City of Chesapeake v. Sutton Enterprises, Inc.

138 F.R.D. 468, 1990 U.S. Dist. LEXIS 19459, 1990 WL 303054
CourtDistrict Court, E.D. Virginia
DecidedOctober 10, 1990
DocketCiv. A. No. 90-1291-N
StatusPublished
Cited by2 cases

This text of 138 F.R.D. 468 (City of Chesapeake v. Sutton Enterprises, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Chesapeake v. Sutton Enterprises, Inc., 138 F.R.D. 468, 1990 U.S. Dist. LEXIS 19459, 1990 WL 303054 (E.D. Va. 1990).

Opinion

ORDER

DOUMAR, District Judge.

This matter came on for hearing on the plaintiff’s motion to remand to the state courts and his objections to the magistrate’s report, and on the motion of Richard N. Shapiro, counsel for the defendant, to withdraw his representation. The matter was fully argued in open court on October 4, 1990.

By order of this Court dated June 25, 1990, the motion to remand was referred to United States Magistrate William T. Prince to conduct hearings on the matter and to submit to the Court a report and recommendation. After hearing oral argument, Magistrate Prince recommended that the case be remanded. The defendant objected to the proposed findings of the Magistrate. The objections are OVERRULED. For the reasons set forth in Magistrate Prince’s [470]*470report and recommendation, this case is ORDERED REMANDED to the Circuit Court of the City of Chesapeake.

Simultaneously with the granting of this order, Richard N. Shapiro is WITHDRAWN as counsel for the defendant, Sutton Enterprises, Inc. Richard N. Shapiro is DIRECTED to forward a copy of this order to his client, Sutton Enterprises, Inc.

IT IS SO ORDERED.

MAGISTRATE’S REPORT AND RECOMMENDATION

WILLIAM T. PRINCE, United States Magistrate Judge.

Order of Designation

United States District Judge John A. MacKenzie, by an order entered June 25, 1990, designated the undersigned magistrate to conduct a hearing and to submit to a judge of the court proposed recommendations for disposition by the judge of plaintiff’s Motions to Remand and to Dismiss Defendant’s Counterclaim, and defendant’s Motion for Entry upon Land, Removal of Personal Property, and Temporary Injunc-tive Relief.

STATEMENT OF THE CASE

Facts as Alleged by Plaintiff

Defendant Sutton Enterprises (Sutton) operates a scrapyard in the City of Chesapeake, portions of which have become contaminated by polychlorinated biphenyls (“PCBs”), toxic materials requiring special handling and disposal in accordance with Environmental Protection Agency regulations. (Bill of Complaint, para. 3-4).

On February 6, 1990, an inspector of the Chesapeake Fire Department hand-delivered a written Notice of Violation executed by the city’s fire marshal notifying Sutton that it was in violation of Chesapeake City Code 11-8, Article 1, Sec. F-106.1-9 and Article 28, Sec. F-2801.6 and ordering Sutton to acquire a contractor certified to handle PCBs to accomplish the removal and clean-up of the contaminated portions of the property. (Bill of Complaint, para. 6). In addition, under authority of Article 1, Sec. F-106.6 of the Chesapeake City Code, the Notice ordered Sutton to evacuate the property and to discontinue operation until such clean-up was completed.

Sutton appealed this Notice of Violation to the Chesapeake Fire Prevention Appeals Board which denied the appeal. (Bill of Complaint, para. 7). Sutton did not thereafter appeal to the State Building Code Technical Review Board within the prescribed time period. (Bill of Complaint, para. 8). Sutton has failed to comply with the order of the Notice of Violation. (Bill of Complaint, para. 9).

Procedural Background

The City of Chesapeake filed a Bill of Complaint against Sutton Enterprises in the Circuit Court of the City of Chesapeake on April 10, 1990, requesting the court, pursuant to the authority vested by Va. Code Ann. § 27-101, to order Sutton to do the following:

1. Within 48 hours of the court’s order, acquire a contractor, duly licensed and certified to handle polychlorinated biphenyls who will accomplish the cleanup of the contaminated property.
2. Within 30 days of the court’s order, finish the removal and clean-up of all combustible liquids and/or other hazardous materials located on the scrapyard, including areas contiguous to the scrapyard if contaminated.

On May 7, 1990, Sutton filed a Notice of Removal removing the case to the District Court for the Eastern District of Virginia, claiming subject matter jurisdiction based upon the Supremacy Clause of the United States Constitution, 15 U.S.C. § 2601, et seq. (the Toxic Substances Control Act (TSCA)), and 42 U.S.C. § 9601, et seq. (the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or “Superfund”)). Also on May 7, 1990, Sutton filed its Answer to the Bill of Complaint setting forth affirmative defenses of preemption by Congress of the subject of the City’s cause of action and lack of statutory authority and statutory jurisdiction of the City to require Sutton to dispose of the PCBs.

[471]*471On the same date, Sutton filed a Jury Demand and a Counterclaim against the City seeking damages for losses sustained by Sutton due to the City’s illegal closure of its business. The Counterclaim also asked for a declaratory judgment that the City’s regulations were void or preempted and that the City’s clean-up requirements were void or preempted. Finally, the prayer for declaratory judgment asked the Court to declare the rights and duties of Sutton with respect to this matter.

On May 29, 1990, the City responded with a Motion to Dismiss Sutton’s Counterclaim, with supporting memorandum, and a Motion to Remand the cause of action to state court, with supporting memorandum. On June 18, 1990, the City filed a Motion for Leave to File an Amended Complaint (submitted therewith) in the event the Court rejected the Motion to Dismiss and the Motion to Remand.

On June 19, 1990, Sutton filed a Memorandum in Opposition to the Motion to Remand, a Memorandum in Opposition to the Motion to Dismiss the Counterclaim, and a Motion for Entry Upon Land, Removal of Personal Property and Temporary Injunc-tive Relief, with supporting memorandum.

On June 25, 1990, the City filed a Reply Memorandum in Support of its Motion to Remand.

A hearing on the motions was held on June 26, 1990 at which plaintiff City of Chesapeake was represented by Randy D. Singer and John Y. Pearson, Jr., of Willcox & Savage, P.C., and Kathleen A. Dooley, of the City Attorney’s Office, City of Chesapeake, and defendant Sutton Enterprises, Inc. was represented by Richard N. Shapiro, of Guy, Cromwell, Betz & Sykes, P.C.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

Plaintiffs Motion to Remand

If, at any time before final judgment on a removed case, it appears that the district court lacks subject matter jurisdiction, the case shall be remanded to the state court from which it was removed. 28 U.S.C. § 1447(c). In the instant case, diversity of citizenship does not exist, so subject matter jurisdiction, if it exists, must be predicated upon federal question jurisdiction under which district courts have original jurisdiction over civil actions arising under the Constitution, laws, or treaties of the United States. 28 U.S.C. § 1331.

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Bluebook (online)
138 F.R.D. 468, 1990 U.S. Dist. LEXIS 19459, 1990 WL 303054, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chesapeake-v-sutton-enterprises-inc-vaed-1990.