Hinds v. Clean Land Air Water Corp.

693 So. 2d 321, 1997 WL 209719
CourtLouisiana Court of Appeal
DecidedApril 30, 1997
Docket96-1058
StatusPublished
Cited by6 cases

This text of 693 So. 2d 321 (Hinds v. Clean Land Air Water Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hinds v. Clean Land Air Water Corp., 693 So. 2d 321, 1997 WL 209719 (La. Ct. App. 1997).

Opinion

693 So.2d 321 (1997)

Cyril HINDS, Plaintiff—Appellant,
v.
CLEAN LAND AIR WATER CORPORATION, et al., Defendants—Appellees.

No. 96-1058.

Court of Appeal of Louisiana, Third Circuit.

April 30, 1997.

*322 Gerald I. Hebert, Edward J. Milligan, Jr., Lafayette, for Cyril Hinds.

John Dale Powers, Mary Amrhein Cazes, Baton Rouge, Robert J. Daigre, New Orleans, for Mount Vernon Fire Ins. Co.

Thomas James Wagner, Eric D. Suben, New Orleans, for Highlands Ins. Co.

John Powers Wolff, III, Baton Rouge, for Admiral Ins. Co.

Before THIBODEAUX, PETERS and SULLIVAN, JJ.

SULLIVAN, Judge.

Cyril Hinds appeals the trial court's determination on summary judgment that two pollution exclusions precluded coverage for environmental cleanup costs imposed upon Hinds as the "operator" of an industrial waste facility.

Facts

In 1976, Hinds founded Clean Land, Air and Water Corporation (CLAW) and Environmental Purification Advancement Corporation (EPAC), serving as president and principal stockholder of each organization. These companies operated a landfill and deep well disposal site at Bayou Sorrel, Louisiana. In 1978, state and federal authorities closed the Bayou Sorrel site after a truck driver died while delivering materials there.

The ensuing litigation resulted in at least three federal court rulings against Hinds. First, the court found Hinds liable, individually, as an "operator" of a facility under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), 42 U.S.C. §§ 9601-9657. Allied Corp. v. Environmental Purification Advancement Corp., Nos. 91-727-B, 92-684-B (M.D.La.9/30/93). Next, the court dismissed Hinds' federal law claims against three insurers, Highlands Insurance Company, Mount Vernon Fire Insurance Company, and Admiral Insurance Company, but declined to exercise jurisdiction over any state law claims that Hinds asserted against these parties. Allied Corp. v. Environmental Purification Advancement Corp., 848 F.Supp. 67 (M.D.La. 1994). Finally, Hinds was ordered to pay the United States government $180,651.64, representing his portion of cleanup costs incurred by the Environmental Protection Agency at the Bayou Sorrel site. Allied Corp., Nos. 91-727-B, 92-864-B (M.D.La.11/2/94).

On May 25, 1995, Hinds filed this suit against CLAW, EPAC, Highlands, Mount Vernon, and Admiral, demanding that the insurers pay the federal court judgment, up *323 to their policy limits, and the costs of defense. The insurers responded with exceptions of res judicata and motions for summary judgment.

Highlands issued primary and excess policies to CLAW, effective from October 1975 through October 10, 1977. The primary policy contained the following exclusion:

This insurance does not apply:
(f) to bodily injury or property damage arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the atmosphere or any water course or body of water; but this exclusion does not apply if such discharge, dispersal, release or escape is sudden and accidental.

(Emphasis added.)

Mount Vernon issued a primary policy to EPAC, with Admiral providing excess insurance subject to the terms of the Mount Vernon policy. The Mount Vernon policy contained substantially the same exclusion as the Highlands policy, except for the final phrase italicized above. With the omission of this phrase, Mount Vernon's exclusion is considered an "absolute" pollution exclusion.

