Last month, in U.S. v. CITGO Petro. Corp., 711 Fed. Appx. 237 (5th Cir. 2017), the United States Court of Appeals for the Fifth Circuit affirmed an $81 million civil penalty assessment under the federal Clean Water Act (“CWA”) against CITGO Petroleum Corp. (“CITGO”), for unpermitted wastewater discharges from its plant in Lake Charles, Louisiana when a severe rainstorm caused two storage tanks to fail and over 2 million gallons of oil to be discharged into local waterways.  In the underlying case before the United States District Court for the Western District of Louisiana, CITGO conceded liability, and therefore, the only issue for trial was the total penalty to be assessed.  After a two-week bench trial, the District Court determined that CITGO had failed to properly maintain its wastewater storage tanks and allowed sludge and waste oil to accumulate in the tanks, which lessened their total storage capacity and ability to withstand a storm surge.  The District Court ultimately assessed a $6 million civil penalty against CITGO, which EPA appealed.  Read More »

Share | Email| Comments|  Topics: Civil Penalties, Clean Water Act, Cleanup, Contamination, EPA, Fifth Circuit, Louisiana, Storage Tank, Stormwater, Water

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 »

Share | Email| Comments|  Topics: Attorney-Client, Cleanup, Contamination, Discovery, EPA, Federal Procedure, Indiana, Insurance, Insurance Coverage, Privilege, Procedure, Remediation, Stormwater, Work Product

Three public-water-system-operating California cities brought suit in the Northern District of California against Monsanto alleging that Monsanto’s manufacture and sale of PCB-containing products from the 1930s through the 1970s caused pollution that increased the cities’ cost and ability to comply with federal stormwater discharge regulations for discharge into the San Francisco Bay.  Monsanto sought to dismiss the claims and in City of San Jose v. Monsanto Company, Nos. 15-3178, 15-5152, & 16-0071 (N.D.CA. Aug. 22, 2016), the United States District Court for the Northern District of California granted the motion, but allowed the municipalities to amend their complaints as to their nuisance causes of action. Read More »

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