Geertson Seed Farms v. Monsanto Company ( 2008 )


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  •                    FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    GEERTSON SEED FARMS, an Oregon           
    business; TRASK FAMILY SEEDS a
    South Dakota business;
    CENTER FOR FOOD SAFETY, a
    Washington DC nonprofit corp.;
    BEYOND PESTICIDES, a Washington
    DC nonprofit corp.; CORNUCOPIA
    INSTITUTE, a Wisconsin nonprofit
    corp.; DAKOTA RESOURCE COUNCIL,
    a North Dakota nonprofit corp.;
    NATIONAL FAMILY FARM COALITION,
    a Michigan nonprofit corp.; SIERRA
    CLUB, a California nonprofit corp.;            No. 07-16458
    WESTERN ORGANIZATION OF
    RESOURCE COUNCILS a Montana
           D.C. No.
    CV-06-01075-CRB
    nonprofit corp.,
    Plaintiffs-Appellees,
    v.
    MIKE JOHANNS, in his official
    capacity as Secretary of the U.S.
    Department of Agriculture; STEVE
    JOHNSON, in his official capacity as
    Administrator of the U.S.
    Environmental Protection Agency;
    RON DEHAVEN, in his official
    capacity as Administrator of the
    Animal Plant Health and
    
    12009
    12010         GEERTSON SEED FARMS v. MONSANTO
    Inspection Service, U.S.                 
    Department of Agriculture,
    Defendants,
    FORAGE GENETICS, INC.; JOHN
    GROVER; DANIEL MADEROS; MARK
    WATTE,
    Defendant-Intervenors,
    
    and
    MONSANTO COMPANY,
    Defendant-Intervenor-
    Appellant.
    
    GEERTSON SEED FARMS, an Oregon           
    business; TRASK FAMILY SEEDS a
    South Dakota business;
    CENTER FOR FOOD SAFETY, a
    Washington DC nonprofit corp.;
    BEYOND PESTICIDES, a Washington
    DC nonprofit corp.; CORNUCOPIA
    INSTITUTE, a Wisconsin nonprofit
    No. 07-16492
    
    corp.; DAKOTA RESOURCE COUNCIL,
    a North Dakota nonprofit corp.;                  D.C. No.
    NATIONAL FAMILY FARM COALITION,              CV-06-01075-CRB
    a Michigan nonprofit corp.; SIERRA
    CLUB, a California nonprofit corp.;
    WESTERN ORGANIZATION OF
    RESOURCE COUNCILS a Montana
    nonprofit corp.,
    Plaintiffs-Appellees,
    v.
    
    GEERTSON SEED FARMS v. MONSANTO   12011
    MIKE JOHANNS, in his official          
    capacity as Secretary of the U.S.
    Department of Agriculture; STEVE
    JOHNSON, in his official capacity as
    Administrator of the U.S.
    Environmental Protection Agency;
    RON DEHAVEN, in his official
    capacity as Administrator of the
    Animal Plant Health and
    Inspection Service, U.S.
    Department of Agriculture,             
    Defendants,
    MONSANTO COMPANY,
    Defendant-Intervenor,
    and
    FORAGE GENETICS, INC.; JOHN
    GROVER; DANIEL MADEROS; MARK
    WATTE,
    Defendant-Intervenors-
    Appellants.
    
    12012         GEERTSON SEED FARMS v. MONSANTO
    TRASK FAMILY SEEDS a South               
    Dakota business; CENTER FOR FOOD
    SAFETY, a Washington DC
    nonprofit corp.; BEYOND
    PESTICIDES, a Washington DC
    nonprofit corp.; CORNUCOPIA
    INSTITUTE, a Wisconsin nonprofit
    corp.; DAKOTA RESOURCE COUNCIL,
    a North Dakota nonprofit corp.;
    NATIONAL FAMILY FARM COALITION,
    a Michigan nonprofit corp.; SIERRA
    CLUB, a California nonprofit corp.;
    WESTERN ORGANIZATION OF
    RESOURCE COUNCILS a Montana
    nonprofit corp.; GEERTSON SEED                 No. 07-16725
    
    FARMS, an Oregon business,                       D.C. No.
    Plaintiffs-Appellees,        CV-06-01075-CRB
    and                             OPINION
    GEERTSON SEED FARMS, an Oregon
    Corp.,
    Plaintiff,
    v.
    MIKE JOHANNS, in his official
    capacity as Secretary of the U.S.
    Department of Agriculture; STEVE
    JOHNSON, in his official capacity as
    Administrator of the U.S.
    Environmental Protection Agency;
    RON DEHAVEN, in his official
    capacity as Administrator of the
    Animal Plant Health and
    
    GEERTSON SEED FARMS v. MONSANTO                 12013
    Inspection Service, U.S.                   
    Department of Agriculture;
    Defendants-Appellants,
    and
    
    MONSANTO COMPANY; FORAGE
    GENETICS, INC.; JOHN GROVER;
    DANIEL MADEROS; MARK WATTE,
    Defendant-Intervenors.
