New Jersey Department of Environmental Protection & Acting Administrator v. Dimant

51 A.3d 816, 212 N.J. 153, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20201, 2012 WL 4371759, 2012 N.J. LEXIS 956
CourtSupreme Court of New Jersey
DecidedSeptember 26, 2012
StatusPublished
Cited by25 cases

This text of 51 A.3d 816 (New Jersey Department of Environmental Protection & Acting Administrator v. Dimant) 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
New Jersey Department of Environmental Protection & Acting Administrator v. Dimant, 51 A.3d 816, 212 N.J. 153, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20201, 2012 WL 4371759, 2012 N.J. LEXIS 956 (N.J. 2012).

Opinion

Justice LaVECCHIA

delivered the opinion of the Court.

Seeking contribution for costs expended in the investigation and remediation of contaminated groundwater that tainted private wells in Bound Brook, the New Jersey Department of Environmental Protection and the Administrator of the New Jersey Spill Compensation Fund (hereinafter collectively the DEP), filed this action under the Spill Compensation and Control Act (Spill Act or Act). Although the DEP named several defendants in its complaint, and third-party complaints were filed thereafter, by the time of trial the only direct defendant remaining in the DEP’s case was Sue’s Clothes Hanger (Sue’s).1

After a bench trial, the court found that the DEP failed to prove by a preponderance of the evidence that any discharge by Sue’s caused the groundwater contamination in issue. Absent such a nexus, the court held that the DEP could not compel contribution by Sue’s under the Spill Act for investigation, cleanup, or damages caused by the contaminated groundwater. Accordingly, the court dismissed the claim. The Appellate Division affirmed, expanding on the trial court’s reasoning in a published opinion. N.J. Dep’t of Envtl. Prot. v. Dimant, 418 N.J.Super. 530, 14 A.3d 780 (2011).

The DEP petitioned this Court, claiming that the trial and appellate courts misperceived the nexus required for liability under the Spill Act. The DEP argues that by imposing a common law causation standard for damages, the Appellate Division panel’s decision in this matter has unsettled the law governing the liability [160]*160of dischargers under the Spill Act for hazardous-substance spills. We granted certification, 208 N.J. 381, 30 A.3d 318 (2011), and now affirm, with slight modification to the analysis. We specifically affirm the Appellate Division’s judgment that found that the DEP’s proofs failed to demonstrate a sufficient nexus to impose on Sue’s any contribution obligation for this groundwater contamination. The DEP needed to demonstrate a nexus between the discharge proved to be committed by Sue’s during its period of operation and the groundwater contamination in issue. Although we accept the trial court’s determination that the DEP’s proofs fell short of demonstrating such a connection between the discharge committed by Sue’s and the groundwater contamination, we clarify that the Spill Act does not require proof of the common law standard of proximate-cause causation of specific environmental damage as a precondition to relief under the Act.

I.

We begin with a brief description of the landmark legislation that provides the framework for this matter.

In 1976, the New Jersey Legislature passed the Spill Act, which “was 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). Since its enactment, other states, as well as the federal government, have passed similar legislation. Ibid,.; see, e.g., Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C.A. §§ 9601 to 9675. That said, the Spill Act was unique when enacted. It was the most comprehensive spill cleanup program in the nation. See Governor’s Press Release for Assembly Bill No.1903 (“Governor’s Press Release ”), at 1 (Jan. 6,1977).

The specter of a massive offshore oil spill provided the initial impetus for the Spill Act. Buonviaggio v. Hillsborough Twp. Comm., 122 N.J. 5, 7-8, 583 A.2d 739 (1991).2 The express purpose of the Act was

[161]*161to exercise the powers of this State to control the transfer and storage of hazardous substances and to provide liability for damage sustained within this State as a result of any discharge of said substances, by requiring the prompt containment and removal of such pollution and substances, and to provide a fund for swift and adequate compensation to resort businesses and other persons damaged by such discharges....
IN.J.S.A. 58:10-23.11a.]

The Legislature directed that the Act “be liberally construed to effect its purposes,” N.J.S.A. 58:10-23.11x, which include protection of the public health, safety, and welfare, ibid., protection and preservation of the state’s land, waters, and natural resources, N.J.S.A. 58:10-23.11a, and ensuring that polluters bear the costs of cleanup efforts, see In re Kimber Petroleum Corp., 110 N.J. 69, 90, 539 A.2d 1181 (1988) (Wilentz, C.J., dissenting). Those general purposes find their parallels in broadly worded key operative provisions within the Act.

The Spill Act strictly prohibits the discharge of hazardous substances, N.J.S.A. 58:10-23.11e, and defines a “discharge” as

any intentional or unintentional action or omission resulting in the releasing, spilling, leaking, pumping, pouring, emitting, emptying or dumping of hazardous substances into the waters or onto the lands of the State, or into waters outside the jurisdiction of the State when damage may result to the lands, waters or natural resources within the jurisdiction of the State....
[N.J.S.A 58:10-23.lib.]

By covering acts and omissions, and by including many verbs describing the manner in which a hazardous substance might reach land or water, the category of what constitutes a “discharge” is self-evidently broad. Decisional law has delimited the outer contours of a discharge only to some degree. See, e.g., White Oak Funding, Inc. v. Winning, 341 N.J.Super. 294, 299, 775 A.2d 222 (App.Div.) (holding that discharge did not occur when [162]*162hazardous substance, already present in water or soil, merely migrates through that medium), certif. denied, 170 N.J. 209, 785 A.2d 437 (2001); Atlantic City Mun. Utils. Auth. v. Hunt, 210 N.J.Super. 76, 96, 509 A.2d 225 (App.Div.1986) (holding that placement of waste into non-leaking containers does not constitute “a discharge”).

N.J.S.A. 58:10-23.11g(c)(l) establishes a broad scope of liability under the Spill Act:

[A]ny person who has discharged a hazardous substance, or is in any way responsible for any hazardous substance, shall be strictly liable, jointly and severally, without regard to fault, for all cleanup and removal costs no matter by whom incurred. Such person shall also be strictly liable, jointly and severally, without regard to fault, for all cleanup and removal costs incurred by the department or a local unit----

Like CERCLA, the enactment of which followed the Spill Act, the Act has a “superfund” from which the State can pay for cleanup in emergency situations and for cleanup of abandoned sites where no responsible parties can be identified. See Buonviaggio, supra, 122 N.J.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

N.J. Dep't of Envtl. Prot. v. Exxon Mobil Corp.
181 A.3d 257 (New Jersey Superior Court App Division, 2018)
Morristown Associates v. Grant Oil Company (073248)
106 A.3d 1176 (Supreme Court of New Jersey, 2015)
NL Industries, Inc. v. New Jersey
124 A.3d 257 (New Jersey Superior Court App Division, 2014)
Magic Petroleum Corporation v. Exxon Mobil Corporation (069083)
95 A.3d 175 (Supreme Court of New Jersey, 2014)
New Jersey Dep't of Envtl. Prot. v. Atlantic Richfield Co.
33 F. Supp. 3d 259 (S.D. New York, 2014)
Morristown Associates v. Grant Oil Co.
74 A.3d 968 (New Jersey Superior Court App Division, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
51 A.3d 816, 212 N.J. 153, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20201, 2012 WL 4371759, 2012 N.J. LEXIS 956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-jersey-department-of-environmental-protection-acting-administrator-v-nj-2012.