Holloway v. Gaylord Chemical

922 F. Supp. 1154, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21380, 1996 U.S. Dist. LEXIS 4258, 1996 WL 157195
CourtDistrict Court, E.D. Louisiana
DecidedMarch 26, 1996
DocketCivil Action 95-3474
StatusPublished
Cited by6 cases

This text of 922 F. Supp. 1154 (Holloway v. Gaylord Chemical) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holloway v. Gaylord Chemical, 922 F. Supp. 1154, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21380, 1996 U.S. Dist. LEXIS 4258, 1996 WL 157195 (E.D. La. 1996).

Opinion

ORDER AND REASONS

FELDMAN, District Judge.

Before the Court is the issue of federal subject-matter jurisdiction. For the reasons that follow, the Court finds that no federal question jurisdiction exists.

Background

Dining the late afternoon of October 23, 1995, a cloud of nitrogen tetroxide formed over the city of Bogalusa, Louisiana. The chemical escaped from a tank car located on *1156 property owned by Gaylord Chemical Company. The company used the chemical to make paper bags. For the next two days, the town called for the evacuation of certain affected sectors of the city while it worked to combat the presence of the chemical; nearly 2,700 residents left their homes. Residents began returning home on the evening of October 25, after crews neutralized the tank’s contents by flooding it with special preparations.

Over the next few months, residents filed approximately sixty lawsuits in state and federal court. Eighteen of these suits originated here in federal district court; the others were filed in state court but then were removed by the defendants to federal court. In addition, two state court suits involve declaratory judgment requests regarding insurance coverage; the declaratory relief eases were removed with the personal injury cases. Then, in January 1996, separate plaintiffs filed a “citizen suit” in federal court for monitoring the environmental and natural resources impact that invokes the relevant provisions of CERCLA and RCRA.

The federal complaints premised jurisdiction on the existence of a federal question. Specifically, several of the pleadings claimed response costs under the Comprehensive Environmental Response and Liability Act (CERCLA), 42 U.S.C. § 9601 et seq., and the Resource Conservation and Recovery Act (RCRA), 42 U.S.C. 6902 et seq. In addition, they set forth a host of claims for relief under state tort law. In the removed cases, the removing defendants invoked the same grounds for federal jurisdiction.

Thereafter, the Court raised the issue of subject-matter jurisdiction sua sponte, and asked the parties in the originally-filed cases for briefing. Then, after the defendants removed the state court cases, the Court requested a joint motion to remand and a joint opposition by the removing defendants. The parties timely submitted their memoranda, and the Court held a hearing on February 28, 1996. After this hearing, the Court requested additional briefing. 1 The Court now considers the parties’ responses to these questions in making its jurisdictional determination. The questions intensely focus on our state-federal structure and are driven by an important national policy: that federal courts are courts of limited jurisdiction.

Law and Application

I.

The Constitution confers the federal judiciary with limited jurisdiction. As such, Article III not only permits, but commands the Court to question its own power and authority to hear a case. Several principles animate this analysis. It is presumed that a federal court lacks jurisdiction over a lawsuit until such time as the plaintiff proves its existence. See Kokkonen v. Guardian Life Ins. Co., — U.S.-,-, 114 S.Ct. 1673, 1675, 128 L.Ed.2d 391 (1994). The parties may raise jurisdiction by motion, or the Court may do so on its own motion. Louisville & Nashville Railroad v. Mottley, 211 U.S. 149, 29 S.Ct. 42, 53 L.Ed. 126 (1908). The existence of a federal question must be plain from the face of the complaint. Id. Lack of subject-matter jurisdiction is not a waivable defect; and, “[w]henever it appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject-matter, the court shall dismiss the action.” Fed.R.Civ.P. 12(h)(3). With these precepts in mind, the Court considers the existence of subject-matter jurisdiction over the originally-filed cases and in those removed here from state court.

II.

A. Original Jurisdiction

Congress passed CERCLA in 1980, and, as the volumes of subsequent litigation attest, the statute does not speak with utmost clarity. The courts have agreed, however, that CERCLA confers a private right of action on “any ... person” who has incurred “neces *1157 sary costs of response ... consistent with the national contingency plan.” CERCLA, § 107(a)(4)(B) (42 U.S.C. § 9607(a)(4)(B)). It is this provision that the plaintiffs here invoke for jurisdiction and relief.

A private party claim under CERCLA must have four elements: (1) identification of a potentially liable party, as defined in Section 107(a); (2) the release of a hazardous substance, or a threat that it may be released; (3) the release has caused the plaintiff to incur response costs; and (4) the costs for which the plaintiff seeks reimbursement were both “necessary” and “consistent with the national contingency plan.” See, e.g., Ambrogi v. Gould, Inc., 750 F.Supp. 1233, 1239 (M.D.Pa.1990); see also Berry v. Armstrong Rubber Co., 989 F.2d 822, 828 (5th Cir.1993).

CERCLA creates four categories of potentially responsible parties:

(1) the owner and operator of a vessel or facility, 2
(2) any person who at the time of disposal ... owned or operated any facility at which such hazardous substances were disposed of,
(3) any person who ... arranged for disposal or treatment ... of hazardous substances owned or possessed by such person, by any other party or entity, at any facility ... owned or operated by another, and
(4)any person who accepts or accepted any hazardous substances for transport to disposal or treatment facilities, from which there is a release or a threatened release ... of a hazardous substance.

§ 107(a). The parties appear to agree that nitrogen tetroxide qualifies as a “hazardous substance” 3 “released” 4 during the incident on October 23. The Court finds further that the Gaylord plant, at which the incident occurred, could fall within the definition of a “facility.” 5 Thus, the original plaintiffs have minimally satisfied the first two elements of a CERCLA claim.

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922 F. Supp. 1154, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21380, 1996 U.S. Dist. LEXIS 4258, 1996 WL 157195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holloway-v-gaylord-chemical-laed-1996.