CTS Corp. v. Waldburger

134 S. Ct. 2175, 189 L. Ed. 2d 62, 24 Fla. L. Weekly Fed. S 819, 86 A.L.R. Fed. 2d 665, 78 ERC (BNA) 1505, 44 Envtl. L. Rep. (Envtl. Law Inst.) 20125, 2014 U.S. LEXIS 3992, 82 U.S.L.W. 4443
Supreme Court of the United States·Decided June 9, 2014·No. 13–339.·Published·Cited by 207 cases

Opinion

Held : The judgment is reversed.

723 F.3d 434 , reversed.

Justice KENNEDY delivered the opinion of the Court with respect to all but Part II-D, concluding that § 9658 does not pre-empt state statutes of repose. Pp. 2182 - 2188.

(a) The outcome here turns on whether § 9658 distinguishes between statutes of limitations and statutes of repose, which are both used to limit the temporal extent or duration of tort liability. There is considerable common ground in the policies underlying the two, but their specified time periods are measured differently and they seek to attain different purposes and objectives. Statutes of limitations are designed to promote justice by encouraging *2179 plaintiffs to pursue claims diligently and begin to run when a claim accrues. Statutes of repose effect a legislative judgment that a defendant should be free from liability after a legislatively determined amount of time and are measured from the date of the defendant's last culpable act or omission. The application of equitable tolling underscores their difference in purpose. Because a statute of limitations' purpose is not furthered by barring an untimely action brought by a plaintiff who was prevented by extraordinary circumstances from timely filing, equitable tolling operates to pause the running of the statute. The purpose of statutes of repose are unaffected by such circumstances, and equitable tolling does not apply. Pp. 2182 - 2183.

(b) The text and structure of § 9658 resolve this case. Under that provision, pre-emption is characterized as an "[e]xception," § 9658(a)(1), to the regular rule that the "the statute of limitations established under State law" applies. The "applicable limitations period," the "commencement date" of which is subject to pre-emption, is defined as "the period specified in a statute of limitations." § 9658(b)(2). That term appears four times, and "statute of repose" does not appear at all. While it is apparent from the historical development of the two terms that their general usage has not always been precise, their distinction was well enough established to be reflected in the 1982 Study Group Report that guided § 9658's enactment, acknowledged the distinction, and urged the repeal of both types of statutes. Because that distinction is not similarly reflected in § 9658, it is proper to conclude that Congress did not intend to pre-empt statutes of repose.

Other textual features further support this conclusion. It would be awkward to use the singular "applicable limitations period" to mandate pre-emption of two different time periods with two different purposes. And the definition of that limitations period as "the period" during which a "civil action" under state law "may be brought," § 9658(b)(2), presupposes that a civil action exists. A statute of repose, in contrast, can prohibit a cause of action from ever coming into existence. Section 9658's inclusion of a tolling rule also suggests that the statute's reach is limited to statutes of limitations, which traditionally have been subject to tolling. Respondents contend that § 9658 also effects an implied pre-emption because statutes of repose create an obstacle to Congress' purposes and objectives, see Wyeth v. Levine, 555 U.S. 555 , 563-564, 129 S.Ct. 1187 , 173 L.Ed.2d 51 . But the level of generality at which the statute's purpose is framed affects whether a specific reading will further or hinder that purpose. Here, where Congress chose to leave many areas of state law untouched, respondents have not shown that statutes of repose pose an unacceptable obstacle to the attainment of statutory purposes. Pp. 2184 - 2188.

KENNEDY, J., delivered the opinion of the Court, except as to Part II-D. SOTOMAYOR, and KAGAN, JJ., joined that opinion in full, and ROBERTS, C.J., and SCALIA, THOMAS, and ALITO, JJ., joined as to all but Part II-D. SCALIA, J., filed an opinion concurring in part and concurring in the judgment, in which ROBERTS, C.J., and THOMAS and ALITO, JJ., joined. GINSBURG, J., filed a dissenting opinion, in which BREYER, J., joined.


Brian J. Murray, Chicago, IL, for Petitioner.

Joseph R. Palmore, for the United States as amicus curiae, by special leave of the Court, supporting the petitioner.

*2180
John J. Korzen, Winston-Salem, NC, for Respondents.

E. Thomison Holman, Adams Hendon Carson, Crow & Saenger, P.A., Asheville, NC, Richard M. Re, Jones Day, Washington, DC, Brian J. Murray, Counsel of Record, Michael F. Dolan, Dennis Murashko, Jones Day, Chicago, IL, for Petitioner.

Allison M. Zieve, Public Citizen Litigation Group, Washington, DC, John J. Korzen, Counsel of Record, Wake Forest University School of Law, Appellate Advocacy Clinic, Winston-Salem, NC, for Respondents.

Justice KENNEDY delivered the opinion of the Court, except as to Part II-D.

The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), 94 Stat. 2767 , as amended, 42 U.S.C. § 9601 et seq., contains a provision that by its terms pre-empts statutes of limitations applicable to state-law tort actions in certain circumstances. § 9658. Section 9658 applies to statutes of limitations governing actions for personal injury or property damage arising from the release of a hazardous substance, pollutant, or contaminant into the environment.

Section 9658 adopts what is known as the discovery rule. Under this framework, statutes of limitations in covered actions begin to run when a plaintiff discovers, or reasonably should have discovered, that the harm in question was caused by the contaminant. A person who is exposed to a toxic contaminant may not develop or show signs of resulting injury for many years, and so Congress enacted § 9658 out of concern for long latency periods.

It is undoubted that the discovery rule in § 9658 pre-empts state statutes of limitations that are in conflict with its terms. The question presented in this case is whether § 9658 also pre-empts state statutes of repose.

A divided panel of the Court of Appeals for the Fourth Circuit held that § 9658 does pre-empt statutes of repose. That holding was in error, and, for the reasons that follow, the judgment of the Court of Appeals must be reversed.

I

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CTS Corp. v. Waldburger, 134 S. Ct. 2175, 189 L. Ed. 2d 62, 24 Fla. L. Weekly Fed. S 819, 86 A.L.R. Fed. 2d 665, 78 ERC (BNA) 1505, 44 Envtl. L. Rep. (Envtl. Law Inst.) 20125, 2014 U.S. LEXIS 3992, 82 U.S.L.W. 4443 (U.S. 2014).

134 S. Ct. 2175 (CTS Corp. v. Waldburger) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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