    
    Appeal from the United States District Court
    for the Northern District of California
    Charles R. Breyer, District Judge, Presiding
    Argued and Submitted
    June 10, 2008—San Francisco, California
    Filed September 2, 2008
    Before: Mary M. Schroeder and N. Randy Smith,
    Circuit Judges, and Valerie Fairbank,* District Judge.
    Opinion by Judge Schroeder;
    Dissent by Judge N. Randy Smith
    *The Honorable Valerie Fairbank, United States District Judge for the
    Central District of California, sitting by designation.
    GEERTSON SEED FARMS v. MONSANTO      12017
    COUNSEL
    George Kimbrell, Washington, D.C., for the plaintiffs-
    appellees.
    12018         GEERTSON SEED FARMS v. MONSANTO
    Marc Kesselman, Washington, D.C., for the defendants-
    intervenors/appellants Government.
    Maureen Mahoney, Washington, D.C., for the defendants-
    intervenors/appellants Monsanto et al.
    OPINION
    SCHROEDER, Circuit Judge:
    The Monsanto Company (“Monsanto”) is a large-scale
    manufacturer of chemical products, including herbicides and
    pesticides. In the 1990s it began developing a variety of
    alfalfa that would be resistant to one of its leading herbicides.
    The United States Department of Agriculture, through the
    Animal and Plant Health Inspection Service (“APHIS”),
    approved the genetically modified alfalfa in 2005.
    This is an appeal from an injunction entered by the district
    court enjoining future planting of Monsanto alfalfa, called
    “Roundup Ready alfalfa,” pending the preparation by APHIS
    of an environmental impact statement (“EIS”). The injunction
    was sought by plaintiffs Geertson Seed Farms and Trask Fam-
    ily Seeds, conventional alfalfa-seed farms, together with envi-
    ronmental groups, because they fear cross-pollination of the
    new variety with other alfalfa, thereby possibly causing con-
    ventional alfalfa to disappear. Monsanto and its licensee, For-
    age Genetics, Inc. (“Forage Genetics”), intervened on the side
    of the government defendants. Monsanto, Forage Genetics,
    and the government pursue this appeal.
    There are no issues of law and we therefore review for
    abuse of discretion. See Idaho Watersheds Project v. Hahn,
    
    307 F.3d 815
    , 823 (9th Cir. 2002). We affirm because the dis-
    trict court did not abuse its discretion in entering the injunc-
    tion after holding one hearing on the nature of the violation
    GEERTSON SEED FARMS v. MONSANTO            12019
    of the National Environmental Policy Act of 1969 (“NEPA”),
    
    42 U.S.C. § 4332
    (C), and two hearings on the scope of
    injunctive relief, as well as reviewing extensive documentary
    submissions relating to an appropriate remedy. The injunction
    is limited in duration to the time necessary to complete the
    EIS. The existence of the NEPA violation is not disputed on
    appeal.
    Background
    Roundup Ready alfalfa is an alfalfa crop that was geneti-
    cally engineered by Monsanto to be tolerant of glyphosate,
    which is the active ingredient in its herbicide Roundup. The
    particular lines of genetically engineered alfalfa that are at
    issue here were designated as events J101 and J163
    (“Roundup Ready alfalfa”). Monsanto owns the intellectual
    property rights to Roundup Ready alfalfa and licenses the
    technology to Forage Genetics, who is the exclusive devel-
    oper of Roundup Ready alfalfa seed.
    APHIS, a division of the United States Department of Agri-
    culture, has the authority to regulate “the introduction of
    organisms and products altered or produced through genetic
    engineering that are plant pests or are believed to be plant
    pests,” or “regulated articles.” See 
    7 C.F.R. § 340.0
    (a)(2) &
    n.1. APHIS initially classified Roundup Ready alfalfa as a
    regulated article. Monsanto submitted a petition in April 2004
    requesting nonregulated status for events J101 and J163.
    APHIS had three options: it could take no action, in which
    case Roundup Ready alfalfa would continue to be a regulated
    article; it could unconditionally deregulate Roundup Ready
    alfalfa, which would require the agency to make a finding of
    no significant impact; or it could partially deregulate Roundup
    Ready alfalfa, either by approving some but not all of the
    lines involved, or by approving the petition but imposing geo-
    graphic restrictions.
    APHIS published a notice in the Federal Register in
    November 2004 advising the public of Monsanto’s petition
    12020         GEERTSON SEED FARMS v. MONSANTO
    and soliciting comments. It explained that APHIS had pre-
    pared an Environmental Assessment (“EA”) in accordance
    with NEPA and its implementing regulations. In the EA,
    APHIS explained that alfalfa is pollinated by insects, primar-
    ily bees, and that insect pollination has been documented as
    occurring up to 2 miles from the pollen source. With regard
    to the threat of possible genetic contamination of non-
    genetically engineered alfalfa, it explained that the National
    Organic Program mandates buffer zones around organic pro-
    duction operations, the size of which are decided by the
    organic producer and the certifying agent on a case-by-case
    basis. The EA concluded that it was therefore unlikely that
    Roundup Ready alfalfa would have a significant impact on
    organic farming.
