GJ Leasing Co., Inc. v. Union Elec. Co.

854 F. Supp. 539, 1994 WL 246650
CourtDistrict Court, S.D. Illinois
DecidedJune 6, 1994
DocketCiv. 91-158-JPG
StatusPublished
Cited by37 cases

This text of 854 F. Supp. 539 (GJ Leasing Co., Inc. v. Union Elec. Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GJ Leasing Co., Inc. v. Union Elec. Co., 854 F. Supp. 539, 1994 WL 246650 (S.D. Ill. 1994).

Opinion

MEMORANDUM OPINION

GILBERT, Chief Judge:

This matter is before the Court following a bench trial on the plaintiffs’, G.J. Leasing Company, Inc., d/b/a Cahokia Marine Service, and S.I. Enterprises, L.P., claim against the defendant, Union Electric, seeking damages for violations of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. § 9601 et seq. The relief sought by the plaintiffs include damages equalling the plaintiffs’ response costs incurred as a result of the release or threatened release of hazardous substances at the Site, plus interest, as well as attorney’s fees and costs; and a declaratory judgment in the plaintiffs’ favor and against Union Electric (“U.E.”) holding that U.E. is liable for all response costs to be incurred by the plaintiffs in the future. The plaintiffs also seek damages in Count IV, an ultrahaz-ardous activity claim, which alleges that U.E.’s disposal of hazardous substances through the sale of the Sauget Site for the purpose of demolition was an abnormally dangerous and ultrahazardous activity. 1 *545 This Court has jurisdiction pursuant to 28 U.S.C. § 1331 and 42 U.S.C. § 9601 et seq. After considering the testimony, exhibits, arguments of counsel, and supporting memo-randa, the Court makes the following Findings of Fact and Conclusions of Law pursuant to Federal Rule of Civil Procedure 52(a).

I.Findings of Fact

The following facts have been stipulated to by the parties:

1. The plaintiff, S.I. Enterprises, L.P. is a Missouri limited partnership.

2. The plaintiff G.J. Leasing Company, Inc., d/b/a Cahokia Marine Service (“CMS”) is a Missouri corporation.

3. The defendant, Union Electric (“U.E.”) is a Missouri corporation.

4. U.E. owned a power generating facility on property located at # 1 Monsanto Avenue in Sauget, Illinois from 1923 until 1979.

5. The electric generating equipment was located in the power plant.

6. On December 21, 1978, U.E. entered into an executory contract with G & S for the sale of the Site along with certain of its equipment.

7. The sale was contingent upon U.E. obtaining consent of the Illinois Commerce Commission (“ICC”).

8. On March 29, 1979, Slay Warehousing Co., Inc., a Missouri corporation, entered into a Letter of Intent with G & S Sarnelli, for the purchase of the Sauget Site. Pursuant to the Letter of Intent, G & S and Sarnelli were to sell the real estate to Slay Warehousing and were to retain the right to remove for salvage those materials that were not necessary for the operation of a tank farm and trucking operation.

9. Sometime after April 23,1979, and before May 29, 1979, Slay Warehousing assigned its rights in the real estate contract to Eugene P. Slay and Joan Slay.

10. On May 29, 1979, U.E. sold the property to G & S for nearly $1.6 million. On the same day, G & S sold the property for $1,000,000.00 to Eugene and Joan Slay. All property was sold “as is.”

11. On or about February 3, 1988, the Slays transferred the Cahokia Site to S.I. Enterprises, L.P. by warranty deed.

The following facts are findings made by this Court:

1. Eugene Slay is the Chief Executive Officer of all the plaintiff entities. He, together with members of his family, own and control all of the plaintiff entities. Slay Industries is the umbrella organization for the plaintiff entities. (Testimony of E. Slay).

2. Mr. Slay began his career working for his father’s business, Bee Line Trucking, which specialized in local transportation and delivery services. Eventually, Slay expanded his father’s operations into tankage, trucking, barging and warehousing. (Testimony of E. Slay). Judge Paul Simon, Mr. Slay’s long time attorney, described Eugene Slay as a sophisticated and knowledgeable businessman. Slay’s companies have stored and transported a variety of other hazardous substances over the years, including such mateT rials as caustic potash, ammonium nitrate, benzene and sulfuric acid. (Testimony of Glen Slay).

3. It is Mr. Slay’s practice to rely on certain key employees, such as Ted Tahan, Paul Simon, and Ray Stratmeyer, in managing the day to day operation of his enterprise. (Testimony of E. Slay). These employees are also knowledgeable and experienced businessmen.

*546 4. For more than fifty years, U.E. generated electricity at its Cahokia Power Plant located on a 52 acre tract along the eastern bank of the Mississippi River in Sauget, Illinois. The predominant land use in the area surrounding the Site is industry, including chemical processing and toxic waste processing. (Defendant Exh.FD). However, some of the Site’s other neighbors include nightclub establishments with numerous patrons and employees.

5. The Court agrees with the plaintiffs’ expert David Schau’s testimony that, based upon his review of various U.E. health and safety documents, U.E. appeared at all times to comply with OSHA regulations regarding worker exposure. Schau further testified that he saw no evidence that U.E. violated NESHAP or OSHA regulations during its ownership of the Site. (Testimony of D. Schau).

6. U.E. knew asbestos fibers were hazardous to worker health and undertook two asbestos surveys in 1973, of Cahokia employees who had to work with asbestos. (Plaintiffs’ Exh. 8). U.E. knew, as a result of these surveys, that any handling of asbestos could cause exposures above levels set by the government. U.E. also knew that the protective gear worn by workers and methods to control releases (such as spraying water) were ineffective, under conditions where dust was prevalent, in reducing asbestos exposure to a safe level. (Plaintiffs’ Exh. 8).

7. During the plant’s operation, U.E. was meticulous about the condition of its plant, its cleanliness and its repair. As a matter of corporate policy, U.E. imposed strict maintenance requirements on its facilities. (Testimony of R. Weidenbenner; E. Dille). Insulation on pipes was always well maintained and was loose only during repair. Transite boards were always intact and “somebody would have gotten fired” if the plant was left in a disheveled condition. (Testimony of R. Carter; R. Weidenbenner). Similarly, equipment was serviced regularly and in such a manner as to minimize damage to the equipment or the facility.

8. The buildings on the Site include a large power plant used at one time by U.E. to generate electricity, several large above-ground storage tanks, four underground storage tanks, a warehouse, a truck maintenance facility, and an office building. The power plant is partially built out into the Mississippi River.

9.

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Cite This Page — Counsel Stack

Bluebook (online)
854 F. Supp. 539, 1994 WL 246650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gj-leasing-co-inc-v-union-elec-co-ilsd-1994.