To show that the environmental contamination was not "sudden and accidental," Highlands introduced excerpts from the deposition of Donald Antie, a former employee of CLAW. Antie testified that CLAW was in the liquid, deep well disposal business, while EPAC operated a solid waste landfill. In 1978, Antie resigned from CLAW, after expressing concerns about the safety of operations at the Bayou Sorrel site. Specifically, Antie objected to the storage of liquid waste materials, intended for CLAW's well, in open pits at the EPAC landfill.

Antie testified that on many occasions he had designated materials for disposal at the well, but other personnel, including Hinds, diverted them to open pits at the EPAC site, without determining whether they were compatible with other materials there. This became so common that Antie believed "the majority" of the materials at the Bayou Sorrel site were handled improperly. Many times Antie witnessed barrels of waste resurfacing after being buried in these pits and employees shooting holes in the barrels to sink them again. Before his resignation, Antie detailed his concerns in a letter to CLAW's directors, warning them of the dangers of storing liquid waste in open pits. He was certain that CLAW's officers and directors knew of the improper handling of these materials.

After two hearings, the trial court granted the motions for summary judgment filed by Highlands, Mount Vernon, and Admiral, finding the pollution exclusions in each policy unambiguously excluded coverage under the facts presented. The trial court, however, declined to rule on the exceptions of res judicata filed by Highlands and Admiral.

Hinds appeals, contending that the summary judgments should not have been granted because (1) the trial court improperly evaluated the credibility of Antie's testimony, (2) the exclusions in each policy are ambiguous, and (3) the exclusions do not apply to CLAW and EPAC's legal activities of "storage" and "disposal" of waste products. Admiral has answered the appeal, asking this court to grant its exception of res judicata.

Opinion

Summary judgments are reviewed de novo. Smith v. Our Lady of the Lake Hosp., 93-2512 (La.7/5/94); 639 So.2d 730. In 1996, the legislature amended La.Code Civ.P. art. 966, adding the following language as subparagraph (A)(2):

The summary judgment procedure is designed to secure the just, speedy, and inexpensive determination of every action, except those disallowed by Article 969. The procedure is favored and shall be construed to accomplish these ends.

The amendment also added paragraph (C), which provides:

After adequate discovery or after a case is set for trial, a motion which shows that there is no genuine issue as to material fact and that the mover is entitled to judgment as a matter of law shall be granted against an adverse party who fails to make *324 a showing sufficient to establish the existence of proof of an element essential to his claim, action, or defense and on which he will bear the burden of proof at trial.

The stated legislative intent of favoring summary judgment represents a substantial change in the law of summary judgment. Hayes v. Autin, 96-287 (La.App. 3 Cir. 12/26/96); 685 So.2d 691. Additionally, paragraph (C) tracks the language of Federal Rule of Civil Procedure 56. Id. Oakley v. Thebault, 96-937 (La.App. 4 Cir. 11/18/96); 684 So.2d 488. The effect of these changes has been summarized as follows: "the nonmoving party is no longer allowed to rely on the allegations of its pleadings in opposition to a properly-supported motion for summary judgment." Id. at 490.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fisher v. Catahoula Parish Police Jury
165 So. 3d 321 (Louisiana Court of Appeal, 2015)
Basil Fisher v. Catahoula Parish Police Jury
Louisiana Court of Appeal, 2015
Melder v. State Farm Mutual Automobile Insurance Co.
162 So. 3d 438 (Louisiana Court of Appeal, 2015)
Doerr v. Mobil Oil Corp.
774 So. 2d 119 (Supreme Court of Louisiana, 2000)
Price v. City of Slidell
723 So. 2d 455 (Louisiana Court of Appeal, 1998)
Carriere v. State
708 So. 2d 822 (Louisiana Court of Appeal, 1998)
Severson v. St. Catherine of Sienna Catholic Church
707 So. 2d 1026 (Louisiana Court of Appeal, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
693 So. 2d 321, 1997 WL 209719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hinds-v-clean-land-air-water-corp-lactapp-1997.