Julie Olden, Richard Hunter, Wilbur Bleau, and All Others Similarly Situated v. Lafarge Corp.

383 F.3d 495
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 10, 2004
Docket02-1148
StatusPublished
Cited by154 cases

This text of 383 F.3d 495 (Julie Olden, Richard Hunter, Wilbur Bleau, and All Others Similarly Situated v. Lafarge Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Julie Olden, Richard Hunter, Wilbur Bleau, and All Others Similarly Situated v. Lafarge Corp., 383 F.3d 495 (6th Cir. 2004).

Opinion

OPINION

CUDAHY, Circuit Judge.

Julie Olden, Richard Hunter and Wilbur Bleau represent a class of 3,600 persons who owned single family residences in Alpena, Michigan, from April 19, 1996 to the present, and who allege personal and property damage caused by toxic pollutants originating from a cement manufacturing plant belonging to the defendant Lafarge Corporation. They have brought a class action against Lafarge for current and future personal and real property damages, diminution in property value and *497 various detrimental health effects caused by the emission of toxic pollutants. The district court granted in part and denied in part Lafarge’s motion to dismiss and granted the plaintiffs’ motion to certify the class action. In this appeal, we are called upon to decide whether the plaintiffs’ class action against the nation’s largest cement plant is solid. In answering this weighty question, we must also decide for the first time in this circuit whether Zahn v. International Paper Co., 414 U.S. 291, 301, 94 S.Ct. 505, 38 L.Ed.2d 511 (1973), has been overruled by 28 U.S.C. § 1367.

I.

In the northeast section of Alpena, Michigan, Lafarge’s cement manufacturing complex, consisting of a limestone rock quarry and a cement manufacturing plant, covers a full square mile. See App. at 368-70, 431. It is the largest cement manufacturing plant in the nation and has been owned and operated by Lafarge since 1987. Id. at 787 (noting that “the Lafarge plant is the largest cement plant in North America”). The plaintiffs allege that throughout Lafarge’s ownership and operation of the plant, it has continuously and systematically disregarded “proper procedure and maintenance of its equipment that would prevent the emission of air contaminants into the surrounding community.” Olden Br. at 6. As a result, Alpena residents submitted numerous complaints to the Michigan Department of Environmental Quality (MDEQ). Id. at 6-7. In 1994, the MDEQ and Lafarge entered into a consent decree, in part, to remedy La-farge’s emission of air contaminants. App. at 301-27. However, Lafarge violated the terms of the decree resulting in the accrual of over $5.4 million in stipulated penalties as of May of 2003. Id. at 219-22. In 2000, the consent decree was amended, requiring Lafarge’s further compliance with statutory air pollution requirements. Id. at 435-62.

The plaintiffs claim that in the process of making cement, the Lafarge plant produces hazardous toxic waste and creates emissions with hazardous by-products. Id. at 12 (Cplt-¶¶ 17-18). The class has alleged that release of the air contaminants from the Lafarge plant interferes with the use and enjoyment of their real and personal property and has caused or will cause diminution in the market value of this property. Id. at 13 (Cpltlfíí 20A, 21). For example, the cement dust emitted by the plant has penetrated into the siding on houses, killed rose bushes and left a white film over houses and vehicles in Alpena. Id. at 280, 282-83. Additionally, hydrochloric acid, a byproduct of the cement manufacturing process, has degraded roofs, piping, concrete and the aluminum windows and doors of some homes. Id. at 289.

In addition to property damage caused by emissions, the plaintiffs claim to have been exposed to numerous carcinogenic, mutagenic, and teratogenic toxic substances. Id. at 6 (Cplt-¶¶ 24-25). Such toxins allegedly cause the plaintiffs and their unborn children an increased risk of cancer, impaired immunological function, birth defects and developmental abnormalities, all of which are potentially life threatening and warrant continued medical monitoring. Id. at 6-7 (Cplt-¶¶ 26-27). Additionally, the plaintiffs claim agony, anxiety, distress, embarrassment, humiliation, mental anguish, suffering and other related nervous conditions, psychological disorders and emotional consequences. Id. at 18 (CplU 47).

On April 19, 1999, the plaintiffs filed suit against Lafarge, alleging that the emissions trespassed on their property (Count II), created a nuisance (Count III) and arose from Lafarge’s negligence or gross *498 negligence (Count IV). Id. at 15-21 (Cplt-¶¶ 29-51). The plaintiffs seek compensatory damages for physical and mental illnesses caused by the pollution and for the purchase of equipment to clean and remove emitted substances . from ■ their property. The plaintiffs also seek exemplary and punitive damages, ,as well as, an injunction requiring Lafarge to: (a) fund a medical monitoring program (Count I); (b) repair any damage to the plaintiffs’ property; (c) improve the operation of the plant to eliminate emissions; and (d) refrain from allowing emitted substances to be deposited on the plaintiffs’ property. Id. at 14,19-21.

On September 25, 2000, the plaintiffs moved to certify their class action. Appx. at 39. On October 26, 2000, Lafarge filed a combined motion to dismiss under Fed. R. Civ. P. 12(b)(1) (lack of subject matter jurisdiction); 12(b)(6) (failure to state a claim), and to deny class certification, arguing that the plaintiffs did not meet the requirements of Fed.R.Civ.P. 23(a) (nu-merosity, typicality and adequacy of class representation); 23(b)(2) (individualized money damages overwhelm the requested injunctive relief); and 23(b)(3) (individuality of interests, manageability of the action, etc.). Appx. 328-29. In an order dated October 24, 2001, the district court granted in part and denied in part Lafarge’s motion to dismiss and granted the plaintiffs’ motion to certify the class action. See Olden v. LaFarge, 203 F.R.D. 254, 258 (E.D.Mich.2001). With regard to subject matter jurisdiction, the district court held that the supplemental jurisdiction statute confers subject matter jurisdiction over claims by putative class members that do not entail $75,000 in controversy, but that form part of the same case or controversy as the claims by other class members which exceed the jurisdictional amount. With respect to Lafarge’s 12(b)(6) motion, the court held that the plaintiffs failed to state a claim for trespass under Michigan law but that the plaintiffs stated valid state law claims for nuisance and negligence. Id. at 264-67, 271. Finally, the district court also held-that class certification was appropriate under Fed.R.Civ.P. 23(b)(2) and (3). Id. at 271. On appeal, Lafarge challenges only the district court’s decision with respect to subject matter jurisdiction and class certification.

II.

DISCUSSION

We have jurisdiction over this interlocutory appeal pursuant to Federal Rule of Civil Procedure 23(f).

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