In Re Methyl Tertiary Butyl Ether Litigation

643 F. Supp. 2d 461
CourtDistrict Court, S.D. New York
DecidedJuly 14, 2009
Docket00 MDL 1898(SAS), 04 Civ. 3417(SAS)
StatusPublished
Cited by2 cases

This text of 643 F. Supp. 2d 461 (In Re Methyl Tertiary Butyl Ether Litigation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Methyl Tertiary Butyl Ether Litigation, 643 F. Supp. 2d 461 (S.D.N.Y. 2009).

Opinion

643 F.Supp.2d 461 (2009)

In re METHYL TERTIARY BUTYL ETHER ("MTBE") PRODUCTS LIABILITY LITIGATION.
This Document Relates to: City of New York, et al., Plaintiffs,
v.
Exxon Mobil Corporation, Defendant.

Nos. 00 MDL 1898(SAS), 04 Civ. 3417(SAS).

United States District Court, S.D. New York.

July 14, 2009.

*462 Robin Greenwald, Esq., Robert Gordon, Esq., Weitz & Luxenberg, P.C., New York, NY, for Plaintiffs.

Victor M. Sher, Esq., Todd E. Robins, Esq., Joshua G. Stein, Esq., Nicholas G. *463 Campins, Esq., Marnie E. Riddle, Esq., Sher Leff LLP, San Francisco, CA, Susan Amron, Daniel Greene, Assistant Corporation Counsel, New York, NY, for Plaintiff City of New York.

Peter John Sacripanti, Esq., James A. Pardo, Esq., McDermott Will & Emery LLP, New York, NY, for Defendants and Counsel for Exxon Mobil Corporation.

OPINION AND ORDER

SHIRA A. SCHEINDLIN, District Judge.

I. INTRODUCTION

In my June 9, 2009 Opinion, I held that the City of New York ("the City") may seek punitive damages for claims that proceed under the commingled product theory.[1] I also determined that a defendant's liability resulting from its contribution to a defective commingled product is merely several, as opposed to joint and several.[2] However I did not decide "which party bears the burden of proof for apportionment" of liability for such claims.[3] The City now moves for a ruling in limine that defendant bears this burden and defendant ExxonMobil Corporation ("Exxon")—the only remaining non-settling defendant—argues that this burden should be placed on the City.[4] The City also moves in limine for a ruling that defendant should be held jointly and severally liable for the City's damages. For the reasons that follow, I once again hold that liability is several only, and I now hold that defendant bears the burden of establishing a reasonable basis for apportioning liability.

II. APPLICABLE LAW

A. Motion in Limine

The Federal Rules of Evidence favor the admission of all relevant evidence.[5] Evidence is relevant if it has "any tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence."[6] A district court will "exclude evidence on a motion in limine only when the evidence is clearly inadmissible on all potential grounds."[7] "Indeed, courts considering a motion in limine may reserve judgment until trial, so that the motion is placed in the appropriate factual context."[8] Moreover, a court's ruling regarding a motion in limine "`is subject to change when the case unfolds.... Indeed even if nothing unexpected happens at trial, the district judge is free—in the exercise of sound judicial discretion—to alter a previous in limine ruling.'"[9]

*464 B. Joint and Several Liability

In Burlington Northern and Santa Fe Railway Co. v. United States, the Supreme Court recently wrote,

"When two or more persons acting independently caus[e] a distinct or single harm for which there is a reasonable basis for division according to the contribution of each, each is subject to liability only for the portion of the total harm that he has himself caused.... But where two or more persons cause a single and indivisible harm, each is subject to liability for the entire harm."[10]

"In other words, apportionment is proper when `there is a reasonable basis for determining the contribution of each cause to a single harm.'"[11]

The rules of causation described in the Second Restatement of Torts are used to establish whether a tortfeasor's acts are a legally sufficient "cause" to support joint and several liability.[12] Under those rules, "the actor's negligent conduct is a legal cause of harm to another if ... his conduct is a substantial factor in bringing about the harm."[13] "The actor's negligent conduct is not a substantial factor in bringing about harm to another if the harm would have been sustained even if the actor had not been negligent," unless the conduct "itself is sufficient to bring about harm to another."[14] "What sets the commingled theory apart from the traditional theory of causation," by contrast, "is that the [plaintiff] need not show that each individual defendant's contribution, taken alone, would have caused an injury."[15] Rather, "the [plaintiff] need only show that the ... defendant's MTBE contributed to th[e] commingled product" that caused the injury.[16]

When the commingled product theory was first introduced, this Court discussed—by way of example—a situation in which ten manufacturers each supplied ten percent of the gas to an underground storage tank that leaked and contaminated plaintiffs property.[17] In such a scenario, "defendants would be severally liable because joint and several liability is unjust where `there [are] so large a number of actors, each of whom contribute[d] a relatively small and insignificant part of the total harm, that the application of the rule [of joint and several liability] may cause *465 disproportionate hardship to defendants.'"[18]

C. Burden of Proving Apportionment

Under the commingled product theory, liability is "apportioned by proof of a defendant's share of the market at the time of the injury.'"[19] "`A defendant must be able to exculpate itself by proving that its product was not present at the relevant time or in the relevant place, and therefore could not be part of the commingled or blended product.'"[20] "[A]pportionment should be based, as near as possible, on each defendant's share of the actual market that supplied gasoline to the commingled product that contaminated the City's wells."[21]

"[T]he commingled product theory adopts, with slight adjustments, the concurrent wrongdoing theory of liability and the market-share theory of apportioning damages."[22] Under the market share theory, the burden of proving that a defendant's conduct did not contribute to causing the injury is shifted to the defendants. However, courts have taken various approaches to allocating the burden of apportionment among those defendants who fail to exculpate themselves and therefore remain as defendants whose conduct presumably contributed to the injury. "In some states, a plaintiff must prove the actual market share of each defendant."[23] A recent California decision assigned the burden to the plaintiffs because the market share theory marks an "extraordinary departure from conventional tort law doctrine.. of [proving] causation."[24] Given that defendants may be held liable under the market share theory even though they likely did not harm a particular plaintiff, the court explained the need for caution when attributing market share, asserting that "it serves no justice to fashion rules which allow responsible parties to escape *466 liability while demanding [that] others ... compensate [plaintiff for] a loss they did not create."[25]

Other states place the burden of proving market share on defendants.[26] When the burden is on defendants,

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Related

City of New York v. Exxon Mobil Corp.
739 F. Supp. 2d 576 (S.D. New York, 2010)
In Re Methyl Tertiary Butyl Ether (Mtbe) Products
739 F. Supp. 2d 576 (S.D. New York, 2010)

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Bluebook (online)
643 F. Supp. 2d 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-methyl-tertiary-butyl-ether-litigation-nysd-2009.