City of West Sacramento v. R & L Business Management

District Court, E.D. California·Decided December 4, 2019·No. 2:18-cv-00900·Unknown

Opinion

1 2 3 4 5 6 7 10 ----oo0oo---- 11 12 CITY OF WEST SACRAMENTO, No. 2:18-cv-00900 WBS EFB CALIFORNIA; and PEOPLE OF THE 14 Plaintiffs, MEMORANDUM AND ORDER RE: PLAINTIFFS’ MOTION FOR 15 v. SUMMARY JUDGMENT AGAINST DEFENDANTS R AND L BUSINESS 16 R AND L BUSINESS MANAGEMENT, a MANAGEMENT, JOHN CLARK, AND California corporation, f/k/a THE ESTATE OF NICK SMITH, 17 STOCKTON PLATING, INC., d/b/a DECEASED CAPITOL PLATING INC., a/k/a 18 CAPITOL PLATING, a/k/a CAPITAL PLATING; CAPITOL PLATING, INC., 19 a dissolved California corporation; at al., 20 Defendants. 21

22 ----oo0oo---- 23 Plaintiffs City of West Sacramento, California (“the 24 City”) and the People of the State of California filed suit 25 against Defendants R&L Business Management and John Clark 26 (collectively referred to as “R&L”), the estate of Nick Smith, et 27 al., to address toxic levels of soil and groundwater 28 1 contamination resulting from the release of hazardous substances 2 at a property once occupied by a metal plating facility. Before 3 the court is plaintiffs’ motion for partial summary judgment 4 against defendants R&L and Smith. (Docket No. 95.) 5 I. Factual Background 6 During the 1940s, an automobile repair facility 7 operated at operated at 319 3rd Street, West Sacramento, 8 California (the “Property”). (Love. Decl. at 7.) Between 1940 9 and 1986, the Property was used for electroplating operations. 10 (Defs.’ Resp. to Pls.’ Statement of Undisputed Facts (“Defs.’ 11 SUF”) ¶ 70. A partnership of E. Birney Leland, Nick Smith, and 12 Frank Rosen owned and operated Capitol Plating during the early 13 1960s. (Id. at ¶ 71.) The partnership dissolved in 1963. (Id. 14 at ¶ 72.) Leland, Smith, and several others, including John 15 Clark, formed Stockton Plating, Inc. in December 1963. (Id. at ¶ 16 73.) In 1973, Smith and Clark again took over Capitol Plating. 17 Smith became president of Stockton Plating, Inc. and Clark took 18 over as general manager of the facility. (Id.; Pls.’ Mot. for 19 Summ. J. at 12.) 20 The Capitol Plating facility primarily plated chrome 21 bumpers. (Defs.’ SUF ¶ 74.) The process for plating chrome on 22 to bumpers consists of striping the bumper in acid or alkaline 23 solutions to the bare metal. (Pls.’s Mot. for Summ. J., Ex. 13 24 at 1 (Docket No. 95-15).) Before plating, the metal may be 25 ground and polished. (Id. at 2.) The surface is buffed after 26 each plating operation and after the finish coat. (Id.) Each 27 cycle involved the bumper being placed in a different tank of 28 metal solution: first, copper; then, nickel; last, chromium. 1 (Id.; Pls.’ Mot. for Summ. J. Ex. 2 (Dep. Richard Leland) at 63- 2 64.) 3 For the plating and washing cycles, a worker would 4 manually lift the bumpers, and move the bumpers between tanks 5 containing either chemicals or plain water. (Dep. Richard Leland 6 at 65-66.) The worker accomplished this by using two hooked rods 7 to hook onto the bumper and leverage it in and out of the tank. 8 (Id. at 64-65.) The bumper would be placed into a tank 9 containing a metal solution and an electrical current would be 10 applied to the tank. (Id. at 65-66.) The worker would then lift 11 the bumper from the tank and move it to the next tank in the 12 process. (Id.) 13 Due to the height of the tanks, an elevated duckboard 14 floor was built so the workers could stand in the optimal 15 position to lift and lower bumpers into the metal solutions. 16 (Pls.’ Mot for Summ. J., Ex. 1 (Dep. John Clark) at 84-85.) 17 Duckboard consisted of two-by-fours with half-inch spacers set in 18 a grid pattern on the floor to create an elevated platform 19 approximately three feet high for the workers to walk on around 20 the tank. (Id.) Any overflow from the tanks that fell through 21 the duckboard to a floor drain connected to the sewer system. 