AM International, Inc. v. International Forging Equipment

743 F. Supp. 525, 21 Envtl. L. Rep. (Envtl. Law Inst.) 20332, 31 ERC (BNA) 1659, 1990 U.S. Dist. LEXIS 9023, 1990 WL 103154
CourtDistrict Court, N.D. Ohio
DecidedJune 29, 1990
DocketC88-2037
StatusPublished
Cited by18 cases

This text of 743 F. Supp. 525 (AM International, Inc. v. International Forging Equipment) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AM International, Inc. v. International Forging Equipment, 743 F. Supp. 525, 21 Envtl. L. Rep. (Envtl. Law Inst.) 20332, 31 ERC (BNA) 1659, 1990 U.S. Dist. LEXIS 9023, 1990 WL 103154 (N.D. Ohio 1990).

Opinion

MEMORANDUM OPINION AND ORDER

JOINER, District Judge.

This matter comes before the court on motion of the remaining defendants in this case, Euclid Industrial Center (EIC), International Forging Equipment Corp. (IFE), and Robert T. Dziak (Dziak), for summary *526 judgment. The relationship between the parties began in 1979, when plaintiff AM International, Inc. (AMI) decided to do a sale and partial leaseback of property it had owned in Euclid, Ohio, for some years. The portion of the property leased back contained its plant, where AMI had, inter alia, a machine shop and plating, heat-treating, and painting operations. The purchaser of the property was D & B Realty, of which Dziak and Donald Diemer (Diem-er) are co-owners. On December 30, 1981, the obligations of D & B to AMI were assumed by Dziak, doing business as EIC.

In 1982, AMI announced that it would cease operations at the Euclid facility when its lease ran out in the fall. After the close of operations, on October 19, 1982, AMI entered into an asset purchase agreement with IFE, another of Dziak’s corporate incarnations. IFE agreed to buy certain of AMI’s assets, “as is, where is,” including the plating and painting operations. The contractual relationship between AMI and EIC, Dziak, Diemer and D & B Realty, culminated in April 1984, pursuant to an agreement under which EIC paid AMI $2.3 million as accord and satisfaction, and AMI gave a release of all claims to EIC and Dziak.

In 1986, the Ohio Environmental Protection Agency (OEPA) notified Dziak that remedial action was necessary to clean up toxic wastes at the Euclid Industrial Center. Dziak refused to undertake the cleanup. OEPA then requested AMI to clean up the site. AMI hired Huff & Huff, Inc. (H & H) to do the clean-up, for which AMI paid H & H just over $350,000.

AMI then brought suit against D & B Realty, EIC, IFE, Dziak and Diemer. AMI here makes two claims: one for contribution under the Comprehensive Environmental Response, Compensation & Liability Act, 42 U.S.C. section 9601 et seq. (1987) (CERCLA), and one for unjust enrichment and quasi-contractual damages, state-law causes of action. Defendants joined H & H as a third-party defendant, and counterclaimed for breach of the lease agreement, damage to their property by AMI and H & H, and indemnification pursuant to the release agreement. A voluntary dismissal has been entered as to D & B and Diemer.

The above facts are uneontested. The further set of facts which AMI sets forth in its exhibits, and which we must accept for purposes of this motion for summary judgment, are as follows. AMI states that when it abandoned the premises, it left not only equipment, but also certain chemicals used in the painting and plating processes, at the insistence of Dziak. AMI left the chemicals in proper storage vessels, and under proper storage conditions.

The facilities began to deteriorate after AMI’s departure. A portion of the roof caved in, and some flooding occurred on several occasions. AMI admits that the chemicals which it left behind were hazardous chemicals, but states that no clean-up would have been necessary were it not for the negligent care which was taken of the chemicals following its departure.

AMI also states that not all of the waste which it cleaned up was the result of negligent care of its chemical-storage facility. It is uncontested that some of the waste was in drums labelled “Yamalube,” suggesting that it belonged to a subsequent tenant of the property, Yamaha. AMI contends that other amounts of waste were also generated by subsequent tenants.

I. Summary Judgment

Summary judgment is appropriate “[wjhere the moving party has carried its burden of showing that the pleadings, depositions, answers to interrogatories, admissions and affidavits in the record, construed favorably to the nonmoving party, do not raise a genuine issue of material fact for trial.” Gutierrez v. Lynch, 826 F.2d 1534, 1536 (6th Cir.1987); Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); see Fed.R. Civ.P. 56(c). “[Tjhere is no issue for trial unless there is sufficient evidence favoring the nonmoving party for a jury to return a verdict for that party. If the evidence is merely colorable, or is not sufficiently probative, summary judgment may be granted.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249-50, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986) (citations omitted). *527 McKee v. Cutter Laboratories, Inc., 866 F.2d 219, 220 (6th Cir.1989).

II. CERCLA

AMI’s federal cause of action seeks contribution from defendants for its remedial actions at the Euclid site. CERCLA, enacted hastily in the closing weeks of the 96th Congress, was intended to fund and provide enforcement mechanisms for the clean-up of property containing environmental hazards. In view of the often mul-ti-million dollar cost of cleaning up environmentally-contaminated property, Congress cast an exceedingly broad, strict-liability net. The scope of CERCLA liability serves to encourage private remedial initiative as to existing sites, to discourage careless disposition of toxic wastes, and not least to ensure the vigilance of those whose proximity to generators of toxic substances creates the potential for liability, who also occupy the most advantageous positions from which to monitor these entities. CERCLA section 107(a) details the scope of liability:

Notwithstanding any other provision or rule of law, and subject only to the defenses set forth in subsection (b) of this section—
(1) the owner and operator of a vessel or a facility,
(2) any person who at the time of disposal of any hazardous substance owned or operated any facility at which such hazardous substances were disposed of,
(3) any person who by contract, agreement, or otherwise arranged for disposal or treatment, or arranged with a transporter for transport or disposal or treatment, of hazardous substances owned or possessed by such person, by any other party or entity, at any facility or incineration vessel owned or operated by another party or entity and containing such hazardous substances, and
(4) any person who accepts or accepted any hazardous substances for transport to disposal or treatment facilities, incineration vessels or sites selected by such person, from which there is a release, or a threatened release which causes the incurrence of response costs, of a hazardous substance, shall be liable

42 U.S.C.

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743 F. Supp. 525, 21 Envtl. L. Rep. (Envtl. Law Inst.) 20332, 31 ERC (BNA) 1659, 1990 U.S. Dist. LEXIS 9023, 1990 WL 103154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/am-international-inc-v-international-forging-equipment-ohnd-1990.