Arrowhead Concrete Works, Inc. v. Williams

550 N.W.2d 883, 1996 Minn. App. LEXIS 821, 1996 WL 393680
CourtCourt of Appeals of Minnesota
DecidedJuly 16, 1996
DocketNo. C7-95-2316
StatusPublished
Cited by2 cases

This text of 550 N.W.2d 883 (Arrowhead Concrete Works, Inc. v. Williams) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrowhead Concrete Works, Inc. v. Williams, 550 N.W.2d 883, 1996 Minn. App. LEXIS 821, 1996 WL 393680 (Mich. Ct. App. 1996).

Opinion

OPINION

WILLIS, Judge.

Arrowhead Concrete Works, Inc., appeals from an adverse grant of summary judgment to the Commissioner of the Minnesota Pollution Control Agency (MPCA), arguing that (1) the district court applied an incorrect [885]*885standard of review, (2) the district court affirmed the administrative penalty order on a basis different from that relied on by the Commissioner in issuing the penalty order, and (3) material facts were at issue. Arrowhead also claims that the district court erred by denying its motion for summary judgment and requests “costs of suit and reasonable attorney fees.”

FACTS

Arrowhead is located in Hermantown and manufactures concrete and concrete blocks for distribution throughout northeastern Minnesota. In May 1994, the MPCA received a citizen complaint regarding a pile of debris on Arrowhead’s property. MPCA inspector Darren Saari visited the property on May 31, 1994, and noted that the 150-200 cubic-yard pile consisted of pallets and vegetation, as well as metal, foam, carpet, insulation, and other demolition debris. Saari had no contact with any Arrowhead officials at this initial inspection.

A week later, Saari contacted a Herman-town city official to arrange a meeting on June 13, 1994, between Arrowhead and the MPCA

On June 8, 1994, at approximately 9:15 p.m., the pile of debris started burning. The Hermantown fire chief stated that while the pile burned, Jim Carlson, one of Arrowhead’s co-owners,

told [him] that the pile consisted entirely of waste pallets, that [Carlson] had intended to obtain a burning permit to burn the waste pallets, and that [Carlson] did not want the fire extinguished because it would be difficult to start on fire again if it was extinguished.

Carlson, however, claimed that he told the fire chief “to put the fire out” if necessary but, from his perspective, extinguishing the fire was “irrelevant” because “there’s nothing of value there.”1 Believing that the pile of debris contained nothing hazardous, the fire chief soaked the perimeter of the pile with water to prevent the fire from spreading and let it burn.

The pile smoldered for two days before the MPCA learned of the fire. After Saari inspected the smoldering ash pile, he immediately asked the Department of Natural Resources to extinguish the remnants of the fire.

An MPCA enforcement forum was convened, and MPCA staff person Tom Sinn recommended a nonforgivable administrative penalty of $5,300, consisting of a base penalty of $3,500 and $1,800 to reflect the economic benefit enjoyed by Arrowhead for not having to dispose of the waste. Sinn recommended making the penalty nonforgivable because “the deviation from compliance [was] serious in that the [solid waste] pile was set on fire instead of the waste being disposed of properly.” The enforcement forum adopted Sinn’s recommendation.

The MPCA issued a notice of violation letter on July 22, 1994, citing Arrowhead for failure “to obtain a permit to dispose of solid waste or to operate a solid waste management facility” in violation of Minn. R. 7001.3050, subp. 1 and Minn. R. 7001.0030.2

Arrowhead responded immediately and denied placing anything in the pile other than pallets and vegetation, starting the fire, or acquiescing in letting the fire burn.

The enforcement forum reconvened and decided that the penalty order should be based on “improper disposal of solid waste and the storage of waste without a solid waste management facility permit” with emphasis on “site/operator not having a permit and improper disposal of solid waste (burning).” The penalty recommendation remained nonforgivable and in the amount of $5,300.

No MPCA documents directly blame Arrowhead for starting the fire. In fact, an internal MPCA memorandum states that the issue of who set the fire is

not important * * *. What is important is the fact that Arrowhead did not have a [886]*886permit to store waste and they did not dispose of the waste properly at a solid waste disposal facility.

The Commissioner reviewed the penalty calculation worksheet, a draft penalty order, the July 22 letter, Arrowhead’s response, and administrative documents and issued an administrative penalty order (APO) stating that Arrowhead violated Minn.Stat. § 116.081, subd. 1, and Minn. R. 7001.3050, 7001.0030 by not obtaining a permit. The APO summarized Arrowhead’s violations as failing to “have a permit to store, process or dispose of solid waste or to operate a solid waste management facility.” The Commissioner’s APO imposed a nonforgivable $5,300 penalty.

Arrowhead petitioned for judicial review of the APO pursuant to Minn.Stat. § 116.072, subd. 7 (1994), and both parties subsequently moved for summary judgment. The district court granted summary judgment to the Commissioner, concluding that Arrowhead “allowed a large accumulation of solid waste upon its property without an appropriate permit” and therefore was subject to an administrative civil penalty. The district court determined that the penalty imposed was “not the result of any arbitrary or capricious action by the Commissioner.” This appeal followed.

ISSUES

1. Did the district court apply the correct standard of review?

2. Does the evidence support the district court’s determination that Arrowhead violated the environmental protection statute by illegally storing solid waste without a permit, and, if so, was the nonforgivable penalty justified?

3. Does the record support the Commissioner’s charge that Arrowhead illegally disposed of the debris?

ANALYSIS

Summary judgment is proper if the district court determines that, on the basis of the documents and affidavits before it, there is no genuine dispute as to material facts and either party is entitled to judgment as a matter of law. Minn. R. Civ. P. 56.03. On appeal, this court must determine “(1) whether there are any genuine issues of material fact, and (2) whether the trial court erred in its application of the law.” City of Virginia v. Northland Office Properties, 465 N.W.2d 424, 427 (Minn.App.1991), review denied (Minn. Apr. 18, 1991).

Minnesota’s environmental protection statutes vest the Commissioner with authority to issue APOs for violations of hazardous and solid waste laws. See Minn.Stat. § 116.072, subds. 1-2 (Supp.1995). The Commissioner must forgive the penalty if the violation is corrected, or, if a party has committed a repeated or serious violation, the Commissioner may “issue an order with a penalty that will not be forgiven after the corrective action is taken.” Id., subd. 5 (Supp.1995).

While the statute does not define a “serious” violation, an internal agency document, the “Penalty Calculation Worksheet,” instructs enforcers to rank the violation’s “potential for harm” and the violation’s “deviation from compliance” as minor, moderate, or serious. “Potential for harm” means the risk of actual harm, not whether actual harm occurred. The “deviation from compliance” factor involves

the extent of the violation. * * *

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Bluebook (online)
550 N.W.2d 883, 1996 Minn. App. LEXIS 821, 1996 WL 393680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrowhead-concrete-works-inc-v-williams-minnctapp-1996.