Ball v. Versar, Inc.

454 F. Supp. 2d 783, 2006 U.S. Dist. LEXIS 63358, 2006 WL 2568057
CourtDistrict Court, S.D. Indiana
DecidedSeptember 5, 2006
Docket1:01 CV 0531 DFH TAB
StatusPublished
Cited by4 cases

This text of 454 F. Supp. 2d 783 (Ball v. Versar, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ball v. Versar, Inc., 454 F. Supp. 2d 783, 2006 U.S. Dist. LEXIS 63358, 2006 WL 2568057 (S.D. Ind. 2006).

Opinion

ENTRY ON CROSS-MOTIONS FOR PARTIAL SUMMARY JUDGMENT

HAMILTON, District Judge.

This case presents a contract dispute relating to the remediation of an EPA-designated Superfund hazardous waste site in Boone County, Indiana. Plaintiffs Roy O. Ball and Norman W. Bernstein (“the Trustees”) are trustees for the fund formed by hazardous waste generators to clean up the site under an agreement with federal and state government authorities. The Trastees filed this action against defendant Versar, Inc. for breach of its contract to perform remediation services at the site.

The parties have filed essentially cross-motions for partial summary judgment. The primary issues are whether Versar fulfilled its performance obligations under the contract and, if not, whether it was excused from doing so based on an “Addi *787 tional Work” provision or a contract amendment. As explained in detail below, each motion is granted in part and denied in part. Under the express language of the contract, Versar bore almost all of the risk of uncertainties relating to hydrological and subsurface conditions at the site. The undisputed evidence shows that Ver-sar was obligated under the contract to achieve the clean-up standards mandated by the consent decree and that it failed to do so. Versar’s failure to perform was not excused by the exclusion of “Additional Work” from the scope of its responsibilities. However, Versar has presented evidence that raises a genuine issue as to whether its failure to achieve required clean-up standards was caused (and thus excused) by soil contamination below the contractual “zone of influence” of its remedial system. The parties agreed in their second amendment to the contract that that situation would excuse Versar’s failure to achieve the agreed clean-up standards. Versar has not raised a genuine issue that it is entitled to rescission or reformation of its contract based on a theory of either mutual mistake or unilateral mistake combined with inequitable conduct by the Trustees. Because its written contract is enforceable, Versar’s unjust enrichment and implied contract claims fail as a matter of law. Versar is entitled to summary judgment in its favor, however, on the Trustees! claim for breach of the contract’s forum selection clause.

Summary Judgment Standard

The purpose of summary judgment is to “pierce the pleadings and to assess the proof in order to see whether there is a genuine need for trial.” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). Summary judgment is appropriate when there are no genuine issues of material fact, leaving the moving party entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). The moving party must show there is no genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The fact that both sides have filed cross-motions does not alter this standard; the court must consider each motion independently and will deny both motions if there is a genuine issue of material fact. E.g., Heublein, Inc. v. United States, 996 F.2d 1455, 1461 (2d Cir.1993); Harms v. Laboratory Corp. of America, 155 F.Supp.2d 891, 905-06 (N.D.Ill.2001).

A factual issue is material only if resolving the factual issue might change the suit’s outcome under the governing law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A factual issue is genuine if there is sufficient evidence for a reasonable jury to return a verdict in favor of the non-moving party on the evidence presented. Id. “Where there are no genuine issues of material fact, contract interpretation is particularly well-suited for summary judgment.” Allstate Ins. Co. v. Tozer, 392 F.3d 950, 952 (7th Cir.2004) (reversing and remanding with instructions to enter summary judgment in favor of plaintiff on issue of Indiana contract law).

Facts For Summary Judgment

From 1977 until 1982, the Environmental Conservation and Chemical Corporation (“Enviro-Chem”) operated a facility in rural Boone County for processing and reclaiming solvents, oils, and other wastes from industrial clients. The accumulation and discharge of contaminated storm water, poor management of drum inventory, and several spills at the site ultimately led the United States Environmental Protection Agency (“EPA”) and the State to investigate. In 1982, a court ordered En-viro-Chem to close and environmentally secure its site.

EPA listed the Enviro-Chem site as a Superfund hazardous waste site to be ad *788 dressed by federal and state authorities and potentially responsible parties (“PRPs”). Throughout 1983 and 1984, EPA and a group of over 250 hazardous waste generator PRPs performed immediate removal and groundwater collection activities pursuant to a 1983 Consent Decree. In 1987, the EPA selected a longer-term remedy in a Record of Decision (“ROD”). The 1987 ROD called for the installation of a permanent cap over the site and a system to intercept and treat contaminated groundwater.

A steering committee for the Trustees later proposed an alternative remedial action plan involving soil vapor extraction rather than groundwater collection and treatment. See Def. Ex. 9. A soil vapor extraction (“SVE”) system operates by using vacuum pumps to extract air from a network of wells and/or trenches located throughout a vapor' extraction area. The volatile contaminants essentially evaporate from the soil and the extracted vapors are then treated before being released into the atmosphere. Free liquid in the air is collected in a separate container and pumped to an on-site storage tank for treatment and later release. In 1991, EPA revised its ROD to use the SVE remedy in the northern area of the Enviro-Chem site. See Def. Ex. 8 (“Revised ROD”). 1

Following EPA’s approval of a site remedy, Judge Noland of this court entered a negotiated Consent Decree between EPA and the PRPs. See Def. Ex. 6. The Consent Decree required the PRPs to establish a trust, to raise and administer funds, and to manage implementation of the remedial action at the Enviro-Chem site. Both the Revised ROD and the 1991 Consent Decree called for a contingent remedy in the event that the SVE system failed to clean up conditions at the site within five years.

Plaintiffs Roy O. Ball and Norman W. Bernstein are trustees for the fund created by the 1991 Consent Decree. The Trustees sought bids for remediation services and eventually accepted the bid of defendant Versar, Inc.

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454 F. Supp. 2d 783, 2006 U.S. Dist. LEXIS 63358, 2006 WL 2568057, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ball-v-versar-inc-insd-2006.