    APHIS received 663 comments, 520 of which opposed the
    petition and 137 of which supported it. Most of the comment-
    ing alfalfa growers and seed producers supported it because
    they said there was a demand for weed-free alfalfa, and
    Roundup Ready alfalfa would provide farmers a new option
    for weed control by allowing farmers to apply herbicide after
    weeds have germinated. Most of the academic professionals,
    agricultural support industries, and growers associations who
    commented supported the petition as well. Opponents of the
    petition, who included organic and conventional alfalfa grow-
    ers, cited concerns that inadvertent gene transmission would
    occur, and that foreign and domestic markets may not accept
    products that cannot be guaranteed to be non-genetically engi-
    neered. They urged a full environmental evaluation through
    an EIS that would analyze the environmental effects of all the
    alternatives. See Natural Res. Def. Council, Inc. v. Winter,
    
    518 F.3d 658
    , 688 (9th Cir. 2008) (“NEPA’s procedural
    requirements mandate that an agency take a ‘hard look’ at the
    environmental consequences of its actions.”).
    On the basis of the EA and after considering the comments
    received, APHIS in June 2005 made a finding of no signifi-
    cant impact. See 
    70 Fed. Reg. 36,917
    , 36,918 (June 27, 2005).
    GEERTSON SEED FARMS v. MONSANTO              12021
    It therefore concluded that it did not need to prepare an EIS,
    and it unconditionally deregulated Roundup Ready alfalfa.
    Plaintiffs filed this action in February 2006, alleging viola-
    tions of NEPA and other federal statutes. The district court
    first considered whether APHIS had violated NEPA. After a
    hearing on plaintiffs’ and defendants’ motions for summary
    judgment, the district court granted plaintiffs’ motion in Feb-
    ruary 2007, holding that APHIS had violated NEPA by
    deregulating Roundup Ready alfalfa without first preparing an
    EIS. The court ruled APHIS had failed to take the required
    “hard look” at whether and to what extent the unconditional
    deregulation of Roundup Ready alfalfa would lead to genetic
    contamination of non-genetically engineered alfalfa. The dis-
    trict court then turned to the issue of an appropriate remedy
    for the violation.
    Monsanto and Forage Genetics intervened in the action at
    the remedies phase. They argued that growers had already
    purchased Roundup Ready alfalfa seed in preparation for the
    spring planting season, which was underway and would be
    ending soon, and that it would be difficult for those growers
    to purchase other seed in time to plant it. After hearing argu-
    ment, the court entered a preliminary injunction on March 12,
    2007. The preliminary injunction enjoined all planting of
    Roundup Ready alfalfa and all sales of Roundup Ready
    alfalfa seed after March 30, 2007, pending the issuance of a
    permanent injunction. This allowed farmers who were pre-
    pared to plant Roundup Ready alfalfa immediately, and who
    had already purchased the seed, to do so. The injunction also
    allowed all Roundup Ready alfalfa that had been planted
    since the deregulation decision to be grown, harvested, and
    sold without restriction.
    In April 2007, the court held a hearing on the scope of per-
    manent injunctive relief. Plaintiffs sought to enjoin all future
    planting of Roundup Ready alfalfa, as well as the harvesting
    of any Roundup Ready alfalfa seed already planted, pending
    12022         GEERTSON SEED FARMS v. MONSANTO
    the completion of an EIS and a new decision on deregulation;
    they also requested the publication of the location of Roundup
    Ready alfalfa crops. Defendants asked that planting go for-
    ward, but not unconditionally. At the remedy stage, APHIS
    agreed for the first time that any future planting should be
    subject to certain conditions, including requiring isolation dis-
    tances from other crops and requiring certain harvesting con-
    ditions to minimize gene flow to non-genetically engineered
    alfalfa seeds.
    The district court considered voluminous evidentiary sub-
    missions from both sides, including the detailed declarations
    of multiple witnesses regarding the scope of permanent
    injunctive relief and scientific papers on the factual issues
    involved. The parties’ experts disagreed over virtually every
    factual issue, including the likelihood of genetic contamina-
    tion and why some contamination had already occurred.
    Defendants’ evidence included declarations and live testi-
    mony by Forage Genetics’ president, Mark McCaslin, decla-
    rations of an APHIS official, Neil Hoffman, and a declaration
    from a scientist at Colorado State University, Bob Hammon,
    who had conducted a study sponsored by Forage Genetics on
    pollen movement from alfalfa-seed fields by bees. Plaintiffs’
    evidence included Hammon’s study, which they argued sup-
    ports their position, as well as declarations from seed growers
    whose crops had been contaminated with the Roundup Ready
    gene and scientists who opined that genetic contamination is
    likely to occur.
