Pacific Sound Resources v. BNSF, RAILWAY CORP.

125 P.3d 981
CourtCourt of Appeals of Washington
DecidedDecember 27, 2005
Docket54491-8-I
StatusPublished
Cited by8 cases

This text of 125 P.3d 981 (Pacific Sound Resources v. BNSF, RAILWAY CORP.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Sound Resources v. BNSF, RAILWAY CORP., 125 P.3d 981 (Wash. Ct. App. 2005).

Opinion

125 P.3d 981 (2005)
130 Wash.App. 926

PACIFIC SOUND RESOURCES, a Washington non-profit corporation; and The Port of Seattle, a Washington municipal corporation, Appellants,
v.
BURLINGTON NORTHERN SANTA FE RAILWAY CORP., a Delaware corporation; J.M. Colman Co., a Washington corporation and successors; Pacific Creosoting Co., a Washington corporation and successors; J.H. Baxter & Co., a California limited partnership; J.H. Baxter & Co., a California corporation; and J.H. Baxter & Co., Inc., a California corporation, Respondents.

No. 54491-8-I.

Court of Appeals of Washington, Division 1.

December 27, 2005.

*982 David Devalois Dicks, Cascadia Law Group, Gillis Edward Reavis, Foster Pepper & Shefelman PLLC, Seattle, WA, Jennifer Tanya Barnett, Cascadia Law Group, Olympia, WA, for Appellants.

Thomas Dean Adams, Deborah Lynn Carstens, Jerret E. Sale, Bullivant Houser Bailey PC, James Carl Hanken, Attorney at Law, Seattle, WA, John Barg, Marc Zeppetello, Barg, Coffin, Lewis, Trapp, San Francisco, CA, for Respondents.

Kristie Elizabeth Carevich, Atty Generals Office/Ecology Division, Olympia, WA, Steven J. Thiele, Stoel Rives LLP, Seattle, WA, for Amicus Curiae on behalf of Washington Department of Ecology.

Christa L. Thompson, Attorney at Law, Atty Gen Office Nat. Res. Div., Olympia, WA, for Amicus Curiae on behalf of United States.

*983 SCHINDLER, J.

¶ 1 A contribution claim under Washington's Model Toxics Control Act (MTCA) for recovery of cleanup costs against other potentially liable persons must be brought within three years "from the date remedial action confirms cleanup standards are met."[1] While the Legislature broadly defines "remedial action," it did not define what action "confirms" when cleanup standards are met. Pacific Sound Resources (PSR) and The Port of Seattle (the Port) sued Burlington Northern Santa Fe Railway Company and J.H. Baxter and Company (collectively "BNSF") and others[2] under the MTCA to recover environmental cleanup costs incurred at the PSR Superfund Site (Site). PSR and the Port also alleged claims under common law tort theories of negligence, nuisance, and trespass. On summary judgment, the trial court dismissed the lawsuit as barred by the statute of limitations. In dismissing the claims under the MTCA, the trial court relied on assertions in the final Remedial Investigation and Feasibility Study (RI/FS) approved by the Environmental Protection Agency (EPA) to conclude PSR and the Port's contributions claims were barred by the statute of limitations.

¶ 2 We conclude that the language in RCW 70.105D.080 that "remedial action confirms cleanup standards are met" requires some official decision by the lead agency. EPA's approval of the RI/FS is not an official decision that triggers the statute of limitations. The RI/FS is a predecision document that identifies the nature and extent of the problems at the site and evaluates and recommends alternative cleanup actions. After completion of the RI/FS, the lead agency issues a formal decision selecting the cleanup action. Because we conclude that the earliest the statute of limitations began to run for the MTCA contribution claims was when EPA officially selected the cleanup remedy for the Site and established site cleanup levels in the Record of Decision (ROD), we need not definitively decide what remedial action "confirms" when cleanup standards are met under the MTCA. In order to fulfill the stated purpose of the statute to encourage and promote hazardous waste site cleanup by private parties, the Legislature or the Washington Department of Ecology (DOE), through administrative rule making, needs to clearly define what remedial action confirms that cleanup standards are met under RCW 70.105D.080.

¶ 3 We conclude the common law tort theories are barred by the three-year statute of limitations because there were actual and substantial damages known well over three years before PSR and the Port filed their lawsuit. But we reverse the trial court's decision to dismiss the contribution claims under RCW 70.105D.080 and remand for trial.

FACTS

¶ 4 The PSR Site was a wood-treatment facility that began operation in the early 1900s. PSR, formerly the Wyckoff West Seattle Wood Treating facility, owned and operated the Site from 1959 to 1994. The Site is contaminated with creosote, pentachlorophenol, chemonite and other hazardous substances. The Site is located on the south shore of Elliott Bay in the Puget Sound, and includes twenty-five acres of upland property and fifty acres of adjacent aquatic lands.

¶ 5 In August 1984, EPA issued an administrative order directing PSR to investigate contamination at the facility. In March 1985, PSR's president and three of its employees pled guilty to criminal violations of federal environmental laws. In September 1987, PSR and EPA entered an Administrative Order on Consent (consent order) under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Resource Conservation and Recovery Act (RCRA). The consent order required PSR to complete the investigation of hazardous substances at the facility, study necessary corrective alternatives, perform interim *984 corrective action, and submit a closure plan.

¶ 6 In January 1990, EPA issued another administrative order to PSR under CERCLA and RCRA. The order required PSR to prepare a Remedial Investigation and Feasibility Study (RI/FS). As a part of the RI/FS, PSR conducted extensive investigations, including soil and groundwater sampling. In March 1990, PSR notified EPA that it did not have sufficient funds to complete the RI/FS. EPA estimated the cost to clean up the Site would be between $40 to $50 million.

¶ 7 Because PSR could not continue with cleanup efforts, EPA assumed primary responsibility for the Site under CERCLA. EPA designated two operable units at the Site for purposes of investigation: the Upland Unit that included soil and groundwater[3] and the Marine Sediments Unit, the adjacent offshore portion of the Site.[4] In May 1994, EPA listed the PSR Site on the National Priorities List for cleanup under CERCLA.[5]

¶ 8 In August 1994, PSR and EPA entered into a Consent Decree. The consent decree required PSR to contribute all its assets to the PSR Environmental Trust and to pay for cleanup actions at the Site. Under the consent decree, PSR contributed more than $10.5 million to remediate the Site.

¶ 9 While EPA was negotiating the consent decree with PSR, the Port began efforts to purchase the upland portion of the Site for container terminal operations. To limit its liability for cleanup costs at the Site, the Port negotiated a Prospective Purchaser Agreement (PPA) with EPA. Under the PPA, the Port agreed to deposit $9 million into the PSR Environmental Trust and to pay $7.2 million for environmental response activities at the Site and the adjacent properties. In exchange, EPA agreed that the Port would not be liable for future claims from preexisting contamination. The Port purchased the upland portion of the Site from PSR in October 1994.

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Bluebook (online)
125 P.3d 981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-sound-resources-v-bnsf-railway-corp-washctapp-2005.