Anthony J. Nieman v. Nlo, Inc. And Nl Industries, Inc.

108 F.3d 1546, 44 ERC (BNA) 1321, 1997 U.S. App. LEXIS 5066, 1997 WL 119768
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 19, 1997
Docket95-3677
StatusPublished
Cited by194 cases

This text of 108 F.3d 1546 (Anthony J. Nieman v. Nlo, Inc. And Nl Industries, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anthony J. Nieman v. Nlo, Inc. And Nl Industries, Inc., 108 F.3d 1546, 44 ERC (BNA) 1321, 1997 U.S. App. LEXIS 5066, 1997 WL 119768 (6th Cir. 1997).

Opinions

MOORE, J., delivered the opinion of the court, in which DAUGHTREY, J., joined. KRUPANSKY, J. (pp. 1562-69), delivered a separate dissenting opinion.

MOORE, Circuit Judge.

Appellant Anthony J. Nieman appeals the district court’s grant of a motion to dismiss in favor of Appellees, NLO, Inc. (“NLO”) and NL Industries, Inc. (“NLI”), pursuant to Fed.R.Civ.P. 12(b)(6) based on the expiration of the statute of limitations. For the reasons that follow, we affirm in part and reverse in part.

I. BACKGROUND

Nieman claims that the discharge of uranium from a nuclear processing facility in Fer-nald, Ohio, has damaged and continues to damage his property. His complaint alleges violations of the Price-Anderson Act, 42 U.S.C. § 2210(n)(2) and (o), and various state law claims premised upon his allegation that on December 10, 1984, “a massive leak of uranium occurred at the Fernald plant.” Compl. ¶ 10. Specifically, Nieman claims that appellees are liable for a “continuing trespass”:

The Defendants, by and through release of uranium into the air, into the groundwater, and into the underlying aquifer have created a trespass on the property of the Plaintiff that continues to this day and will continue into the foreseeable future.

Compl. ¶ 20. Nieman argues that because he has alleged a continuing trespass, his claim is not barred by the statute of limitations despite the fact that he had notice of the discharge by 1985, when the In re Fernald [1548]*1548litigation was filed.1 Nieman filed the instant lawsuit on November 3,1994.

Appellees filed a motion to dismiss or, in the alternative, for summary judgment, arguing that Nieman’s claims were barred by the statute of limitations. Appellees argued that Nieman failed to allege that he was unaware of the release of uranium at or about the time it occurred in December 1984. Moreover, appellees point out that the pleadings from the In re Femald litigation, a class action from which Nieman was excluded in 1986 and which asserted nearly identical claims, establish that Nieman had actual notice of his claims more than four years before he filed suit. Therefore, appellees claim that Nieman’s action was barred by the four-year statute of limitations under Ohio Rev.Code § 2305.09, which both parties agree is the applicable statute of limitations.

The district court granted defendants’ motion to dismiss. Finding that the damages both past and future could have been estimated in one action, the district court found that Nieman could not state a claim for “continuing trespass.” Therefore, the district court applied the discovery rule, which normally dictates when a cause of action accrues:

“In the context of tort claims for seepage of water or oil, courts have typically concluded that the cause of action accrues from the date of the injury or from the date on which the injury became apparent or discoverable by due diligence.” Korgel v. United States, 619 F.2d 16, 18 n. 4 (8th Cir.1980). Furthermore, “where all damages both past and future can be presently estimated in one action, successive actions cannot be brought for recurring or continuing damages.” Id. at 18; see also Hamo v. Exxon Corp., slip op. no. 1143, at 1, 1982 WL 5760 (Ohio Ct.App.1982) (“Assuming that the damage is continuing, this still would not extend the four year Statute of Limitations. The Statute of Limitations, 2305.09, provides that in an action for trespassing underground, the cause accrues when the wrongdoer is discovered.”).

District Court Opinion (“Dist.Ct.Op.”) at 3-4. In determining that the damages both past and future could have been estimated in one action, the district court relied on the settlement in the class action lawsuit from which Nieman, because he was a former NLO employee, had been excluded, In re Fernald. The court also noted that the “allegation that the violation is continuing is suspect” because NLO ended its operation of the Feed Materials Production Center (“FMPC”) in 1985, but the court declined to decide this issue because it found that Nieman’s complaint was untimely for the alternative reasons stated above. Dist.Ct.Op. at 4 & n. 3.

II. STANDARD OF REVIEW

We review de novo a district court’s dismissal pursuant to Federal Rule of Civil Procedure 12(b)(6). Furthermore, we construe the complaint in the light most favorable to the plaintiff, accept as true all well-pleaded factual allegations, and determine whether the plaintiff undoubtedly can prove no set of facts in support of his claims that would entitle him to relief. Columbia Natural Resources, Inc. v. Tatum, 58 F.3d 1101, 1109 (6th Cir.1995), cert. denied, — U.S. -, 116 S.Ct. 1041, 134 L.Ed.2d 189 (1996).

III. ANALYSIS

A. Jurisdiction

Although the parties do not raise this issue, we begin our analysis with the question whether we may exercise subject matter jurisdiction over public liability actions under the Priee-Anderson Act. Section 2210(n)(2) explicitly allows for removal of public liability actions to federal court. However, it has been argued that since “the substantive rules for decision” in public liability actions are “derived from” state law rather than federal law, 42 U.S.C. § 2014(hh), the claim does not arise under a law of the United States, and therefore federal question subject matter jurisdiction is not present. At least two courts of appeals have rejected this argument and held that the Priee-Anderson Act [1549]*1549as amended provides for a federal claim and affords federal question subject matter jurisdiction. See O’Conner v. Commonwealth Edison Co., 13 F.3d 1090, 1100 (7th Cir.), cert. denied, 512 U.S. 1222, 114 S.Ct. 2711, 129 L.Ed.2d 838 (1994); Brannon v. Babcock & Wilcox Co. (In re TMI Litig. Cases Consol II) (“TMI II”), 940 F.2d 832, 857 (3d Cir. 1991) (holding that the Amendments Act “while relying for definition upon state law elements, contains the federal components necessary to survive the constitutional challenge mounted”), cert. denied, 503 U.S. 906, 112 S.Ct. 1262, 117 L.Ed.2d 491 (1992), aff'd in part and rev’d in part on other grounds, 67 F.3d 1103, 1106 (3d Cir.1995), cert. denied, - U.S. -, 116 S.Ct. 1034, 134 L.Ed.2d 111 (1996). We agree with the analysis in O’Conner and TMI II holding that federal question subject matter jurisdiction does exist.

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108 F.3d 1546, 44 ERC (BNA) 1321, 1997 U.S. App. LEXIS 5066, 1997 WL 119768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anthony-j-nieman-v-nlo-inc-and-nl-industries-inc-ca6-1997.