Memphis Zane May Associates v. IBC Manufacturing Co.

952 F. Supp. 541, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20870, 44 ERC (BNA) 1596, 1996 U.S. Dist. LEXIS 20362, 1996 WL 785085
CourtDistrict Court, W.D. Tennessee
DecidedSeptember 30, 1996
Docket94-2132-D
StatusPublished
Cited by5 cases

This text of 952 F. Supp. 541 (Memphis Zane May Associates v. IBC Manufacturing Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Memphis Zane May Associates v. IBC Manufacturing Co., 952 F. Supp. 541, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20870, 44 ERC (BNA) 1596, 1996 U.S. Dist. LEXIS 20362, 1996 WL 785085 (W.D. Tenn. 1996).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT ON THE ISSUE OF JOINT AND SEVERAL LIABILITY

DONALD, District Judge.

Currently before the court are Defendants’ Rule 56(b) motions for partial summary judgment on the issue of joint and several liability. Plaintiffs Memphis Zane May Associates and Zane May Operating Partners (“Zane May”) seek compensation for damages allegedly sustained to five of Plaintiffs’ properties and bring their claim under four state common law theories and the 1980 Comprehensive Environmental Response, Compensation and Liability Act (CERCLA); 42 U.S.C. §§ 9601 et seq. (1994). Defendants Ryder Truck Rentals, Inc., Memphis Drum Service, Inc. and Davidson Equipment, Inc. (“the Ryder Defendants”) have filed a motion and supporting memorandum opposing joint and several liability. Defendant IBC Manufacturing Co. (“IBC”) has filed an identical motion and a separate memorandum. Having reviewed the parties’ filings and considered the relevant caselaw, the court grants in part and denies in part Defendants’ motions.

I. BACKGROUND

Zane May.brought this suit in February 1994 seeking damages for environmental harm, diminution in property value and “lost sale” profits due to soil and groundwater contamination at five properties in Memphis, Tennessee allegedly caused by releases of hazardous materials from Defendants’ properties.

The action seeks to recover “response costs” under CERCLA and damages under four tort theories: private nuisance, strict liability, negligence and trespass., Count 1 seeks to hold Ryder, Memphis Drum, Davidson and IBC jointly and severally liable under the federal Superfund law for past and *544 future response costs for contamination to all its properties. Pis.’ Compl. ¶¶ 20-23, 33. Counts 2-5 seek under the tort claims to impose joint and several liability on Defendants for interfering with Plaintiffs’ use and diminishing the market value of their properties. 1 Id. ¶¶ 36, 39, 40, 50, 51, 56, 57.

Defendant IBC a/k/a Chapman Chemical Co. owns a pentaehlorophenol (PCP) manufacturing plant that is located next to the Baker Building, across a railroad track. The Chapman site is on the Environmental Protection Agency’s (EPA) inventory of potential Superfund sites. Ryder Trucks owns a strip of properties adjacent to Tranquility Park, which is south of the Baker Building, across Brooks Road. Ryder operates a truck maintenance facility there and leases another property on the strip to Memphis Drum, which recycles 55-gallon industrial waste drums using a high-temperature incineration process. Davidson Equipment is a previous tenant. Ryder is also the owner of the Tulane Road Landfill, a state Superfund site, located south of its strip of properties.

In 1991, Plaintiffs’ environmental consultants, A.T. Kearney, Inc., detected contaminants in soil and groundwater at several testing sites along the western property boundary of the Baker Building (closest to the Chapman Chemical plant) and along Tranquility Park’s eastern property line (closest to the strip of properties owned and leased by the Ryder Defendants). The groundwater monitoring well installed at the Baker Building closest to Brooks Road was approximately 600 feet from the nearest well at Tranquility Park across the road. Several hazardous substances, including PCP and trichloroethylene (TCE), registered above cleanup levels set by EPA.

Specifically, testing at the Baker Building revealed high levels of PCP and moderate levels of dichloromethane, a chemical belonging to the same class of chemicals as TCE. A.T. Kearney, Inc., Environmental Property Assessment Phase II Report: Memphis Business Parks (“Phase II Report”), at 24 (October 1991). In addition, the results showed concentrations of bis (2-ethylhexyl) phthalate above EPA’s maximum contaminant level (MCL). 2 Id. at 25. TCE was not detected at the Baker site. The report states that Chapman Chemical is the “probable primary source of all of these chemicals.” Id.

At Tranquility Park, samples drawn from one of three wells (located close to Memphis Drum) revealed TCE concentrations higher than EPA’s maximum level. Bis (2-ethyl-hexyl) phthalate was detected in both groundwater and sediment samples at levels exceeding another EPA benchmark, the proposed Corrective Action Rule. Id. at 26. Groundwater samples also contained moderate arsenic contamination (two to three times the MCL). PCP contamination was not detected at Tranquility Park.

The Kearney report states that a 1989 test of surface water and sediment from a drainage ditch separating the Tulane Road site from the eastern boundary of Tranquility Park revealed high arsenic levels. In addition, arsenic is an ingredient in at least one common class of pesticides produced by Chapman Chemical and is often found in ash produced by Memphis Drum’s incineration process. The report lists the Tulane Road Landfill as the likely source of most or all of the hazardous waste detected at Tranquility Park. Id. at 26-27. Finally, a follow-up report revealed petroleum hydrocarbons at levels exceeding the recommended cleanup standard established by the Tennessee Department of Health and the Environment. Professional Serv. Indus., Tranquility Park Groundwater & Soil Investigation (“PSI Report”), at 4 (April 15, 1994). The report lists *545 Davidson Equipment as the likely source. Id.

Of the three remaining Zane May Properties, only the Space Center was cited by the Plaintiffs’ consultants as having contamination above the MCL. Id. at 23. The Space Center is located west of Tranquility Park, across the railroad tracks. The report mentions another business, not a defendant in this litigation, as a potential source of the hazardous substance, 1,1 dichloroethene. Id. at 24.

II. SUMMARY JUDGMENT

Summary judgment is appropriate if “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The court also may consider any material that would be admissible or usable at trial, including exhibits that have been properly made a part of an affidavit. 10A Charles A. Wright, Arthur R. Miller, Mary Kay Kane, Federal Practice and Procedure § 2721, at 40, § 2722, at 56 (2d ed. 1983).

In ruling on a motion for summary judgment, the evidence and inferences based on facts must be viewed in a light most favorable to the nonmoving party, in this case the Plaintiffs. Kochins v. Linden-Alimak, Inc., 799 F.2d 1128, 1133 (6th Cir.1986). As the moving parties, Defendants bear the initial burden of proving that no material facts exist. Boyd v. Ford Motor Co.,

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952 F. Supp. 541, 27 Envtl. L. Rep. (Envtl. Law Inst.) 20870, 44 ERC (BNA) 1596, 1996 U.S. Dist. LEXIS 20362, 1996 WL 785085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/memphis-zane-may-associates-v-ibc-manufacturing-co-tnwd-1996.