County of Suffolk v. Long Island Lighting Co.

549 F. Supp. 1250, 1982 U.S. Dist. LEXIS 17483
CourtDistrict Court, E.D. New York
DecidedOctober 27, 1982
Docket82 Civ. 2045
StatusPublished
Cited by8 cases

This text of 549 F. Supp. 1250 (County of Suffolk v. Long Island Lighting Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
County of Suffolk v. Long Island Lighting Co., 549 F. Supp. 1250, 1982 U.S. Dist. LEXIS 17483 (E.D.N.Y. 1982).

Opinion

BARTELS, District Judge.

This is a motion to remand, pursuant to 28 U.S.C. § 1447(c), an action commenced in the Supreme Court of the State of New York, Suffolk County, on June 23,1982, and removed to this Court under 28 U.S.C. § 1441(a) and (b) on the ground that it is founded on a claim or right “arising under" the laws of the United States. Defendants maintain that this Court has original jurisdiction under 28 U.S.C. §§ 1331 and 1337 1 because this action arises under the Atomic Energy Act (“the Act”), 42 U.S.C. §§ 2011 et seq., and its complementing regulations as adopted by the Nuclear Regulatory Commission (“NRC”).

I

The underlying dispute involves the construction and operation of the Shoreham Nuclear Power Station (“Shoreham”), an electric power generating facility located at Shoreham, Long Island, New York, owned by defendant Long Island Lighting Company (“LILCO”). 2 Plaintiff, County of Suffolk, a municipal corporation representing a population of over 1.3 million people, brought this action on behalf of itself and all other similarly situated LILCO ratepayers. The crux of its complaint is that Shoreham suffers from serious deficiencies in its design and construction that remain undetected because of inadequate inspection, 3 and that ratepayers have been, in effect, overcharged in order to finance the enormously escalated construction costs attributable to the wrongfully caused defects. 4 The complaint predicates liability on negligence, strict liability, breach of warranty, breach of contract, and misrepresentation and concealment. It seeks both legal and equitable relief, including enjoining the operation of Shoreham pending the *1253 outcome of a court-ordered and supervised physical inspection.

Paragraph seventeen states that defendants have “violated their statutory and common law duties of reasonable care in that they have been negligent in the design, fabrication, construction, installation, management, oversight, inspection, and testing of Shoreham.” The subparagraphs that follow elaborate on this charge in only slightly greater detail, their essence being that defendants’ negligence in all phases of the Shoreham project has led to unnecessary and unreasonable construction costs. Plaintiff also charges negligence in that

Defendants have seriously and persistently violated the NRC’s quality control (QC) and quality assurance (QA) regulations governing construction of Shore-ham. (10 C.F.R. 50.55(e) and Part 50 Apps. A, B (Subparts I to VIII), C, D, G, I) and applicable codes such as the ASME code. The pattern of QA/QC breakdowns at Shoreham has involved Shore-ham’s critical safety systems and other systems essential to reliability and economy of operation.

Id. 5

Claiming strict liability and breach of warranty, plaintiff alleges that Shoreham is defective and unreasonably dangerous, not reasonably fit for the ordinary purposes for which it was constructed, and that defendants had breached express and implied warranties that Shoreham was free of design and construction defects and fit for the purposes for which it was constructed. The injury alleged as a result of defendants’ negligence and strict liability is higher electric rates and the risk of major accident if Shoreham is allowed to operate. ¶¶ 29-32.

Asserting breach of contract and third-party beneficiary status, plaintiff in paragraph thirty-five states that defendants General Electric Corp. (“G.E.”), Stone & Webster Engineering Corp. (“S & W”), Courter & Co. (“Courter”), Dravo Utility Constructors, Inc. (“Dravo”), and ComstockJackson (“C-J”) breached their contracts with LILCO “to sell, deliver, design and construct . .. Shoreham free of defects, capable of performing safely, reliably, and economically, and at a price which did not include unnecessary and unreasonable costs caused by design and construction defects.” Finally, plaintiff asserts misrepresentation and concealment arising from LILCO’s actions in failing to disclose to the New York State Public Service Commission (“PSC”) and ratepayers design and construction defects in Shoreham which misled the PSC into enlarging LILCO’s rate base to include construction costs arising from such defects. 6 ¶¶ 40-44.

*1254 The relief sought in the complaint is threefold. The complaint (1) demands a court-ordered and supervised “design review and physical inspection of all the critical safety systems of the Shoreham plant, as such systems are defined, pursuant to NRC regulations and those systems essential to reliability and economy of operation, as such are defined pursuant to PSC regulations...,” ¶ 1A at 31; (2) seeks damages for past “overcharges” in electric rates, reflecting increases in Shoreham construction costs attributable to design or construction defects, ¶ 2 at 32 7 ; and (3) an injunction against LILCO enjoining LILCO “from commencing operation of Shoreham pending submission of the report of inspection to this court and the final disposition of any further judicial proceedings thereon.” ¶ 7 at 33.

In support of its motion, plaintiff claims that its complaint states traditional common law causes of action between private parties and therefore affords no basis for removal from state court. While conceding that the Act could preempt any state claims predicated upon the radiological safety aspects of Shoreham, plaintiff maintains that its action is a “pocketbook” action and not a “safety” action. As for the complaint’s multiple references to federal regulatory law, plaintiff maintains that alleged noncompliance therewith merely creates evidentiary issues bearing on its various state law theories of liability. It argues that the Act provides no express or implied private cause of action and that consequently, in order to assert federal question jurisdiction, the Court would be compelled to fashion a federal common law remedy which, according to the plaintiff, is prohibited by In re “Agent Orange” Product Liability Litigation, 635 F.2d 987 (2d Cir.1980), cert. denied, 454 U.S. 1128, 102 S.Ct. 980, 71 L.Ed.2d 116 (1981).

In support of removal, defendants contend that the true objective of the complaint is to regulate the safety of Shore-ham, which is peculiarly within the province of the Act and its regulations. 8

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Bluebook (online)
549 F. Supp. 1250, 1982 U.S. Dist. LEXIS 17483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-suffolk-v-long-island-lighting-co-nyed-1982.