Hobart Corp. v. Waste Management of Ohio, Inc.

758 F.3d 757, 79 ERC 1012, 2014 WL 3397147, 79 ERC (BNA) 1012, 2014 U.S. App. LEXIS 13286
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 14, 2014
Docket13-3273, 13-3276
StatusPublished
Cited by50 cases

This text of 758 F.3d 757 (Hobart Corp. v. Waste Management of Ohio, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hobart Corp. v. Waste Management of Ohio, Inc., 758 F.3d 757, 79 ERC 1012, 2014 WL 3397147, 79 ERC (BNA) 1012, 2014 U.S. App. LEXIS 13286 (6th Cir. 2014).

Opinion

*761 OPINION

KAREN NELSON MOORE, Circuit Judge.

This case involves the apportionment of liability between various entities that allegedly created an environmental hazard at a landfill in Ohio. In 2006, Plaintiffs-Appellants, Hobart Corporation, Kelsey-Hayes Company, and NCR Corporation (collectively, “Appellants”), entered into a settlement agreement with the United States Environmental Protection Agency (“EPA”), agreeing to pay for a study of the site and to reimburse the government’s response costs in exchange for a partial resolution of Appellants’ liability. Nearly four years later, Appellants filed the first of two actions under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (“CERCLA”), 94 Stat. 2767, the Superfund Amendments and Reauthorization Act of 1986 (“SARA”), 100 Stat. 1613 (both of which are codified at 42 U.S.C. §§ 9601-9675), and Ohio common law, seeking to recover their costs or gain contribution from other entities responsible for the contamination. In this first case (“Hobart /”), Appellants sued Waste Management of Ohio, Inc. (“Waste Management”), Bimac Corporation, Bridgestone Firestone, Inc. (“Bridge-stone”), Dayton Power & Light Company (“DP & L”), Cargill, Inc. (“Cargill”), Monsanto Company (“Monsanto”), Valley Asphalt Corporation (“Valley Asphalt”), IRG Dayton I, LLC (“IRG Dayton”), and other unknown entities. Appellants alleged three relevant causes of action: a cost-recovery action under CERCLA § 107(a)(4)(B), 42 U.S.C. § 9607(a)(4)(B); a contribution action under CERCLA § 113(f)(3)(B), 42 U.S.C. § 9613(f)(3)(B); and an unjust-enrichment action under Ohio common law. In 2012, Appellants brought another case (“Hobart II ”), alleging the same three causes of action, against DAP Products, Inc. (“DAP”), Coca-Cola Enterprises, Inc. (“Coca-Cola”), The Sherwin-Williams Company (“Sherwin-Williams”), and GlaxoSmithK-line LLC (“GSK”) (collectively, with the defendants in Hobart I, “Appellees”).

In both cases, the district court dismissed Appellants’ § 113(f)(3)(B) contribution claims as untimely and dismissed the unjust-enrichment claims for failing to state a valid cause of action under Ohio law. In Hobart I, the district court allowed limited discovery on the § 107(a)(4)(B) claims but, ultimately, granted summary judgment to the Hobart I defendants, finding that CERCLA and controlling caselaw prohibit a party that has entered a liability-resolving settlement agreement with the government from prosecuting such an action. The district court, in the same order, dismissed the cost-recovery action in Hobart II for the same reasons. Appellants now bring this consolidated appeal. We AFFIRM the district court’s dismissals and its grant of summary judgment to Appellees.

I. BACKGROUND

A. CERCLA Primer

“Congress enacted CERCLA in 1980 to ‘promote the timely cleanup of hazardous waste sites’ and to ensure that the costs of such cleanup efforts were borne by those responsible for the contamination.’ ” CTS Corp. v. Waldburger, 573 U.S. -, 134 S.Ct. 2175, 2180, 189 L.Ed.2d 62 (2014) (quoting Burlington N. & Santa Fe R.Co. v. United States, 556 U.S. 599, 602, 129 S.Ct. 1870, 173 L.Ed.2d 812 (2009)). To that end, CERCLA imposes liability upon four types of parties:

(1) the owner and operator of a vessel or a facility,
(2) any person who at the time of disposal of any hazardous substance owned *762 or operated any facility at which such hazardous substances were disposed of,
(3) any person who by contract, agreement, or otherwise arranged for disposal or treatment, or arranged with a transporter for transport for disposal or treatment, of hazardous substances ... at any facility ..., and
(4) any person who accepts or accepted any hazardous substances for transport to disposal or treatment facilities, incineration vessels or sites selected by such person, from which there is a release, or a threatened release which causes the incurrence of response costs, of a hazardous substance....

CERCLA § 107(a)(l)-(4); 42 U.S.C. § 9607(a)(l)-(4).

The statute also creates a complicated network of cost-shifting provisions, which apply depending upon who pays what and why. If the federal government identifies a contaminated site, it has several options. The government may clean up the site itself under CERCLA § 104, 42 U.S.C. § 9604; the government may compel a “Potentially Responsible Party” (“PRP”) to clean up the site through an action under CERCLA § 106, 42 U.S.C. § 9606; or the government may enter into an agreement with a PRP under CERCLA § 122, 42 U.S.C. § 9622, that requires the PRP to clean up the site. See Cooper Indus., Inc. v. Aviall Servs., Inc., 543 U.S. 157, 161, 125 S.Ct. 577, 160 L.Ed.2d 548 (2004); RSR Corp. v. Commercial Metals Co., 496 F.3d 552, 554-55 (6th Cir.2007). If the government removes the waste and remediates the site, it may recover its response costs from PRPs under § 107(a)(4); if a private party actually incurs response costs rehabilitating the site, it may partially recover those response costs under § 107(a)(4)(B). 1 United States v. Atl. Research Corp., 551 U.S. 128, 131, 127 S.Ct. 2331, 168 L.Ed.2d 28 (2007). In turn, any party sued under §§ 106 or 107, by the government or a private party, may seek contribution 2 from other PRPs under § 113(f)(1), so that the recovery costs can be distributed in an equitable fashion. Cooper Indus., 543 U.S. at 165-66, 125 S.Ct. 577.

Another option for the government is to clean up the site itself and enter into a settlement agreement with PRPs to cover the government’s response costs. See § 122(a), (g), (h). In this scenario, “[a] person who has resolved its liability to the United States ... 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 [PRP] who is not a party to [the] settlement.” § 113(f)(3)(B).

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758 F.3d 757, 79 ERC 1012, 2014 WL 3397147, 79 ERC (BNA) 1012, 2014 U.S. App. LEXIS 13286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hobart-corp-v-waste-management-of-ohio-inc-ca6-2014.