Martignetti v. Haigh-Farr, Inc.

2 Mass. L. Rptr. 277
Massachusetts Superior Court·Decided June 20, 1994·No. No. 89-7700-B·Published·Cited by 1 cases

Opinion

Brady, J.

BACKGROUND

In 1986 the plaintiffs, trustees of Martignetti Brothers Realiy Trust, learned that the property owned by them at 205 Concord Turnpike, Cambridge, was contaminated by hazardous materials. They promptly notified the Massachusetts DEQE and later incurred substantial response costs to assess the extent of the contamination and to develop a plan to remove it. In November 1989, the plaintiffs commenced this action under G.L.c. 21E, §4 against the defendants and other parties liable for further contamination for reimbursement of their response costs.1

The case was tried to a jury in April 1994. The jury’s answers to special verdict questions determined that a release occurred from or at the site during or after the time in which defendant Charles Farr operated a furniture stripping business thereon, that defendant Haigh-Farr, Inc., was an “operator” of the furniture stripping business at the relevant time, and that the plaintiffs’ reasonable response costs as a result of the release(s) were $385,698.60. The jury also determined that the plaintiffs were negligent with respect to their care and maintenance of the underground storage tank on the site, and that the plaintiffs’ negligence was a cause of the release(s) of the hazardous materials from the tank. Finally, the jury determined that the equitable share of the response costs that each party should be required to pay was: plaintiffs, 30%; Haigh-Farr, Inc., 35%; and Charles Farr, 35%.

[278]*278The parties, prior to the entry of judgment, bring the following motions: (1) plaintiffs’ motion for declaratory relief, (2) plaintiffs’ motion for entry of judgment, (3) plaintiffs’ motion to award costs and fees, and (4) defendant Haigh-Farr, Inc.’s motion for judgment notwithstanding the verdict. Haigh-Farr’s counsel, recognizing at oral argument on May 27, 1994 that the motion for judgment notwithstanding the verdict was premature, has waived it.

Further facts relevant to the motions are as follows. The property consists of land and a building adjacent to properly owned by Arthur D. Little, Inc. in Cambridge. The plaintiffs purchased it in May 1982 from the Concord Turnpike Realty Trust, the principals of which were the so-called elder generation of Marügnettis, namely the plaintiffs’ father and two of his brothers.

Charles Farr first occupied part of the subject building as a tenant of Concord Turnpike Realty Trust in 1973, at which time he began to operate his furniture stripping business. Mr. Farr had been recently laid off from his job at American Airlines, and was searching for a business venture. His brother, George Farr, was a principal of Haigh-Farr, Inc., a Massachusetts corporation whose primary business was manufacturing antennae for space satellites. In 1973, Haigh-Farr helped Charles Farr get started in this business by loaning him money, assisting him in obtaining credit, handling his gross receipts, paying bills, keeping books for him, and various other matters. Although the relationship between Charles Farr and Haigh-Farr was complicated, there was sufficient evidence for the jury-to conclude that Haigh-Farr was an operator of the furniture stripping business under G.L.c. 21E, §2, because it had the authority to control the disposition of the hazardous materials on site.

Charles Farr conducted a furniture stripping business on the premises until evicted by plaintiffs in June 1986. The furniture stripping process involved dousing the furniture with chemicals and then rinsing the chemicals off with water. The resulting fluid mixture would follow the tilt of the floor to a drain which led into a large concrete underground storage tank. The chemicals used were hazardous materials under c. 21E, which was enacted in 1983. Periodically, Mr. Farr would have a contractor remove and dispose of the liquid and sludge which accumulated in the tank. Some of the fluid mixture may also have gone into a depression (sump) near the drain and then directly into the soil underneath.

The plaintiffs discovered the contamination in 1986 in connection with a c. 21E investigation prior to a proposed land swap with their neighbor, Arthur D. Little, Inc. According to plaintiffs’ expert witnesses at trial, the hazardous materials found in the soil and groundwater came from the tank area, i.e. the tank and the nearby sump. Although the experts were not specific, the jury could have concluded that some of the contamination which was released into the environment came from a leak(s) in the underground storage tank.2

There was little question that Charles Farr was a person liable under G.L.c. 21E, §5(a)(2).3 At the trial he vigorously challenged the reasonableness of the response costs and argued that the plaintiffs themselves were at least partially responsible for the releases for failing adequately to maintain the underground storage tank from which the hazardous materials escaped.

Haigh-Fanr’s main defense was that it was not an operator of Charles Farr’s furniture stripping business because it never had any right or ability to control Farr’s use or disposal of hazardous materials. It argued that its involvement in the furniture stripping business was purely out of familial affection rather than as a hopeful sharer of anticipated profits; and that it had no authority to control Charles Farr’s waste disposal practices. The jury, upon sufficient evidence, concluded otherwise.

JOINT AND SEVERAL LIABILITY

The plaintiffs argue that the court should enter judgment that the defendants are jointly and severally liable for 100% of plaintiffs’ response costs.4 Alternatively, the plaintiffs urge that judgment should enter that defendants are jointly and severally liable for 70% of the response costs. The defendants, on the other hand, argue that the court should enter a separate judgment against each defendant in the amount of 35% of the response costs, i.e. their pro rata share as determined by the jury. For the reasons set forth herein, I agree with defendants.

The plaintiffs rely heavily on several CERCLA (42 U.S.C. §9601 etseq.) cases arguably favoring joint and several liability in government and private parly actions where, as here, the harm to the property is indivisible. They also argue that c. 2 IE, §5(a)’s express provision for joint and several liability should be read into §4 actions. As I read plaintiffs’ cited CERCLA cases, they generally do not support joint and several liability in a case like this. In any event, as I construe c. 21E, §4, several, not joint, liability is contemplated.

CERCLA cases in which a government seeks to impose joint and several liability on private party defendants are not in point. O’Neil v. Picillo, 883 F.2d 176 (1st Cir. 1989), for instance, was an action by the State of Rhode Island to recover cleanup costs from numerous defendants for a contaminated site. Id. at 178. Some of the contributing defendants argued that their contributions to the contamination were insubstantial, hence they should not be held jointly and severally liable. Id. at 178. The court held that damages should be apportioned only if a defendant could demonstrate that the harm was divisible. Id. at 178. Compare G.L.c. 21E, §5(c). But as pointed out in Environmental Transp. Systems, Inc. v. Ensco, Inc., 969 F.2d 503, 508 (7th Cir.

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Martignetti v. Haigh-Farr, Inc., 2 Mass. L. Rptr. 277 (Mass. Ct. App. 1994).

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