City of Neodesha v. BP Corp. North America, Inc.

334 P.3d 830, 50 Kan. App. 2d 731, 2014 Kan. App. LEXIS 60
CourtCourt of Appeals of Kansas
DecidedAugust 22, 2014
Docket109111
StatusPublished
Cited by12 cases

This text of 334 P.3d 830 (City of Neodesha v. BP Corp. North America, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Neodesha v. BP Corp. North America, Inc., 334 P.3d 830, 50 Kan. App. 2d 731, 2014 Kan. App. LEXIS 60 (kanctapp 2014).

Opinion

Hill, J.:

Everything in our world moves. This means the pollutants and poisons produced by a century of oil refining rarely stay in one place, safely secured in some snug unseen underground cell. Instead, such noxious compounds slowly migrate, leaching from one substratum to another. No neighbor is safe from this march of toxins. These‘moving subsurface fields of pollution, euphemistically called “plumes” by some, are dangerous for these feathers are toxic.

Fortunately, what is done by human effort can be, for the most part, undone by human effort. Messes can be cleaned up. Pollutants, even those buried deep below the surface, unseen but nonetheless lethal, can be diverted, contained, and reduced. When engaged in such efforts, questions arise. Is there pollution at this site? If so, what are the pollutants and how extensive is the danger? *734 What can be done to protect the public? Finally, who is going to pay for these measures?

When a group of citizens, some businesses, and two local governments sued BP Corporation North America (BP), a company that owns a closed oil refinery in Neodesha, Kansas, they sought answers to those questions. After a 17-week jury trial, the jury determined that BP was not legally responsible to do more tiran what it was already doing.

In an interlocutory appeal of the trial court’s posttrial order granting a new trial to the Plaintiffs on the theory of strict liability, the Kansas Supreme Court reversed, holding the Plaintiffs were not entitled to a new trial on that theory. Upon the case’s return to the district court, the Plaintiffs moved for a new trial for many reasons. This appeal arises from the trial court’s denial of that motion.

Historical Background

When the Supreme Court reviewed this case, the court offered a detailed history, beginning in 1897, of the background of this growing environmental problem. We need not repeat all of those facts here. See City of Neodesha v. BP Corporation, 295 Kan. 298, 300-02, 287 P.3d 214 (2012) (Neodesha I).

In late 2002, certain city officials began questioning BP’s remediation efforts. Several officials and citizens visited Sugar Creek, Missouri, another site where BP had been remediating wastes from a former refineiy. It was at this time the City of Neodesha (the City) retained the services of the Technical Outreach Services for Communities (TOSC) group, an advisory group from Kansas State University, to review BP and Kansas Department of Health and Environment materials and educate the City about the issues.

In the summer of 2003, an advisory group composed of various representatives of Neodesha industry, citizenry, and governmental entities held meetings with BP and Department of Health and Environment officials concerning the environmental conditions around the old refineiy. The group unanimously approved BP’s proposed “Corrective Action Study” that created a detailed cleanup plan. About that same time, Neodesha’s mayor and city *735 administrator requested that BP provide financial “reinvestments” within the City that did not directly tie into the ongoing remediation work. In light of the City’s request, BP formed a working group in an effort to negotiate a settlement. When subsequent negotiations failed, this lawsuit followed.

This Lawsuit Was Large in Scope.

In March 2004, the City filed this action on behalf of itself and all other real property owners in Neodesha. The trial court granted the Plaintiffs’ motion for class certification, defining the class as “[a]ll persons and entities who owned real property on or after March 19, 2004, which has been exposed to or otherwise suffered economic harm from the hazardous wastes released from the [BP] operations in and around Neodesha, Kansas.” Although the Plaintiffs’ petition was amended several times, the allegations against BP ultimately included claims of negligence, strict liability, nuisance, trespass, violation of K.S.A. 65-6203 (a statute creating legal liability for accidental release or discharge of materials detrimental to water or soil), unjust enrichment, fraudulent concealment/fraud by silence, breach of fiduciary duty, and breach of contract. The Plaintiffs also sought declaratory and injunctive relief.

The Plaintiffs based their claims on allegations that BP and its predecessors released petroleum, petroleum products, and hazardous substances into the soil and groundwater from the refinery which was located within the city. The Plaintiffs also claimed that BP had failed to adequately remediate the damages created by its contamination.

The trial court granted summary judgment to BP on some issues. It ruled that the Plaintiffs could not pursue an unjust enrichment claim and that the statute of repose barred any claims regarding what had occurred when the refinery was operational.

After a 17-week trial, the jury returned a verdict in favor of BP on all counts. The Plaintiffs alleged many trial errors and jury misconduct. They sought a new trial. The trial court denied these motions. But, the trial court did grant the Plaintiffs’ motion for judgment as a matter of law on their strict liability claim. Our Supreme Court later overturned this ruling in Neodesha I, 295 Kan. *736 298. The court ruled: “Strict liability claims in tort alleging water contamination require application of the abnormally dangerous activity tests set forth in Restatement (Second) of Torts §§ 519 and 520 (1976). Language to the contrary in Koger v. Ferrin, 23 Kan. App. 2d 47, 926 P.2d 680 (1996), is disapproved.” After the mandate from the Supreme Court arrived at the district court, the court entered judgment in favor of BP on the strict liability claim and affirmed its prior denials of the Plaintiffs’ other posttrial motions.

We see three categories of attack by the Plaintiffs on the trial court’s judgments. First, tire court made many errors in its legal rulings. Next, the court failed to fully investigate the Plaintiffs’ claims of jury misconduct. And finally, the court abused its discretion in many ways during and after the trial.

Naturally, after such a long trial, we must cope with a huge record on appeal and many allegations of error. There are 203 volumes in the record on appeal, with 70 volumes of transcripts of the jury trial and more than 1,000 exhibits. We will first examine the various legal rulings that the Plaintiffs complain about. Next, we will review the question of possible jury misconduct. Finally, we will look at the many discretionary rulings made by the trial court that are the grounds for the Plaintiffs’ request for a new trial. We cannot conclude that this was a perfect trial, but we see no good reason to conclude that the court should have granted a new trial.

The Plaintiffs Argue that BP Is Strictly Liable.

Citing the “abnormally dangerous activity” standard mentioned by the Supreme Court in Neodesha 1,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ritchey v. Lewis
Court of Appeals of Kansas, 2024
Shirley Ann Carpin v. Vermont Yankee Nuclear Power Corporation
2024 VT 27 (Supreme Court of Vermont, 2024)
Approved Paving v. Paul Heinen and Assocs., Inc.
Court of Appeals of Kansas, 2021
Williams v. Ice Masters
Court of Appeals of Kansas, 2021
In re Marriage of Poggi
Court of Appeals of Kansas, 2020
City of Neodesha v. BP Corp. North America Inc.
176 F. Supp. 3d 1233 (D. Kansas, 2016)
City of Neodesha v. BP Corp.
302 Kan. 1008 (Supreme Court of Kansas, 2015)
Consolver v. Hotze
346 P.3d 1094 (Court of Appeals of Kansas, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
334 P.3d 830, 50 Kan. App. 2d 731, 2014 Kan. App. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-neodesha-v-bp-corp-north-america-inc-kanctapp-2014.