Montana Pole & Treating Plant v. IF Laucks and Co.

775 F. Supp. 1339, 34 ERC (BNA) 1179, 1991 U.S. Dist. LEXIS 15238, 1991 WL 215145
CourtDistrict Court, D. Montana
DecidedAugust 15, 1991
DocketCV-86-147-BU-PGH
StatusPublished
Cited by22 cases

This text of 775 F. Supp. 1339 (Montana Pole & Treating Plant v. IF Laucks and Co.) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montana Pole & Treating Plant v. IF Laucks and Co., 775 F. Supp. 1339, 34 ERC (BNA) 1179, 1991 U.S. Dist. LEXIS 15238, 1991 WL 215145 (D. Mont. 1991).

Opinion

MEMORANDUM AND ORDER

HATFIELD, Chief Judge.

BACKGROUND

From 1946 through 1984, Montana Pole & Treating Plant (“Montana Pole”) owned and operated a wood-treating facility in Butte, Montana. Montana Pole’s wood-treating process utilized the preservative pentachlorophenol (“penta”), which was mixed with various petroleum products. The process generated waste penta, which Montana Pole disposed of in a manner that ultimately contaminated the real property on and near the treatment facility.

In June, 1985, the United States Environmental Protection Agency (“EPA”) declared Montana Pole’s facility a “Superfund Site” and initiated an emergency cleanup operation. The EPA also notified Montana Pole of its responsibility, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), 42 U.S.C. §§ 9601-9675 (1987), for the cleanup costs.

On November 15, 1986, Montana Pole and its principal stockholder, Torger L. Oaas, instituted the above-entitled action 1 against the suppliers of the penta utilized in the treatment process, 2 seeking indemnity for the cleanup costs, as well as compensatory damages, under the following *1342 causes of action: negligence, breach of express and implied warranties, nuisance and strict products liability. Additionally, Torger Oaas seeks compensatory damages, in his individual capacity, for alleged “depression, anger, anxiety, outrage and embarrassment” as a result of the EPA’s seizure of the treating site.

Following lengthy discovery, defendants moved for summary judgment, pursuant to Fed.R.Civ.P. 56, asserting, inter alia, (1) plaintiffs’ “failure to warn” claims were preempted by federal law; and (2) plaintiffs’ claims for property damage were barred by the applicable statute of limitations. Defendants also moved for summary judgment on plaintiffs’ claims for indemnity, nuisance and breach of warranty, as well as Torger Oaas’ individual claim.

The referenced motions were referred to the Magistrate Judge for the District of Montana, the Honorable Robert M. Holter, for findings and recommendations, pursuant to 28 U.S.C. § 636(b)(1)(B) and (C) and Rule 400-4 of the Rules of Procedure of the United States District Court for the District of Montana. The Magistrate Judge filed his report with the court, recommending summary judgment be entered in defendants’ favor. The Magistrate Judge concluded (1) plaintiffs’ claims for indemnity, nuisance and breach of warranty failed as a matter of law; (2) plaintiffs’ property damage claims were time-barred; and (3) Torger Oaas’ emotional injury claim lacked any legal or factual basis. The Magistrate Judge also recommended the court deny defendants’ summary judgment motion asserting federal preemption of plaintiffs’ “failure to warn” claims.

In accordance with 28 U.S.C. § 636(b), the parties were afforded the opportunity to file written objections to the Magistrate Judge’s report. Plaintiffs filed objections, taking issue with the Magistrate Judge’s conclusions regarding (1) the statute of limitations issue; and (2) the viability of Torger Oaas’ individual claim. The defendants in turn challenge the Magistrate Judge’s recommendation regarding the federal preemption issue. Having conducted a de novo review of the record, and considering the objections presented by the parties, the court is prepared to rule.

DISCUSSION

A. Preemption

In moving for summary judgment, defendants Reichhold Chemicals, Inc. and Dow Chemical Company assert the Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”), 7 U.S.C. §§ 136 et seq., preempts state law tort recovery based on a failure to warn theory. 3 Accordingly, defendants maintain plaintiffs’ claims premised upon defendants’ alleged breach of a purported duty to warn plaintiffs of the proper methods for disposing of penta waste fail as a matter of law. For the reasons discussed below, the court will DENY defendants’ motion.

Federal preemption of state law is based on the supremacy clause of the United States Constitution, article VI, clause 2. Preemption can be either express or implied; it “is compelled whether Congress’ command is explicitly stated in the statute’s language or implicitly contained in its structure and purpose.” Papas v. Upjohn Co., 926 F.2d 1019, 1021 (11th Cir.1991), quoting, Fidelity Federal Savings & Loan Ass’n v. De La Cuesta, 458 U.S. 141, 153, 102 S.Ct. 3014, 3022, 73 L.Ed.2d 664 (1982). Preemption can occur in a number of ways:

Preemption occurs when Congress, in enacting a federal statute, expresses a clear intent to preempt state law, when there is outright or actual conflict between state and federal law, where compliance with both federal and state law is in effect physically impossible, where there is implicit in federal law a barrier to state regulation, where Congress has legislated comprehensively, thus occupying an entire field of regulation and leaving no room for the States to supplement *1343 federal law, or where the state law stands as an obstacle to the accomplishment and execution of the full objectives of Congress.

Roberts v. Dow Chemical Co., 702 F.Supp. 195, 196 (N.D.Ill.1988), quoting, Louisiana Public Service Commission v. Federal Communications Commission, 476 U.S. 355, 106 S.Ct. 1890, 90 L.Ed.2d 369 (1986). There is, however, a presumption that “Congress did not intend to displace state law.” Id., quoting, Maryland v. Louisiana, 451 U.S. 725, 746, 101 S.Ct. 2114, 2129, 68 L.Ed.2d 576 (1981). This presumption is heightened where the federal law would have the effect of barring a state from exercising its traditional police powers. Riden v. ICI Americas, Inc., 763 F.Supp. 1500, 1503 (W.D.Mo.1991). 4

Preemption analysis is largely a matter of statutory construction. Roberts, supra, 702 F.Supp. at 196. The statute at issue, FIFRA, provides a comprehensive system for the registration and labeling of pesticides. Fisher v. Chevron Chemical Co., 716 F.Supp. 1283, 1286 (W.D.Mo.1989).

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Bluebook (online)
775 F. Supp. 1339, 34 ERC (BNA) 1179, 1991 U.S. Dist. LEXIS 15238, 1991 WL 215145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montana-pole-treating-plant-v-if-laucks-and-co-mtd-1991.