Morgan v. Exxon Corp.

869 So. 2d 446, 159 Oil & Gas Rep. 829, 2003 Ala. LEXIS 178, 2003 WL 21362958
CourtSupreme Court of Alabama
DecidedJune 13, 2003
Docket1012345
StatusPublished
Cited by1 cases

This text of 869 So. 2d 446 (Morgan v. Exxon Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan v. Exxon Corp., 869 So. 2d 446, 159 Oil & Gas Rep. 829, 2003 Ala. LEXIS 178, 2003 WL 21362958 (Ala. 2003).

Opinion

WOODALL, Justice.

Blanche Taylor Morgan and her two adult children, Kenneth Morgan and Ellen Morgan Caudle (hereinafter referred to collectively as “the Morgans”), appeal from summary judgments in favor of Exxon Corporation (“Exxon”), Mobil Oil Corporation (“Mobil”), and Marshall Oglesby (Exxon, Mobil, and Marshall Oglesby are hereinafter referred to collectively as “the Companies”) in the Morgans’ action against the Companies for damages allegedly resulting from the operation of oil wells on the Morgans’ property. We affirm.

This action began on July 19,1996, when the Morgans filed an eight-count complaint against the Companies and other defendants not involved in this appeal; the Companies and the other defendants at one time operated six oil wells on the Morgans’ property. The complaint alleged that “at all times material and pertinent” the Companies “owned and/or were engaged in the business of operating certain oil, gas and/or saltwater disposal wells, production equipment, disposal pits, and other facilities” on the Morgans’ property. In the process of those operations, the complaint alleged, the Companies “willfully, wantonly, recklessly and negligently caused the [Morgans’] real and personal property to become contaminated with radioactive scales, residues, precipitates and other harmful and hazardous materials.” Elsewhere, the complaint alleged that the contamination consisted of “salt water, oil and grease, heavy metals and other harmful and hazardous substances.” The Morgans sought relief on theories of (1) negligence, (2) nuisance, (3) trespass to land, (4) breach of contract, (5) waste, (6) strict liability, (7) the tort of outrage, and (8) conspiracy. They sought recovery of the “costs' of site investigation, monitoring, cleanup and/or remediation, [and] loss of [448]*448property values.” They also sought damages for emotional distress and punitive damages. Moreover, the complaint contained the following clause:

“Disclaimer of Federal Claims
“42. Plaintiffs hereby assert that they are making no claim in this action under any federal law or statute.”

The Companies asserted the rule of repose as an affirmative defense. In a joint summary-judgment motion, Mobil and Marshall Oglesby asserted that Mobil has not “operated any well at issue in this lawsuit since the 1960’s,” and that Marshall Oglesby has not operated any such well “since the early 1970’s.” In its summary-judgment motion, Exxon asserted that neither it, nor any predecessor in interest, has owned or operated any relevant well since October 1, 1969. Thus, the Companies argued, the claims against them are barred by the rule of repose. In response to these arguments, the Morgans asserted that the application of the rule of repose to their claims is preempted by the Comprehensive Environmental Response, Compensation, and Liability Act, codified as amended by the Superfund Amendments and Reauthorization Act of 1986, at 42 U.S.C. § 9601 et seq. (“CERCLA”).

In three separate orders, dated August 7, 2002, the trial court granted the Companies’ summary-judgment motions, solely on the rule-of-repose ground. In each order, the trial court stated: “The court has not considered the other grounds raised by [the Companies] as to [the Morgans’] claims, and expressly reserves judgment with respect thereto.” The trial court certified the orders as final judgments, pursuant to Ala. R. Civ. P. 54(b), and the Morgans appealed.

On appeal, the Morgans contend that the trial court erred in holding that their claims were barred by the rule of repose. This is so, because, they insist, Alabama’s rule of repose is preempted by 42 U.S.C. § 9658(a)(1), which provides:

“In the case of any action brought under State law for [1] personal injury, or property damages, which are caused or contributed to by exposure to any [2] hazardous substance, or pollutant or contaminant, [3] released into the environment from a facility, if the applicable limitations period for such action (as specified in the State statute of limitations or under common law) provides a commencement date which is earlier than the federally required commencement date, such period shall commence at the federally required commencement date in lieu of the date specified in such State statute.”

(Emphasis added.)

The Companies, on the other hand, contend that the Morgans have failed to demonstrate that § 9658 applies to this action. They base this contention on two grounds, namely, (1) that the Morgans have failed to carry their burden of proving the elements of § 9658, and (2) that § 9658 does not apply to state-law claims in the absence of an asserted CERCLA claim. In order to address the contentions of the parties, we must first discuss the relationship between the rule of repose and § 9658.

I. The Rule of Repose and § 9658 Preemption

“Application of [Alabama’s] rule of repose has only one element — the passage of twenty years time from the moment that the actions giving rise to the claim occurred — and, if that time has elapsed, no claim can be pursued.” Moore v. Liberty Nat’l Ins. Co., 108 F.Supp.2d 1266, 1275 (N.D.Ala.2000) (applying Alabama law) (emphasis added), aff'd, 267 F.3d 1209 (11th Cir.2001). See also Tierce v. Ellis, 624 So.2d 553, 554 (Ala.1993). “In some instances, this point in time may be [449]*449the same as the date of the ‘accrual’ of a claim. However, ... repose does not depend on ‘accrual,’ because the concept of accrual sometimes incorporates other factors, such as notice, knowledge, or discovery.” Ex parte Liberty Nat’l Life Ins. Co., 825 So.2d 758, 764 n. 2 (Ala.2002). See also Merrill v. Merrill, 260 Ala. 408, 411, 71 So.2d 44, 45-46 (1954). It is undisputed that the Companies’ activities at the well sites had ceased by the early 1970s, that is, more than 20 years before the commencement of this action. Thus, the Morgans’ claims against the Companies are barred by the rule of repose, unless § 9658 provides relief from the operation of the rule.

Section 9658 “purports to preempt the accrual date of any state limitations period which provides for a commencement date earlier than the federally required commencement date.” Van Delhotal, Reexamining CERCLA Section [9658]: Federal Preemption of State Limitations Periods, 34 Washburn L.J. 415, 416 (1995)(footnote omitted). The “federally required commencement date” (the “FRCD”) is defined as “the date the plaintiff knew (or reasonably should have known) that the personal injury or property damages referred to in subsection (a)(1) of this section were caused or contributed to by the hazardous substance or pollutant or contaminant concerned.” CERCLA, 42 U.S.C. § 9658(b)(4)(A). Thus, contrary to Alabama’s rule of repose, which is triggered merely by the alleged wrongful conduct of the defendant, the FRCD turns on the accrual of a claim, which is defined in terms of discovery.

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Bluebook (online)
869 So. 2d 446, 159 Oil & Gas Rep. 829, 2003 Ala. LEXIS 178, 2003 WL 21362958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-exxon-corp-ala-2003.