Jersey City Redevelopment Authority v. PRG Industries

655 F. Supp. 1257, 17 Envtl. L. Rep. (Envtl. Law Inst.) 20, 1987 U.S. Dist. LEXIS 5066
CourtDistrict Court, D. New Jersey
DecidedMarch 17, 1987
DocketCiv. A. 85-2014
StatusPublished
Cited by27 cases

This text of 655 F. Supp. 1257 (Jersey City Redevelopment Authority v. PRG Industries) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jersey City Redevelopment Authority v. PRG Industries, 655 F. Supp. 1257, 17 Envtl. L. Rep. (Envtl. Law Inst.) 20, 1987 U.S. Dist. LEXIS 5066 (D.N.J. 1987).

Opinion

OPINION

SAROKIN, District Judge.

In this action concerning the financial responsibility for the cleanup of a contaminated site, defendants PPG Industries, A. Ambrosio & Sons Contracting, Inc., and Clif Associates and Lawrence Construction Co. move for partial summary judgment.

*1259 BACKGROUND

The parties stipulated to the following facts in the final pretrial order filed January 6, 1987. Paragraph references are to that order.

From 1954 through 1964, defendant PPG Industries, Inc., (PPG) owned and operated a plant which processed chromium ore, located on Garfield Avenue in Jersey City, NJ. (118) The processing produced residue mud consisting primarily of a silica and iron oxide matrix, and containing amounts of aluminum, magnesium, and chromium. (1112) From 1954 to 1963, various contractors, including defendant Lawrence Construction Co. (Lawrence), removed waste mud from the facility for use as fill in construction projects. (1115)

On July 13, 1964, defendant Clif Associates (Clif) contracted to purchase the Garfield Avenue site from PPG. (1124) On the same date, Lawrence and PPG entered into a contract whereby Lawrence guaranteed Clif’s performance under the real estate agreement. (1131) At that time, Clif and Lawrence were aware of the potential presence of chemicals in containers on the subject premises. (H 24)

On November 25, 1974, plaintiff Jersey City Redevelopment Authority (JCRA) hired defendant A. Ambrosio & Sons Contracting, Inc. (Ambrosio) to perform excavating work on a site at Ninth Avenue in Jersey City. (H 38, 40) On the same date, defendant International Fidelity Insurance Co. (International) issued a performance and payment bond guaranteeing Ambro-sio’s performance in favor of JCRA. (H 51) Ambrosio also obtained liability insurance from defendant The Hartford naming JCRA as an insured party.

During 1975, Ambrosio completed performance under its contract with JCRA. Most of the fill material used in completing the Ninth Street demolition was obtained from excavation of a nearby sewer project. (1158) Ambrosio alleges that it purchased from Lawrence approximately nine truck loads of fill material from the Garfield Avenue facility for use at the Ninth Street site. (11 59-61)

In 1983, the New Jersey Department of Environmental Protection notified JCRA that some of the landfill used by Ambrosio was contaminated with chromium. (1175) JCRA complied with the Department’s cleanup order, with excavation and cleanup work being performed from December 27, 1983 to January 17, 1984. (11 94)

On April 25, 1985, JCRA filed a complaint against PPG, Clif, Lawrence, Ambro-sio, International, and The Hartford. The complaint seeks relief from defendants PPG, Clif, Lawrence, and Ambrosio on the following bases: Section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. § 9607(a) (Count One); the New Jersey Spill Compensation and Control Act, N.J.S.A. § 58:10-23.11 et seq. (Count Two); abnormally dangerous and ultrahazardous activity (Count Three); trespass (Count Four); public nuisance (Count Five); private nuisance (Count Six); negligence (Count Seven). Additionally, JCRA seeks relief from Ambrosio for breach of contract (Count Eight), misrepresentation (Count Nine), and fraud (Count Ten). Finally, JCRA seeks relief from International and Hartford as the guarantors of Ambrosio’s performance (Count Eleven), and under the New Jersey Spill Compensation and Control Act (Count Twelve).

PPG now moves for summary judgment as to Counts One, Two, Four, Five, and Six. Clif and Lawrence now move for summary judgment as to Counts One, Two, Five, and Six. Ambrosio moves for summary judgment as to Count Two and Count Five. Furthermore, PPG, Lawrence, and Clif move for summary judgment on plaintiff’s request for punitive damages as to Counts Three through Seven. Finally, Lawrence, Clif, and Ambrosio move for summary judgment as to plaintiff’s request for attorney’s fees as to Counts Two through Seven.

DISCUSSION

I. Count One — CERCLA

A. PPG

PPG, the original owner of the Garfield Ave. facility and the generator of the waste, contends that plaintiff’s CERCLA *1260 claim against it fails as a matter of law because PPG is not a “covered person” within the meaning of the statute.

Section 107(a), 42 U.S.C. § 9607(a), subjects four groups of individuals to liability. Plaintiff alleges that PPG is a “covered person” under § 107(a)(3), 1 which holds liable

any person who by contract, agreement, or otherwise arranged for disposal or treatment, or arranged with a transporter for transport for disposal or treatment, of hazardous substances owned or possessed by such person, by any other party or entity, at any facility owned or operated by another party or entity and containing such hazardous substances. (Emphasis supplied)

Plaintiff contends that PPG, by selling the Garfield Avenue property to Clif, “arranged for” the disposal of the contaminated waste mud remaining on the site. Memorandum of Law on Behalf of Plaintiff JCRA, at 21. Plaintiff conceded at argument that the PPG-Clif contract does not refer to disposal of waste. Plaintiff maintains, however, that the contract implicitly transfers PPG’s obligation to dispose of the waste to Clif. Because mud was removed from the Garfield Avenue property while PPG owned it from 1954-1963, plaintiff submits, “it was clearly foreseeable that waste mud remaining at the Garfield Avenue site after its transfer to Clif Associates would continue to be put to that use.” Id. at 21.

Plaintiff’s interpretation of Section 107(a)(3) is unconvincing. Case law interpreting Section 107(a)(3) holds that the responsible party must affirmatively act to dispose of the waste itself — liability under the provision ends with the party who “made the crucial decision” how the hazardous substances would be disposed of or treated. United States v. A & F Materials Co., 582 F.Supp. 842, 845 (S.D.Ill.1984); see Allied Towing v. Great Eastern Petroleum Corp., 642 F.Supp. 1339, 1350 (E.D.Va. 1986). Section 107(a)(3) requires that, in some manner, the defendant “dumped” his waste on the site at issue. See United States v. Conservation Chemical Co., 619 F.Supp. 162, 190 (W.D.Mo.1985); United States v. Wade, 577 F.Supp. 1326, 1333 (E.D.Pa.1983). PPG, by conveying the entire property to Clif in 1964 while foreseeing that waste mud might be sold as landfill by the future owner, did not “arrange for” the disposal of that mud onto the Ninth Avenue site in 1974. Clif contracted independently with Ambrosio to remove the mud from the Garfield Avenue facility. See United States v. Westinghouse Elec. Corp., 14 Envtl.L.Rep. (Envtl.L.Inst.) 20,-483, 20,484 (S.D.Ind.1983).

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Bluebook (online)
655 F. Supp. 1257, 17 Envtl. L. Rep. (Envtl. Law Inst.) 20, 1987 U.S. Dist. LEXIS 5066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jersey-city-redevelopment-authority-v-prg-industries-njd-1987.