The most noteworthy
decisions this month are the following:
• In Premier
Associates, Inc. v. EXL Polymers, Inc., No. 12-10325 (11th Cir. February 5, 2013), Judge Albritton, writing for
the Eleventh Circuit Court of Appeals, affirmed a finding that a company that
sent materials for recycling was not liable for damages from its storage. The individual landowners could recover
on the policy, because their corporate ownership also made them liable as
operators. Uncertainty about the
possibility of a sudden and accidental release and potential regulatory
estoppel precluded judgment on the pollution exclusion.
• In Sacramento
Municipal Utility District v. United States, No. 09-587C (Ct.
Cl. January 31, 2013), Judge Braden of the United States Court of Federal
Claims found that a company was entitled to recover some mitigation costs due
to the government’s partial breach of contract but with an offset for costs
saved. The court carefully analyzed
the costs expended and allowed the recovery of some but not all. The government was also entitled to some
offset for cost savings incurred. The plaintiff recovered slightly under half its
claimed costs.
• In AVX
Corporation v. United States, No. 11-1697 (4th Cir. February 7. 2013), Judge Diaz, writing for the Fourth Circuit Court of
Appeals, affirmed a finding that the government was not responsible for
proximate site causation. The
government’s expert testimony was properly included, though he was not expert
in the particular TCE contamination. The lower court performed an exhaustive analysis and concluded that the
government’s waste had not migrated to the site.
• In Hobart
Corporation v. Waste Management of Ohio, Inc., No. 3:10-cv-195
(S.D. Ohio February 8, 2013), Judge Rice of the federal district court for the
Southern District of Ohio granted a motion to dismiss a CERCLA Section 107
action, because the party had entered into an administrative settlement. Its agreement with the government
explicitly said it was such a settlement. Consequently, the plaintiff was limited to a CERCLA contribution action,
which was time-barred under the statute.
• In The
Narragansett Electric Company v. American Home Assurance Company,
No. 11 Civ.
8299 (PKC) (S.D.N.Y. February 1, 2013), Judge Castel of the federal district
court for the Southern District of New York granted in part and denied in part
a motion to dismiss claims for insurance coverage. After resolving choice of law issues,
the court found that simple migration of pollution could not be sudden and
accidental but the complaint did allege other specific events. Nor could migration even be a covered
occurrence under the policies.
• In Carolina
Power & Light Company v. Alcan Aluminum Corporation,
No. 5:08-CV-460-FL (E.D.N.C. February 1, 2013), Judge Flanagan of the federal
district court for the Eastern District of North Carolina granted a motion for
summary judgment on CERCLA liability of a transformer seller as an
arranger. The defendant sold a
useful product for fair market value. There was no specific evidence indicating that it had any intent to
dispose of a hazardous waste.
• In Carolina
Power & Light Company v. Alcan Aluminum Corporation,
No. 5:08-CV-460-FL (E.D.N.C. February 19, 2013), Judge Flanagan of the federal
district court for the Eastern District of North Carolina denied motions for
summary judgment on CERCLA liability. The court first found that evidence on the old practice of spills was
validated under an exception to the hearsay rule on evidence. In addition, disputed facts about matter
such as the substance released or NCP compliance prevented any summary judgment
in the case.
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