Government of Guam v. United States

950 F.3d 104
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 14, 2020
Docket19-5131
StatusPublished
Cited by5 cases

This text of 950 F.3d 104 (Government of Guam v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Government of Guam v. United States, 950 F.3d 104 (D.C. Cir. 2020).

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued November 12, 2019 Decided February 14, 2020

No. 19-5131

GOVERNMENT OF GUAM, APPELLEE

v.

UNITED STATES OF AMERICA, APPELLANT

Appeal from the United States District Court for the District of Columbia (No. 1:17-cv-02487)

Rachel Heron, Attorney, U.S. Department of Justice, argued the cause for appellant United States of America. With her on the briefs were Eric Grant, Deputy Assistant Attorney General, and Evelyn Ying and Michael Augustini, Attorneys.

John D.S. Gilmour argued the cause for plaintiff-appellee. With him on the brief were Bezalel A. Stern, William J. Jackson, and Mark Donatiello. Fabio Dworschak entered an appearance.

Before: HENDERSON and TATEL, Circuit Judges, and GINSBURG, Senior Circuit Judge.

Opinion for the Court filed by Circuit Judge TATEL. 2

TATEL, Circuit Judge: For nearly half a century, the United States Navy operated a landfill on the island of Guam. Home to discarded munitions, chemicals, and everyday garbage, the so-called Ordot Dump lacked any sort of environmental safeguards. At bottom, this case concerns whether Guam or the Navy is financially responsible for the environmental hazards arising from the Ordot Dump. The answer to that question turns on the interaction between two provisions of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA): section 107, the act’s “cost- recovery” provision, and section 113, its “contribution” provision. See 42 U.S.C. §§ 9607, 9613(f). If Guam must proceed under section 113, then its suit against the Navy for costs related to the dump is now time-barred. But if it may utilize section 107, then its suit remains timely. As explained below, we conclude that a 2004 consent decree with EPA triggered Guam’s right to pursue a contribution claim under section 113, precluding it from now pursuing a claim under section 107. We therefore reverse the district court’s contrary conclusion and remand with instructions to dismiss.

I.

Congress enacted CERCLA, 42 U.S.C. §§ 9601 et seq., “in response to the serious environmental and health risks posed by industrial pollution,” United States v. Bestfoods, 524 U.S. 51, 55 (1998). Seeking to enable the “prompt cleanup of hazardous waste sites and to ensure that responsible parties foot the bill,” General Electric Co. v. Jackson, 610 F.3d 110, 114 (D.C. Cir. 2010), CERCLA directs that any potentially responsible party— “PRP” for short—“shall be liable” for the costs associated with the release of hazardous substances and subsequent cleanup of polluted sites, CERCLA § 107(a). 3 Remediation at Superfund sites is, unsurprisingly, expensive. Central to CERCLA’s operation is a mechanism for entities to seek recoupment of any cleanup costs incurred from other responsible parties. As originally drafted, CERCLA provided that “any person” potentially responsible for hazardous waste “shall be liable for . . . all costs of removal or remedial action incurred by the United States Government or a State or an Indian tribe,” CERCLA § 107(a)(4)(A), as well as “any other necessary costs of response incurred by any other person,” id. § 107(a)(4)(B) (emphasis added). While CERCLA “did not mandate ‘joint and several’ liability in every case,” Burlington Northern & Santa Fe Railway Co. v. United States, 556 U.S. 599, 613 (2009), “[t]he practical effect of placing the burden on defendants has been that responsible parties rarely escape joint and several liability,” O’Neil v. Picillo, 883 F.2d 176, 178–79 (1st Cir. 1989), meaning that any one PRP may be held responsible for the entire cost of a cleanup.

Although multiple entities may be responsible for a superfund site, only one may have actually “incurred” “costs of response”—a necessary predicate to bringing a section 107 claim. CERCLA § 107(a)(4)(A), (B). Following CERCLA’s passage in 1980, “litigation arose over whether § 107, in addition to allowing the Government and certain private parties to recover costs from PRPs, also allowed a PRP that had incurred response costs”—that is, a PRP that had paid out but not actually done a cleanup itself—“to recover costs from other PRPs.” Cooper Industries, Inc. v. Aviall Services, Inc., 543 U.S. 157, 161 (2004). At common law, tortfeasors like PRPs were typically entitled to “contribution”—a “right to collect from joint tortfeasors when, and to the extent that, the tortfeasor has paid more than his or her proportionate share to the injured party, the shares being determined as percentages of causal fault.” Contribution, Black’s Law Dictionary (11th ed. 2019). But as originally passed, “CERCLA contained no provision 4 expressly providing for a right of action for contribution;” in fact, it made no mention of “contribution” at all. Cooper, 543 U.S. at 162.

Congress addressed this gap in the statutory scheme when it amended CERCLA through the Superfund Amendments and Reauthorization Act of 1986, Pub. L. 99–499, 100 Stat. 1613. Specifically, it added a new section to the Act—section 113— which “provide[d] two express avenues for contribution.” Cooper, 543 U.S. at 167. The first, section 113(f)(1), provides that “[a]ny person may seek contribution from any other person who is liable or potentially liable under section [107(a)] of this title, during or following any civil action . . . under section [107(a)] of this title.” CERCLA § 113(f)(1). The second new avenue, section 113(f)(3)(B), provides that a party that “has resolved its liability to the United States or a State for some or all of a response action or for some or all of the costs of such action in an administrative or judicially approved settlement may seek contribution from any person who is not party to a settlement.” Section 113 also creates special incentives for PRPs to settle with enforcement authorities. Although that section broadly allows PRPs to seek contribution from other PRPs, “[a] person who has resolved its liability to the United States or a State in an administrative or judicially approved settlement shall not be liable for claims for contribution regarding matters addressed in the settlement.” Id. § 113(f)(2). Settlement with EPA or state authorities therefore inoculates a party from further contribution liability.

The upshot is that CERCLA now offers two potential causes of action for an entity seeking recovery from a PRP: a section 107 “cost-recovery” action, available for recoupment of cleanup costs, and a section 113(f) “contribution” action, available for recoupment of funds paid out pursuant to a section 107 action, a settlement, or another contribution action. Central 5 to this case, the statute of limitations for a contribution action is three years, see CERCLA § 113(g)(3); the statute of limitations for a remedial section 107 action is six, id. § 113(g)(2)(B).

II.

Nearly a century before CERCLA’s passage, the United States captured the island of Guam following the Spanish- American War. See Paul Carano & Pedro C. Sanchez, A Complete History of Guam 169–83 (1964) (describing how Guam became an American possession). From 1903 until World War II, the United States treated Guam as a US Naval ship—the “USS Guam”—and maintained military rule until the passage of the Guam Organic Act in 1950. Robert F.

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