    The court entered its permanent injunction in May 2007. It
    enjoined all planting of Roundup Ready alfalfa after March
    30, 2007, pending APHIS’s completion of an EIS and deci-
    sion on the deregulation petition. The district court rejected
    the conditions proposed by the agency because it found that
    genetic contamination had occurred when similar conditions
    were in place pursuant to Forage Genetics’ contracts with its
    Roundup Ready alfalfa growers. Defendants, joined by inter-
    venors Monsanto and Forage Genetics (collectively, “appel-
    GEERTSON SEED FARMS v. MONSANTO             12023
    lants”), now appeal the injunction, arguing it is too broad.
    Neither the government nor the intervenors now question the
    existence of a NEPA violation. They dispute only the scope
    of the injunction, and whether the district court should have
    held a further hearing.
    Scope of the Permanent Injunction
    Appellants argue that the district court erred in ordering
    injunctive relief because it improperly presumed irreparable
    injury instead of applying the traditional four-factor test for
    the issuance of a permanent injunction, as required under
    eBay v. MercExchange, L.L.C., 
    547 U.S. 388
     (2006). They
    argue that, as a result, the district court’s injunction was over-
    broad because the court did not consider the likelihood of
    potential harm if Roundup Ready alfalfa was planted subject
    to the mitigation measures proposed by APHIS.
    [1] To obtain permanent injunctive relief, a plaintiff must
    show “ ‘(1) that it has suffered an irreparable injury; (2) that
    remedies available at law, such as monetary damages, are
    inadequate to compensate for that injury; (3) that, considering
    the balance of hardships between the plaintiff and defendant,
    a remedy in equity is warranted; and (4) that the public inter-
    est would not be disserved by a permanent injunction.’ ” N.
    Cheyenne Tribe v. Norton, 
    503 F.3d 836
    , 843 (9th Cir. 2007)
    (quoting eBay, 
    547 U.S. at 391
    ). This traditional balancing of
    harms applies in the environmental context. Forest Conserva-
    tion Council v. U.S. Forest Serv., 
    66 F.3d 1489
    , 1496 (9th Cir.
    1995); see also Lands Council v. McNair, ___ F.3d ___, 
    2008 WL 2640001
    , at *21 (9th Cir. July 2, 2008) (en banc) (“Our
    law does not . . . allow us to abandon a balance of harms anal-
    ysis just because a potential environmental injury is at
    issue.”). In determining the scope of an injunction, a district
    court has “ ‘broad latitude,’ ” High Sierra Hikers Ass’n v.
    Blackwell, 
    390 F.3d 630
    , 641 (9th Cir. 2004) (quoting Natural
    Res. Def. Council v. Sw. Marine, Inc., 
    236 F.3d 985
    , 999 (9th
    Cir. 2000)), and it “ ‘must balance the equities between the
    12024         GEERTSON SEED FARMS v. MONSANTO
    parties and give due regard to the public interest,’ ” N. Chey-
    enne Tribe, 
    503 F.3d at 842-43
     (quoting High Sierra, 
    390 F.3d at 642
    ).
    [2] The Supreme Court has recognized that “the balance of
    harms will usually favor the issuance of an injunction to pro-
    tect the environment” if injury is found to be sufficiently
    likely because “[e]nvironmental injury, by its nature, can sel-
    dom be adequately remedied by money damages and is often
    permanent or at least of long duration, i.e., irreparable.”
    Amoco Prod. Co. v. Vill. of Gambell, 
    480 U.S. 531
    , 545
    (1987). In Amoco, the Court held that a preliminary injunction
    had been improperly ordered because injury to the environ-
    ment was “not at all probable.” 
    Id.
     This court has recognized
    that even when a district court finds that a NEPA violation
    occurred, “in ‘unusual circumstances’ an injunction may be
    withheld, or, more likely, limited in scope.” Nat’l Parks &
    Conservation Ass’n v. Babbitt, 
    241 F.3d 722
    , 737 n.18 (9th
    Cir. 2001) (citing Forest Conservation Council, 
    66 F.3d at 1496
    ).
    [3] The Supreme Court held in eBay that courts cannot
    grant or deny injunctive relief categorically in place of apply-
    ing the four-factor test. 
    547 U.S. at 394
    . The district court in
    that case had suggested that patent holders who license their
    patents do not suffer irreparable harm. 
    Id. at 393
    . The Court
    held that the district court had erred in adopting “expansive
    principles suggesting that injunctive relief could not issue in
    a broad swath of cases.” 
    Id.
     It held that the reversing court of
    appeals had also erred because it too had applied a categorical
    rule, that injunctions in patent cases should generally be
    granted once infringement and validity are established except
    in the “unusual case, under exceptional circumstances.” 
    Id. at 394
     (internal quotation marks omitted). The Court held “that
    the decision whether to grant or deny injunctive relief rests
    within the equitable discretion of the district courts, and that
    such discretion must be exercised consistent with traditional
    principles of equity . . . .” 
