention
    situations, and which requires a searching analysis of each
    of the elements required for intervention as of right. I also
    believe that this jurisprudence, while not necessarily
    followed in the majority opinion, leads to the same result.
    I therefore concur in the judgment granting intervention to
    all of the proposed intervenors.
    A True Copy:
    Teste:
    Clerk of the United States Court of Appeals
    for the Third Circuit
    _________________________________________________________________
    6. I agree with the majority that the Service's interests do not
    necessarily
    coincide with the logging companies and that, given the minimal
    standard for finding that an applicant's interests are not adequately
    represented, see Trbovich v. United Mine Workers , 
    404 U.S. 528
    , 538
    n.10 (1972), all of the logging companies--and the local governments--
    meet this final requirement for intervention.
    29
    

Document Info

Docket Number: 98-3137

Citation Numbers: 157 F.3d 964, 1998 WL 668918

Judges: Aldisert, Becker, Weis

Filed Date: 9/30/1998

Precedential Status: Precedential

Modified Date: 11/4/2024

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Old Colony Trust Co. v. Penrose Industries Corporation, ... , 387 F.2d 939 ( 1968 )

Sierra Club v. Mike Espy, in His Official Capacity as ... , 38 F.3d 792 ( 1994 )

portland-audubon-society-headwaters-lane-county-audubon-society-oregon , 866 F.2d 302 ( 1989 )

Cascade Natural Gas Corp. v. El Paso Natural Gas Co. , 87 S. Ct. 932 ( 1967 )

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Sierra Club v. Us Environmental Protection Agency, and City ... , 995 F.2d 1478 ( 1993 )

united-states-postal-service-and-national-association-of-letter-carriers ( 1978 )

lake-investors-development-group-inc-a-delaware-corporation-now-known , 74 A.L.R. Fed. 621 ( 1983 )

jeffrey-mausolf-william-kullberg-arlys-strehlo-and-minnesota-united , 85 F.3d 1295 ( 1996 )

city-of-stilwell-oklahoma-a-municipal-corporation-v-ozarks-rural ( 1996 )

Donaldson v. United States , 91 S. Ct. 534 ( 1971 )

Illinois Brick Co. v. Illinois ( 1977 )

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manasota-88-inc-v-greer-c-tidwell-sr-regional-administrator-for ( 1990 )

state-of-montana-lake-county-montana-a-political-subdivision-of-the-state ( 1998 )

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martin-harris-albert-anthony-orlando-x-mccrea-tyrone-glenn-carlos , 820 F.2d 592 ( 1987 )

Ohio Forestry Assn., Inc. v. Sierra Club , 118 S. Ct. 1665 ( 1998 )

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