In re Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation

209 F.R.D. 323, 2002 WL 1560358
CourtDistrict Court, S.D. New York
DecidedJuly 16, 2002
DocketNo. 00 Civ. 1898(SAS); MDL No. 1358
StatusPublished
Cited by124 cases

This text of 209 F.R.D. 323 (In re Methyl Tertiary Butyl Ether ("MTBE") Products Liability 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 ("MTBE") Products Liability Litigation, 209 F.R.D. 323, 2002 WL 1560358 (S.D.N.Y. 2002).

Opinion

OPINION AND ORDER

SCHEINDLIN, District Judge.

I. INTRODUCTION

Plaintiffs are residential well owners who brought several actions against twenty oil companies, of whom one or more had allegedly caused contamination of their well water. The suits allege negligence, strict liability, failure to warn, nuisance, trespass, and failure to report toxic substance releases as required by federal law.1 Plaintiffs now seek to proceed as a class pursuant to Rule 23(b)(2) or, in the alternative, Rule 23(b)(3) of the Federal Rules of Civil Procedure.

Plaintiffs have made every conceivable argument to persuade this Court that class action treatment is appropriate in this hybrid environmental/products liability action. They suggest certification under Rule (23)(b)(l), (b)(2) and/or (b)(3). They have limited the putative class to residents of four states, although originally certification was sought for residents of twenty-one states. They are amenable to narrow rather than broad injunctive relief and suggest that notice be required if the class is certified pursuant to Rule 23(b)(2) to permit class members [329]*329to identify themselves. They further suggest that to avoid a charge of impermissible claim splitting and its attendant problems of issue or claim preclusion, the Court should frame any class certification order to preserve the right to a subsequent trial of both property damage and personal injury claims, under either Rule 16 or 42 of the Federal Rules of Civil Procedure. Finally, as a fall back position, they suggest Rule 23(c)(4) issue certification of two overarching issues — the appropriateness of injunctive relief and general liability — neither of which qualifies for class-wide adjudication. While these arguments are creative, they only highlight the poor fit between the class action device and this case. On occasion, courts have gone to “the boundary of the class action device” in granting class treatment to actions for injunctive relief, but certifying a class here would “cross into forbidden territory.” Marisol A. v. Giuliani, 126 F.3d 372, 377 (2d Cir.1997). Such treatment would stretch the decidedly elastic class action device beyond its breaking point — causing it to snap. Accordingly, plaintiffs’ motion is denied.

II. BACKGROUND

A. Procedural History

Between October 2000 and March 2001, the Judicial Panel on Multidistrict Litigation (the “MDL Panel”) consolidated and/or transferred to this Court six actions by well owners who alleged that their wells were contaminated by or were in danger of being contaminated by the presence of methyl tertiary butyl-ether (“MTBE”), a gasoline additive used by defendants.2 *The defendants moved to dismiss those actions, and on August 20, 2001, that motion was granted in part and denied in part. See In re MTBE Prod. Liab. Litig., 175 F.Supp.2d 593, 635 (S.D.N.Y.2001) (“MTBE I”). Based on MTBE I, the following suits remained: Berisha and O’Brien v. Amerada Hess Corp., et al., No. 00 Civ. 1898 (“Berisha”); England v. Atlantic Richfield Co., et al., No. 00 Civ. 7729 (“England”); Young v. Exxon Mobil Corp., et al., No. 01 Civ. 704 (“Young"); and Berrian v. Amerada Hess Corp., et al., No. 01 Civ. 1076 (“Berrian”).3

On December 18, 2001, plaintiffs moved to certify a class of private well owners located in New York, Florida, California and Illinois (the “class states”) whose wells have tested positive for the presence of MTBE.4 Plaintiffs’ Memorandum in Support of Their Motion for Class Certification (“Pl.Mem.”). A two-day hearing was held on May 28 and 29, 2002 (the “Hearing”).

B. Facts

1. Description of MTBE

In 1990, Congress enacted section 211(k) of the Clean Air Act, 42 U.S.C. § 7545(k), to reduce ozone-forming volatile organic compounds (“VOCs”) and emissions of toxic air pollutants. See MTBE I, 175 F.Supp.2d at 600. Pursuant to the statute, the EPA mandates that gasoline blended for use in certain metropolitan areas at certain times of year [330]*330contain at least 2.0% oxygen by weight. See id. In order to meet this requirement, oil companies add EPA-certified oxygenates such as MTBE to their gasoline. See id. (citing 42 U.S.C. § 7545(k)(4)). MTBE is currently added to about 87% of the gasoline that is marketed, sold and used in the United States. See 5/21/02 Hearing Before the Subcommittee on Environment and Hazardous Materials, Committee on Energy and Commerce, House of Representatives (statement of John Stephenson, Director of Natural Resources and Environment, United States General Accounting Office) (“GAO Study”), Ex. 2 to 5/24/02 Letter from Morris Ratner, plaintiffs’ attorney, to the Court, at 3 n. 2.

As a consequence of the efforts to reduce air pollution there has been an increase in water pollution caused by gasoline. When MTBE spills or leaks into the ground, its chemical properties cause it to travel through soil faster and farther than other gasoline components.5 See “Hydrology and Contaminant Transport” Slides (“3/24/00 EPA Rpt.”), Ex. .P-16 at 10 (excerpting 3/24/00 EPA Advance Notice of Intent, Ex. C to Morris Ratner’s Declaration in Opposition to Defendants’ Motion to Dismiss (“Ratner Decl.”)); Brown Rpt. at 3-4. See also MC 111149-50. In addition, MTBE’s non-biodegradability causes it to persist in soil and groundwater for decades. See 3/24/00 EPA Rpt. at 10; Brown Rpt. at 3. As a result of these characteristics, MTBE is often the sole compound found in contaminated groundwater. See 2/13/01 Summary of Expert Opinions of Philip B. Bedient, Ph. D., P.E., Expert Witness for Plaintiffs (“Bedient Rpt.”), Ex. 6 to PI. Trial Plan Exs. Vol. 1, at 6.

MTBE’s fate7 and transport characteristics are of particular concern because MTBE is a known animal carcinogen, as well as a possible human carcinogen.8 See Brown Rpt. at 4. In addition, even low levels of MTBE will give water a turpentine-like taste and odor. See 3/8/93 Taste and Odor Threshold Report by Campden Food & Drink Research Association for Arco (“1993 Campden Rpt.”), Ex. 41 to Plaintiffs’ Appendix (“Pl.App.”); see also MC H 52; 3/24/00 EPA Rpt.

2. Defendants’ Alleged Conspiracy to Use MTBE

Plaintiffs allege that, because MTBE is cheaper than other oxygenates, it has become the industry’s “oxygenate of choice.” MTBE I, 175 F.Supp.2d at 600. They allege that the defendants engaged in joint efforts to use and market MTBE despite their knowledge that it poses a serious threat to groundwater, and despite the availability of safer alternatives. See MC H2.

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Bluebook (online)
209 F.R.D. 323, 2002 WL 1560358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-methyl-tertiary-butyl-ether-mtbe-products-liability-litigation-nysd-2002.