Morristown Associates v. Grant Oil Company (073248)

106 A.3d 1176, 220 N.J. 360, 2015 N.J. LEXIS 50
CourtSupreme Court of New Jersey
DecidedJanuary 26, 2015
DocketA-38-13
StatusPublished
Cited by23 cases

This text of 106 A.3d 1176 (Morristown Associates v. Grant Oil Company (073248)) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morristown Associates v. Grant Oil Company (073248), 106 A.3d 1176, 220 N.J. 360, 2015 N.J. LEXIS 50 (N.J. 2015).

Opinion

Justice LaVECCHIA

delivered the opinion of the Court.

We granted certification in this matter to determine whether the general six-year statute of limitations contained in N.J.S.A. 2A:14-1 applies to private claims for contribution made pursuant to the New Jersey Spill Compensation and Control Act (Spill Act), N.J.S.A. 58:10-23.11f(a)(2)(a). Based on the plain language of the Spill Act, reinforced by its legislative history, we hold that N.J.S.A 2A:14-l’s six-year statute of limitations is not applicable to Spill Act contribution claims. We therefore reject the contrary determination of the Appellate Division and reverse and remand this matter to the Appellate Division for its consideration of other issues raised on appeal that were unaddressed.

I.

A.

When enacted in 1976, L. 1976, c. 141, the Spill Act constituted “a pioneering effort by government to provide monies for a swift and sure response to environmental contamination.” Marsh v. N.J. Dep’t of Envtl. Prot., 152 N.J. 137, 144, 703 A.2d 927 (1997). Passed initially as a response to concerns about the potential for off-shore oil spills, the Spill Act soon was amended to address a wider range of toxic pollution concerns. See generally Buonviaggio v. Hillsborough Twp. Comm., 122 N.J. 5, 7, 9-10, 583 A.2d 739 (1991) (discussing amendments to Spill Act adopted through enactment of L. 1979, c. 346). Importantly, the Spill Act now “prohibits the discharge of hazardous substances,” “provides for the cleanup of that discharge,” and imposes joint and several liability on the *365 responsible parties. See Magic Petroleum Corp. v. Exxon Mobil Corp., 218 N.J. 390, 401-02, 95 A.3d 175 (2014) (internal quotation marks omitted). As of 1991, the Spill Act also permits those who clean up a contaminated site to seek contribution from other liable parties. N.J.S.A. 58:10-23.11f(a)(2)(a); L. 1991, c. 372. This case concerns the application of a statute of limitations to that contribution provision. The provision on which we are focused provides:

Whenever one or more dischargers or persons cleans up and removes a discharge of a hazardous substance, those dischargers and persons shall have a right of contribution against all other dischargers and persons in any way responsible for a discharged hazardous substance or other persons who are liable for the cost of the cleanup and removal of that discharge of a hazardous substance. In an action for contribution, the contribution plaintiffs need prove only that a discharge occurred for which the contribution defendant or defendants are liable pursuant to [N.J.S.A. 58:10-23.11g(c) 1, and the contribution defendant shall have only the defenses to liability available to parties pursuant to fNJ.SA. 58:10-23.11g(d) J. In resolving contribution claims, a court may allocate the costs of cleanup and removal among liable parlies using such equitable factors as the court determines are appropriate.
[N.J.S.A. 58:10-23.1if(a)(2)(a) (emphasis added).]

The incorporated section, N.J.S.A. 58:10-23.11g(d), does not contain a statute of limitations defense. To provide background to the present question of statutory interpretation, a brief summary of the three decades of history to this case follows.

B.

In 1979, plaintiff, Morristown Associates, purchased commercial property located at 30 Lafayette Avenue in Morristown, New Jersey. The property contained a strip-mall-style shopping center known as Morristown Plaza. Among the tenants of Morristown Plaza was Plaza Cleaners, a dry cleaning business owned at the time by Robert Herring (Herring). Herring and his wife had entered into a lease with the property’s previous owner, Morris Center Associates, in 1976. Due to construction, Herring was unable to occupy and operate Plaza Cleaners until approximately January 1, 1978. At some point before the move-in date, Herring installed a steam boiler in a room at the rear of the leased space and an underground storage tank (UST) beneath the concrete floor of that room; the UST held fuel oil needed to operate the *366 boiler. The boiler and UST were installed to generate the heat and steam required for the dry cleaning process. Fill and vent lines for the UST protruded through an exterior wall of the building into an alleyway.

In 1985, Herring sold Plaza Cleaners to defendants Edward and Amy Hsi (collectively the Hsis). The Hsis owned the business until 1998 when it was sold to current owner and third-party defendant, Byung Lee (Lee). The original boiler remained in operation from the time the business opened in 1978 until approximately November 2003; Lee later replaced it with a natural-gas-fired boiler.

In 1993, as part of a proposed refinancing, plaintiff hired Giorgio Engineering, P.C., to perform an environmental audit of the Morristown Plaza property. Giorgio Engineering incorrectly reported that there were no USTs on the site. In 1999, an UST that served a ShopRite grocery store in Morristown Plaza leaked. It was removed under the supervision of Morristown Plaza’s then property manager, Ekstein Asset Management. 1 Although Ekstein Asset Management and the Department of Environmental Protection (DEP) entered into a memorandum of agreement in respect of that incident, Ekstein Asset Management failed to comply with DEP’s remedial process; notwithstanding, DEP terminated the memorandum of agreement on November 1, 2000.

Importantly, in August 2003, a monitoring of a well installed near Plaza Cleaners’s UST revealed fuel oil contamination. Plaintiff was informed that the UST used by Plaza Cleaners might be the source. A subsequent investigation revealed that although the UST was intact, the fill and vent pipes were “severely deteriorated, with large holes along a significant portion of their lengths.” Plaintiffs experts concluded that those holes had developed as early as 1988 and, since that time, oil had been leaking from the *367 pipes each time the tank was filled. Each of the named oil company defendants allegedly supplied fuel oil to Plaza Cleaners at various times between 1988 and 2003. Those companies delivered varying quantities of oil on a more or less monthly basis, filling the UST from tanker trucks by means of the fill pipe located in the alley wall.

Plaintiff took steps to remediate and clean up the contamination and pursued a contribution claim against other allegedly responsible parties. In its action, plaintiff contends that, before 2003, it was unaware that any IJST existed on the property.

C.

On July 31, 2006, plaintiff filed an initial three-count complaint naming as a defendant Grant Oil Company (Grant Oil). Count one of the complaint asserted a claim under the Spill Act,

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Bluebook (online)
106 A.3d 1176, 220 N.J. 360, 2015 N.J. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morristown-associates-v-grant-oil-company-073248-nj-2015.