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Showing 17 posts from 2013.

Last week, the Court of Appeals of New York (the state’s highest court) definitively ruled that under New York law, a plaintiff cannot assert an independent cause of action for medical monitoring.  Rather, medical monitoring in New York is only available as an element of consequential damages for another tort where a plaintiff has suffered physical injury or property damage. Read More »

In BASF v. Township of Toms River, No. 002155-2011 (N.J. Tax Court Dec. 5, 2013), the Court was asked to decide, in advance of trial, the proper methodology for determining the assessed value of a large tract of land that had been designated as a Superfund Site, but which contained large portions of uncontaminated and developable land.  While the Township sought to discount the value of only the polluted areas of the property, the owner contended that the pollution discount must be applied to the entire parcel.  And that is exactly how the Court saw it. Read More »

Determining the appropriate Statute of Limitations for claims brought pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601, et seq. (“CERCLA”), is often a tricky matter.  Usually, the issue arises in the context of determining whether a claim is properly brought under Section 107(a), 42 U.S.C. § 9607(a), for costs voluntarily incurred, or § 113(f), 42 U.S.C. § 9613(f), for costs incurred pursuant to a court order or approved settlement, as Section 107(a) claims may be subject to a six-year statute of limitations, while claims under Section 113(f) have a three-year limitations period.  However, in State of New York v. Next Millenium Realty, LLC, No. 12-2894-cv (2nd Cir. Oct. 15, 2013), the Second Circuit turned its attention to a different distinction, the one between removal actions and remedial actions, as Section 107(a) claims “must be commenced … for a removal action, within 3 years after completion of the removal action [and] for a remedial action, within 6 years after initiation of physical on-site construction of the remedial action. . . .”  42 U.S.C. Section 9613(g)(2)(B).  In order to find the claims of the State of New York timely, the Court held that a water purification system in use for over 15 years was nevertheless a removal action and not a remedial action because, among other things, the measures were intended to “minimize and mitigate” damage from contamination and not to “permanently eliminate” it.  Id. at 24. Read More »

Under Section 9607(a)(3) of CERCLA, a party who has arranged for the disposal of hazardous substances at a facility may, like other categories of Potentially Responsible Parties, be strictly liable for response costs.  Where the PRP has engaged in the sale of a “useful product,” even one known to be hazardous, is not liable as an arranger unless the PRP has taken “intentional steps to dispose of a hazardous substance.”   Burlington Northern and Santa Fe Ry. Co. v. U.S., 556 U.S. 599, 609-10 (2009)(“BNSF”).  Mere knowledge that there might be a discharge of hazardous substances in connection with the transport or use of the product is not sufficient to impose arranger liability.  Id. at 611.  As a result, “whether an entity is an arranger requires a fact-intensive inquiry that looks beyond the parties’ characterization of the transaction . . . and seeks to discern whether the arrangement was on Congress intended to fall within the scope of CERCLA’s strict-liability provisions.  Id. at 610.  Just such a “fact-intensive inquiry” was undertaken by the United States District Court for the Western District of Michigan last week in Georgia-Pacific Consumer Products LP v. NCR Corp., Case No. 1:11-CV-483 (W.D.MI. Sept. 26, 2013), one of a number of cases dealing with the recycling of “broke,” or scraps of carbonless copy paper coated with a PCB-containing emulsion produced by NCR from the mid-1950’s until 1971.  Read More »

For decades, it has been the unanswered question – what is the statute of limitations for a claim under New Jersey’s Spill Compensation and Control Act, N.J.S.A. 58:10-23.11, et. seq. (the “Spill Act”)?  Unlike CERCLA, the Spill Act contains no express statute of limitations for private contribution actions.  Thus, trial courts have been left to fend for themselves and, as a result, have failed to achieve consensus.  Federal district courts have unanimously applied New Jersey’s six year limitations period for actions for damages to real property, while, until Friday, the only state decision was an unpublished trial court opinion holding that there is no limitations period for such claims.  But on August 23, 2013, the Appellate Division of the Superior Court of New Jersey, in the case of Morristown Assoc. v. Grant Oil Co., No. A-0313-11T3 (App. Div. Aug. 23, 2013), finally spoke and, in agreement with the federal courts, held that the six-year limitations period applies. Read More »

As footnoted in yesterday’s post, the decision in Trinity Industries, Inc. v. Chicago Bridge & Iron Co., No. 12-2059 (3rd Cir. Aug. 20, 2013), was a twofer.  Yesterday, we wrote about that part of the decision which held that a party who has resolved its liability under state statutes may seek contribution under Section 113(f) of CERCLA.  Today, we look at the second part of the decision, which concerns the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. §6901, et seq.  Read More »

The Third Circuit keeps rolling out environmental decisions this month, and while Bell v. Cheswick Generating Station, No. 12-4216 (3d Cir. Aug. 20, 2013), received the lion’s share of press this week (including here), another decision issued the same day, Trinity Industries, Inc. v. Chicago Bridge & Iron Co., No. 12-2059 (3rd Cir. Aug. 20, 2013), is also worth reading.  In it, the Third Circuit holds that a party who has resolved its liability to the state for remediation under state law may pursue contribution under CERCLA, which puts the Third Circuit in conflict with the Second Circuit on this issue. Read More »

Yesterday, a three-judge panel of the Third Circuit issued a unanimous precedential opinion in Bell v. Cheswick Generating Station, No. 12-4216 (3d Cir. Aug. 20, 2013), holding that the federal Clean Air Act (“CAA”) does not preempt state common law tort claims.  In doing so, the Court reversed the Western District’s dismissal of the Complaint, and remanded the case for further proceedings. Read More »

In a precedential decision issued by the Third Circuit Court of Appeals in the case of Vodenichar v. Halcon Energy Properties, Inc., No. 13-2812 (Aug. 16, 2013), the Court addressed the two exceptions to the Class Action Fairness Act that permits remand to state courts of class action complaints over which the federal courts would otherwise have jurisdiction.  First, the Court provided guidance as to the interpretation of the term “primary defendants” for the purposes of 28 U.S.C. § 1332(d)(4)(B) and, second, held that the “other class action” language of 28 U.S.C. § 1332(d)(4)(A) was not intended to encompass prior actions between the same parties where the procedural history indicates that the second suit was merely a continuation of the prior suit. Read More »

Last Friday, the Sixth Circuit upheld a $250,000 sanction award levied against the attorneys representing a large group of plaintiffs in an Ohio federal environmental contamination suit, on the basis that plaintiffs’ medical monitoring claims were objectively unreasonable.   The case – Baker et al. v. Chevron U.S.A., Inc. et al., Nos. 11-4369, 12-3995 (6th Cir., Aug. 2, 2013) – was on appeal from the Southern District of Ohio, which had granted Chevron’s motion for sanctions after plaintiffs had failed to meet the legal and factual burdens for establishing a medical monitoring claim under Ohio law.  Federal Rule of Civil Procedure 11 (“Rule 11”) provides litigants with a mechanism to attack claims that are “not well grounded in fact . . . [and/or] not warranted by existing law or a good faith argument for extension, modification, or reversal of existing law.”  Generally, Rule 11 sanctions are limited to those circumstances where an attorney’s conduct was unreasonable under the circumstances.  Read More »