Mattie Halley v. Honeywell International Inc

861 F.3d 481, 97 Fed. R. Serv. 3d 1425, 2017 WL 2802638, 2017 U.S. App. LEXIS 11594
CourtCourt of Appeals for the Third Circuit
DecidedJune 29, 2017
Docket16-2712
StatusPublished
Cited by26 cases

This text of 861 F.3d 481 (Mattie Halley v. Honeywell International Inc) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mattie Halley v. Honeywell International Inc, 861 F.3d 481, 97 Fed. R. Serv. 3d 1425, 2017 WL 2802638, 2017 U.S. App. LEXIS 11594 (3d Cir. 2017).

Opinion

OPINION OF THE COURT

SCIRICA, Circuit Judge.

This is an appeal from the approval of a settlement of a Federal Rule of Civil Procedure 23(b)(3) class action arising out of hexavalent chromium contamination in Jersey City, New Jersey. The class action was brought on behalf of property owners in several neighborhoods in Jersey City whose homes were allegedly contaminated by byproducts disposed of at two chromium chemical manufacturing plants. Defendants Honeywell International, Inc., and PPG Industries, Inc., are the successors in interest of the manufacturing plant owners and operators. Plaintiffs asserted common law tort claims and civil conspiracy claims for depreciation of their property values due to the alleged contamination, but not claims for harm other than economic loss to property value, such as personal injury or medical monitoring claims. The District Court certified a settlement-only class as to the claims against Honeywell 1 and approved a $10,017,000 settlement fund, which included an award of costs and attorneys’ fees for plaintiffs’ counsel. Maureen Chandra is a member of the Honeywell settlement class who objects to various aspects of the settlement and the award of costs and attorneys’ fees.

We conclude the class certification requirements of Federal Rule of Civil Procedure 23(a) and (b)(3) are satisfied, and the District Court did not abuse its discretion in approving the settlement under Federal Rule of Civil Procedure 23(e) and the award of attorneys’ fees under Federal Rule of Civil Procedure 23(h). But we will remand for the District Court to reconsider the award of costs under Rule 23(h).

I. BACKGROUND AND PROCEDURAL HISTORY

A. Chromium Production in Jersey City

This case involves two chromate chemical production facilities in Jersey City, New Jersey. Honeywell is the successor in interest to Mutual Chemical Company of America, which operated a facility from 1895 to 1954 on West Side Avenue. PPG is the successor in interest to Pittsburgh Plate Glass Company and Natural Refining Company, which operated a facility from 1924 to 1963 on Garfield Avenue.

Both facilities created chromium ore processing residue (“COPR”) as a byproduct of chemical manufacturing. COPR waste from the facilities was disposed of at two sites in Jersey City. Mutual disposed of COPR at a site near its plant on the west side of Jersey City, near the Hacken-sack River (“the Mutual site”). Pittsburgh Plate Glass disposed of COPR near ■ its plant further east (“the Pittsburgh Plate Glass site”). Plaintiffs allege more than one million tons of waste products were disposed of at the two sites.

*485 COPR contains hexavalent chromium, 2 which the United States Environmental Protection Agency and the New Jersey Department of Environmental Protection classify as a known human carcinogen. Hexavalent chromium is hazardous to humans and other organisms if inhaled or ingested in contaminated water.

Honeywell and its predecessors in interest have been proceeding with COPR cleanup at the Mutual site for many years. See Interfaith Community Org. v. Honeywell Int’l, Inc., 399 F.3d 248 (3d Cir. 2005). The State of New Jersey first sought a remedy for the site in 1982, after chromium waste was discovered in surface water on the site. Id. at 252. Over the course of ongoing negotiations with NJDEP, Honeywell and its predecessors attempted various interim remediation measures, including capping parts of the site with asphalt and a plastic liner. Id. at 253. There have been a number of consent orders regarding the Honeywell site arising from litigation brought by NJDEP under New Jersey environmental protection statutes and regulations in the New Jerseys state courts, beginning with a 1990 consent order, and most recently a 2011 consent judgment, as modified in 2013. 3

In 1995, a community organization and its members brought a federal action against Honeywell and other defendants to compel cleanup of the Mutual site under the citizen suit provision of the Resource Conservation and Recovery Act, 42 U.S.C. § 6972(a)(1)(B). Id. at 252. The United States District Court for the District of New Jersey determined Honeywell was required to remediate under RCRA and directed Honeywell to excavate and remove chromium waste from the Mutual site under the supervision of a federal-court-appointed site administrator. See id. at 268 (affirming injunction against Honeywell to compel cleanup of Mutual site).

B. Procedural History

This action involves three putative classes of property owners in Jersey City in three different neighborhoods near the chromium manufacturing plants and related disposal sites. Class A includes property owners in a neighborhood east and south of the Mutual site. Class C includes property owners located in a smaller area west of Class A. Together, Class A and Class C include 3,497 properties. The neighborhood comprising Class B is in a different part of Jersey City, to the east of Class A and surrounding the Pittsburgh Plate Glass site to the north.

Plaintiffs allege both defendants negligently disposed of COPR and other chromium manufacturing byproducts, resulting in continuing contamination of the surrounding properties. They further allege Honeywell, PPG, and their predecessors, individually and in conspiracy with one another, concealed the fact of COPR disposal and the known health risks resulting from the disposal.

The Sixth Amended Complaint asserted five causes of action on behalf of the three putative classes: (1) private nuisance, (2) strict liability, (3) trespass, (4) negligence, and (5) civil conspiracy. 4 Plaintiffs sought *486 compensatory relief in the form of economic damages “for loss of property value,” as well as punitive damages.

Plaintiffs initially filed this action in New Jersey state court in 2010, and defendants removed the case to the United States District Court for the District of New Jersey. On February 28, 2011, the District Court granted in part and denied in part Honeywell’s motion to dismiss, and the case proceeded to discovery. On July 17, 2014, prior to the completion of discovery or filing of a motion for class certification, plaintiffs and Honeywell informed the District Court they had reached a settlement in principle following negotiations under the auspices of an independent third-party mediator.

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861 F.3d 481, 97 Fed. R. Serv. 3d 1425, 2017 WL 2802638, 2017 U.S. App. LEXIS 11594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mattie-halley-v-honeywell-international-inc-ca3-2017.