Abb Industrial Systems, Inc. v. Prime Technology, Inc., General Resistance, Inc., Zero-Max, Inc., Barry Wright Corporation, Pacific Scientific Company

120 F.3d 351, 27 Envtl. L. Rep. (Envtl. Law Inst.) 21335, 44 ERC (BNA) 2089, 1997 U.S. App. LEXIS 19004
CourtCourt of Appeals for the Second Circuit
DecidedJuly 25, 1997
Docket970, Docket 96-7869
StatusPublished
Cited by109 cases

This text of 120 F.3d 351 (Abb Industrial Systems, Inc. v. Prime Technology, Inc., General Resistance, Inc., Zero-Max, Inc., Barry Wright Corporation, Pacific Scientific Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abb Industrial Systems, Inc. v. Prime Technology, Inc., General Resistance, Inc., Zero-Max, Inc., Barry Wright Corporation, Pacific Scientific Company, 120 F.3d 351, 27 Envtl. L. Rep. (Envtl. Law Inst.) 21335, 44 ERC (BNA) 2089, 1997 U.S. App. LEXIS 19004 (2d Cir. 1997).

Opinion

MESKILL, Circuit Judge:

After discovering that a piece of real property that it owned was contaminated by hazardous chemicals, plaintiff sued several companies that had previously controlled the property, alleging (1) violations of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), (2) violations of the Resource Conservation and Recovery Act (RCRA), (3) common law negligence, and (4) breach of contract against the defendant that sold the property to plaintiff. The United States District Court for the District of Connecticut, Dorsey, C.J., granted summary judgment to several of the defendants. The district court then certified that its decision as to those defendants was imme *354 diately appealable pursuant to Fed.R.Civ.P. 54(b), and plaintiff appealed.

We conclude (1) that the district court properly dismissed plaintiffs CERCLA claims against those defendants, as there is no genuine issue of triable fact as to whether the dismissed defendants spilled chemicals or otherwise contaminated the property; moreover, although hazardous chemicals may have gradually spread underground while the dismissed defendants controlled the property (passive migration), we conclude that prior owners are not liable under CERCLA for passive migration; (2) that plaintiffs RCRA claims against those defendants were properly dismissed because plaintiff cannot establish either that the defendants are presently in violation of an environmental law or that the defendants contributed to an imminent environmental danger; (3) that plaintiffs negligence claims were properly dismissed because plaintiff cannot establish that the defendants contaminated the property, and (4) that the statute of limitations bars plaintiffs breach of contract claim. We therefore affirm.

BACKGROUND

I. Introduction

In September 1985, ABB Industrial Systems, Inc.’s predecessor, ASEA Industrial Systems, Inc. (hereinafter collectively referred to as “ABB”) acquired real property located at 88 Marsh Hill Road, Orange, Connecticut. Beginning in 1989, ABB had the property tested to determine whether the property was contaminated by hazardous chemicals. Those tests indicated that the property was contaminated, principally by perchloroethylene (PCE), but also by trichlo-roethene (TCE) and 1,1,1-trichloroethane (TCA), all of which are hazardous substances under CERCLA. See 40 C.F.R. § 302.4. One report indicated that “releases may have happened both recently (after 1985 when ABB Industrial Systems purchased the site) and prior to 1985.” In 1992, ABB began an extensive cleanup of the site.

Because ABB’s environmental tests indicated that the site may have been contaminated before ABB acquired it, ABB researched the property’s prior ownership and control and determined the following: (1) from 1961 to April 1984, the property was owned by defendant Pacific Scientific Co.’s predecessors, Sigma Instruments, Inc. and International Instruments, Inc. (hereinafter we refer to Pacific Scientific, Sigma Instruments, and International Instruments collectively as “Pacific”); (2) from April 1984 to July 1984, Pacific leased the property to defendant General Resistance, Inc., a division of defendant Prime Technology, Inc. (hereinafter we refer to General Resistance and Prime Technology collectively as “General Resistance”); (3) in August 1984, Pacific sold the property to defendant Zero-Max, Inc., which was then a wholly owned subsidiary of. defendant Barry Wright Corp. (hereinafter we refer to Zero-Max and Barry Wright collectively as “Zero-Max”); (4) in September 1985, Zero-Max sold the property to ABB, the current owner. Thus, the chain of ownership or control was as follows: Pacific to General Resistance to Zero-Max to ABB.

ABB sued Pacific, General Resistance and Zero-Max, alleging (1) that under CERCLA, each defendant was partially liable for the costs that ABB had incurred and would incur to assess and clean up the site, (2) that under RCRA, each defendant should be ordered to rectify past mishandling of wastes on the site, (3) that each defendant negligently contaminated the site, and (4) that Zero-Max breached a warranty that it made to ABB in their land-sale contract that the property was in compliance with all environmental laws.

II. Summary Judgment Motions

After extensive discovery, the parties made cross-motions for summary judgment and offered the following evidence.

A. Pacific — 1961 to April 1981

From 1961 to April 1984, Pacific owned the property and manufactured circuit boards on it. ABB offered the deposition testimony of several former Pacific employees that Pacific used PCE and TCE to degrease the circuit boards as part of its manufacturing process. Further, ABB offered at least two pieces of evidence which it argued demonstrated that Pacific contaminated the site. First, in 1983 *355 the Connecticut Department of Environmental Protection (CDEP) inspected the site, and in a “Hazardous Waste Inspection” report, the CDEP indicated that there was “[e]vi-denee of spills” on the property because there was “staining of the asphalt.” Second, ABB’s expert studied the site, and based on how far PCE had spread, the expert estimated that a spill of PCE occurred some time between 1971 and 1981, and that the spill most likely occurred in 1977.

The district court concluded that there were triable issues of fact as to several of ABB’s claims against Pacific, and those claims remain pending in the district court. 1

B.General Resistance — April 198k to July 198k

From April 1984 to July 1984, Pacific leased the property to General Resistance. During those four months, General Resistance’s principal activity on site was removing equipment that it had purchased from Pacific. However, General Resistance admitted that it conducted limited manufacturing on site and did not deny that it used the hazardous chemicals at issue as a part of that process.

However, General Resistance asserted that ABB could not offer any evidence that General Resistance spilled chemicals or otherwise contaminated the site. Moreover, General Resistance submitted an affidavit from its Chief Executive Officer, Raymon Ster-man, who swore that General Resistance generated a de minimis amount of hazardous waste and that the waste which it did generate was always removed by a licensed carrier. Further, Sterman specifically swore that General Resistance “never contaminated the environment or soil.”

ABB offered several pieces of evidence which it argued established that General Resistance spilled chemicals or otherwise eon-taminated the site, and we will discuss ABB’s evidence in detail below.

C. Zero-Max — August 198k to September 1985

Zero-Max purchased the property from Pacific in August 1984 and owned it until September 1985.

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120 F.3d 351, 27 Envtl. L. Rep. (Envtl. Law Inst.) 21335, 44 ERC (BNA) 2089, 1997 U.S. App. LEXIS 19004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abb-industrial-systems-inc-v-prime-technology-inc-general-resistance-ca2-1997.