In the case of Illinois v. City of Milwaukee (406
U.S. 91 (1972)), Illinois sued Milwaukee (and three other Wisconsin cities) for
being a public nuisance by polluting Lake Michigan. The case was heard
under the original jurisdiction of the US Supreme Courts, because it was a
matter between the States. However, the Supreme Court held that future cases
like this should be heard in Federal District Courts instead of bothering the US
Supreme Court directly.
In addition, the US Supreme Court held that Illinois could
sue under the Federal common law. Until this case there was some debate
as to whether Federal regulations, such as the Clean Water Act,
effectively preempted lawsuits based on the common law concept of public
nuisance.
However, by the time this case went back to the Federal
District Court and then back again the US Supreme Court (Illinois v. City of
Milwaukee (451 U.S. 304 (1981)), The US Supreme Court had reversed itself
and decided that the Clean Water Act did indeed preempt Federal common
law nuisance actions.
In a dissent, it was argued that since the Clean Water
Act §505(e) contains a provision saying that the Act doesn't restrict
any common law rights, then you should still be able to sue for being a public
nuisance.
The later case of International Paper Co. v. Ouellette (479
U.S. 481 (1987)) held that even though Federal common law was preempted,
the regulations did not preempt State common law.