Environmental Transportation Systems, Incorporated v. Ensco, Incorporated

969 F.2d 503, 146 A.L.R. Fed. 685, 22 Envtl. L. Rep. (Envtl. Law Inst.) 21361, 35 ERC (BNA) 1209, 1992 U.S. App. LEXIS 17417
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 30, 1992
Docket91-1847
StatusPublished

This text of 969 F.2d 503 (Environmental Transportation Systems, Incorporated v. Ensco, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Environmental Transportation Systems, Incorporated v. Ensco, Incorporated, 969 F.2d 503, 146 A.L.R. Fed. 685, 22 Envtl. L. Rep. (Envtl. Law Inst.) 21361, 35 ERC (BNA) 1209, 1992 U.S. App. LEXIS 17417 (7th Cir. 1992).

Opinion

969 F.2d 503

35 ERC 1209, 22 Envtl. L. Rep. 21,361

ENVIRONMENTAL TRANSPORTATION SYSTEMS, INCORPORATED, also
known as Environmental Transportation Services,
Incorporated, an Oklahoma corporation, and Canal Insurance
Company, a South Carolina corporation, Plaintiffs-Appellants,
v.
ENSCO, INCORPORATED, an Arkansas corporation, both
individually and as successor in interest to Energy Systems
Company, an Arkansas corporation, and Northern States Power
Company, a Minnesota corporation, Defendants-Appellees.

Nos. 91-1847, 91-2216.

United States Court of Appeals,
Seventh Circuit.

Argued Jan. 22, 1992.
Decided July 30, 1992.

Robert J. Noe, Bozeman, Neighbour, Patton & Noe, Moline, Ill., William D. Pettigrew, argued, Linda G. Alexander, Niemeyer, Noland & Alexander, Oklahoma City, Okl., for Canal Ins. Co., Environmental Transp. Systems, Inc. in No. 91-1847.

Gabriel M. Rodriguez, argued, Sheldon A. Zabel, Schiff, Hardin & Waite, Chicago, Ill., Willis Conkhite, III, Little Rock, Ark., for Ensco, Inc., Energy Systems Co., and N.S.P. Co.

Robert J. Noe, Bozeman, Neighbour, Patton & Noe, Moline, Ill., Linda G. Alexander, Kenneth D. Upton, Jr., William D. Pettigrew, argued, Niemeyer, Noland & Alexander, Oklahoma City, Okl., for Canal Ins. Co., Environmental Transp. Systems, Inc., in No. 91-2216.

Before COFFEY and KANNE, Circuit Judges, and WOOD, Jr., Senior Circuit Judge.

HARLINGTON WOOD, Jr., Senior Circuit Judge.

Environmental Transportation Systems, Incorporated and its insurer, Canal Insurance Company, appeal the district court's decision to allocate to Environmental Transportation Systems, Incorporated the entire cost of cleaning up a spill of poly-chlorinated biphenyl dielectric fluid arising from a single vehicle accident that occurred on an Illinois interstate highway interchange ramp in November 1984. 763 F.Supp. 384 (C.D.Ill.1991). Environmental Transportation Systems, Incorporated and Canal Insurance Company brought a contribution action contending that ENSCO, Incorporated and Northern States Power Company are responsible for some of the cleanup costs because both entities are strictly liable under the Comprehensive Environmental Response and Liability Act. Environmental Transportation Systems, Incorporated also contends that ENSCO, Incorporated is partially at fault for the spill for allegedly failing to comply with certain Department of Transportation regulations. We affirm the district court's decision.

BACKGROUND FACTS

In 1984 Northern States Power Company ("Northern States") contracted with ENSCO, Incorporated ("ENSCO"), an Arkansas waste disposal firm, to remove and dispose of approximately 100 out-of-service electrical transformers containing poly-chlorinated biphenyl ("PCB") dielectric fluid.1 At that time ENSCO had an agreement with Environmental Transportation Systems, Incorporated ("ETS"). Under the agreement ETS provided tractors, flat-bed trailers equipped with spill-containment measures, and drivers. ETS also provided all necessary insurance.

The agreement between ENSCO and Northern States provides that the transformers would be shipped to ENSCO's disposal facility without first draining the transformers of the PCB-laced mineral oil they contained. The transformers were not packaged in any special manner for shipment. They were loaded onto ETS trucks by crane. The ETS trailers were modified by welding a lip around the outer edge of the flat-bed trailer in order to create a tub around the transformers. The tub did not contain any absorbent material. Presumably it was hoped that the tub would contain any PCBs that happened to leak out of the transformers during shipment. All of these specifications were negotiated between Northern States and ENSCO; ETS did not participate in the decision to haul the PCB-filled transformers to the disposal site instead of first draining the transformers and then hauling the PCBs in a tank truck.

On November 9, 1984, Ronald Fresh, an ETS driver, was hauling a load of three Northern States transformers on a modified flat-bed trailer. Fresh exited Interstate 74 and was entering Interstate 80 near Moline, Illinois when he lost control of his rig. When Fresh drove onto the interchange, he did not know the road had an "S" curve, so after negotiating the first curve he found he was not in proper position to get around the second one. He ended up driving off the road, and the truck flipped over on its side. One of the transformers punctured a second one and approximately 100 gallons of PCBs spilled. Fresh testified in a deposition that an Illinois state trooper arrived at the accident site within fifteen minutes. The state trooper issued Fresh a citation for driving too fast for conditions, and Fresh later pleaded guilty to the charge.

After the accident state troopers kept Fresh for two hours before they finally allowed him to call his contact at ETS. ETS in turn notified ENSCO because ETS did not have the capability to make the proper response. An emergency response unit from ENSCO arrived after several hours. Cleanup of the site took place over the next few months. ENSCO paid for and supervised this cleanup.2 Northern States did not help in the cleanup, nor did it bear any of the costs associated with cleaning up the spill.

ETS submitted a claim to its insurer, Canal Insurance Company ("Canal"), for the amount of ETS's reimbursement to ENSCO. Canal did not honor the claim. Eventually three lawsuits arising out of litigation between ETS and Canal were settled, and Canal agreed to pay approximately half of ETS's claim. During the litigation, ETS's vice-president, David Kennedy, stated in an affidavit that the "sole cause of the accident was the vehicle being driven at an excessive speed as it attempted to negotiate a curved exit/access ramp." Kennedy also concluded after conducting an investigation of the accident:Based upon the investigation performed by ETS, it has no basis in fact to assert that anyone else other than its own employee [Fresh, the driver] is responsible for the accident and the resulting PCB spill. ETS has determined the speed of its driver was excessive for the conditions and posted limits. There is no indication inclement weather was present or contributed in any way to the accident.

Kennedy was installed as vice-president after the accident, and he made these conclusions solely by reviewing records of the accident.

In January 1989, ETS and Canal (hereafter collectively referred to as "ETS") filed a lawsuit against ENSCO and Northern States. In the count relevant to this appeal, ETS demanded from ENSCO and Northern States pro rata shares in contribution for cleanup costs under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). ETS moved for summary judgment on July 17, 1990, asserting that ENSCO and Northern States were liable as a matter of law under CERCLA and that the court should apportion cleanup costs equally among the parties because the parties' relative responsibility could not be diffused in any objective fashion.

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969 F.2d 503, 146 A.L.R. Fed. 685, 22 Envtl. L. Rep. (Envtl. Law Inst.) 21361, 35 ERC (BNA) 1209, 1992 U.S. App. LEXIS 17417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/environmental-transportation-systems-incorporated-v-ensco-incorporated-ca7-1992.