In Re Methyl Tertiary Butyl Ether (Mtbe) Products

399 F. Supp. 2d 242
CourtDistrict Court, S.D. New York
DecidedMay 12, 2005
Docket1:00-189. MDL 1358(SAS)
StatusPublished
Cited by10 cases

This text of 399 F. Supp. 2d 242 (In Re Methyl Tertiary Butyl Ether (Mtbe) Products) 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, 399 F. Supp. 2d 242 (S.D.N.Y. 2005).

Opinion

399 F.Supp.2d 242 (2005)

In re: METHYL TERTIARY BUTYL ETHER ("MTBE") PRODUCTS LIABILITY LITIGATION
This Document Relates to Town of Hartland
v.
Amerada Hess Corp., No. 04 Civ. 2072

No. 1:00-189. MDL 1358(SAS).

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

May 12, 2005.

*243 Susan Millington Campbell, Robb W. Patryk, Hughes Hubbard & Reed LLP, New York, NY, for Irving Oil Corp. and Irving Oil Terminals, Inc.

Robert Gordon, C. Sanders McNew, Stanley N. Alpert, Weitz & Luxenberg, P.C., New York, NY, for Town of Hartland and Liaison Counsel for Plaintiffs.

Peter John Sacripanti, James A. Pardo, Stephen J. Riccardulli, McDermott, Will & Emery LLP, New York, NY, Liaison Counsel for Defendants.

OPINION AND ORDER

SCHEINDLIN, District Judge.

The Town of Hartland ("Town") brings this action to recover for the contamination of its groundwater with the gasoline additive methyl tertiary butyl ether ("MTBE"). In its Fourth Amended Complaint, the Town alleges, inter alia, that "in 1997 a truck owned and operated by Defendant Irving Oil negligently spilled a substantial amount of gasoline in the town of Hartland, Vermont which resulted in the discharge of MTBE contamination into drinking water supplies."[1] Defendants Irving Oil Corporation ("Irving Oil") and Irving Oil Terminals, Inc. (collectively, "Irving Oil Defendants"), now move for summary judgment pursuant to Federal Rule of Civil Procedure 56 based on a release purportedly executed by the Town, which discharged Irving Oil from liability for any and all claims arising out of a rollover accident on July 24, 1997.[2] For the reasons set forth below, Irving Oil's motion for summary judgment is denied.

*244 I. FACTUAL BACKGROUND

Unless otherwise noted, the following facts are either undisputed or taken in the light most favorable to the non-moving party.

On July 24, 1997, an Irving Oil fuel delivery truck driving north on Quechee Road in Hartland, Vermont drove off the road and rolled over into a ditch.[3] The driver, Edwin Rice, states that when he exited the overturned vehicle, he discovered that gasoline was leaking from the pressure seal around the storage compartment cover.[4] He stopped the leak by resetting the latch and restoring the pressure seal.[5] Rice claims that the road collapsed under the right side tires of the truck when he steered to the side to give an oncoming vehicle additional room to pass; he asserts that the collapsed pavement appeared to have been patched with tar following the installation of a culvert or tunnel underneath the road, and that the ditch appeared to have been dug recently.[6] The Town disputes that the road was damaged in any way prior to the accident.[7]

The Hartland Volunteer Fire Department Rescue Squad, Inc. ("Fire Department"), responded to the accident by dispatching emergency personnel and equipment to the site.[8] The Fire Department is an independent, not-for-profit corporation that provides fire prevention, emergency, and medical services to the Town of Hartland.[9]

Vermont's Agency of Natural Resources visited the spill site and determined that the "local water supply [was] not at risk" as a result of the spill.[10] The Agency estimated that a total of forty to fifty gallons of fuel had been released into the ground.[11]

