City of Philadelphia v. Stepan Chemical Co.

544 F. Supp. 1135, 17 ERC 1977, 12 Envtl. L. Rep. (Envtl. Law Inst.) 20915, 17 ERC (BNA) 1977, 1982 U.S. Dist. LEXIS 17889
CourtDistrict Court, E.D. Pennsylvania
DecidedAugust 4, 1982
DocketCiv. A. 81-851
StatusPublished
Cited by116 cases

This text of 544 F. Supp. 1135 (City of Philadelphia v. Stepan Chemical Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Philadelphia v. Stepan Chemical Co., 544 F. Supp. 1135, 17 ERC 1977, 12 Envtl. L. Rep. (Envtl. Law Inst.) 20915, 17 ERC (BNA) 1977, 1982 U.S. Dist. LEXIS 17889 (E.D. Pa. 1982).

Opinion

OPINION

DITTER, District Judge.

In this action, the City of Philadelphia (“the City”) seeks to recover clean-up costs and consequential damages which resulted from the illegal dumping on city property of industrial waste generated by the defendants. The suit is predicated upon numerous federal and state environmental statutes as well as several common law theories of recovery. Defendants have filed a comprehensive motion for judgment on the pleadings under Fed.R.Civ.P. 12(c) asserting that the statutes upon which the City relies do not support its claim and that, as a matter of law, they cannot be held liable on any of the common law causes of action. For the reasons that follow, the motion will be granted in part and denied in part.

“In considering a motion for judgment on the pleadings, the trial court is required to view the facts presented in the pleadings and the inferences to be drawn therefrom in the light most favorable to the nonmoving party.” Chuy v. National Football League Players’ Association, 495 F.Supp. 137, 138 (E.D.Pa.1980), quoting 5 C. Wright and A. Miller, Federal Practice and Procedure § 1368, at 690 (1969). A review of the pleadings in light of this standard reveals the following factual setting. Defendants are a number of concerns which generate industrial waste as a byproduct of their operations. At various times, each defendant contracted with either Lightman Drum Company (“Lightman”) or ABM Disposal Service Company (“ABM”) to haul and dispose of the waste. During 1974 and 1975, ABM and Lightman illegally dumped the waste at a landfill on Enterprise Avenue in Southwest Philadelphia (“the Enterprise site”) which was owned by the City and intended for use only by the City. Access to the Enterprise site was gained by bribing two City employees. The existence of substantial quantities of waste on the Enterprise site was discovered by City officials in 1979. Criminal convictions were obtained against the employees who accepted the bribes and against Lightman and its president, Jerome Lightman. Charges are pending against the president of ABM, Ellis Barnhouse, who is presently a fugitive. 1

The City alleges that as a result of this illegal dumping, the soil at the Enterprise site has been contaminated and the adjacent Delaware River and groundwater underlying the site have been polluted. This has obligated the City to commence a comprehensive clean up program having an estimated cost of $10 million. In addition, a sewage sludge recycling center which is scheduled to be built on the Enterprise site has been postponed indefinitely, a delay which will increase construction costs by about $20 million. The City filed a nine-count complaint seeking to recover $30 million in damages as well as civil penalties. The complaint sets forth the following claims for relief; (1) liability under the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq. (CERCLA); (2) the citizen suit provision of the Clean Water Act, 33 U.S.C. § 1365(a); (3) the federal common law of nuisance; (4) common law strict *1140 liability; (5) the Pennsylvania Solid Waste Management Act, 35 P.S. § 6018.101 et seq. (the SWMA); (6) the Pennsylvania Clean Streams Law, 35 P.S. § 691.1 et seq. (7) common law trespass and nuisance; (8) common law negligence; and (9) various provisions of the Philadelphia Code. Jurisdiction is based upon 28 U.S.C. § 1331, 42 U.S.C. § 9613(b) (granting federal courts “exclusive, original jurisdiction” of all controversies arising under CERCLA), and 33 U.S.C. § 1365(a) (granting federal courts jurisdiction over Clean Water Act actions). Jurisdiction over the state claims is pendent.

COUNT I COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT

The City’s CERCLA claim is predicated upon the statute’s liability provision, 42 U.S.C. § 9607(a). 2 That provision designates three categories of “responsible persons.” They are (1) present and former owners of hazardous substances disposal sites; (2) transporters of hazardous substances, and (3) those who arrange for the transport or disposal of hazardous substances (normally generators). 3 'These responsible persons are liable 4 for three types of costs which are incurred as the result of *1141 a release or threatened release 5 of the hazardous substances: (1) governmental response costs, (2) private response costs incurred “by any other person” consistent with the national contingency plan, 6 and (3) damage to natural resources. It can readily be seen that the three categories of “responsible persons” set forth in 42 U.S.C. § 9607(a)(1)-(4) encompass all of the principal actors in this litigation — the City owns and operates the landfill, defendants generated the hazardous substances and contracted for their disposal, and ABM and Light-man acted as transporters. Thus, had the federal or state government undertaken to clean up the Enterprise site, all of these parties arguably would be liable for the cost of removal or other remedial action under 42 U.S.C. § 9607(a)(4)(A).

*1140 (1) the owner and operator of a vessel (otherwise subject to the jurisdiction of the United States) or a facility,
(2) any person who at the time of disposal of any hazardous substance owned or operated any facility at which such hazardous substances were disposed of,
(3) 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 owned or operated by another party or entity and containing such hazardous substances, and
(4) any person who accepts or accepted any hazardous substances for transport to disposal or treatment facilities or sites selected by such person,
from which there is a release, or a threatened release which causes the incurrence of response costs, of a hazardous substance, shall be liable for—

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Bluebook (online)
544 F. Supp. 1135, 17 ERC 1977, 12 Envtl. L. Rep. (Envtl. Law Inst.) 20915, 17 ERC (BNA) 1977, 1982 U.S. Dist. LEXIS 17889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-philadelphia-v-stepan-chemical-co-paed-1982.