Last week, the Second Circuit issued an unpublished decision affirming an earlier decision of the Eastern District of New York that stands for the principle that a passive lessee that subleases a property to an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 »

Share | Email| Comments|  Topics: CERCLA, Cleanup, Contamination, Contribution, Cost Recovery, New York, Real Estate, Remediation, Second Circuit, Superfund

Earlier this month, New Jersey’s Appellate Division affirmed a judgment issued by the Chancery Division, the state’s court of equity, which required neighbors to participate and share in the costs of investigating nearby contamination even though there was not yet any evidence as to the precise source of the contamination. Matejek v. Watson et al., Dkt. No. A-4683-14T1 (N.J. Super. Ct. Mar. 3, 2017).  In doing so, the Appellate Division adopted an expansive view of the Chancery Division’s power to fashion an equitable remedy when the letter of the law, in this case New Jersey’s Spill Compensation and Control Act (Spill Act), does not provide for one. Read More »

Share | Email| Comments|  Topics: Contamination, Contribution, Declaratory Relief, Equity, New Jersey, Real Estate, Spill Act, Storage Tank

Last week, the U.S. District Court for the District of New Jersey denied Alcoa Domestic LLC’s request that the court dismiss claims against it regarding a previously owned site, finding that Alcoa may be in breach of the Purchase and Sales Agreement for the site and thus still liable for contamination caused by the removal of materials from the site. The case, Borough of Edgewater v. Waterside Construction, LLC et al., Civil Action No. 14-5060 (D.N.J. December 14, 2016), concerns the Borough of Edgewater’s endeavor to remediate contamination at Veteran’s Field in Edgewater, New Jersey in 2012.  A New Jersey contractor, Defendant Waterside Construction, LLC (and several other interrelated companies, collectively, “Waterside”), was awarded the contract for the remediation, which required Waterside to import clean stone to be used as fill in certain areas of the Veteran’s Field site.  Subsequent inspections revealed that the fill was contaminated, and Waterside admitted that the fill material originated from the former Alcoa Site, which is contaminated. Read More »

Share | Email| Comments|  Topics: Breach of Contract, CERCLA, Cleanup, Cost Recovery, Defense Costs, Indemnification, New Jersey, Real Estate, Remediation, Spill Act, Superfund

In December of 2013, in Robinson Township v. Commonwealth of Pennsylvania, 83 A.3d 901 (Pa. 2013) (“Robinson II”), the Pennsylvania Supreme Court, among other things, struck down as unconstitutional provisions of the 2012 amendments to Pennsylvania’s Oil and Gas Act, also referred to as Act 13 regarding statewide zoning laws and municipalities’ abilities to enact ordinances affecting the oil and gas industry.  On Wednesday September 28^th, in Robinson's second round before the Pennsylvania Supreme Court (Robinson IV), the Court invalidated additional provisions of Act.

The remand of Robinson II to the Commonwealth Court required the lower court to determine whether or not certain provisions of the Act regarding the review of municipal ordinances affecting oil and gas operations were severable from the Act 13 provisions that were found unconstitutional.  The remand also required the Commonwealth Court to determine; (a) whether two other Act 13 sections, one related to the disclosure of hydraulic fracturing chemical trade secrets to health professionals and the other related to the scope of PADEP notification requirements after spills, violated Article III, Section 32 (no “special laws”) or Article III, Section 3 (the “single subject rule”) of the Pennsylvania Constitution; and (b) whether another Act 13 section regarding the use of eminent domain for gas storage violated the 5^th amendment of the U.S. Constitution and Article 1, Section 10 of the Pennsylvania Constitution. The case before the Supreme Court was an appeal to the Commonwealth Court’s ruling on these issues. Read More »

Share | Email| Comments|  Topics: Act 13, Case Update, Decisions of Note, Legislation, Marcellus Shale, Natural Gas, Oil and Gas, Pennsylvania, Real Estate

In a case of first impression in the Third Circuit, the Honorable Eduardo C. Robreno has held that the Pennsylvania Department of Environmental Protection (“PADEP”) may not, under CERCLA, recover costs from current landowners if the costs were incurred prior to the owner's purchase of contaminated property.  In PADEP v. Trainer Custom Chemical LLC, No. 15-1232 (E.D. Pa. Aug. 30, 2016), PADEP sought to recover, among other things, over $800,000 in electricity bills which it had paid prior to October, 2012 to keep certain remediation equipment operating at the Stoney Creek Technologies Superfund Site (the “Site”), which Site was subsequently purchased by the defendant, Trainer Custom Chemical, LLC.  PADEP's claim for such costs was rejected by Judge Robreno, who held that “a new owner is not liable for recovery costs incurred before he took ownership of the facility.”  Id. at *21. Read More »

