Briggs & Stratton Corp. v. CONCRETE SALES & SERVICES, INC.

990 F. Supp. 1473, 28 Envtl. L. Rep. (Envtl. Law Inst.) 20546, 46 ERC (BNA) 1373, 1998 U.S. Dist. LEXIS 690, 1998 WL 24249
CourtDistrict Court, M.D. Georgia
DecidedJanuary 21, 1998
Docket4:95-mj-00525
StatusPublished

This text of 990 F. Supp. 1473 (Briggs & Stratton Corp. v. CONCRETE SALES & SERVICES, INC.) is published on Counsel Stack Legal Research, covering District Court, M.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Briggs & Stratton Corp. v. CONCRETE SALES & SERVICES, INC., 990 F. Supp. 1473, 28 Envtl. L. Rep. (Envtl. Law Inst.) 20546, 46 ERC (BNA) 1373, 1998 U.S. Dist. LEXIS 690, 1998 WL 24249 (M.D. Ga. 1998).

Opinion

ORDER

OWENS, District Judge.

Third-party defendants Blue Bird Body Company (“Blue Bird”) and Cardinal Manufacturing Company (“Cardinal”) have filed a motion for summary judgment. Defendants/third-party plaintiffs Frances M. Coody and Timothy A McCord, Trustees of the irrevocable trust of T.A McCord (“the Trustees”) have filed a brief in response thereto. Third-party plaintiff T.A. McCord, Jr. (“McCord”) has filed a separate response in opposition to Bluebird/Cardinal’s motion.

The history of the case and the underlying facts have been provided in this court’s previous ruling in favor of third-party defendant Simplex Nails. See Briggs & Stratton Corporation v. Concrete Sales & Services, Inc., 971 F.Supp. 566 (M.D.Ga.1997). Plaintiff Briggs & Stratton filed its complaint pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, as amended (“CERCLA”), 42 U.S.C. §§ 9607(a), 9613(f), and 9613(g), seeking contribution and indemnity for response costs Briggs & Stratton incurred pursuant to an EPA administrative order requiring it to remediate environmental contamination. The environmental contamination occurred on a site owned by the third-party plaintiffs in Byron, Georgia. Third-party defendant Peach Metal Industries, Inc. (“PMI”), had leased the site from Turner Ashby McCord, Jr., for purposes of operating its metal plating and finishing business. The operation of PMI’s business resulted in the release of hazardous wastes. During the time the metal' finishing business was being operated and the hazardous wastes were being released, Bluebird/Cardinal were customers of PMI who utilized PMI’s-services for electroplating parts which were then used in Blue Bird/Cardinal’s own manufacturing business.

CERCLA authorizes suit for contribution and indemnification costs against four classes of individuals: “(1) the owners and operators of a facility at which a release or threatened release of hazardous substances exists; (2) the owners or operators of such a facility any time in the past when hazardous substances were disposed of: (3) any person or entity who “arranged for” the treatment or disposal of a hazardous substance at the facility; and (4) any persons who transported hazardous substances to the facility.” Florida Power & Light Co. v. Allis Chalmers Corp., 893 F.2d 1313, 1317 (11th Cir.1990); United States v. Aceto Agricultural Chemicals Corp., 872 F.2d 1373 (8th Cir.1989); see 42 U.S.C. § 9607(a). Section 9607(a)(3) imposes liability as an “arranger” for the disposal of hazardous substances upon:

any person who by contract, agreement, or otherwise arranged for disposal or treatment, or arranged with a transporter for transport for 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.

The Trustees and McCord filed separate third-party complaints against Blue *1477 Bird/Cardinal and other third-party defendants asserting claims under § 9607(a)(3), for which they seek contribution and indemnity pursuant to 42 U.S.C. § 9613(f). The Trustees and McCord allege that by utilizing the electroplating services of PMI, Blue Bird/Cardinal “arranged for” the disposal of hazardous wastes at the PMI site. The Trustees further allege that Blue Bird/Cardinal committed state-law trespass and waste and operated a continuing nuisance at the PMI site. McCord asserts an additional state-law claim against Blue Bird/Cardinal for active negligence.

I. Facts

Blue Bird Body Company is a manufacturer of school buses, commercial buses, and motor homes in Fort Valley, Georgia. It was owned by the Luce family during the 1960s, 1970s, and 1980s. In 1981 the Luce family formed Cardinal Manufacturing Company, which was owned and controlled by the family and Blue Bird. Cardinal was used to manufacture parts for the buses which were assembled by Blue Bird. Certain metal parts used in the manufacture of the buses needed to be electroplated or galvanized. Rather than performing this process itself, Blue Bird/Cardinal contracted with PMI to perform metal finishing services. By the time PMI ceased operations in 1987, Blue Bird/Cardinal was its biggest customer. Blue Bird/Cardinal was familiar with the metal electroplating process and knew that it necessarily involved the generation of hazardous wastes.

Blue Bird/Cardinal typically sent purchase orders and parts to PMI whenever it needed parts electroplated, specifying the type of plating materials that would be used to finish the parts and the thickness of the coating. The purchase order often referenced blueprints designed by engineers at Blue Bird/Cardinal. The purchase orders and blueprints would specify the type of electroplating or coating — for example, “cadmium plated or zinc plated,” “phosphate coating (no oil) with neutralized rinse,” or “to be plated with yellow ‘D’ chromate.” Blue Bird/Cardinal would frequently return finished parts to PMI for reworking and to be stripped of scale metal and oils, which involved removing the metal plating that had already been applied.

On the back of the purchase orders Blue Bird/Cardinal sent to PMI there was a list of terms and conditions. Paragraph 23 of the terms and conditions required PMI to comply with the provisions of the Toxic Substance Control Act (Public Law 94-4-69) and regulations and to warrant conformity to and compliance with said Act. The purchase orders also required PMI to comply with all state, federal and local laws, regulations and orders. Two specific purchase orders on forms of Blue Bird and Blue Bird Wander-lodge reflect ownership, in the third-party plaintiffs’ view, of the chemicals used in the electroplating process. The first purchase order, on Blue Bird form F-D51753 dated June 27, 1985, is addressed to Peach Metal Industries, Inc. It directs that Shipper No. 11597 ship to Blue Bird Body Company one lot of “zinc and yellow dichromate .0003” and to “expedite charges.” A handwritten notation on the form reads “confirming to AI DeGraw, Jr.” The second purchase order, dated September 16, 1976, on Blue Bird Wanderlodge Form 9017, directs that 165 lbs. of sulfuric acid be “rush” shipped to Peach Metals in Byron, Georgia.

During the period of the business relationship between the parties, a number of Blue Bird/Cardinal representatives on occasion went to PMI’s business to inspect the premises. The representatives from Blue Bird/Cardinal were able to observe the vats and tanks in which PMI’s electroplating operations were being conducted.

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Bluebook (online)
990 F. Supp. 1473, 28 Envtl. L. Rep. (Envtl. Law Inst.) 20546, 46 ERC (BNA) 1373, 1998 U.S. Dist. LEXIS 690, 1998 WL 24249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/briggs-stratton-corp-v-concrete-sales-services-inc-gamd-1998.