North Carolina v. Tennessee Valley Authority

Issue: (1) Whether the Clean Air Act preempts a public nuisance action against a stationary source when that action is based on the common law of the state where the source is located; and (2) whether the Fourth Circuit’s conclusion that the issuance of an air-quality permit bars a public nuisance action under Alabama and Tennessee law is contrary to this Court’s directive that a federal court is bound to accept interpretations of state law by the state’s highest court.