Burley v. Burlington Northern & Santa Fe Railway Co.

2012 MT 28, 273 P.3d 825, 364 Mont. 77
CourtMontana Supreme Court
DecidedFebruary 7, 2012
DocketOP 11-0021
StatusPublished
Cited by22 cases

This text of 2012 MT 28 (Burley v. Burlington Northern & Santa Fe Railway Co.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burley v. Burlington Northern & Santa Fe Railway Co., 2012 MT 28, 273 P.3d 825, 364 Mont. 77 (Mo. 2012).

Opinion

JUSTICE MORRIS

¶1 The United States District Court for the District of Montana certified the following question to this Court:

¶2 With respect to the continuing tort doctrine, does Montana law, as applied to the facts set forth in Magistrate Judge Ostby’s Findings and Recommendations, toll the statute of limitations for property damage claims of nuisance and/or trespass resulting from contamination which has stabilized, continues to migrate, and is not readily or easily abatable?

¶3 Claims related to property contamination that involve issues of statutes of limitations, continuing torts, and the nature of damages, routinely face resolution in state courts of appeals. These cases often find their way to the state appellate courts through certified questions from federal courts. See e.g. Hoery v. United States, 64 P.3d 214 (Colo. 2003); Bradley v. Am. Smelting & Ref. Co., 709 P.2d 782 (Wash. 1985). We address a similar certified question in the instant case.

¶4 We accepted the certified question from the U.S. District Court and now answer the certified question with a qualified yes. We reject the U.S. District Court’s formulation that the contamination need be “readily or easily abatable” in order to constitute a continuing tort. Contamination that has stabilized in terms of quantity or concentration, but continues to migrate will toll the statute of limitations until the harm no longer reasonably can be abated. The injury should be classified as permanent once a determination has been made that the nuisance no longer reasonably can be abated. The limitations period begins to run when abatement is not reasonable or complete abatement cannot be achieved, and a permanent injury exists.

FACTUAL AND PROCEDURAL HISTORY

¶5 Burlington Northern & Santa Fe Railway Company (BNSF) and its predecessors operated the Livingston Rail Yard (Yard) in Livingston, Montana, for nearly a century until its closure in 1987. *81 BNSF’s operations released hydrocarbons and toxic solvents into the environment surrounding the Yard. These toxic pollutants migrated off the Yard into the groundwater below, onto the soil, and into the air above the neighboring properties.

¶6 The Montana Department of Environmental Quality (DEQ) conducted an investigation and remediation project in accordance with Montana’s Comprehensive Environmental Cleanup Responsibility Act (“CECRA”), § 75-10-701 et seq., MCA. BNSF has attempted to remediate some of the pollution through monitored natural attenuation. Monitored natural attenuation involves monitoring the levels of contamination in the groundwater. Sunburst Sch. Dist. No. 2 v. Texaco, Inc, 2007 MT 183, ¶ 16, 338 Mont. 259, 165 P.3d 1079. DEQ tested the soil of landowners around the Yard in 1992 and discussed the results with them.

¶7 This present group of claims comprises one of several lawsuits over BNSF’s actions in Livingston. The State of Montana, through DEQ, filed federal and state claims in federal district court in 1988. This action included a claim under CECRA. BNSF and DEQ entered into a partial consent decree in 1990. Mont. v. BNSF, U.S. District Court, CV 88-141-H-CCL (April 27,1990). The decree required BNSF to conduct a remedial investigation. The decree did not apply to “ ‘a claim by a person other than the parties’ ”to the consent decree. Mont. Dept. of Envtl. Quality v. BNSF, 623 F.3d 1312, 1315 (9th Cir. 2010) (quoting Modified Partial Consent Decree).

¶8 A group of landowners and the City of Livingston filed a separate suit in a Montana district court in 2007. The City of Livingston and the landowners sought to recover the costs of restoring the property to its pre-contaminated condition. The U.S. Court of Appeals for the Ninth Circuit recently denied BNSF’s attempt to enjoin the suit in federal district court to protect the consent decree. DEQ, 623 F.3d at 1316-17. ¶9 Plaintiffs Dave and Jeannie Burley, Dana Nelson, and Diana and Kenneth Merideth (collectively Property Owners) own property adjacent to the Yard. The Property Owners separately sued BNSF in 2007 and 2008 in federal court for damages to their property based on claims of nuisance, negligence, strict liability, trespass, wrongful occupation, unjust enrichment, restoration damages, constructive fraud/misrepresentation, and misconduct in federal court. All of these claims seek damages for contamination that has migrated from the Yard to parcels owned by the Property Owners.

¶10 BNSF filed a motion for summary judgment on the basis that the applicable statute of limitations barred the separate claims filed by *82 Property Owners. U.S. Magistrate Judge Carolyn S. Ostby recommended that the U.S. District Court grant BNSF’s motion in an order dated March 2, 2010. The Magistrate Judge found that BNSF’s contamination from the Yard had reached the properties at issue decades ago and determined that the claims had accrued by the 1990s. The Magistrate Judge further determined that Property Owners had actual knowledge of the contamination. The Magistrate Judge refused to apply the continuing tort exception. The Property Owners filed objections with the U.S. District Court.

¶11 The U.S. District Court declined to adopt the Magistrate Judge’s recommendation of summary judgment. This Court earlier had granted a petition for writ of supervisory control in Anderson v. BNSF, No. OP 10-0195. The District Court for the First Judicial District, Lewis and Clark County, had dismissed on statute of limitations grounds a nearly identical claim in Anderson as that presented here. The Magistrate Judge found persuasive the reasoning of the state district court in Anderson in light of the “strikingly similar” facts and claims as those presented by Property Owners. As a result, the U.S. District Court certified to this Court the question of whether the continuing tort doctrine should apply to the claims presented by Property Owners.

DISCUSSION

¶12 The U.S. District Court asks how the continuing tort doctrine would apply to a particular scenario with three elements. These three elements include the fact that the pollution has stabilized in terms of concentration levels, that the contamination continues to migrate, and that the parties dispute the ease of abatability of the contamination. We pause briefly to review basic principles of Montana law implicated by the certified question. We first address the contours of nuisance and trespass actions under Montana law. These principles, in turn, guide our application of the statute of limitations analysis.

Limitations on Actions for Nuisance and Trespass

¶13 A nuisance action includes “all wrongs which have interfered with the rights of a citizen in the enjoyment of property.” Haugen v. Kottas, 2001 MT 274, ¶ 15, 307 Mont. 301, 37 P.3d 672; §27-30-101, MCA. The Court defines a trespass as an intrusion on a party’s right to exclusive possession of his property. Tally Bissell Neighbors, Inc. v. Eyrie Shotgun Ranch, LLC, 2010 MT 63, ¶ 38, 355 Mont. 387, 228 P.3d 1134; Restatement (Second) of Torts §163 cmt.

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Bluebook (online)
2012 MT 28, 273 P.3d 825, 364 Mont. 77, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burley-v-burlington-northern-santa-fe-railway-co-mont-2012.