Hill v. Metropolitan District Commission

439 Mass. 266
Massachusetts Supreme Judicial Court·Decided April 29, 2003·Published·Cited by 11 cases

Opinion

Greaney, J.

The plaintiff, Kathleen Hill, trustee of the A & P Realty Trust (A & P), seeks to recover from the defendants, the Metropolitan District Commission (MDC), and Creative Realty Trust (Creative), landowners adjacent to A & P, damages incurred as a result of oil contamination of A & P’s property. A & P’s complaint, as far as now relevant, was based on G. L. c. 21E, the Massachusetts Oil and Hazardous Material Release Prevention Act. The jury found the defendants liable under G. L. c. 21E, § 5 (a) (l),3 for releases of subsurface oil onto A & P’s property, attributing only eight per cent of damages to Creative. The jury awarded “response costs” under G. L. c. 21E, § 4,3 4 to A & P in the amount of $239,904.77. In addition, in [268] reply to special questions on damages sought pursuant to G. L. c. 21E, § 5 (a) (5) (iii),5 the jury found that $500,000 “would [be] need[ed] ... to remediate the oil contamination”; the oil contamination on A & P’s property was not “reasonably curable by repairs or remediation”; and that $2.4 million “represented] the diminution in fair market value of [A & P’s] property caused by the oil contamination.”6

The case is before us on cross appeals. The MDC appeals from the judge’s denial of its posttrial motion to dismiss the G. L. c. 21E claim on the grounds that the claim is “subject to the immunities retained” under G. L. c. 258, commonly referred to as the Massachusetts Tort Claims Act, and is barred by G. L. c. 258, § 10 (/) and (e). A & P appeals from an order of the judge that allowed in part the defendants’ motions for judgment notwithstanding the verdict (judgment n.o.v.), Mass. R. Civ. P. 50 (b), as amended, 428 Mass. 1402 (1998), by setting aside the portion of the jury’s verdict awarding A & P $2.4 million in property damage, but affirming the verdict in all other respects. A & P also appeals from an order of the judge denying its post-trial motion for attorney’s and expert witness fees under G. L. c. 21E. We granted MDC’s application for direct appellate review (with which A & P joined) and now affirm the orders and judgment.

There was evidence from which the jury could have found the following facts. In 1992, while removing a 6,000 gallon underground storage tank from its property that had been installed in 1980, and had been used to store heating oil, A & P discovered subsurface oil.7 An investigation revealed that the oil was “highly aged,” that its release had occurred prior to 1972, and that a large amount of oil, ranging from 20,000 to 90,000 gallons, had been released. Further investigation revealed that [269] the release of oil had not come from either of the underground storage tanks that had been removed from A & P’s property, nor from any other source on A & P’s property. Rather, the oil was determined to have come from upgradient locations, namely property adjacent to A & P’s owned by the MDC and Creative. The oil essentially had migrated to A & P’s property consistent with the groundwater flow. Despite the contamination of its property, since 1993, A & P has been able to lease the property to an automobile dealership, and has collected substantial rental income over the years. At the time of trial A & P was collecting approximately $200,000 annually in rental income under the terms of the property’s lease.

1. We reject the MDC’s argument that the judgment against it must be reduced to $100,000, the cap on liability for “public employers” under G. L. c. 258, § 2,8 because G. L. c. 21E’s “strict liability waiver of a public employer’s sovereign immunity [is] subject to the immunities of [G. L. c. 258].”

Under G. L. c. 2IE, private parties may seek to recover response costs from any “person” “liable for [the] release or threat of release [of oil or hazardous material],” G. L. c. 21E, § 4, or property damages from “the owner or operator of a vessel or a site from or at which there is or has been a release or threat of release of oil or hazardous material,”9 id. at § 5 (a) (1). An “[o]wner” or “[operator” of a site is defined as “any person owning or operating such site” (emphasis added). Id. at § 2. The term “[p]erson” is defined as “any agency or political subdivision of the federal government or the commonwealth, any state, public or private corporation or authority, any [270] interstate body, foreign nation, individual, trust, firm, joint stock company, partnership, association or other entity, and any officer, employee, or agent of such person, and any group of persons.” Id. In keeping with the unambiguous terms of G. L. c. 21E, the MDC, an agency of the Commonwealth, cannot reasonably contend that G. L. c. 21E does not subject it to liability to private parties.

The MDC asserts that, while “[G. L. c. 258’s] immunities do not apply to [c.] 21E enforcement actions by the Commonwealth against [Sjtate agencies . . . whether the Commonwealth seeks injunctive relief, cost recovery, or natural resource damages,” G. L. c. 258 limits “the extent of availability of damages to private parties in [c.j 21E actions” against it (emphasis in original). In support of this contention, the MDC relies on language, italicized below, contained in a 1992 revision of the definition of “owner” or “operator” in G. L. c. 21E, § 2. That amendment provides, in pertinent part:

“The term [‘owner’ or ‘operator’] shall not include the commonwealth to the extent the commonwealth holds or held any right, title, or interest in a site or vessel solely for the purpose of implementing or enforcing the commonwealth’s rights or responsibilities pursuant to this chapter, unless the commonwealth caused or contributed to the release or threat of release; provided, that nothing in this definition or in this chapter shall be construed to waive any immunity that public employers or public employees may have pursuant to chapter two hundred fifty-eight” (emphasis added).

St. 1992, c. 133, § 274. The MDC argues that the judge erroneously denied its motion to dismiss by narrowly construing the proviso to afford “only the Commonwealth (and no other public employer) the protection of those immunities in a [c.] 21E litigation, and only in the limited circumstances when a [Sjtate enforcement agency takes over the cleanup of a contaminated site.” The MDC maintains that “[h]ad the Legislature intended the proviso to afford [G. L. c. 258’s] immunities only to the Commonwealth, and only in the limited circumstances involving a [S]tote enforcement agency cleanup, it would have consistently used the word ‘Commonwealth’ in its singular form throughout that sentence.”

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Hill v. Metropolitan District Commission, 439 Mass. 266 (Mass. 2003).

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