    Id.
    GEERTSON SEED FARMS v. MONSANTO              12025
    [4] Here, the record demonstrates that the district court
    applied the traditional four-factor test, required by eBay,
    before issuing its injunction. It expressly recognized that an
    injunction does not “automatically issue” when a NEPA vio-
    lation is found and said that it was required to “engage in the
    traditional balance of harms analysis.” The court then dis-
    cussed each of the four factors of the traditional balancing test
    and concluded that the equities favored an injunction against
    the future planting of Roundup Ready alfalfa.
    With respect to harm, the court found that genetic contami-
    nation of organic and conventional alfalfa had already
    occurred, and it had occurred while Monsanto and Forage
    Genetics had contractual obligations in place that were similar
    to their proposed mitigation measures. It held that such con-
    tamination was irreparable environmental harm because con-
    tamination cannot be reversed and farmers cannot replant
    alfalfa for two to four years after contaminated alfalfa has
    been removed. The court also reasoned that appellants would
    be unable to enforce compliance with any proposed mitigation
    measures, given the government’s admitted lack of resources.
    The court therefore did not presume that irreparable harm was
    likely to occur only on the basis of the NEPA violation; it
    concluded that plaintiffs had established that genetic contami-
    nation was sufficiently likely to occur so as to warrant broad
    injunctive relief, though narrower than the blanket injunction
    sought by plaintiffs.
    Appellants contend the district court did not take into
    account the evidence demonstrating that the likelihood of hay-
    to-hay transmission is extremely low because hay is harvested
    before the crops bloom to 10%. The district court examined
    the evidence and found that weather conditions could prevent
    farmers from harvesting hay before 10% bloom, citing the tes-
    timony of Forage Genetics’ president. The district court’s
    finding was not clearly erroneous.
    After considering the likelihood of irreparable injury, the
    court next considered the balance of hardships. The harm to
    12026         GEERTSON SEED FARMS v. MONSANTO
    appellants was economic, and the court reasoned that
    Roundup Ready alfalfa accounted for only 15% of Forage
    Genetics’ total revenue and “much, much less of Monsan-
    to’s.” It also found that any unsold seed appears to be storable
    for planting in later years. The court’s injunction allowed
    Roundup Ready alfalfa that had already been planted and that
    was to be planted before March 30 to remain, subject to cer-
    tain conditions, and only enjoined future planting, which dem-
    onstrates that the court crafted a remedy that accounted for the
    hardships to both sides. Monsanto and Forage Genetics con-
    tend that the district court disregarded their financial losses,
    but the district court considered those economic losses and
    simply concluded that the harm to growers and consumers
    who wanted non-genetically engineered alfalfa outweighed
    the financial hardships to Monsanto and Forage Genetics and
    their growers.
    The district court finally considered the public interest, the
    fourth factor in the framework for injunctive relief. See N.
    Cheyenne Tribe, 
    503 F.3d at 843
    . The court, while recogniz-
    ing that agricultural biotechnology has social value, held that
    it would be in the public interest to enjoin the expanded use
    of Roundup Ready alfalfa before its impact was studied,
    because failing to do so could potentially eliminate the avail-
    ability of non-genetically engineered alfalfa.
    Appellants rely on Northern Cheyenne for the proposition
    that a narrower injunction should be entered here. In that case,
    we affirmed a district court’s injunction. 
    Id. at 846
    . Northern
    Cheyenne does not support a reversal in this case. There, the
    Bureau of Land Management (“BLM”) had violated NEPA
    because its EIS failed to study an alternative method of devel-
    opment that the plaintiffs wanted the BLM to consider. See 
    id. at 841, 844
    . The injunction permitted one method to proceed
    and prohibited other activity pending full compliance with
    NEPA. 
    Id.
     We held that the district court’s injunction was not
    an abuse of discretion. That conclusion does not support a
    holding that the injunction in this case was an abuse of discre-
    GEERTSON SEED FARMS v. MONSANTO              12027
    tion. APHIS did not take the requisite “hard look” at the
    impact of any form of deregulation on the environment. See
    Nat. Res. Defense Council, 
    518 F.3d at 688
    .
    [5] Appellants also argue that the district court should have
    deferred to APHIS’s proposed interim measures because of
    the expertise of the government agency, despite the agency’s
    now undisputed failure to comply with NEPA. They rely pri-
    marily on Idaho Watersheds Project, 
    307 F.3d 815
    . However,
    that case does not require a district court to adopt an agency’s
    proposed measures as a matter of law. In Idaho Watersheds,
    to determine the terms of an injunction to protect land and
    streams from the effects of too much cattle grazing pending
    the BLM’s compliance with NEPA, the district court adopted
    the interim measures proposed by the BLM to respond to
    environmental injury, which the court thought represented a
    “balanced approach.” 
