Appleton Papers Inc. v. George A. Whiting Paper Co.

901 F. Supp. 2d 1113, 88 A.L.R. Fed. 2d 745, 2012 WL 4748611, 76 ERC (BNA) 1050, 2012 U.S. Dist. LEXIS 143798
CourtDistrict Court, E.D. Wisconsin
DecidedOctober 4, 2012
DocketCase No. 08-C-16
StatusPublished
Cited by1 cases

This text of 901 F. Supp. 2d 1113 (Appleton Papers Inc. v. George A. Whiting Paper Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appleton Papers Inc. v. George A. Whiting Paper Co., 901 F. Supp. 2d 1113, 88 A.L.R. Fed. 2d 745, 2012 WL 4748611, 76 ERC (BNA) 1050, 2012 U.S. Dist. LEXIS 143798 (E.D. Wis. 2012).

Opinion

DECISION AND ORDER

WILLIAM C. GRIESBACH, District Judge.

In this CERCLA contribution action, Plaintiffs have moved for summary judg[1115]*1115ment on the Defendants’ state law counterclaims, arguing (primarily) that such claims are preempted by CERCLA. Plaintiff Appleton Papers Inc. (“API”) has also moved for summary judgment on the CERCLA counterclaims brought against it. Finally, API has moved for leave to file an eighth amended complaint. For the reasons given below, the motions will be granted.

I. State Law Counterclaims

Plaintiffs’ motion argues that any state law counterclaims brought against them are preempted by the CERCLA contribution claims that have already been decided. Some of the Defendants’ counterclaims have since been dropped, but many remain. Defendant P.H. Glatfelter has counterclaims for contribution, cost recovery and indemnity; CBC Coating Inc. and WTM I Company have counterclaims for negligence and strict liability; and Menasha Corporation brings a counterclaim for creation and maintenance of a public nuisance.

Both sides rely on the Seventh Circuit’s decision in PMC, Inc. v. Sherwin-Williams Co., 151 F.3d 610 (7th Cir.1998). There, the Seventh Circuit reversed a district court’s order allowing PMC to recover, under Illinois contribution law, costs that were barred under CERCLA. PMC had undertaken past cleanup costs, but it had not submitted its proposal for public comment, which is required under the National Contingency Plan. Id. at 616. As such, the district judge ruled that the costs could not be recovered under CERCLA. Even so, the judge found that the same costs could be recoverable under state contribution law. The Seventh Circuit reversed, finding that allowing recovery of such costs under state law would nullify or circumvent CERCLA’s explicit requirements under the National Contingency Plan.

The analogy to this case is straightforward. I have ruled that the Defendants may not receive contribution for OU1 costs because NCR is not liable under CERCLA for discharges to OU1, a waterway upstream of its facilities. A trial confirmed that it was not liable as an arranger for that portion of the Site. Allowing the Defendants to obtain through state law claims what they failed to achieve through CERCLA would undermine CERCLA’s complex scheme for apportioning the expenses that arise from a cleanup action. Just as in PMC, CERCLA denied relief to the Defendants because the costs simply were not recoverable under CERCLA. Allowing them to recover costs that CERCLA denied — costs that arise because of CERCLA — would certainly undermine CERCLA itself, just as in PMC.

One important factor that courts may consider is the genesis of the outlays that are sought to be recovered. If the funds were expended pursuant to CERCLA, and if CERCLA itself provides a scheme for reapportioning those funds, then allowing a state law claim to essentially re-reapportion those funds in a way CERCLA did not intend would pose a conflict. Thus, cases involving state law claims for contribution, such as PMC, find a conflict rather easily and bar the state law claims. The Defendants protest that their claims here are not “shadow” contribution claims brought under state law but independently viable state law claims such as negligence and nuisance. Because they are not contribution claims, they would not “undermine” CERCLA but would merely supplement its reach. Niagara Mohawk Power Corp. v. Chevron U.S.A., Inc., 596 F.3d 112, 138 (2nd Cir.2010) (“CERCLA is not such a comprehensive scheme that it cannot be supplemented by state law.”) But what “supplements” a federal law is sometimes in the eye of the beholder. If a state law gives something that the federal [1116]*1116law explicitly takes away, that is not a supplement but a conflict.

Section 113 is intended to standardize the statutory right of contribution and, in doing so, avoid the possibility of fifty different state statutory schemes that regulate the duties and obligations of non-settling PRPs who might be viewed as tortfeasors under the law of any particular state. Based on the text, § 113 was intended to provide the only contribution avenue for parties with response costs incurred under CERCLA.

Id. at 138.

The question is thus whether the state law claims — even if they are not “contribution” claims as such — would effectively reapportion costs incurred under CERCLA in a fashion that CERCLA itself would not countenance. That is, even if the claims are not called contribution claims, are they gmsi-contribution claims that would have the same effect of redistributing the very same costs? Here, I conclude that the state law claims would have just that effect: the costs at issue arose under CERCLA and were subject to reallocation through contribution. This is true whether the claims are described as torts, nuisance or contribution claims. As such, a state law claim purporting to achieve a different allocation of those same funds would pose a conflict.

The Defendants say that because CERCLA did not “allocate” the OU1 costs here (because the Plaintiffs were not found liable for those costs), there should be no conflict. In essence, the Defendants seek to benefit from the fact that they lost on the question of OU1 liability, as though that makes their anti-preemption argument stronger. But that is the point of preemption: what CERCLA takes away, state law claims cannot give back. Here, the costs at issue were incurred under CERCLA and were allocable, it was just that a zero percent share was allocated to the Plaintiffs given their lack of liability for OU1. The Defendants’ view seems to be that if this Court had found Plaintiffs liable for OU1 and had entered an allocation of liability (regardless of the amount), then there would be an obvious conflict. But because I found no liability at all under CERCLA for OU1, the statute is “inapplicable” and thus there is no conflict. But saying that one party is not “liable” under a statute does not mean the statute was not “applicable”; instead, the Court applied CERCLA and found no liability, which for preemption purposes is functionally equivalent to apportioning a zero percent share. If the Defendants’ state law claims went forward, it would indeed undermine this Court’s conclusion regarding the proper share of such CERCLA costs, regardless of how the Defendants describe their claims. The costs at issue resulted from CERCLA itself, a statute that provides its own mechanism for redistributing such costs. The Second Circuit came to a similar conclusion in Niagara: “NiMo makes no claims for cleanup costs outside of those it expended in compliance with the Consent Order and we have already determined that costs incurred pursuant to the Consent Order, as amended, fall within CERCLA. Because NiMo did not incur costs outside of CERCLA, NiMo has no grounds for contribution under New York law.” Id. at 139.

Defendant CBC Coating has a somewhat different take, because, as an OU2 company, it has been awarded its response costs and it did not seek any OU1 costs.

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Bluebook (online)
901 F. Supp. 2d 1113, 88 A.L.R. Fed. 2d 745, 2012 WL 4748611, 76 ERC (BNA) 1050, 2012 U.S. Dist. LEXIS 143798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appleton-papers-inc-v-george-a-whiting-paper-co-wied-2012.