Interstate Power Co. v. Kansas City Power & Light Co.

992 F.2d 804, 1993 WL 141122
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 6, 1993
DocketNo. 92-1910
StatusPublished
Cited by94 cases

This text of 992 F.2d 804 (Interstate Power Co. v. Kansas City Power & Light Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interstate Power Co. v. Kansas City Power & Light Co., 992 F.2d 804, 1993 WL 141122 (8th Cir. 1993).

Opinion

LOKEN, Circuit Judge.

In this case, we address whether a final judgment should have been entered dismissing fewer than all of the claims and parties’in complex environmental litigation. The district court determined under Fed.R.Civ.P. 54(b) that there was no just reason to delay entering final judgment on its order dismissing the third-party contribution claim of Kansas City Power and Light Company (“KCPL”) against Bob McKiness Excavating & Grading, Inc. (“McKiness”). KCPL then appealed. We conclude that the Rule 54(b) determination was an abuse of discretion and dismiss the appeal.

I.

Interstate Power Company’s (“IPC”) property in Mason City, Iowa, is contaminated with coal gas tars and tar residues. The contaminants were initially generated by a manufactured gas plant operated on the site [806]*806until 1931. KCPL bought the property in 1932, “decommissioned” .the gas plant in 1952, and sold the site to IPC in 1957.

In 1984, McKiness entered into a contract with Mason City (“the City”) to build a sanitary sewer across the property. McKiness’s blasting operations disturbed long-buried coal gas contaminants. When McKiness began pumping excess ground water into nearby Willow Creek, an oily sheen appeared on the creek’s surface. The Iowa Department of Natural Resources (“IDNR”) ordered an investigation and McKiness performed exploratory drilling into suspected areas of contamination. Evéritually, IPC and the City agreed that McKiness should resume construction of the sewer under the supervision of IDNR. KCPL alleges that, in the course of these operations, McKiness deposited contaminated soil into an unlined pile in the corner of the property, discharged contaminated water into an unlined pond, and allowed contaminated water to seep into bedrock fissures created by McKiness’s blasting.

Not surprisingly, the property ended up on the Environmental Protection Agency’s list of “Superfund” sites, properties designated for compulsory cleanup under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). 42 U.S.C. §§ 9601 et seq. On June 3, 1986, IPC and EPA entered into a consent order in which IPC agreed to clean up the site. In May 1989, IPC commenced this action by' suing Iowa-IUinois Gas & Electric Company, as successor to the gas plant utility, and KCPL to recover IPC’s cleanup costs.

KCPL filed third-party claims for contribution against McKiness and Iowa-Illinois. McKiness asserted fourth-party claims against the City and IDNR and then moved for summary judgment on KCPL’s third-party claims, arguing that it cannot be liable for contribution under CERCLA because it is not a “potentially responsible person” as defined in 42 U.S.C. § 9607(a). See 42 U.S.C. § 9613(f)(1). In its response, KCPL asserted that McKiness is a “potentially responsible person” because it “arranged for disposal” of contaminants within the meaning of § 9607(a)(3). Although KCPL’s third-party complaint also had alleged that McKiness is liable as an “owner” and “operator” of the facility under §§ 9607(a)(1) and (a)(2),. KCPL did not raise those issues in opposing McKiness’s motion for summary judgment.

On October 15, 1991, the district court granted summary judgment in favor of McKiness (the “October 15 Order”). Noting that KCPL had only contested McKiness’s summary judgment motion on the § 9607(a)(3) issue, the court held that McKiness did not arrange for disposal as a matter of law because McKiness’s work on the site was directed by the City, IDNR, and IPC, and because “the [contractual] authority for control of the disposal remained with IPC.” The court also dismissed KCPL’s alternative claim for contribution under Iowa Code .§ 668.5.

On October 31, KCPL moved for reconsideration of the October 15 Order, now urging the district court to address McKiness’s alleged liability under §§ 9607(a)(1) and (a)(2). The district court treated KCPL’s motion as a Rule 60 motion and denied it for failing to present “any of the requisite reasons for relief under Rule 60.” However, the court granted KCPL’s alternative request that the October 15 Order be entered as a final judgment under Rule 54(b). Despite McKiness’s. opposition to the request, the court concluded that Rule 54(b) certification was appropriate because the claims against McKiness and the unadjudicated claims are sufficiently separate, the claims against McKiness will not be mooted by other actions in the lawsuit, and an immediate appeal would promote judicial economy by finally determining whether McKiness is a potentially responsible person under CERCLA.

KCPL appealed both the October 15 Order and the order denying its motion to reconsider. If the Rule 54(b) determination is ineffective, however, we lack jurisdiction because there is no final district court order. See Bullock v. Baptist Memorial Hosp., 817 F.2d 58, 59-60 (8th Cir.1987).

II.

Rule 54(b) permits the district court to “direct the entry of a final judgment as to one or more but fewer, than all of the claims or parties only upon an express deter[807]*807mination that there is no just reason for delay.” In determining that there is “no just reason for delay,” the district court must consider both the equities of the situation and “judicial administrative interests,” particularly the interest in preventing piecemeal appeals. See Curtiss-Wright Corp. v. General Elec. Co., 446 U.S. 1, 8, 100 S.Ct. 1460, 1464, 64 L.Ed.2d 1 (1980). Applying the abuse of discretion standard of review, we largely defer to the district court’s weighing of the equities. We subject its analysis of appellate administrative interests, however, to closer scrutiny. Id. at 10, 100 S.Ct. at 1466. A Rule 54(b) determination should not be made routinely; it is only the “special case” that warrants an immediate appeal from a partial resolution of the lawsuit. Hardie v. Cotter & Co., 819 F.2d 181, 182 (8th Cir.1987).

A.

The district court treated KCPL’s motion to reconsider as a Rule 60 motion and denied it because KCPL failed to allege grounds for relief under Rule 60(b). However, Rule 60(b) only applies to motions for relief from “a final judgment, order, or proceeding.” The October 15 Order was not final when KCPL filed its motion to reconsider as all of the claims between the other parties to the litigation remained unresolved in the district court. Under the last clause of Rule 54(b), a non-final order “is subject to revision at any time before the entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.” The district court, then, should have addressed the issues KCPL raised in its motion for reconsideration.

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Cite This Page — Counsel Stack

Bluebook (online)
992 F.2d 804, 1993 WL 141122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interstate-power-co-v-kansas-city-power-light-co-ca8-1993.