    Id. at 823, 830-31
    . Affirming, we said
    that “the Ninth Circuit has shown considerable deference for
    factual and technical determinations implicating substantial
    agency expertise.” 
    Id. at 831
    . Here, the agency’s proposed
    interim measures would perpetuate a system that was found
    by the district court to have caused environmental harm in the
    past. While the agency’s response may deserve deference,
    Idaho Watersheds does not require the district court to adopt
    it automatically. The district court did not abuse its discretion
    in choosing to reject APHIS’s proposed mitigation measures
    in favor of a broader injunction to prevent more irreparable
    harm from occurring.
    [6] The district court applied the traditional balancing test,
    and not a categorical rule, in fashioning the injunction here,
    see eBay, 
    547 U.S. at 394
    , and its factual conclusions were
    not clearly erroneous. The district court therefore did not
    abuse its discretion in formulating the remedy.
    Lack of an Evidentiary Hearing
    Monsanto and Forage Genetics also argue that the district
    court erred in declining to hold an evidentiary hearing before
    12028         GEERTSON SEED FARMS v. MONSANTO
    entering the permanent injunction. The district court had
    already held a hearing on whether an EIS was required, and
    heard testimony during a March hearing from Forage Genet-
    ics’ president on the scope of preliminary injunctive relief.
    Monsanto and Forage Genetics requested that the district
    court hold an evidentiary hearing before issuing the perma-
    nent injunction so that the district court could, as described by
    that court, “assess the viability of its witnesses’ opinions
    regarding the risk of contamination if APHIS’s proposed con-
    ditions are imposed, as well as to resolve disputes with plain-
    tiffs’ witnesses.” This evidence concerned the degree of the
    risk of environmental damage. There were voluminous docu-
    mentary submissions from both sides disputing, among other
    things, the likelihood of genetic contamination of non-
    Roundup Ready alfalfa fields. APHIS did not request an evi-
    dentiary hearing.
    The district court reviewed the documentary submissions,
    but it declined to hold a further hearing. It explained that
    holding the type of evidentiary hearing suggested by the inter-
    venors “would require this Court to engage in precisely the
    same inquiry it concluded APHIS failed to do and must do in
    an EIS; defendants are in effect asking this Court to accept its
    truncated EIS without the benefit of the development of all
    the relevant data and, importantly, without the opportunity for
    and consideration of public comment.” The court cited Idaho
    Watersheds in concluding that it did not need to conduct an
    extensive inquiry, involving scientific determinations, to
    determine what interim measures are necessary to protect the
    environment “while the [government] conducts studies in
    order to make the very same scientific determinations.” 
    307 F.3d at 831
    .
    [7] Monsanto and Forage Genetics are correct that gener-
    ally, a district court must hold an evidentiary hearing before
    issuing a permanent injunction unless the adverse party has
    waived its right to a hearing or the facts are undisputed. See
    GEERTSON SEED FARMS v. MONSANTO             12029
    United States v. Microsoft Corp., 
    253 F.3d 34
    , 101-03 (D.C.
    Cir. 2001); Charlton v. Estate of Charlton, 
    841 F.2d 988
    , 989
    (9th Cir. 1988). The district court did not believe defendants
    had established any material issues of fact that were in dispute
    in the case before the court. Rather, it viewed the disputed
    matters to be issues more properly addressed by the agency in
    the preparation of an EIS.
    [8] The injunction at issue here, as in Idaho Watersheds, is
    not a typical permanent injunction, which is of indefinite
    duration. A permanent injunction to ensure compliance with
    NEPA has a more limited purpose and duration. Thus, in
    Idaho Watersheds, a case involving a NEPA violation, this
    court held that an evidentiary hearing was not required before
    issuing an injunction. See 
    307 F.3d at 831
    . We distinguished
    this context from Microsoft, and the “normal injunctive set-
    ting,” principally because Idaho Watersheds involved interim
    measures that would be in place only until the EIS was com-
    pleted, at which point the parties would have “extensive
    input” into the determination of which measures would be
    adopted permanently. 
    Id. at 831
    ; accord Mont. Wilderness
    Ass’n v. Fry, 
    310 F. Supp. 2d 1127
    , 1155-56 (D. Mont. 2004)
    (holding that, under Idaho Watersheds, an evidentiary hearing
    was not required before imposing interim injunctive relief).
    The district court there had sought to avoid the catch-22 situa-
    tion where an evidentiary hearing would require it to perform
    the same type of extensive inquiry into environmental effects
    that the ordered EIS will require the government agency to
    perform. Idaho Watersheds, 
    307 F.3d at 831
    . We agreed with
    the district court’s approach, holding that an evidentiary hear-
    ing was not required because the measures were “interim
    measures designed to allow for a process to take place which
    will determine permanent measures, and all parties will have
    adequate opportunity to participate in the determination of
    permanent measures (and if need be challenge the outcome in
    court).” 
    Id.
