Joslyn Manufacturing Co. v. Koppers Company, Inc. And the Louisiana & Arkansas Railway Company

40 F.3d 750, 1994 WL 687232
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 25, 1995
Docket93-5553
StatusPublished
Cited by71 cases

This text of 40 F.3d 750 (Joslyn Manufacturing Co. v. Koppers Company, Inc. And the Louisiana & Arkansas Railway Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joslyn Manufacturing Co. v. Koppers Company, Inc. And the Louisiana & Arkansas Railway Company, 40 F.3d 750, 1994 WL 687232 (5th Cir. 1995).

Opinion

DUHÉ, Circuit Judge:

This is an action for contribution arising under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. §§ 9601, et seq., and the Louisiana Environmental Quality Act (LEQA), La.Rev.Stat. 30:2271, et seq.

Appellant Joslyn Manufacturing Company (Joslyn) appeals from judgment entered fol *752 lowing a bench trial and from an order denying its motion to vacate. We have jurisdiction pursuant to 28 U.S.C. § 1291. For the reasons set forth below, we affirm.

I. BACKGROUND

Joslyn sued T.L. James & Co., Koppers Company, Inc. (Koppers), Louisiana & Arkansas Railway Company (L & A) and others. Joslyn sought recovery of response costs and a declaration of future liability under both CERCLA and LEQA. The district court granted summary judgment for T.L. James & Co. See Joslyn Corp. v. T.L. James & Co., Inc., 696 F.Supp. 222 (W.D.La.1988), affirmed, 893 F.2d 80 (5th Cir.1990), cert. denied, 498 U.S. 1108, 111 S.Ct. 1017, 112 L.Ed.2d 1098 (1991). 1 Joslyn dismissed all remaining parties except Koppers and L & A.

Judge Stagg conducted a four day bench trial, and held that Joslyn was obligated to defend and indemnify L & A for all damages to the property. Joslyn moved to vacate judgment. The district court denied the motion and Joslyn filed this appeal.

II. FACTS

This litigation involves two contiguous parcels of land in Bossier City, Louisiana, known collectively as the Lincoln Creosoting site. The first parcel contained a wood treatment plant, including buildings, treating and storage tanks, wood treatment cylinders, black storage areas and other equipment. The second parcel contained industry tracks used in conjunction with the wood treatment operations on the first parcel. A chart depicting the relevant history of the parcels is set out in Appendix A.

A Wood Treatment Operations

Lincoln owned the first parcel from at least 1935 to 1950 when it sold the parcel to Joslyn. Lincoln leased portions of the second parcel from L & A beginning in 1938 and continuing through 1950 when it assigned its leases to Joslyn. According to Joslyn, prior to the sale and assignment Lincoln operated four wood treatment cylinders on the first parcel. Lincoln’s creosote recovery system allowed raw creosoting chemicals to drip from the treating cylinders to a sump pit located below the system. The system recovered some of the creosote from the sump. The remaining chemicals and waste water were discharged into an open ditch which emptied into a slough at the east end of the second parcel. From the slough, the creosoting chemicals were washed away by rain to the surrounding land areas and waterways. Investigation of the site has revealed substantial creosote contamination in the areas of the ditch and the slough. Joslyn claims that contamination also occurred due to Lincoln’s use of creosote to Mil weeds, and because of Lincoln’s use of creosote residue as a base for roads.

On August 1, 1950, Joslyn bought the first parcel, and the plant and equipment located thereon, from Lincoln. On August 14, 1950, Lincoln 2 assigned its leases on portions of the second parcel to Joslyn. Joslyn executed leases directly with L & A in Í955 and 1967.

The evidence reveals that Joslyn took over all of Lincoln’s physical facilities and continued wood treatment operations without interruption. George Bauer, Joslyn’s plant manager from 1950 to 1963, testified that “There was a shutdown [of Lincoln] one night and startup the next morning as Joslyn, same people, same equipment.” Joslyn used creosote and several other chemicals throughout its 19 years of wood treatment operations on the site. There is no dispute that both Lincoln and Joslyn’s wood treatment operations resulted in environmental contamination.

Joslyn continued operations at the plant until December 1969 when it sold the property to Koppers. Koppers purchased the first parcel from Joslyn in order to remove some *753 of the wood treatment equipment from the property. Specifically, Koppers sought to acquire two treatment cylinders for use at other Koppers’ plants. These cylinders, which sat on concrete pads, were removed in September 1970 by lifting them off of their supports and placing them on double flat cars. In addition, Koppers removed railroad ties, tracks, tram cars, frogs and switches. Koppers also removed the fans and doors from a dry-kiln located on the property. The trial court determined that at no time during Koppers’ ownership did it operate the wood treatment facility, nor did Koppers dismantle the entire plant.

Koppers owned the property until January 1971 when it sold the property to the Myatt family doing business as the Specialty Oil Company. Thirteen days later, the Myatts transferred ownership to Marvin E. Pollard. L & A sold the second parcel in March of 1972. The property then passed through several additional owners, the last of which subdivided the property.

B. Environmental Action

On February 3, 1986, the Louisiana Department of Environmental Quality (DEQ) issued an order against T.L. James, Joslyn, Koppers, L & A and others, requiring that a fence be erected around the perimeter of the site. While Joslyn bore the majority of the fencing cost, L & A — though denying liability for remediation — paid a pro rata share. L & A and Koppers requested a hearing on all matters relating to the February 3, 1986 compliance order issued by DEQ.

On August 2, 1986, the DEQ issued a second order against T.L. James, Joslyn, Koppers, L & A and others ordering them to develop a plan for investigation of the site and for clean up of “problem areas” discovered during the Phase 1 investigation. Kop-pers and L & A again denied liability and requested a hearing on the compliance order. Joslyn submitted a “remedial investigation' work plan” to the DEQ. On November 17, 1988, the DEQ approved the Joslyn work plan. Once again, Koppers and L & A denied liability and requested a hearing in regard to the November 17, 1988 compliance order.

On April 30, 1991, the DEQ issued an order against T.L. James, Joslyn, Koppers, L & A and others to submit a “remedial action plan” and, upon plan approval, to implement the plan. Again, Koppers and L & A denied liability and requested a hearing. On January 17, 1992, Joslyn submitted a “removal action work plan” to the DEQ. Joslyn began clean up of the site on February 28,1992. In June and July of 1992, Joslyn sought DEQ’s permission to stop work at the site. DEQ denied the request and, as of the date of the trial, Joslyn claims that it had expended over $13 million in its clean up of the site.

III.

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Bluebook (online)
40 F.3d 750, 1994 WL 687232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joslyn-manufacturing-co-v-koppers-company-inc-and-the-louisiana-ca5-1995.