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Showing 45 posts in Cleanup.

A group of private landowners ended of 2017 with a Montana Supreme Court ruling, in Atlantic Richfield Company v. Montana Second Judicial District Court, that they could proceed with their state law claims for restoration damages against the owner of a site contaminated by a former copper smelter. No. 16-0555, 2017 WL 6629410 (Mont. December 29, 2017). In a split decision, the Court found that the landowners’ claims for restoration damages were not preempted by the federal Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) because the claims did not constitute a challenge to the U.S. Environmental Protection Agency’s established cleanup plan for the Site. Read More »

A putative class of plaintiffs who allege to have lived in a defined geographic area around a manufacturing plant in Merrimack, New Hampshire, or have been served by the town’s municipal water supply, sued the manufacturer in federal court, alleging property damage claims and exposure to perfluorooctanoate (AFPO) and perfluorooctanoic acid (PFOA) that warrants medical monitoring.  Brown v. Saint-Gobain Performance Plastics Corp. et al., No. 16-cv-242, 2017 WL 6043956 (D.N.H. Dec. 6, 2017).  The plaintiffs’ claims were styled as common law claims for negligence, trespass, nuisance, and negligent failure to warn, as well as an equitable claim for “negative unjust enrichment” on the theory that the manufacturer was unjustly enriched by avoiding costs associated with preventing the release of contaminants.  The Court dismissed the unjust enrichment count but allowed the remaining claims to proceed. Read More »

Last month, the U.S. District Court for the Southern District of Iowa ruled that Dico, Inc. and its corporate affiliate Titan Tire Corporation (collectively, “Dico”) intended to arrange for the disposal of hazardous substances in violation of CERCLA when it knowingly sold multiple buildings contaminated with PCBs with the understanding that the purchaser intended to reuse only the buildings’ steel beams and dispose of the remaining materials. United States v. Dico, Inc., No. 4:10-cv-00503, 2017 U.S. Dist. LEXIS 151580 (S.D. Iowa Sep. 5, 2017).  The decision came after the Eight Circuit Court of Appeals reversed and remanded the lower court’s earlier ruling on summary judgment that Dico was liable as an arranger under CERCLA for the sale of the PCB-laden buildings.  In the appellate decision, which we blogged about here, the Court of Appeals held that the issue of whether Dico intended to dispose of the hazardous substances through the sale was the central question in determining whether CERCLA arranger liability applied and should not have been decided at the summary judgment stage.  That decision, as summarized in our blog, discusses the legal framework of CERCLA arranger liability and the “useful product defense,” which prevents a seller of a useful product from being subject to such liability, even when the product itself is a hazardous substance that requires future disposal.  Read More »

New Jersey’s Brownfield and Contaminated Site Remediation Act (the “Brownfield Act”) provides that a “person” who owns contaminated property may be entitled to a Hazardous Discharge Site Remediation Fund Innocent Party Grant (“innocent party grant”) to pay for remediation of the property so long as that person meets two requirements: (i) the person acquired the property prior to December 31, 1983 and continued to hold it until the innocent party grant is approved, and (ii) the person did not contribute to the contamination at the property.  N.J.S.A. 58:10B-6(a)(4).

In a decision issued last week, the New Jersey Superior Court, Appellate Division, held that Cedar Knolls 2006, LLC (“Cedar Knolls”) was eligible for an innocent party grant for the remediation of its property even though Cedar Knolls was not technically the same “person” that acquired the property before the statutory deadline. (Cedar Knolls 2006, LLC v. NJDEP, Dkt. No. A-1405-15T3 (N.J. Super. Ct. Sept. 20, 2017)).  In doing so, the Superior Court explained that, with respect to owners eligible for innocent party grants, the Brownfield Act was more concerned with the “substance of ownership and continuity than the technicalities of the legal form.” Read More »

On July 19, 2017, the Tenth Circuit Court of Appeals held that the United States, as the title owner of a former mine, was a Potentially Responsible Party (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), despite the fact that it did not have a possessory interest in the property at the time of the disposal of hazardous substances.  The opinion in Chevron Mining Inc. v. United States, No. 15-2209, 2017 U.S. App. LEXIS 12959, at *1 (10th Cir. July 19, 2017) thus appears to put to rest a defense often asserted, primarily by governmental entities, that “bare legal title” is insufficient for CERCLA liability to attach and instead that some other and additional “indicia of ownership” is required. Read More »

Last week, the Second Circuit issued an unpublished decision affirming an earlier decision of the Eastern District of New York that stands for the principle that a passive lessee that subleases a property to an unaffiliated tenant is neither an “Owner” nor an “Operator” under CERCLA. Next Millenium Realty, LLC v. Adchem Corp., No. 16-1260-cv, 2017 U.S. App. LEXIS 8476 (2d Cir. May 11, 2017).  Read More »

Last week, the United States Court of Appeals for the Eighth Circuit affirmed a district court’s ruling to decertify a class action filed by landowners for releases from Exxon’s 850-mile Pegasus Pipeline that crosses four states from Texas to Illinois.  The case, Webb, et al. v. Exxon Mobil Corp., et al., Dkt. No. 15-2879 (8th Cir., May 11, 2017), was filed by a group of landowners who claimed that Exxon materially breached the terms of their right-of-way easement agreements by allegedly failing to inspect, maintain, repair, and replace the pipeline, which was originally installed in the mid-1940s.  At various times since the 1980s, the pipeline had releases in Texas, Arkansas, and Missouri, which the plaintiffs claim resulted in damage to their properties.  The plaintiffs sought to rescind their right-of-way easement agreements and force Exxon to remove or replace the entire pipeline, or in the alternative, to be paid damages for breach of contract and diminution in property value.  Read More »

Last week, the Commonwealth Court of Pennsylvania held in a unanimous decision that latent environmental property contamination triggered several comprehensive general liability (“CGL”) insurance policies despite the fact that the contamination was not discovered until at least a decade later. In doing so, the Court resolved a question left open by two earlier Pennsylvania Supreme Court decisions over whether latent property damage in “occurrence” policies is triggered at the time the damage occurs or when the damage first manifests itself.     Read More »

One of the finest lines that environmental attorneys walk is in protecting communications between counsel and a retained environmental consultant from disclosure in litigation.  In a recent case out of the Northern District of Indiana, Valley Forge Ins. Co. v. Hartford Iron & Metal, Inc., No. 1:14-cv-00006 (N.D. Ill. Apr. 14, 2017), the Court found that communications between counsel and consultants retained by the counsel  were not protected by the attorney-client privilege, in large part because the consultants also performed remedial work.  However, as the work was done "in anticipation of litigation" with, among others, the Indiana Department of Environmental Management (IDEM) and EPA, substantive communications were protected by the attorney work product doctrine.   Read More »

Earlier this week, the New Jersey Supreme Court ruled that Spill Act contribution claims against the State of New Jersey for events prior to April 1, 1977 – the date the statute was enacted – are barred by the doctrine of sovereign immunity.  This ruling places the State on an unequal footing with private parties for historic environmental liability under the Spill Act, and in effect, creates an automatic orphan share for pre-1977 sites where the State would otherwise have liability.  Read More »