     We observed that requiring a hearing would dupli-
    cate the BLM’s efforts and divert its resources from those
    12030         GEERTSON SEED FARMS v. MONSANTO
    efforts. 
    Id.
     The district court here correctly denied a hearing
    because the same situation is presented in this case.
    Monsanto and Forage Genetics also contend that even if
    Idaho Watersheds authorizes entry of a permanent injunction
    without an evidentiary hearing, it does so only if the court
    adopts the agency’s recommendation. We explained in Idaho
    Watersheds, however, that the key reason a further evidenti-
    ary hearing was not required was that the injunction would be
    in place only until the necessary environmental studies were
    conducted. 
    Id.
     In this case, as in Idaho Watersheds, the gov-
    ernment does not contend that a further hearing is required,
    perhaps in order to avoid the duplication of resources we
    described in Idaho Watersheds. The dissent insists on
    remanding for a hearing that the government has never con-
    tended would be appropriate in this case.
    The district court here considered extensive evidentiary
    submissions from all parties pertaining specifically to the
    remedy phase, as it was required to do. See Microsoft, 
    253 F.3d at 103
     (holding that district court had erred in failing to
    consider the remedies-phase evidentiary submissions of
    defendant). It held two hearings during the remedies phase,
    one of which included testimony from the president of Forage
    Genetics on the scope of preliminary injunctive relief. It then
    determined that it should not conduct a hearing that would
    duplicate APHIS’s efforts in preparing the EIS ordered by the
    court.
    [9] The injunction involved only interim measures pending
    APHIS’s compliance with NEPA, and the district court con-
    sidered extensive remedies-phase evidence. The court did not
    err in declining to hold a further hearing before entering the
    injunction pending the agency’s completion of environmental
    study the law undisputedly required it to perform before
    approving this product for unrestricted use.
    The district court’s order is AFFIRMED.
    GEERTSON SEED FARMS v. MONSANTO             12031
    N. RANDY SMITH, Circuit Judge, dissenting:
    The district court’s failure to conduct the requisite evidenti-
    ary hearing prevents me from joining the majority’s opinion.
    The majority correctly recognizes that the district court was
    required to conduct an evidentiary hearing before issuing a
    permanent injunction under Federal Rule of Civil Procedure
    65 unless (1) the facts were undisputed; or (2) the adverse
    party expressly waived its right to an evidentiary hearing.
    Charlton v. Estate of Charlton, 
    841 F.2d 988
    , 989 (9th Cir.
    1988). Despite recognizing this clear precedent, the majority
    affirms the district court’s decision to proceed without the
    requisite evidentiary hearing, and, in so doing, creates an alto-
    gether new exception to the evidentiary hearing requirement
    we recognized in Charlton.
    The majority acknowledges that the facts were sharply dis-
    puted by the parties. To be sure, the parties disputed almost
    every element of the facts underlying the proposed injunction.
    Specifically, the parties disputed the risk of genetic contami-
    nation that could occur if the district court did not enjoin the
    further planting of Roundup Ready alfalfa while APHIS pre-
    pared the EIS. Given that the parties disputed the facts under-
    lying the need for, and scope of, any injunctive relief, the first
    recognized exception to the evidentiary hearing requirement
    was unavailable. See Charlton, 841 F.2d at 989.
    The second recognized exception was unavailable too. As
    the district court noted, Monsanto and Forage Genetics
    requested an evidentiary hearing “apparently so the Court can
    assess the viability of its witnesses’ opinions regarding the
    risk of contamination if APHIS’s proposed conditions are
    imposed, as well as to resolve disputes with plaintiffs’ wit-
    nesses.” In discussing Monsanto’s and Forage Genetics’
    request for an evidentiary hearing, the majority notes
    APHIS’s failure to request an evidentiary hearing. This fail-
    ure, however, is insignificant given that Monsanto and Forage
    Genetics already had made their request. Because the parties
    12032          GEERTSON SEED FARMS v. MONSANTO
    did not consent to proceed without an evidentiary hearing, the
    other recognized exception to the evidentiary hearing require-
    ment was unavailable. See id. Given those facts, we should
    reverse to allow the district court to conduct an evidentiary
    hearing. But that is not what the majority does here.
    The majority instead relies on Idaho Watersheds Project v.
    Hahn, 
    307 F.3d 815
    , 823 (9th Cir. 2002), to create an alto-
    gether new exception to the evidentiary hearing requirement.
    The majority reasons that, because the injunction will only
    last as long as it takes APHIS to conduct an EIS, this is not
    a typical permanent injunction requiring typical procedural
    safeguards. The majority next assumes that an evidentiary
    hearing would result in waste of agency resources because the
    hearing would require consideration of the same issues that
    APHIS must resolve in conjunction with the EIS.
    As the majority correctly recognizes, we affirmed the dis-
    trict court’s refusal to conduct an evidentiary hearing in Idaho
    Watersheds in light of the temporary nature of the injunction.
