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

457 F. Supp. 2d 455, 2006 WL 2884392
District Court, S.D. New York·Decided October 10, 2006·No. 1:00-1898. MDL 1358(SAS). No. M 21-88·Published·Cited by 21 cases

Opinion

OPINION AND ORDER

SCHEINDLIN, District Judge.

I. INTRODUCTION

In this consolidated multi-district litigation (“MDL”), plaintiffs seek relief from contamination, or threatened contamination, of groundwater from various defendants’ use of the gasoline additive methyl tertiary butyl ether (“MTBE”) and/or tertiary butyl alcohol (“TBA”), which is a product formed by the natural degradation of MTBE in water. The parties have already engaged in extensive motion practice, and familiarity with the Court’s previous opinions is assumed. 1 The facts underlying this case are comprehensively set out in those opinions. 2

Defendants now move for summary judgment on plaintiff Orange County Water District’s (“OCWD”) claims based on its “lack of a cognizable interest.” 3 Specifically, defendants argue that because any alleged groundwater contamination has not injured OCWD’s property, any damages it sustained are purely economic and cannot be recovered under either product liability or negligence theories. 4 Similarly, defendants argue that OCWD’s trespass claim fails because it has not identified any “possessory interest in land” that has been invaded. 5 Further, defendants argue that OCWD’s public nuisance claim should be dismissed because it is *459 merely a products liability action in the guise of a nuisance action. 6 Finally, defendants assert that OCWD’s claim for declaratory relief should be denied because it is duplicative of the other claims in the action. 7 For the reasons set forth below, defendants’ motion is denied in part, and granted in part.

II. APPLICABLE LAW

A. Summary Judgement

Summary judgment is only appropriate where the record “show[s] that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” 8 An issue of fact is genuine if “ ‘the evidence is such that a reasonable jury could return a verdict for the nonmoving party,’ ” 9 while a fact will be deemed material where it “ ‘might affect the outcome of the suit under the governing law.’ ” 10 Further, even though plaintiffs allegations are taken as true, the claim may still fail as a matter of law if it appears beyond doubt that plaintiff can prove no set of facts in support of its claim which would entitle it to relief, or if the claim is not legally feasible. 11

The moving party bears this burden of demonstrating that there exists no genuine issue of material fact. 12 In turn, to defeat a motion for summary judgment, the non-moving party must raise a genuine issue of material fact that does “not rely on conclu-sory allegations or unsubstantiated speculation.” 13 To do so, it must do more than show that there is “ ‘some metaphysical doubt as to the material facts.’” 14 In determining whether a genuine issue of material fact exists, the court must construe the evidence in the light most favorable to the non-moving party and draw all justifiable inferences in that party’s favor. 15

III. DISCUSSION

A. Negligence and Products Liability

Defendants argue that OCWD seeks damages solely for economic losses which, in the absence of property damage, cannot be recovered under theories of either negligence or products liability. 16 Essentially, defendants argue that because OCWD does not complain of any MTBE contamination of its own wells, and because OCWD does not own the groundwater which it alleges has been or is threatened with MTBE contamination, it has no viable property interest capable of being damaged. 17 OCWD, in turn, contends that it *460 has valid property interests arising from its usufructuary and statutory rights, and that contamination of the groundwater by MTBE directly injures those rights. 18 Further, OCWD disputes defendants’ application of the economic loss doctrine, which OCWD argues does not bar recovery for the costs it has incurred as a result of the alleged contamination. 19

1. Property Interest

Whether OCWD has a valid property interest in the groundwater is a threshold question. In California, the groundwater is not owned by any individual or governmental entity but rather by “the people of the State” for whom the “State as an entity is the holder of the legal title as trustee for the benefit of the people of the state.” 20 However, a usu-fructuary interest may be acquired and this interest will be deemed to be a “pos-sessory property right.” 21

Unlike a water provider, OCWD does not own or operate a network of wells used to provide water to the public. 22 Rather, OCWD’s functions are, among other things, “managing, replenishing, regulating, and protecting” the groundwater within its geographic area of responsibility. 23 Accordingly, unlike other plaintiffs in this MDL, the thrust of OCWD’s allegations is not linked to contamination of its own wells or other real property, but rather to its legal interests in the groundwater arising from its statutory authority and usu-fructuary rights. 24 Thus, while OCWD does not specifically allege that MTBE contamination of the groundwater is a con *461 tamination of its property, it argues that it nevertheless has sufficient legal interests in the groundwater to seek damages allegedly sustained from contamination of the groundwater. 25 These interests — which are independent of land or well ownership — are “harmed, or threatened with harm, by defendants’ conduct.” 26

Usufructuary rights generally arise from “some physical act with respect to the water by the appropriator to manifest the possessory right.” 27

Free access — add to your briefcase to read the full text and ask questions with AI

In Re Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation, 457 F. Supp. 2d 455, 2006 WL 2884392 (S.D.N.Y. 2006).

457 F. Supp. 2d 455 (In Re Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

AlexSam, Inc. v. Aetna Inc.
D. Connecticut, 2020
City of Modesto v. The Dow Chemical Co.
California Court of Appeal, 2018
City of Modesto v. Dow Chemical Co.
California Court of Appeal, 2018
City of San Jose v. Monsanto Co.
231 F. Supp. 3d 357 (N.D. California, 2017)
City of Fresno v. Chevron U.S.A., Inc.
980 F. Supp. 2d 425 (S.D. New York, 2013)
V.E.C. Corp. v. Hilliard
896 F. Supp. 2d 253 (S.D. New York, 2012)
City of Greenville v. Syngenta Crop Protection, Inc.
756 F. Supp. 2d 1001 (S.D. Illinois, 2010)
L'Henri, Inc. v. Vulcan Materials Co.
53 V.I. 794 (Virgin Islands, 2010)
Abdelhamid v. Altria Group, Inc.
515 F. Supp. 2d 384 (S.D. New York, 2007)
Linzer Products Corp. v. Sekar
499 F. Supp. 2d 540 (S.D. New York, 2007)
Manhattan Motorcars, Inc. v. Automobili Lamborghini
244 F.R.D. 204 (S.D. New York, 2007)
Finch v. NEW YORK STATE OFFICE OF CHILDREN
499 F. Supp. 2d 521 (S.D. New York, 2007)
Rodriguez v. WOLBACH
499 F. Supp. 2d 479 (S.D. New York, 2007)
WINN EX REL. SCOTTISH RE GROUP, LTD. v. Schafer
499 F. Supp. 2d 390 (S.D. New York, 2007)