In Re Lead Paint Litigation

924 A.2d 484, 191 N.J. 405, 2007 N.J. LEXIS 698
CourtSupreme Court of New Jersey
DecidedJune 15, 2007
StatusPublished
Cited by101 cases

This text of 924 A.2d 484 (In Re Lead Paint Litigation) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Lead Paint Litigation, 924 A.2d 484, 191 N.J. 405, 2007 N.J. LEXIS 698 (N.J. 2007).

Opinions

Justice HOENS

delivered the opinion of the Court.

In these consolidated complaints, twenty-six municipalities and counties seek to recover, from manufacturers and distributors of [409]*409lead paints, the costs of detecting and removing lead paint from homes and buildings, of providing medical care to residents affected with lead poisoning, and of developing programs to educate residents about the dangers of lead paint. Although the complaints initially sought recovery through a wide variety of legal theories, we are called upon to consider only whether these plaintiffs have stated a cognizable claim based on the common law tort of public nuisance. Because we conclude that plaintiffs cannot state a claim consistent with the well-recognized parameters of that tort, and because we further conclude that to find otherwise would be directly contrary to legislative pronouncements governing both lead paint abatement programs and products liability claims, we reverse the judgment of the Appellate Division and remand for dismissal of the complaints.

I.

This litigation began on December 14, 2001, when the City of Newark and its mayor filed a complaint asserting claims sounding in fraud, public nuisance, civil conspiracy, unjust enrichment, and indemnification. Named as defendants were a large number of companies that had manufactured lead pigments or lead paints, or that were the corporate successors to the manufacturers of those products.1 Shortly thereafter, twenty-five other plaintiffs2 filed [410]*410complaints similar to the one filed by the City of Newark. By order dated February 11, 2002, this Court designated “all pending and future litigation involving damages or other relief arising out of the manufacture, sale, distribution and/or use of lead-based paint” as a mass tort. See R. 4:38A. Pursuant to that order, all of the complaints were transferred to a single vicinage and assigned to one judge for management.

A.

Defendants moved to dismiss the complaints for failure to state a claim on which relief could be granted. See R. 4:6 — 2(e). After briefing and oral argument, the trial court issued an order granting defendants’ motion, accompanied by a lengthy written decision.3

The trial court rejected the complaint both generally and based upon a count-by-eount analysis. As a general proposition, the trial court concluded that because plaintiffs are municipalities and similar governmental entities, they had only such powers as are granted to them by statute or our constitution. Viewed in that light, the trial court first criticized plaintiffs’ complaints generally as overstepping those powers, referring to the complaints as “seek[ing] an unwarranted and impermissible expansion of [plaintiffs’] role as local government entities to act on behalf of the public.” The trial court therefore found that these plaintiffs were [411]*411not authorized to maintain the action, regardless of any of the particular theories asserted.

The court also addressed each of those theories, and, in particular, rejected plaintiffs’ argument that their complaints sounded in public nuisance. First, noting that plaintiffs drew their support for this theory of recovery from the legislative declaration of public nuisance contained in the Lead Paint Act, the court reasoned that all of the damages plaintiffs sought to recoup would be barred by the municipal cost recovery doctrine. Second, the trial court reasoned that all of defendants’ acts that plaintiffs asserted gave rise to their public nuisance claims were, in reality, governed exclusively by products liability theories. Third, the court reasoned that the Legislature, in enacting the Lead Paint Act, intended to act comprehensively, with the result that other remedies, including the common law remedy of public nuisance, were not available to these plaintiffs. Finally, the trial court rejected the complaints based upon a proximate cause analysis, reasoning that defendants’ lack of control of the premises where the nuisance could be found was fatal to plaintiffs’ recovery of damages.

B.

The Appellate Division’s analysis of the public nuisance claim led it to reach the opposite conclusion. First, the appellate panel rejected the trial court’s conclusion that “to permit this action to proceed would offend the constitutional principle of separation of powers by sanctioning a remedial process independent of that created by the Legislature” when it enacted the Lead Paint Act. Instead, the panel reasoned that permitting plaintiffs’ public nuisance claim “to proceed would not subvert the goals of the [Legislature],____[because it would] proceed on a parallel track that need not ever intersect with the mechanism set forth” by the Legislature. In so concluding, the panel utilized a preemption analysis and coupled it with the observation that “[a]bsent [an] express limitation, courts must assume that the statute was not intended to bar any [inconsistent] common-law remedy.” Refer[412]*412ring to the goals of the complaints as “complementary” to the remedies authorized by the Lead Paint Act, the panel found no separation of powers violation.

The Appellate Division also rejected the trial court’s municipal cost recovery rule analysis, questioning the continued viability of that theory and its application to public nuisance claims. Having therefore rejected the trial court’s general grounds for dismissing the complaints, the panel then turned to a discussion of the trial court’s more specific conclusions about the viability of this public nuisance claim.

In analyzing the parameters of a public nuisance claim, the panel held that parties, like defendants, may be liable for a public nuisance even if those parties do not control, at the time the nuisance is created or exists, the instrumentality causing the nuisance or the property where the nuisance is found. Thus, the Appellate Division held that a public nuisance claim is permissible even if the only allegation is that defendants failed to advise of the risks associated with an ordinary consumer product lawfully made and sold decades before. In doing so, the panel reasoned that public nuisance no longer requires proof of defendants’ interference with the use of land, with the result that the legal theory could extend to the activities of these defendants.

As part of this analysis, the panel rejected the assertion that plaintiffs were impermissibly suing on behalf of third parties harmed by lead paint. Instead, it found that plaintiffs had suffered “their own, unique damages.” The panel, however, did not address whether a public entity could sue for damages caused by a public nuisance only if it could allege that it had sustained “special damages” as that term is utilized in public nuisance doctrine.

In addition, the appellate panel rejected defendants’ alternate argument that plaintiffs’ claims were governed by, and therefore precluded by, the Product Liability Act (PLA), N.J.S.A. 2A:58C-1 to — 11. Although conceding that plaintiffs alleged that defendants were liable because they had failed to disclose or warn of the products’ dangers, the panel found no bar to plaintiffs’ public [413]*413nuisance claim as a result. Rather, the panel reasoned that the claims were excluded from the scope of the PLA because of that statute’s exception for environmental tort actions. See N.J.S.A. 2A:58C-6.

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Bluebook (online)
924 A.2d 484, 191 N.J. 405, 2007 N.J. LEXIS 698, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-lead-paint-litigation-nj-2007.