Emhart Industries v. CNA Holdings LLC

CourtCourt of Appeals for the First Circuit
DecidedFebruary 17, 2021
Docket19-1563P
StatusPublished

This text of Emhart Industries v. CNA Holdings LLC (Emhart Industries v. CNA Holdings LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Emhart Industries v. CNA Holdings LLC, (1st Cir. 2021).

Opinion

United States Court of Appeals For the First Circuit No. 19-1563

EMHART INDUSTRIES, INC.,

Plaintiff/Third Party Plaintiff, Appellee,

STATE OF RHODE ISLAND, by and through the Rhode Island Department of Environmental Management,

Plaintiff, Appellee,

v.

UNITED STATES DEPARTMENT OF THE AIR FORCE, et al.,*

Defendants/Third Party Plaintiffs, Appellees,

BLACK & DECKER INC.,

Third Party Plaintiff/Third Party Defendant, Appellee,

CNA HOLDINGS LLC, f/k/a CNA HOLDINGS, INC, et al.,

Third Party Defendants, Appellants.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF RHODE ISLAND

[Hon. William E. Smith, U.S. District Judge]

* Pursuant to Fed. R. App. P. 43(c)(2), Acting Secretary of the United States Department of the Air Force John P. Roth has been substituted for former Secretary Barbara M. Barrett; Acting Secretary of the United States Department of the Navy Thomas W. Harker has been substituted for former Secretary Kenneth Braithwaite; and Secretary of the United States Department of Defense Lloyd J. Austin III has been substituted for former Acting Secretary David L. Norquist. Before Barron, Circuit Judge, and Saris, District Judge.

Bryan Killian, with whom Duke K. McCall, III, Douglas A. Hastings, Morgan, Lewis & Bockius LLP, Dan Vineyard, Jennifer Caughey, and Jackson Walker LLP, were on brief, for appellants CNA Holdings LLC, et al. Joan M. Pepin, Attorney, Environment and Natural Resources Division, United States Department of Justice, with whom Jeffrey Bossert Clark, Assistant Attorney General, Eric Grant, Deputy Assistant Attorney General, Michael T. Gray, Attorney, Jerome W. MacLaughlin, Attorney, Phillip R. Dupré, Attorney, Susan Forcier, Deputy Chief Legal Counsel, Rhode Island Department of Environmental Management, Joy Sun, Eve S. Vaudo, EPA Region 1 Office of General Counsel, Michael L. Casillo, Litigation Attorney, Air Force Legal Operations Agency, and Genifer M. Tarkowski, Attorney, Naval Litigation Office, were on brief, for appellees United States, et al. Joseph W. Hovermill, with whom Joseph L. Beavers, Alexander P. Creticos, Miles & Stockbridge P.C., Christopher A. Duggan, H. Reed Witherby, and Smith Duggan Buell & Rufo LLP, were on brief, for appellees Emhart Industries, Inc., et al.

February 17, 2021

 Judge Torruella heard oral argument in this matter and participated in the semble, but he did not participate in the issuance of the panel's opinion in this case. The remaining two panelists therefore issued the opinion pursuant to 28 U.S.C. § 46(d).  Of the District of Massachusetts, sitting by designation. BARRON, Circuit Judge. This is an appeal by three

companies -- CNA Holdings LLC, Exxon Mobil Corporation, and Union

Oil Company of California -- that seek to vacate a consent decree

("the Decree") to which they were not parties but that had been

entered into by the U.S. Department of Defense, the U.S. Department

of the Air Force, and the U.S. Department of the Navy ("the federal

agencies"); Emhart Industries; the U.S. Environmental Protection

Agency ("EPA"); and the State of Rhode Island. The Decree settled

claims involving those parties under the Comprehensive

Environmental Response, Compensation, and Liability Act ("CERCLA")

and Rhode Island law regarding the responsibility for, and the

allocation of the costs of, the cleanup of a contaminated Superfund

site located in North Providence, Rhode Island ("the Site"). But,

the Decree also purported to do something of direct import for the

appellants: bar their own CERCLA claims against Emhart and the

federal agencies pertaining to the allocation of the costs of

cleaning up the Site. In seeking to overturn the District Court's

approval of the Decree, the appellants contend that it was improper

as a matter of law and that, in any event, the District Court

abused its discretion in approving it, because it failed

meaningfully to review it before doing so. We disagree and thus

affirm the District Court's ruling approving the Decree.

- 3 - I.

A.

Beginning in the 1940s,1 Metro Atlantic (the corporate

predecessor to Emhart Industries)2 manufactured textile chemicals

on nine acres on a peninsula in North Providence, Rhode Island

("the Source Area"). Emhart Indus., Inc. v. New Eng. Container

Co. (Phase I), 130 F. Supp. 3d 534, 538, 541, 542 n.18 (D.R.I.

2015). During some of those years, the company produced

hexachlorophene ("HCP") there, id. at 542, and, in the process of

manufacturing it, released 2,3,7,8-tetrachlorodibenzo-p-dioxin

("2,3,7,8-TCDD") into the ground in the Source Area and the nearby

Woonasquatucket River, id. at 540.

New England Container Company ("NECC") operated a

business reconditioning 55-gallon drums on a portion of the Source

Area beginning around 1952. Id. at 542, 547. Various entities,

including Metro Atlantic and the Department of Defense, sent drums

to NECC to be reconditioned. Id. at 547. The drums often contained

1 Our recitation of the facts is drawn from the District Court's findings of fact and conclusions of law from the first two phases of the bench trial below. See Emhart Indus., Inc. v. New Eng. Container Co. (Phase II), 274 F. Supp. 3d 30 (D.R.I. 2017); Emhart Indus., Inc. v. New Eng. Container Co. (Phase I), 130 F. Supp. 3d 534 (D.R.I. 2015). 2At the time, Metro Atlantic was called the Atlantic Chemical Company. Since the initiation of this litigation, Black & Decker, Inc., Emhart's successor-in-interest, has been added as a party. We will refer to "Emhart" only for simplicity.

- 4 - residues of the chemicals that they had carried prior to their

refurbishment. Id.

In 1996, the EPA discovered fish contaminated with

dioxin in the Woonasquatucket River. Id. at 541. Of all the

contaminants subsequently discovered at the Site, 2,3,7,8-TCDD was

not only the most toxic dioxin but also one of the most toxic

substances of any kind. Id. at 540 n.11.

In investigating the Site, the EPA identified the Source

Area as the epicenter of the contamination. Id. at 541-42. In

1999 and 2000, the EPA issued notices of potential liability for

that contamination to NECC and Emhart, respectively, as

potentially responsible parties under section 107(a) of CERCLA.

In 2000, moreover, the agency placed the Site, which consisted of

a three-mile stretch of the Woonasquatucket River and the

surrounding area, on its National Priorities List ("NPL") for

cleanup under CERCLA. Id. at 541.

B.

CERCLA "grants the President broad power to command

government agencies and private parties to clean up hazardous waste

sites." Key Tronic Corp. v. United States, 511 U.S. 809, 814

(1994). The statute provides that when there is a "release or

substantial threat of release" of "any hazardous substance," or

"any pollutant or contaminant" that "may present an imminent and

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