Chicago, Milwaukee, St. Paul & Pacific Railroad v. United States

575 F.2d 839, 216 Ct. Cl. 155, 8 Envtl. L. Rep. (Envtl. Law Inst.) 20348, 11 ERC (BNA) 1533, 1978 U.S. Ct. Cl. LEXIS 116
CourtUnited States Court of Claims
DecidedApril 19, 1978
DocketNo. 269-76
StatusPublished
Cited by6 cases

This text of 575 F.2d 839 (Chicago, Milwaukee, St. Paul & Pacific Railroad v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago, Milwaukee, St. Paul & Pacific Railroad v. United States, 575 F.2d 839, 216 Ct. Cl. 155, 8 Envtl. L. Rep. (Envtl. Law Inst.) 20348, 11 ERC (BNA) 1533, 1978 U.S. Ct. Cl. LEXIS 116 (cc 1978).

Opinion

Kunzig, Judge,

delivered the opinion of the court:

[157]*157This is an oil spill recovery case in which plaintiffs seek reimbursement in the amount of ÍIROSS.SS1 for costs they incurred in clean-up and removal of oil discharged into navigable waters of the United States. Plaintiffs, owners of the abandoned meat packing plant where the spill originated, assert that the spill was caused solely by the act of a third party and claim entitlement to recovery under Section 311(i)(1) of the Federal Water Pollution Control Act, 33 U.S.C. § 1321(i)(1) (Supp. V, 1975).2 We agree with the plaintiffs and find that they are entitled to recover.

Plaintiffs, the Chicago, Milwaukee, St. Paul and Pacific Railroad Company (Milwaukee Road) and its wholly owned subsidiary, the Milwaukee Land Company (Milwaukee Land) are corporations doing business in the State of Washington. In 1974, plaintiffs were acquiring property in connection with their plan to build a railroad switching yard; pursuant to this plan, plaintiffs purchased an abandoned meat packing plant, formerly operated by the Valley Packing Company, situated at 3602-70th Avenue East, Pierce County, near the City of Fife, Washington. Plaintiffs purchased this property (the non-operating meat packing plant) on December 31, 1974, as part of a 180-acre assemblage for their proposed railyard facility. It was plaintiffs’ intent to raze the meat packing plant, and they did, in fact, raze the entire facility in May, 1975.

[158]*158The meat packing plant had an oil-fired furnace and two oil tanks to feed it, a "main storage” tank of approximately 7,000 to 8,000 gallons capacity and a "boiler room” tank of approximately 500 gallons capacity. There was an estimated residue of some 1,500 gallons of fuel oil in the tanks on December 31, the date of purchase, and this oil was subsequently discharged ten days later, on January 10, 1975, by the actions of two criminals who dismantled sections of pipe leading from the storage tanks in order to steal certain brass fittings.3 Though the greater portion of the discharged oil was retained in a "fair-sized” pothole near the premises, some of it reached Wapato Creek and flowed into navigable waters of the United States. Upon notification of the spill, plaintiffs undertook a full clean-up and incurred the oil removal costs which are the subject of this suit.

Defendant maintains that plaintiffs are not entitled to recover their clean-up costs. Defendant points to language in the statute which requires, as a precondition to reimbursement, that the spill be caused "solely” by the action of a third person. Defendant takes the position that plaintiffs’ actions or inactions, insofar as they failed to prohibit or deter the criminals from burglarizing the plant, disassembling the pipes, and releasing the oil, were partially responsible for the spill — hence, the spill was not solely caused by the third parties.

Plaintiffs argue to the contrary. Plaintiffs urge that this oil spill was caused by the actions of criminal intruders and that plaintiffs are innocent victims of those acts. Plaintiffs assert that they or the preceding owners took all reasonable steps to protect their property and that the statute does not require more than this.4 The oil spill, plaintiffs [159]*159conclude, was caused solely by the acts of a third person within the meaning of the statute.

We agree with plaintiffs. The critical issue in this case is whether the discharge was caused solely by the third party’s act or whether the plaintiffs were partially responsible. This court has made it clear that a claimant cannot recover, even if a vandal or third party immediately caused the spillage, if the claimant does not prove that reasonable actions had been taken to prevent or forestall such intervention by the third party. Proctor Wholesale Co., Inc. v. United States, 215 Ct.Cl. 1049 (1978), City of Pawtucket v. United States, 211 Ct. Cl. 324 (1976). Thus our focus in a case such as this must be upon plaintiffs’ conduct and the standard against which we measure that conduct is "reasonable care.” We find, on the particular facts here before us, that plaintiffs in the instant case did exercise the required level of reasonable care, that the act of the criminal intruders was the sole cause of the spill within the meaning of the statute, and that plaintiffs are entitled to recover.

Our prior cases have given substance to the reasonable care standard we use to determine whether a given spill was "solely” the act of a third party or whether the claimant was partially responsible. In Pawtucket, supra, we noted that there were gaping holes in the protective fence, no lighting in the tank area, no locks, unprotected oil tank spigots, and improper drainage spouts for possible overflow oil — all of these conditions remaining some eight months after the new owner (City of Pawtucket) took possession. In Proctor, supra, we found that there was no fence, no external lighting, and, in short, no protective measures whatsoever to guard against vandalism — some forty days after the new owner (Proctor Wholesale Company) took possession. In both of those cases, we found that it "was the omissions of plaintiff [the new owner] which gave the third party easy access to the tank area and created a situation conducive to vandalism.”

We have then, in making our determination of whether the owner exercised reasonable care in similar cases, weighed such factors as the presence or absence of fences, lights, locks, and other protective measures — given the [160]*160amount of time available to the new owner to take appropriate actions. Those cases suggest an approach where the extent of care required is measured both by the condition in which the new owner finds the property and by the length of time the new owner has held it. It is in this light that we now turn our attention to the particular facts surrounding the oil spill in the instant case.

As previously noted, plaintiffs purchased this abandoned meat packing plant with the intention of razing it. The property is situated in a suburban commercial area near Fife, Washington, some ten miles outside of Tacoma. During the ten days after it purchased the facility, plaintiff Milwaukee Land began an inspection of the property. Had the inspection been completed prior to the spill (which occurred on the tenth day) it would have revealed the following: There was a boiler room in a separate small shed behind the main building. In the boiler room, behind a barred door, was an oil-fired furnace and a partially buried 500 gallon supply tank. This "boiler room” tank was connected to an outdoor 7-8,000 gallon "main storage” tank. The flow of oil from the main storage tank to the boiler room tank was controlled by two inline brass valves on the feeder pipe which connected the two tanks. Both valves were closed, and each valve handle had been protectively removed before the burglary occurred. The flow of oil from the boiler room tank to the furnace was likewise controlled by a valve which was closed. The entire assemblage was protected against accidental overflow by a capped vent pipe leading from the boiler room tank.

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Bluebook (online)
575 F.2d 839, 216 Ct. Cl. 155, 8 Envtl. L. Rep. (Envtl. Law Inst.) 20348, 11 ERC (BNA) 1533, 1978 U.S. Ct. Cl. LEXIS 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-milwaukee-st-paul-pacific-railroad-v-united-states-cc-1978.