Hinfin Realty Corp. v. Pittston Co.

206 F.R.D. 350, 2002 U.S. Dist. LEXIS 6457, 2002 WL 549744
CourtDistrict Court, E.D. New York
DecidedApril 12, 2002
DocketNo. 00 CV 4285(ADS)(MLO)
StatusPublished
Cited by23 cases

This text of 206 F.R.D. 350 (Hinfin Realty Corp. v. Pittston Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hinfin Realty Corp. v. Pittston Co., 206 F.R.D. 350, 2002 U.S. Dist. LEXIS 6457, 2002 WL 549744 (E.D.N.Y. 2002).

Opinion

MEMORANDUM OF DECISION AND ORDER

SPATT, District Judge.

This case presents the interesting and rarely encountered issue of when a party may discontinue an action without prejudice in the face of opposition.

Hinfin Realty Corp. (“Hinfin” or a “plaintiff’), Harbor Fuel Company, Inc. (“Harbor Fuel” or a “plaintiff’), and Glenwood Terminal Corp. (“Glenwood” or a “plaintiff’) (collectively, the “plaintiffs”) brought this diversity action against The Pittston Company (“Pittston” or the “defendant”), seeking to recover damages they suffered as a result of an oil spill that occurred on their property during a time when the facilities for the receipt and distribution of “No. 6 fuel oil” were allegedly owned, maintained, and repaired by Pittston. Presently before the Court is a motion by the plaintiffs, brought on by order to show cause, for the voluntary dismissal of their action without prejudice, pursuant to Rule 41(a)(2) of the Federal Rules of Civil Procedure (“Fed.R.Civ.P.”).

I. BACKGROUND

A. The Procedural History of the Case

The plaintiffs filed the complaint in this action on July 24, 2000. They served the defendant with a copy of the summons and complaint on August 8, 2000. Pittston filed its answer on October 11, 2000. On February 1, 2001, the plaintiffs served an amended complaint. On February 5, 2001, United States Magistrate Judge Michael L. Orenstein held an initial discovery scheduling conference.

On March 12, 2001, Pittston filed its answer to the amended complaint. Pittston included thirteen affirmative defenses in its answer. The eighth affirmative defense was labeled as a defense and counterclaim and reads as follows:

EIGHTH DEFENSE TO AMENDED COMPLAINT AND COUNTERCLAIM
40. Pittston hereby incorporates by reference paragraphs 1 through 39 above as if fully set forth herein.
41. Any injuries, damages or loss sustained by Plaintiffs, who both owned and operated the facility, was the result, in whole or in part, of the negligence of other culpable conduct of the Plaintiffs’ [sic] or someone over whom Pittston had no control and without any negligence or fault or want of care on the part of Pittston.
42. Plaintiffs are strictly liable, without regard to fault, under Section 181 of the New York Navigation Law, for all clean up and removal costs, and all direct and indirect damage, attributable to any environmental damage at the Premises, as defined in the complaint.
43. As a result, Plaintiffs are required to indemnify Pittston, or on the basis of [352]*352apportionment of responsibility for the alleged occurrence, the amount of damages otherwise recoverable by Plaintiffs shall be diminished in the proportion by which the culpable conduct attributable to the Plaintiffs bears to the culpable conduct which caused the injuries, damage or loss.

On March 29, 2001, the plaintiffs filed their reply to the defendant’s counterclaims and denied the allegations set forth in paragraphs 41, 42, and 43 of the Answer.

In motion papers dated May 24, 2001, Pittston requested that the Court abstain from exercising federal jurisdiction over the action on the ground that a parallel proceeding was pending in state court, to which the plaintiffs and the corporate successor to a Pittston subdivision were parties, and in which the plaintiffs could raise the issues they were presenting to this Court. In papers dated June 20, 2001, the plaintiffs opposed the motion for abstention.

On January 11, 2002, before the Court had the opportunity to decide Pittston’s request to abstain, the plaintiffs submitted a letter asking for permission to withdraw their opposition to Pittston’s motion. The plaintiffs stated that “[sjince our submission of [papers in] opposition to the defendants’ motion, we have engaged defendant in numerous discussions wherein defendant has asserted to us that we have simply sued the wrong party.... In an effort to find a solution acceptable to all and to conserve our client’s limited assets, we have revisited our opposition to the motion pending before you and we consent to the stay of this action as requested by movants.”

In a letter dated January 14, 2002, Pittston informed the Court that it wished to withdraw its motion for abstention. The defendant explained that it had filed the motion for abstention in an attempt to avoid a needless litigation, which purpose had been mooted by the passage of time. In an order dated February 15, 2002, the Court granted Pittston’s request to withdraw their motion for abstention and directed the parties to appear on February 21, 2002 at 9:00 a.m. for a status conference.

The parties appeared on that date for a status conference, at which the Court signed an order directing the defendants to show cause before the Court today, April 12, 2002 at 2:00 p.m. why an order should not be issued granting the plaintiffs’ motion to voluntarily dismiss the complaint without prejudice pursuant to Fed.R.Civ.P. 41(a)(2). In addition, the Court granted the plaintiffs’ request to stay discovery pending the determination of their motion. The defendants filed their opposition papers on February 21, 2002, and the plaintiffs filed their reply papers on March 5, 2002.

B. The Affidavit of Donald C. Death, Jr., In Support of the Plaintiffs’ Motion to Dismiss the Action Voluntarily Pursuant to Fed.R.Civ.P. 41(a)(2)

The following factual allegations and arguments are taken from the affidavit of Donald C. Death, Jr., the president of Hinfin, Harbor Fuel, and Glenwood, which was submitted in support of the plaintiffs’ motion to dismiss the action without prejudice. Prior to commencing this action, the plaintiffs’ environmental consultant was working with the New York State Department of Environmental Conservation (the “DEC”) to find a cost-effective method of removing the petroleum from their land. Originally, the plaintiffs were told that the cost of remediation was very high. However, their consultant and the DEC representative are currently trying to find a more inexpensive alternative. As of the date of this decision, the plaintiffs do not have a remediation plan that has been approved by the DEC, and the estimated cost of remediation is still anywhere between $300,000 and $1,500,000.

Due to this uncertainty, the plaintiffs’ board members are unsure if the continuation of this action is economically warranted. The plaintiffs state that they will be unable to decide whether to continue the action until the DEC approves the remediation plan, which approval may not be obtained until this summer. Accordingly, the plaintiffs seek to devote their limited resources to remediation, as opposed to litigation, while also preserving the option of recovering their remediation costs at a later date, if it is economically feasible and warranted.

[353]*353During oral argument, the plaintiffs informed the Court that the parallel state court action has been discontinued without prejudice pursuant to an agreement between the parties.

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Bluebook (online)
206 F.R.D. 350, 2002 U.S. Dist. LEXIS 6457, 2002 WL 549744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hinfin-realty-corp-v-pittston-co-nyed-2002.