Cross Oil Co. v. Phillips Petroleum Co.

944 F. Supp. 787, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20539, 1996 U.S. Dist. LEXIS 16888, 1996 WL 663719
CourtDistrict Court, E.D. Missouri
DecidedOctober 11, 1996
Docket4:95CV1380-DJS
StatusPublished
Cited by12 cases

This text of 944 F. Supp. 787 (Cross Oil Co. v. Phillips Petroleum Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cross Oil Co. v. Phillips Petroleum Co., 944 F. Supp. 787, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20539, 1996 U.S. Dist. LEXIS 16888, 1996 WL 663719 (E.D. Mo. 1996).

Opinion

944 F.Supp. 787 (1996)

CROSS OIL COMPANY, et al., Plaintiffs,
v.
PHILLIPS PETROLEUM COMPANY, Defendant.

No. 4:95CV1380-DJS.

United States District Court, E.D. Missouri, Eastern Division.

October 11, 1996.

*788 John F. Arnold, Joan M. Swartz, Nelson G. Wolff, Lashly and Baer, St. Louis, MO, for plaintiffs.

Ian P. Cooper, Richard J. Paulter, Peper and Martin, St. Louis, MO, for defendant.

ORDER

STOHR, District Judge.

Pending before the Court is defendant's motion to dismiss and motion to strike certain portions of plaintiffs' first amended complaint. Plaintiffs filed their first amended complaint in seven counts and seek to recover expenses incurred in cleaning up environmental contamination on property they acquired from defendant on or about June 1, 1977.

A. Standard When Ruling on a Motion to Dismiss

In ruling on defendant's motion to dismiss for failure to state a claim, the Court must view the facts alleged in the complaint in the light most favorable to plaintiffs. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974). A motion to dismiss will not be granted merely because the complaint does not state with precision every element necessary for recovery. A complaint is sufficient if it "contain[s] allegations *789 from which an inference fairly may be drawn that evidence on these material points will be introduced at trial." 5 Charles A. Wright, Arthur R. Miller, Federal Practice and Procedure § 1216, at 159. A complaint should not be dismissed unless it "appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief." Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957); Hungate v. United States, 626 F.2d 60, 62 (8th Cir.1980). For the purpose of defendant's motion to dismiss, the Court takes all facts alleged in plaintiffs' amended complaint as true. Westcott v. Omaha, 901 F.2d 1486, 1488 (8th Cir.1990).

B. Plaintiffs' Allegations

On or about June 1, 1977, Herbert A. Cross and Delores B. Cross acquired certain realty situated in St. Louis County, Missouri ("the Property") from defendant. The Property was subsequently transferred to the Herbert A. Cross Revocable Living Trust. At all times during ownership by Herbert A. Cross, Delores B. Cross and the Revocable Living Trust, Cross Oil Company operated the Property. Prior to July 1, 1977, defendant owned the Property and operated a gasoline station and underground storage tanks on the Property.[1]

In October of 1991, Cross Oil Company learned by virtue of an environmental site assessment that some hydrocarbon contamination was present underneath the Property. The hydrocarbons constitute hazardous wastes. At no time prior to plaintiffs' acquisition of the Property did defendant disclose to plaintiffs the existence of any contamination upon the Property. A bioremediation plan has been implemented at the Property and is ongoing. The plan received approval of the Missouri Department of Natural Resources. Plaintiffs have incurred expenses in excess of $350,000 relating to cleanup of the hydrocarbon contamination underneath the Property.

C. Plaintiffs' Amended Complaint

Counts I and II

In Count I, plaintiffs seek damages from defendant pursuant to the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. § 6972. Recently, in Meghrig v. KFC Western, Inc., ___ U.S. ___, 116 S.Ct. 1251, 134 L.Ed.2d 121 (1996), the Supreme Court considered the precise issue of whether RCRA "authorizes a private cause of action to recover the prior cost of cleaning up toxic waste that does not, at the time of suit, continue to pose an endangerment to health or the environment." Id. at ___, 116 S.Ct. at 1253. The Supreme Court "conclude[d] that it does not." Id. Because plaintiffs have not pled that the hydrocarbon contamination in issue presents an imminent and substantial endangerment to health or the environment, RCRA does not provide plaintiffs with a private cause of action to recover costs for their cleanup efforts. Thus, the Court will grant defendant's motion to dismiss as to Count I.

In Count II, plaintiffs seek a declaratory judgment under RCRA stating that defendant is strictly liable to plaintiffs for the environmental cleanup costs and losses that plaintiffs have incurred and will continue to incur. As discussed above, the Supreme Court has recently held that although RCRA does not prevent a private party from recovering its cleanup costs under other federal or state laws, the limited remedies described in the statute demonstrate that "Congress did not intend for private citizens to be able to undertake a cleanup and then proceed to recover costs under RCRA." Id. at ___, 116 S.Ct. at 1256. The Court will grant defendant's motion to dismiss as to Count II.

Count III

In Count III, plaintiffs seek recovery of costs under a common law theory of strict liability. Plaintiffs allege that defendant's "maintenance of underground storage tanks and the handling, use, storage, treatment and disposal of gasoline, oil, other petroleum products and hazardous waste" constituted "an abnormally dangerous or ultra hazardous activity." Amended Complaint, ¶ 35. Plaintiffs further allege that these activities resulted in damage to the Property and caused *790 plaintiffs to incur environmental cleanup costs. Amended Complaint, ¶¶ 35-38.

The issue before the Court is a narrow one — whether a party can be held strictly liable for damage inflicted upon its own property. Although Missouri courts have not addressed the question, this Court previously confronted the exact issue in Local No. 682 Health and Welfare Trust Fund v. Whiting, No. 91-1575-C-7 (E.D.Mo. May 19, 1992). In Whiting, the plaintiffs alleged that the defendants buried hazardous waste on property previously owned and operated by the defendants, later owned and operated by the plaintiffs. The plaintiffs alleged that the burial occurred during the time the defendants owned the property. In Whiting, the Court dismissed the plaintiffs' claim based upon strict liability. The Court adopts the following reasoning from Judge Hamilton's unpublished decision:

Section 519(1) of the Restatement (Second) of Torts provides that "[o]ne who carries on an abnormally dangerous activity is subject to liability for harm to the person, land or chattels of another resulting from the activity, although he has exercised the utmost care to prevent the harm." Restatement (Second) of Torts § 519(1) (1977). This rule of strict liability was originally set forth in Rylands v. Fletcher, L.R. 1 Ex. 265 (1866). Rylands held that if a person brings something on his land which, if it escapes, is likely to do harm, that person is prima facie liable for all the damage naturally occurring if there is an escape. Id. at 279.
Missouri courts have applied the rule of strict liability narrowly. See Bennett v. Mallinckrodt, Inc.,

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944 F. Supp. 787, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20539, 1996 U.S. Dist. LEXIS 16888, 1996 WL 663719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cross-oil-co-v-phillips-petroleum-co-moed-1996.