Share | Email| Comments|  Topics: CERCLA, Cleanup, Cost Recovery, Pennsylvania, Pennsylvania Department of Environmental Protection, Real Estate, Remediation, Removal, Superfund, Third Circuit

Last month, a district court in the Northern District of California held on motions for summary judgment that Technichem, Inc., a hazardous waste management company, was liable under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for PCE contamination, but that the issue of whether an employee was also considered an “operator” under CERCLA could not be resolved on summary judgment.  The case, Department of Toxic Substances Control v. Technichem, Inc. et al, Case No. 12-cv-05845-VC (N.D. Cal, March 15, 2016), was decided by United States District Judge Vince Chhabria.     Read More »

Share | Email| Comments|  Topics: California, CERCLA, Contamination, Expert Witness, Real Estate, Remediation, Superfund

In the 2012 case of New Jersey Schs. Dev. Auth. v. Marcantuone, 428 N.J. Super. 546 (App.Div. 2012), the New Jersey Appellate Division held that a passive landowner who purchased contaminated property prior to the enactment of the New Jersey Spill and Compensation Act (“Spill Act”) was a liable party under the Act even if the owner did not contribute to the contamination, unless it could meet the Spill Act’s definition of an “innocent purchaser.”  This decision gave rise to an entirely new wave of litigation against landowners who, previously, were not thought to be PRPs under the Spill Act.  Last week, however, the Appellate Division of the Superior Court of New Jersey returned some hope to these property owners when it affirmed a Superior Court decision holding that, while a passive landlord is a  liable party under the Spill Act, application of the equitable principles of allocation may result in a finding that such a landlord is nevertheless 0% responsible  for the costs of remediation.   Read More »

Share | Email| Comments|  Topics: Causation, Cleanup, Contamination, Contribution, Cost Recovery, Expert Witness, Leases, New Jersey, Real Estate, Remediation, Spill Act

This week, in the case of Smith v. ConocoPhillips Pipe Line Co., No. 14-2191 (8th Cir.  Sept. 15, 2015), the Eighth Circuit overturned a district court’s grant of a certification to a class comprised of property owners who alleged that the contamination of a neighboring property, and their fear of its spread, was a nuisance.  The Eighth Circuit held that the plaintiffs did not provide evidence that their own properties were contaminated and thus denied class certification based on the plaintiffs’ failure to demonstrate a common injury. Read More »

Share | Email| Comments|  Topics: Certification, Class Actions, Contamination, Eighth Circuit, Medical Monitoring, Negligence, Nuisance, Oil and Gas, Real Estate, Residential, Toxic Torts

We’ve been following the case of Strudley v. Antero Resources Corp., No. 2011 CV 2218, since May, 2012, when a Colorado trial court dismissed the action following plaintiffs’ failure to establish, pursuant to a Lone Pine order, a prima facie case showing that the defendant, a natural gas drilling company, was responsible for plaintiffs’ personal injuries.  The Lone Pine order required the Strudleys to submit to the Court, before it would allow any discovery, sufficient expert opinions, scientific testing results, and personal medical information to support their claims.  In July, 2013, a Colorado Court of Appeals reversed, finding that Lone Pine orders were not permitted under Colorado law and thus the plaintiffs could not be shut out of the courthouse at such an early stage. Read More »

Share | Email| Comments|  Topics: Case Update, Causation, Contamination, Discovery, Drilling, Due Process, Marcellus Shale, Natural Gas, Oil and Gas, Procedure, Real Estate, Toxic Torts

Back in August of 2013, we reported that the Appellate Division of the New Jersey Superior Court, in the case of Morristown Associates v. Grant Oil Co., held that a six year statute of limitations applied to claims brought pursuant to the Spill Act.  On Tuesday, January 27, 2015, the New Jersey Supreme Court overturned that decision to find that there is no statute of limitations barring a Spill Act claim.  MGKF will shortly be issuing a Special Alert discussing this important decision in more detail.

Share | Email| Comments|  Topics: Case Update, Cleanup, Contamination, Cost Recovery, Decisions of Note, New Jersey, Procedure, Real Estate, Remediation, Spill Act, Statute of Limitations