Dent v. Beazer Materials & Services, Inc.

156 F.3d 523, 1998 WL 527061
CourtCourt of Appeals for the Fourth Circuit
DecidedJanuary 21, 1998
Docket96-1148
StatusUnpublished
Cited by1 cases

This text of 156 F.3d 523 (Dent v. Beazer Materials & Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dent v. Beazer Materials & Services, Inc., 156 F.3d 523, 1998 WL 527061 (4th Cir. 1998).

Opinion

*526 Affirmed by published opinion. Senior Judge PHILLIPS wrote the opinion, in which Judge WIDENER and Senior Judge DOUMAR joined.

OPINION

PHILLIPS, Senior Circuit Judge:

This is an appeal by Beazer Materials and Services, Incorporated and Beazer East, Incorporated (Beazer) from a district court judgment finding Beazer liable in a private action brought under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), 42 U.S.C. §§ 9601, et seq ., for all past and future response costs resulting from the environmental pollution of a CERCLA “Superfund” site, and holding Beazer liable under state law for contractual and equitable indemnification of two co-defendants. We affirm.

I.

The Superfund site at issue is made up of two adjoining tracts of land on or near the Ashley River in Charleston, South Carolina. A 45-acre tract (the Koppers property) was owned from 1930 to 1977 by the Koppers Co., Inc., of which Beazer is the corporate successor. During that period, Koppers operated a large wood-treating plant on the property. The other tract of 57 acres (the Dent property) was owned from 1921 to 1963 by the American Agricultural Chemical Co. of Connecticut, from 1963 to 1972 by Continental Oil Co. (Conoco), and from 1972 to 1978, by Agrico Chemical Co. (Agrico). Until mid-1972, the successive owners of the Dent property operated a fertilizer manufacturing plant at the site. Following two intervening ownerships, this tract was bought in two parcels by George Dent in 1983 and 1986, and was thereafter owned and used for various purposes by two Dent enterprises, Southern Dredging Co., Inc. and Ashley Realty Co., Inc. (collectively, Dent). From 1963 to 1968, Beazer leased from Conoco (which assumed a prior lease) a 4-acre parcel of the Dent property that adjoined the Koppers property, for use in connection with its wood-treating operation. The lease contained an indemnification clause obligating the lessee to hold the lessor harmless from all claims arising out of the leased property’s use.

The events giving rise to this litigation began in 1985, during Dent’s ownership of the 57-acre tract. At that time, dredging of a barge canal on the Dent property released wood-treating chemicals into the Ashley River. The resulting fish-kills and other consequences of pollution attracted national publicity and led to both state and federal intervention under relevant environmental protection laws.

The state and federal environmental investigations established the critical facts — not challenged in this litigation — that for nearly 50 years Koppers’ environmentally unsound wood-treatment practices had caused an estimated five to seven million gallons of creosote to be released into the environment, including the soil of its own property and, by subsurface migration, that of the adjoining Dent property, and from there into the Ashley River. Specifically offending chemical constituents (“constituents of concern”) under relevant provisions of CERCLA and other federal environmental law were determined to be those of creosote, Koppers’ principal wood-treating agent. It is undisputed that during the time at issue, these chemicals were only released into the. area at issue by Koppers/Beazer’s wood-treating operation.

On December 5, 1989, with administrative remediation processes of the federal Environmental Protection Agency (EPA) underway as a result of the investigative findings, Dent commenced this action against, inter alia, Beazer, Conoco, and Agrico under relevant provisions of CERCLA and state law. Specifically, Dent sought recovery under CERCLA § 107(a), 42 U.S.C. § 9607(a), of any statutory response costs incurred or to be incurred as a result of the release of hazardous substances on its property, and under CERCLA § 113(g)(2), 42 U.S.C. § 9613(g)(2), a declaratory judgment establishing the defendants’ liability in any action seeking recovery of further response costs or damages related to such a release. Additionally, Dent sought recovery of compensatory and punitive damages and injunctive relief on *527 a variety of pendent state-law claims: fraud, negligence, etc.

An extended four-year period of pre-trial pleading, discovery and motion practice followed. Its full details need not be recited at this point. It suffices for immediate purposes to note that when the case finally came on for trial on September 22, 1993, the following claims, cross-claims and counterclaims had been pleaded and remained for trial: (1) Dent’s claims against Beazer under CERC-LA § 107(a) for statutory response costs, under § 113(f)(1) for contribution, and under § 113(g)(2) for declaratory judgment as to future costs, and under state law for damages and injunctive relief, and Beazer’s generally corresponding CERCLA counterclaims against Dent; 1 (2) Conoco’s cross-claims against Beazer, under CERCLA § 113(f)(1) for contribution, under § 113(g)(2) for declaratory judgment as to future response costs, and under state law for contractual or equitable indemnification of its litigation costs in defending against Dent’s claims respecting the 4-acre parcel leased to Beazer, and Beazer’s generally corresponding CERCLA counterclaims against Conoco; (3) Agrico’s cross-claims against Beazer under CERCLA § 113(f)(1) for contribution, under § 113(g)(2) for declaratory judgment and under state law for equitable indemnification of its litigation costs, and Beazer’s generally corresponding CERCLA counterclaims against Agrico.

Just before the case went to trial, the district court ruled as a matter of law that the indemnification provision in the Cono-co/Beazer lease bound Beazer to indemnify Conoco for all litigation costs incurred by Conoco in defending against any claim arising out of Beazer’s use of the leased 4-acre parcel.

On Conoco’s motion, the case was bifurcated for trial. Tried first to a jury were the factual issues underlying the Conoco and Agrico indemnification claims against Beazer. On Conoeo’s contractual indemnification claim, the jury found that Dent’s claim against Conoco did arise out of Beazer’s use of the leased parcel. On Agrico’s equitable indemnification claim, the jury found that the Dent claim against Agrico was based upon Beazer’s creosote contamination of the Dent property. Based upon these jury findings, the district court later entered judgment for both Conoco and Agrico on their respective indemnification claims for litigation costs.

Following return of the jury verdict on the indemnification claim issues, Dent and Beazer settled and dismissed all the CERCLA and state-law claims and counterclaims between those two parties. This left for resolution only the CERCLA cross-claims and counterclaims between Conoco and Beazer and between Agrico and Beazer for response costs under • § 107(a), contribution under § 133(f)(1), and declaratory judgment under § 113(g)(2).

The CERCLA cross-claims and counterclaims were tried over a four-day period from October 18 through October 21, 1993.

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156 F.3d 523, 1998 WL 527061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dent-v-beazer-materials-services-inc-ca4-1998.