22 (Pls.’ Mot. for Summ. J., Ex. 19 at 1; Decl. John Clark at 84 23 (Docket No. 95-3).) Overflow could result, for example, from 24 bumper bolt holes holding liquid on the bumper’s way out of the 25 liquid and releasing it once the bumper was out of the liquid. 26 (Dep. John Clark at 85-86.) The duckboard would get slippery 27 with the water from the plating tanks. (Id. at 90.) The platers 28 could then slip and drop the bumpers causing the contents of the 1 tank to splash outside of the tank. (Id.) 2 If the floor drain was unable to handle the volume of 3 fluid, the plating fluids would flow out of the building through 4 a hole in the wall or through the back door where they spill out 5 onto the ground outside. (Dep. John Clark at 97-99.) When Clark 6 started as the general manager of the Capitol Plating facility, 7 he noticed that the ground outside the hole in the wall was 8 colored blue, which suggests that acidic copper was present. 9 (Dep. John Clark at 77 (Docket No. 95-3).) To prevent the 10 solutions used in the metal plating process from escaping the 11 building, Clark covered the hole in the wall with a dirt dam. 12 (Id. at 82.; Decl. John Clark at ¶ 3 (Docket No. 102-3).) The 13 dirt dam failed five to ten times before Clark decided to build a 14 concrete barrier in the dam’s place. (Dep. John Clark at 83.) 15 When the dirt wall broke, rinse water containing diluted 16 concentrations of plating fluids was likely released. (Defs.’ 17 Separate Statement at 3, ¶ 6 (Docket No. 102-2).) Clark then 18 built a concrete wall to stop fluids from exiting the facility. 19 (Decl. Adam Love at 15.) 20 The plating shop suffered two fires, one in 1973 and 21 the other in 1985. Plating operations stopped in May of 1985. 22 (Love Decl. at 8.) Capitol Plating used the property for storage 23 of bumpers until 1991. (Id.) No business has operated out of 24 the Property since then. (Id.) 25 In 1986, the California Department of Health Services 26 launched an investigation on Capitol Plating after the Sacramento 27 Bee reported that R&L was illegally dumping waste on the Property 28 (the “Site”). (Defs.’ Resp. to Pls.’ SUF at 3, ¶ 2f.) The 1 Department investigated and took samples and pictures of the 2 facility. (Id. at 3, ¶ 2g.) Later investigations at the 3 Property showed soil and groundwater contaminated with various 4 heavy metals including copper, chromium, and nickel at and 5 emanating from the Property. (Decl. Anne Farr at 7-10 (Docket 6 No. 95-27).) The levels of copper, nickel, and chromium at the 7 Site exceed federal and state regulatory limits for both 8 groundwater and soil. (Id.) 9 The City filed suit alleging, inter alia, violations of 10 the Resource Conservation Recovery Act (“RCRA”) §7002(a), 42 11 U.S.C. § 6972; the Comprehensive Environmental Response, 12 Compensation and Liability Act (“CERCLA”) § 107(a), 42 U.S.C. § 13 9607(a), and the Gatto Act, Cal. Health & Safety Code §§ 25403.1, 14 25403.5. Plaintiffs also raise claims for public nuisance and 15 declaratory relief. Plaintiffs now seek summary judgment on the 16 issue of liability on each of these claims. (Docket No. 95.) 17 II. Legal Standard 18 Summary judgment is proper “if the movant shows that 19 there is no genuine dispute as to any material fact and the 20 movant is entitled to judgment as a matter of law.” Fed. R. Civ. 21 P. 56(a). A material fact is one that could affect the outcome 22 of the suit, and a genuine issue is one that could permit a 23 reasonable jury to enter a verdict in the non-moving party’s 24 favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 25 (1986). 26 The party moving for summary judgment bears the initial 27 burden of establishing the absence of a genuine issue of material 28 fact and can satisfy this burden by presenting evidence that 1 negates an essential element of the non-moving party’s case. 2 Celotex Corp. v.

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