Musicland Group, Inc. v. Ceridian Corp.

508 N.W.2d 524, 1993 Minn. App. LEXIS 1126, 1993 WL 467309
CourtCourt of Appeals of Minnesota
DecidedNovember 16, 1993
DocketC7-93-402
StatusPublished
Cited by30 cases

This text of 508 N.W.2d 524 (Musicland Group, Inc. v. Ceridian Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Musicland Group, Inc. v. Ceridian Corp., 508 N.W.2d 524, 1993 Minn. App. LEXIS 1126, 1993 WL 467309 (Mich. Ct. App. 1993).

Opinion

OPINION

HUSPENI, Judge.

This appeal is taken from the district court’s grant of summary judgment to respondent Musicland on its claim brought pursuant to the Minnesota Environmental Response and Liability Act (MERLA) and from the grant of summary judgment to Musicland on appellant Control Data’s MERLA counterclaim. Control Data further challenges the damages and attorney fees awarded to Musicland pursuant to MERLA. We affirm in part, reverse in part and remand.

FACTS

In 1969, Control Data bought a manufacturing facility in St. Louis Park. The facility was used for the manufacture of printed circuit boards and became known as the Printed Circuits Operations Facility (PCO facility). Control Data used various volatile organic compounds (VOCs) in the manufacturing process. One VOC, 1-1-1 Trichloro- *528 ethane (TCA), was used to clean circuit boards.

Control Data began monitoring the groundwater beneath the PCO facility in 1984. It became aware of contamination in the soil and groundwater shortly after discovering a break in the PCO facility’s waste-water process line. An investigation of the contamination revealed that a high level of TCA was present in the direct vicinity of the break. The Minnesota Pollution Control Agency (MPCA) placed the PCO facility on the Permanent List of Priorities, also known as the State Superfund List.

Musicland owned property across the street and directly west of the PCO facility. In June 1987, Musicland decided to build a warehouse on the property. Ground clearing commenced in late October 1987. On November 3, 1987, Musicland began pumping groundwater, without a permit, from two de-watering wells located on the eastern edge of its property. Two days later, Control Data informed Musicland of the contamination beneath its property. Musicland immediately ceased dewatering.

Musicland retained the services of an environmental consultant to evaluate the impact of the contamination on the construction project. Musicland met with the consultants to discuss alternative dewatering methods to prevent the contamination from migrating onto its property. An alternative dewatering method was adopted and the construction project was eventually completed. It is undisputed that Musicland’s property was not contaminated in the process.

When efforts to negotiate an economic solution failed, Musicland brought this lawsuit against Control Data pursuant to MERLA for the recovery of necessary response costs and economic losses. 1 Control Data filed a counterclaim against Musicland under MER-LA to recover costs it incurred in attempting to stabilize the contaminated groundwater beneath its property after Musicland’s dewa-tering activities.

The trial court granted summary judgment in favor of Musicland on its MERLA claim. It also granted summary judgment in favor of Musicland on Control Data’s MERLA counterclaim. The case went to trial on Mu-sicland’s remaining common law claims and the issue of damages.

The jury concluded that Control Data was negligent and awarded Musicland $188,618.61 in damages. The trial court awarded Music-land $192,377.89 in attorney fees and expert witness fees under MERLA.

ISSUES

1. Does MERLA provide relief to a pri- . vate individual whose response costs and economic losses were not the result of actual contamination on the individual’s property?

2. Did Control Data present genuine issues of material fact with respect to available defenses under MERLA to withstand entry of summary judgment on the issue of its Lability?

3. Did the trial court err by granting summary judgment in favor of Musicland on Control Data’s MERLA counterclaim?

4. Were damages awarded to Musicland recoverable under MERLA?

5. Does the evidence support a finding that Control Data was negligent?

6. Did the trial court err by entering judgment for the full amount of damages awarded by the jury?

7. Is the trial court’s award of attorney fees an abuse of discretion?

ANALYSIS

Control Data contends that MERLA only provides relief to private individuals whose property is actually contaminated by hazardous substances, and the trial court, therefore, erred by applying MERLA to the instant case because Musicland’s property never suffered from contamination. Construction of a statute is a question of law and *529 subject to de novo review. Doe v. State Bd. of Medical Examiners, 435 N.W.2d 45, 48 (Minn.1989).

I. Applicability of MERLA

The Minnesota legislature enacted MERLA in 1983 in response to the growing concern over the effects of environmental contamination. Alan C. Williams, A Legislative History of the Minnesota “Superfund” Act, 10 Wm.Mitchell L.Rev. 851, 853 (1984). The primary purposes of MERLA have remained constant throughout its history. They are: (1) to impose strict liability on those responsible for harm caused by the release of hazardous substances; (2) to allow the state to clean up contamination and collect costs later; and (3) to fund state cleanup activity. Id. at 858.

MERLA was modeled after the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA). Id. at 856. While the primary purpose of CERCLA is to clean up hazardous waste sites, Barmet Aluminum Corp. v. Reilly, 927 F.2d 289, 291 (6th Cir. 1991), it is also intended to protect and preserve public health and the environment. Dedham Water Co. v. Cumberland Farms Dairy, Inc., 805 F.2d 1074, 1081 (1st Cir. 1986). CERCLA, however, only provides for the recovery of response costs. 42 U.S.C. § 9607 (1986). The Minnesota Act is broader than CERCLA in that it provides a cause of action for the recovery of damages for personal injury and economic losses caused by the release of hazardous chemicals into the environment. Williams, A Legislative History at 852-53.

Section 115B.04, subd. 1 (1990) of MERLA provides:

[A]ny person who is responsible for a release or threatened release of a hazardous substance from a facility is strictly liable, jointly and severally, for the following response costs and damages which result from the release or threatened release or to which the release or threatened release significantly contributes:
(a) All reasonable and necessary response costs incurred by the state, a political subdivision of the state or the United States;
(b) All reasonable and necessary removal costs incurred by any person; and

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Bluebook (online)
508 N.W.2d 524, 1993 Minn. App. LEXIS 1126, 1993 WL 467309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/musicland-group-inc-v-ceridian-corp-minnctapp-1993.