    But this case isn’t Idaho Watersheds. There, the district court
    deferred to the agency’s recommendations and expertise —
    thereby resulting in an efficient resolution pending comple-
    tion of the agency determinations. Conversely, in this case,
    the district court expressly rejected APHIS’s proposed injunc-
    tion and independently fashioned a permanent injunction
    without the benefit of live testimony subject to the adversarial
    process. These shortcomings resulted in a critical failure by
    the district court and deprived the parties of important proce-
    dural rights when it came to shaping the scope of any poten-
    tial injunction.
    The majority argues that the district court didn’t need to
    conduct an evidentiary hearing because it held two hearings
    during the remedies phase of proceedings and had the benefit
    of live testimony from Forage Genetics’ president Mark
    McCaslin. With due respect to both counsel and Mr. McCas-
    lin, this falls far short of the standards we have articulated for
    GEERTSON SEED FARMS v. MONSANTO              12033
    a hearing prior to issuing an injunction. The hearings cited by
    the majority were simply arguments by counsel construing the
    written submissions and documentary evidence. Although
    helpful, argument by counsel is no substitute for live testi-
    mony when it comes to determining the nature and extent of
    the alleged injury, where the balance of hardship lies, and the
    scope of the injunction. Based on this record, it appears that
    the district court allowed Mr. McCaslin to speak without
    notice to the parties or opportunity for cross examination.
    Given that circumstance, Mr. McCaslin’s testimony was little
    better than no testimony.
    The district court could have used the evidentiary hearing
    to better ascertain the nature of the alleged injury and to fur-
    ther understand the balance of the hardships associated with
    the parties’ varying proposals for injunctive relief. It didn’t.
    The district court also could have used the hearing to test the
    merits of the parties’ positions. An evidentiary hearing would
    have allowed for cross examination of the witnesses on their
    written testimony and submissions. Instead the district court
    rejected the agency’s proposal and fashioned its own perma-
    nent injunction based on argument of counsel, the written
    record, and ad hoc testimony from Mr. McCaslin. These
    shortcomings were significant because the district court might
    have reached a different result had it held an evidentiary hear-
    ing before reaching a decision.
    The evidentiary hearing requirement is essential because it
    allows the district court an opportunity to consider the wit-
    nesses’ credibility in the face of cross examination. That step
    is what justifies the abuse of discretion standard of review
    under which we consider a district court’s decision to grant or
    deny injunctive relief. If a district court skips the requisite
    evidentiary hearing, we have exactly the same record on
    appeal as the district court did below. In that circumstance, I
    see no reason to afford the district court any discretion when
    reviewing its decision to grant or deny an injunction. For that
    reason, I consider it to be an abuse of discretion for a district
    12034         GEERTSON SEED FARMS v. MONSANTO
    court not to hold an evidentiary hearing unless the case fits in
    either of the recognized Charlton exceptions or the district
    court accepts the agency’s proposal for temporary injunctive
    relief, as occurred in Idaho Watersheds.
    Based on this record, I have serious concerns about the
    scope of the injunction entered by the district court. At best,
    the record reflects sparse evidence of hay-to-hay gene trans-
    mission of RRA alfalfa in some areas of the country under
    certain planting conditions. Further, I see no good evidence of
    hay-to-seed or seed-to-seed gene transmission. Yet the district
    court entered a nationwide injunction on the planting of
    Roundup Ready alfalfa while APHIS completes an EIS. This
    nationwide injunction has severe economic consequences for
    Monsanto, Forage Genetics, and for the farmers and distribu-
    tors who planned on RRA alfalfa being available. I would be
    more comfortable with a nationwide injunction had the dis-
    trict court held an evidentiary hearing to consider live testi-
    mony, listened to cross examination, and resolved any
    credibility issues between the witnesses. But no such hearing
    occurred and I therefore have no confidence in the need for
    a nationwide injunction pending completion of the EIS.
    By affirming the district court’s refusal to conduct an evi-
    dentiary hearing, the majority has created a third exception to
    the evidentiary hearing requirement. Under this decision, a
    district court now can forego conducting an evidentiary hear-
    ing simply because (1) the injunction may dissolve at some
    point and (2) the issues, to be raised at the hearing, overlap
    with the issues the agency must consider. Instead of giving
    deference to the agency’s expertise, see The Lands Council v.
    McNair, ___ F.3d ___, 
    2008 WL 2640001
    , *4, *8-9 (9th Cir.
    2008) (en banc), the majority gives deference to the district
    court despite its wholesale rejection of the agency’s proposal
    and its failure to hold an evidentiary hearing. There aren’t
    many environmental cases that don’t fit into the majority’s
    newly-created exception. This is a mistake, as it would elimi-
    nate a “significant procedural step[,]” Charlton, 841 F.2d at
    GEERTSON SEED FARMS v. MONSANTO            12035
    989, without any real justification. I would instead remand so
    that the district court could conduct an evidentiary hearing on
    the merits and scope of the permanent injunction.