On August 13, 1997, the Fire Department billed Irving Oil $5,833 for six hours of equipment usage and labor charges associated with responding to the accident.[12] Irving Oil's local manager, Lucien Beam, objected to the charges as excessive and requested a meeting with the Town's Board of Selectmen.[13] Mr. Beam claims that he informed the Town that the charges were unreasonable because the Town had created the unsafe road conditions that caused the accident.[14] He also *245 contends that he notified the Town that it was his understanding that the Hartland firefighters had spread the gasoline over a greater area when they applied water and foam to the spill, making cleanup more difficult.[15]

Negotiations took place among Town Manager Stacey, Town Selectman Campbell, Town Attorney Welch, Fire Chief Cote, Fire Secretary Cooper, Mr. Beam, and other Irving Oil representatives.[16] On December 3, 1998, Irving Oil paid the Fire Department one half of the charges, or $2,916.50, in return for a release of any further liability.[17] The check is marked as received by Town Selectman Campbell.[18]

In a March 31, 1999 letter to Irving Oil, Town Selectman Campbell disclosed that the Town had engaged its attorney, Peter Welch, to review the Release of All Claims proposed by Irving Oil.[19] The letter further informed Irving Oil that Town Attorney Welch "did not feel that it was appropriate for the Town of Hartland and the Hartland Volunteer Fire Dept. to sign a release without Irving Oil signing an equivalent release. [Welch] drafted a pair of General Releases for the Hartland Volunteer Fire Dept. and Irving Oil to sign."[20] Enclosed with the letter was "a copy of the release which Mark Cote, Fire Chief, ha[d] signed" on January 10, 1999.[21] The signature line reads "Fire Chief, Hartland Volunteer Fire Department."[22]

The release states:

KNOW YE, THAT Town of Hartland and Hartland Volunteer Fire Department, for and in consideration of the sum of Two Thousand Nine Hundred Sixteen Dollars and Fifty Cents ($2,916.50) lawful money of the United States, from Irving Oil Corporation, the receipt whereof is hereby acknowledged, have remised, released, and forever discharged and by these presents does for itself and its successors and assigns, remise, release and forever discharge the said Irving Oil Corporation their successors and assigns, of and from any and all manner of action and actions, cause and causes of action, suits, damages, judgments, executions, claims for personal injuries, property damage and demands whatsoever, in law or in equity, which it ever had, now have or which its successors or assigns hereafter can, shall, or may have against Irving Oil Corporation, for, upon, or by reason of, any matter, cause or thing whatsoever, from the beginning of the world to the day of the date of these presents and particularly, but without in any manner limiting the foregoing, for an occurrence on July 24, 1997 in Hartland, Vermont.[23]

Town Selectman Campbell witnessed the signature.[24]

*246 Irving Oil did not immediately execute the reciprocal release. On November 12, 1999, Town Attorney Welch wrote to Mr. Beam "to finalize the agreement [he] under[stood] [Irving Oil] and the Town Fire Department reached for the incident on July 24, 1997."[25] Town Attorney Welch again enclosed "reciprocal releases with respect to that incident whereby the Town and its fire department release Irving Oil, and Irving Oil likewise releases the Town for any claims that may arise out of that incident."[26] A "duly authorized officer and agent" of Irving Oil signed the reciprocal release on March 2, 2000.[27]

II. LEGAL STANDARD

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Related

United Water New York, Inc. v. Amerada Hess Corp.
458 F. Supp. 2d 149 (S.D. New York, 2006)
In Re Methyl Tertiary Butyl Ether (MTBE) Products
458 F. Supp. 2d 149 (S.D. New York, 2006)
City of Mishawaka v. Amerada Hess Corp.
415 F. Supp. 2d 261 (S.D. New York, 2005)
In Re Methyl Tertiary Butyl Ether (" Mtbe")
415 F. Supp. 2d 261 (S.D. New York, 2005)

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Bluebook (online)
399 F. Supp. 2d 242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-methyl-tertiary-butyl-ether-mtbe-products-nysd-2005.