In re Methyl Tertiary Butyl Ether Products Liability Litigation

107 F. Supp. 3d 280, 2015 WL 996405
CourtDistrict Court, S.D. New York
DecidedMarch 5, 2015
DocketMaster File No. 1:00-1898; MDL No. 1358(SAS); No. M21-88
StatusPublished
Cited by2 cases

This text of 107 F. Supp. 3d 280 (In re Methyl Tertiary Butyl Ether 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 Products Liability Litigation, 107 F. Supp. 3d 280, 2015 WL 996405 (S.D.N.Y. 2015).

Opinion

CORRECTED OPINION AND ORDER

SHIRA A. SCHEINDLIN, District Judge:

I. INTRODUCTION

This is a consolidated multi-district litigation (“MDL”) relating to contamination — actual or threatened — of groundwater from various defendants’ use of the gasoline additive methyl tertiary butyl ether (“MTBE”) and/or tertiary butyl alcohol, a product formed by the breakdown of MTBE in water. In this case, the Commonwealth of Puerto Rico (the “Commonwealth”) alleges that defendants’ use and handling of MTBE has contaminated, or threatened to contaminate groundwater within its jurisdiction. Familiarity with the underlying facts is presumed for the purposes of this Order.

Currently before the court is a two-pronged motion for summary judgment premised on the Commonwealth’s alleged failure to trace certain defendants’ gasoline to the. trial sites at which those defendants are allegedly liable.1 First, Certain Defendants move for partial judgment on the Commonwealth’s claims for negligence and strict liability at specific trial sites at issue in this phase of the action.2 Second, defendants affiliated with Chevron (the “Chevron Defendants”) move for full judgment on all of the Commonwealth’s claims.3 For the following reasons, the motion for summary judgment is GRANTED in part and DENIED in part.

[283]*283II. BACKGROUND4

The first phase of this action requires the Court to determine the liability of a number of defendants at five different trial sites.5 The ■ instant summary judgment motion relies on defendant-specific facts at each trial site in attempting to disprove, as a matter of law, the causal connections the Commonwealth must prove to support certain of its claims. In this section, I will review the facts underlying the motion for each defendant seeking judgment.6

A. Gasoline Supply Chain in Puerto Rico

A brief note on the general workings of the gasoline supply chain in Puerto Rico is helpful to contextualizing the defendant-specific facts relevant to the instant motion. For the most part, gasoline in the Commonwealth is segregated, not commingled.7 Therefore, during certain time periods, with limited exceptions, gasoline service station retailers obtained their gasoline supply from a particular, readily-identifiable supplier.8 While the records maintained by the moving defendants with regard to tracing gasoliné — from manufacturers to traders tó wholesalers to retail stations — are relatively sparse for transactions pre-dating 1995 and incomplete even for more recent years, it is generally clear that “two' [groups of] manufacturers of gasoline to the island dominated their supply chain during their respective eras.”9 From 1982 through the- mid 1990s, Chevron Phillips Chemical Puerto Rico Core LLC (“CORE”) and Conoco Phillips Company (“COP”) (collectively, the “Core Defendants”) combined to serve as the primary supplier to the island.10 From 1995 to 2005, Hess Oil Virgin Islands Corporation (“HOVIC”) and HOVENSA LLC (“HOVENSA”) combined to serve as the primary supplier.11 Defendants dispute the extent of both groups’ influence on the supply chain. I turn now to the facts regarding each of the Certain Defendants’ alleged supply of gasoline to the trial sites at issue.

1. Exxon Mobil Corporation

One of the Certain Defendants moving for partial summary judgment on the Commonwealth’s strict liability and negligence claims is Exxon Mobil Corporation (“ExxonMobil”). The Commonwealth brings claims against ExxonMobil at the two Esso Standard Oil Company (“Esso”) trial sites, Esso CO-4564 (“Trial Site No. [284]*2845”) and Esso CO-242 (“Trial Site No. 6”), to which the Commonwealth contends that it can trace both ExxonMobil’s neat MTBE and MTBE gasoline.

The parties do not dispute that, since 1979, ExxonMobil has had very limited contacts with Puerto Rico.12 For instance, it has never owned, operated, or leased any gasoline service station in Puerto Rico, including the Esso trial sites.13 In the past thirty-five years, ExxonMobil has supplied only thirteen shipments of gasoline to Puerto Rico, and it has never transported or delivered gasoline to any service stations within Puerto Rico, including the Esso trial sites.14 The presence of MTBE was confirmed in a lone April 1995 shipment of gasoline containing six percent MTBE by volume to the Catano Puerto Rican terminal.15 The Commonwealth has provided no evidence demonstrating that this lone shipment was linked to the delivery of gasoline at either of the Esso trial sites.16

These limited contacts extend to transactions related to the sale of neat MTBE. From 1982 to 1985, Exxon Chemical International Supply, S.A. (“ECIS”), an independent Panamanian corporation, sold limited amounts of neat MTBE to the Core Defendants, which they then shipped to their facility in Puerto Rico.17 Shortly thereafter, ECIS was dissolved.18 ECIS was not the only company that sold neat MTBE to the Core Defendants’ Puerto Rico facility during that three-year span.19

The Commonwealth also points to a 1982 exchange agreement (the “Exchange Agreement”) between Esso and Phillips 66 Company (“Phillips”) as potential evidence of ExxonMobil’s liability.20 Pursuant to the Exchange Agreement, Phillips agreed to deliver product to Esso in Guayama, Puerto Rico, and in return, Esso agreed to provide equal volumes of gasoline to Phillips in Baytown, Texas.21 ExxonMobil was not a direct party to the Exchange Agreement, nor to its subsequent amendments.22 There is no document before the Court indicating that ExxonMobil paid for the gasoline supplied to Esso under that Agreement. However, Esso did enter into a separate sales contract in 1982 with ExxonMobil, whereby Esso purchased gasoline from ExxonMobil and that gasoline was delivered to COP in the mainland United States.23 ExxonMobil states that Esso drew up this separate sales agreement so that it could meet its obligations under the [285]*285Exchange Agreement, to which ExxonMobil was not a party.24

2. Core Defendants

The Core Defendants also seek partial summary judgment at the Esso trial sites, as well as at the Shell (“Trial Site No. 3”) and Total (“Trial Site No. 9”) trial sites. As noted above, from 1982 through the mid 1990s, the Core Defendants served as the primary supplier of MTBE gasoline to Puerto Rico. According to one of the Commonwealth’s experts, all of the gasoline manufactured by the Core Defendants during the time period from 1982 to 1994 contained some volume of MTBE.25 The Core Defendants discontinued blending MTBE with gasoline in March 2000, but their records reflect that MTBE was present in its distribution system and in at least some of its finished gasoline until at least the end of May 2000.26

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Bluebook (online)
107 F. Supp. 3d 280, 2015 WL 996405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-methyl-tertiary-butyl-ether-products-liability-litigation-nysd-2015.