McDonald's Corp. v. Wilson

814 F. Supp. 935, 1993 U.S. Dist. LEXIS 7016, 1993 WL 47833
CourtDistrict Court, D. Oregon
DecidedFebruary 23, 1993
DocketCiv. No. 90-6079-TC
StatusPublished

This text of 814 F. Supp. 935 (McDonald's Corp. v. Wilson) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDonald's Corp. v. Wilson, 814 F. Supp. 935, 1993 U.S. Dist. LEXIS 7016, 1993 WL 47833 (D. Or. 1993).

Opinion

OPINION AND ORDER

COFFIN, United States Magistrate Judge:

This is a diversity action which McDonald’s Corporation initiated in federal court to recover its clean-up costs on a petroleum-contaminated lot it had purchased in Coos Bay, Oregon for the purpose of constructing a fast-food restaurant. This action was brought pursuant to ORS 465.003, et seq. [known as the Oregon Superfund Statute],

The background to this case can be summarized as follows:

McDonald’s purchased its restaurant site from Charles and Nancy Wilson in 1989. The Wilsons had owned the property since 1971. From 1945-1963, Mobil had operated a petroleum station on the property. Charles Wilson had been the operator of this Mobil station for a short period of time in 1955. Between 1963 and 1971, Tom McClure (who is not a party to this action) operated a used car dealership on the property, and used the pumps from the former Mobil station to service his vehicles. McClure added a 3000 gallon Underground Storage Tank (UST) in 1963.

By the time McDonald’s purchased the site, the service station had been long since removed. There is evidence that McDonald’s, however, was aware of the possibility of USTs being on the site, but chose to purchase the lot at any rate and proceed with the project.

In 1990, when McDonald’s excavated the site in preparation for constructing its restaurant, it discovered three buried USTs and encountered petroleum contamination in the soil. McDonald’s punctured one of the USTs in the process of excavating the site. McDonald’s then proceeded to clean up the site, incurring costs of approximately $178,000 in [937]*937doing so. It then brought suit in federal court against the Wilsons for recovery of its clean-up costs pursuant to the Oregon Superfund Statute.

The Wilsons, in turn, counterclaimed against McDonald’s [based in part upon the contention that when they sold the lot to McDonald’s, the corporation had agreed to hold the Wilsons harmless for any contamination found on the site] and filed a third-party complaint against Mobil. McDonald’s thereafter filed a direct claim against Mobil and Mobil filed counterclaims against the Wilsons and McDonald’s.

Eventually, the parties settled all issues in the ease, with the exception of claims for attorney fees1 under the state superfund statute. The issue before the Court is whether the Oregon Superfund Statute authorizes recovery of attorney fees and, if so, the amount of fees which is reasonable and recoverable in this case.

Analysis

The Oregon courts adhere to the general rule that attorney fees are not recoverable by the prevailing party absent authorization by a statute or contract. See Samuel v. Frohnmayer, 308 Or. 362, 779 P.2d 1028 (1989). As there was no contract between McDonald’s and Mobil regarding this matter, the issue is whether the Oregon legislature authorized the recovery of attorney fees and other litigation costs pursuant to this statutory scheme for dealing with hazardous waste and associated clean-up costs.

It is appropriate to briefly describe the remedies and liabilities create by Oregon’s Superfund Statute:

Oregon law imposes strict liability on various parties for “remedial action costs” incurred by the state or private parties to clean up pollution:

The following persons shall be strictly liable for those remedial action costs incurred by the state or any other person that are attributable to or associated with a facility and for damages for injury to or destruction of any natural resources caused by a release:
(a) Any owner or operator at or during the time of the acts or omissions that resulted in the release.
(b) Any owner or operator who became the owner or operator after the time of the act or omissions that resulted in the release, and who knew or reasonably should have known of the release when the person first became the owner or operator.
(c) Any owner or operator who obtained actual knowledge of the release at the facility during the time the person was the owner or operator of the facility and then subsequently transferred ownership or operation of the facility to another person without disclosing such knowledge.
(d) Any person who, by any acts or omissions, caused, contributed to or exacerbated the release, unless the acts or omissions were in material compliance with applicable laws, standards, regulations, licenses or permits.
(e) Any person who unlawfully hinders or delays entry to, investigation of or removal or remedial action at a facility.

ORS 465-255(1).

“Remedial action costs” are defined as those

... reasonable costs which are attributable to or associated with a removal or remedial action at a facility, including but not limited to the costs of administration, investigation, legal or enforcement2 activities, contracts and health studies, (emphasis added).

ORS 465.200(16).

Under this statutory scheme, the state agency in charge of enforcing its provisions has several options available to it, including [938]*938taking remedial action itself at a contaminated site and thereafter seeking reimbursement from any liable party or issuing an order requiring a liable party to conduct the remedial action. ORS 465.260. In addition, a private party incurring clean-up costs (either on its own initiative or in response to the state’s order) may seek reimbursement or contribution from other liable private parties. ORS 465.255(5)(b).

In this case, as noted, McDonald’s opted to clean up the site at its own expense, ultimately seeking reimbursement for those costs from the Wilsons and Mobil. All “remedial action costs” associated with the actual clean-up of the site have been settled among the parties. What remains, as between McDonald’s and Mobil,3 is the issue of whether the litigation expenses incurred by McDonald’s in the prosecution of this lawsuit are included within the definition of “remedial action costs” and thus recoverable as well.

It is noteworthy that the litigation costs incurred by McDonald’s in pursuing this action have greatly exceeded the approximately $178,000 that was expended to eliminate the contamination at the restaurant site; ironically, McDonald’s litigation costs fueled the perpetuation of litigation as opposed to an early settlement among the parties.

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Bluebook (online)
814 F. Supp. 935, 1993 U.S. Dist. LEXIS 7016, 1993 WL 47833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonalds-corp-v-wilson-ord-1993.