Kalamazoo River Study Group v. Rockwell International Corporation and Eaton Corporation

355 F.3d 574, 34 Envtl. L. Rep. (Envtl. Law Inst.) 20013, 57 Fed. R. Serv. 3d 1115, 57 ERC (BNA) 1865, 2004 U.S. App. LEXIS 429
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 14, 2004
Docket01-2453, 02-2192
StatusPublished
Cited by55 cases

This text of 355 F.3d 574 (Kalamazoo River Study Group v. Rockwell International Corporation and Eaton Corporation) 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
Kalamazoo River Study Group v. Rockwell International Corporation and Eaton Corporation, 355 F.3d 574, 34 Envtl. L. Rep. (Envtl. Law Inst.) 20013, 57 Fed. R. Serv. 3d 1115, 57 ERC (BNA) 1865, 2004 U.S. App. LEXIS 429 (6th Cir. 2004).

Opinion

OPINION

MOORE, Circuit Judge.

In 1990, federal and state environmental authorities officially recognized the massive polychlorinated biphenyls (“PCB”) contamination of the Kalamazoo River in Michigan by placing a portion of the river on the National Priorities List (“NPL”). The ensuing litigation over which entities were responsible for what share of the considerable investigation and cleanup costs has traced an eight-year oscillation through and between various levels of the federal court system. In the latest appearance in our courthouse, Plaintiff-Appellant Kalamazoo River Study Group (“KRSG”), a consortium of former paper-mill owners whose facilities polluted the river, appeals two distinct decisions of the District Court for the Western District of Michigan regarding the allocation of investigation and remediation costs to Defendants-Appellees Rockwell/Meritor (“Rockwell”) and Eaton Corporation (“Eaton”).

Following the placement of a stretch of the river on the NPL, the member companies of the KRSG entered into a remediation agreement with state and federal authorities. KRSG then filed actions against several other manufacturers who operated facilities on the river, including Rockwell and Eaton, under the contribution provision of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”). See 42 U.S.C. § 9613(f). Following lengthy trials, punctuated by visits to our court, the district court found both Rockwell and Eaton liable for some of the PCB contamination, but allocated none of the investigation or cleanup costs to Rockwell and only a small portion to Eaton.

KRSG first appeals the district court’s denial of its motion to reopen the order relieving Rockwell of any contribution responsibility. After the district court issued its zero-allocation order, KRSG discovered new evidence of increased environmental contamination, prompting it to file the motion to reopen. The district court, construing KRSG’s filing as a motion under Rule 60(b)(2) of the Federal Rules of Civil Procedure, denied the request as time-barred. KRSG also appeals the district court’s order allocating to Eaton only a small portion of the investigation costs and none of the future remediation costs. KRSG contends that *578 the district court applied an inappropriate standard of liability and that the district court made several errors in its factual findings.

We AFFIRM both district court judgments.

I. FACTS AND PROCEDURAL HISTORY

In their nearly decade-long battle, these adversaries have amassed a prodigious factual record, brimming with environmental assessments, ecological data, and scientific opinions. We have already comprehensively detailed many of the pertinent factual disputes elsewhere. See Kalamazoo River Study Group v. Rockwell Int'l Corp., 171 F.3d 1065 (6th Cir.1999) (“Rockwell I”); Kalamazoo River Study Group v. Menasha Corp., 228 F.3d 648 (6th Cir. 2000); Kalamazoo River Study Group v. Rockwell Intl Corp., 274 F.3d 1043 (6th Cir.2001) (“Rockwell II”). However, a brief overview of the litigation is in order.

A. Overview

In 1990, the federal Environmental Protection Agency (“EPA”) added to the NPL a thirty-five-mile stretch of the Kalamazoo River after discovering, in coordination with the Michigan Department of Natural Resources (“MDNR”), large PCB concentrations in the river. Rockwell I, 171 F.3d at 1066. In conjunction with the EPA, the MDNR identified several paper mills owned by HM Holdings/Allied Paper, Inc. (“Allied”), Georgia-Pacific Corp. (“GP”), and Simpson Plainwell Paper Co. (“Simpson”) as the main sources of the PCB contamination. In December 1990, these three mill owners entered into an Administrative Order by Consent (“AOC”) with the MDNR, which required them to fund a remedial investigation of the NPL site, even though these KRSG members did not admit liability for the PCB pollution by signing the AOC. The Fort James Operating Co. (“Fort James”), which also owned a facility located adjacent to the NPL site, joined together with Allied, GP, and Simpson to form the Kalamazoo River Study Group, which would conduct the investigation and clean-up of the river. Rockwell I, 171 F.3d at 1067.

The study of the river, referred to as the Remedial Investigation/Feasability Study (“RI/FS”), uncovered massive PCB contamination. The AOC mandated that for the purposes of the RI/FS, KRSG had to study an expanded ninety-five-mile stretch of the Kalamazoo River. The RI/FS zone included the Eaton Battle Creek plant fifteen miles upstream of the NPL site and the Rockwell Universal Joint facility, located in Allegan downstream of the NPL site. The administrative successor to the MDNR, the Michigan Department of Environmental Equality (“MDEQ”), ultimately concluded in 1997 that the river contained over 350,000 pounds of PCBs.

PCBs, which accumulate predominantly in organically rich, quiescent areas of the river, present a grave public health risk, mainly because they contaminate fish with potentially cancerous chemical waste. Monsanto Corporation produced several different varieties of PCBs all under the brand name “Aroclor,” (i.e., Aroelors 1242, 1254, and 1260, with the higher number corresponding to a greater PCB molecular weight). The KRSG companies used Ar-oclor 1242 extensively in their de-inking and paper manufacturing operations for several decades beginning in the 1930s, and they also used Aroclor 1254 in transformers, capacitors, hydraulic systems, and paints. Throughout the NPL site, Aroclor 1242 is the most prevalent PCB, and the MDEQ and EPA determined that KRSG companies were responsible for the bulk of the Aroclor 1242 contamination at the NPL site. The MDEQ also detected *579 Aroelors 1254 and 1260 at the site, the questionable source of which forms the kernel of these appeals.

All four KRSG companies have not disputed that they are liable and responsible parties within the meaning of CERCLA. See 42 U.S.C. § 9607. They have, however, claimed that they only contributed minimally to the Aroclor 1254 and 1260 pollution at the NPL site and thus another party must be responsible for those PCBs. As responsible parties with a statutory right to contribution from potentially liable parties, see 42 U.S.C. § 9613(f), the KRSG members brought an action in December 1995 against Rockwell, Eaton, and six other companies, including Benteler Industries and Consumers Power. KRSG alleged that these factory owners were partially responsible for the PCB contamination at the NPL site such that they owed KRSG contribution for the costs of the investigation and future clean-up.

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Bluebook (online)
355 F.3d 574, 34 Envtl. L. Rep. (Envtl. Law Inst.) 20013, 57 Fed. R. Serv. 3d 1115, 57 ERC (BNA) 1865, 2004 U.S. App. LEXIS 429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kalamazoo-river-study-group-v-rockwell-international-corporation-and-eaton-ca6-2004.