Paxton v. Wal-Mart Stores, Inc.

891 N.E.2d 1269, 176 Ohio App. 3d 364, 2008 Ohio 2487
CourtOhio Court of Appeals
DecidedMay 23, 2008
DocketNo. L-07-1220.
StatusPublished

This text of 891 N.E.2d 1269 (Paxton v. Wal-Mart Stores, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paxton v. Wal-Mart Stores, Inc., 891 N.E.2d 1269, 176 Ohio App. 3d 364, 2008 Ohio 2487 (Ohio Ct. App. 2008).

Opinion

Handwork, Judge.

{¶ 1} This case is before the court on appeal from the judgment of the Lucas County Court of Common Pleas, which granted summary judgment on June 6, 2007, in favor of appellee, Wal-Mart Stores, Inc. (“Wal-Mart”), and against appellant, William L. Paxton, and denied Paxton’s motion for partial summary judgment as to liability against Wal-Mart. For the reasons that follow, we affirm the decision of the trial court.

{¶ 2} This case concerns property located in Toledo, Ohio, and owned by Paxton. In June 1996, Paxton entered into a real estate purchase agreement for the purchase of the property with Enviro, Inc. (“Enviro”), a Michigan corporation, which was owned by Thomas Schmoyer. Enviro intended to set up a new fluorescent lamp and high-intensity-discharge lamp (“HID”) recycling facility on the property. Enviro had contacted the Ohio Environmental Protection Agency (“OEPA”) regarding its intention to establish the recycling facility. In a letter dated May 24, 1996, the OEPA notified Enviro that its “proposed process for recycling mercury-containing lamps is recycling that is not subject to Ohio’s hazardous waste requirements.” The OEPA based its decision on Ohio Adm. Code 3745-51-02, which states that “a ‘commercial product’ or ‘by-product’ exhibiting a hazardous waste characteristic is not waste (and not a hazardous waste) if a business has it reclaimed.” The OEPA stated that it considered “an off-specification or unused mercury-containing lamp to be a commercial product and a used lamp to be a by-product.”

{¶ 3} On September 6, 1996, Wal-Mart contracted with Enviro to recycle, or otherwise dispose of, Wal-Mart’s fluorescent and HID lamps and bulbs (“lamps”) that contained spent mercury (the “lamp agreement”). Also, on October 10,1996, Wal-Mart contracted to have Enviro recycle plastic and metal mini-blinds containing lead that Wal-Mart received at its return centers. In particular, WalMart’s lamp agreement with Enviro contained the following provisions:

{¶ 4} “1. Agreement to Recycle Lamps. Enviro agrees, from time to time to receive lamps from various stores and clubs, and to dispose of such Lamps in accordance with all applicable federal, state and local laws and regulations. H* *!* *1*

*367 {¶ 5} “5. Title To and Responsibility for Lamps. Title to, risk of loss of and responsibility for proper disposition of the Lamps shall pass from Wal-Mart to Enviro at such time as the Lamps are loaded and signed for by Enviro (or Enviro’s agent or other representative) at Wal-Marts [sic] facility. Thereupon and at all times thereafter Enviro shall have sole and exclusive right to and responsibility for the Lamps and shall transport, handle, package, contain, store, identify, report, dispose of and in all others respects deal with and with regard to the Lamps in full compliance with any and all applicable federal, state and local laws, ordinances, rules, regulations, orders and other directives.”

{¶ 6} Pursuant to the agreement, Enviro was paid by Wal-Mart to collect used lamps and mini-blinds from Wal-Mart and transport them to an appropriate facility, where they would be recycled or disposed of in a manner consistent with applicable law. Until December 17, 1998, Enviro retrieved tons of lamps and mini-blinds from Wal-Mart for disposal. The items received from Wal-Mart, however, were not recycled, but were merely crushed or shredded by Enviro and left piled on Paxton’s property.

{¶ 7} In a letter dated September 3, 1998, Enviro was informed by the OEPA that the products and by-products (lamps and mini-blinds) received by Enviro were not considered “waste” only if the materials were reclaimed. The OEPA stated that as of July 23, 1998, “no recycling of any significance had taken place at the facility” and noted that the lamps had been stockpiled on the property. The fluorescent bulbs were tested and failed the toxicity characteristic leaching procedure for mercury. Therefore, the OEPA considered the stockpiled lamps to be hazardous waste and determined that the manner in which the materials were being piled on the property constituted “disposal.” The OEPA ordered Enviro to stop “receiving hazardous waste from off-site in the form of fluorescent lamps and storing them without a hazardous waste permit.” The OEPA also noted that Enviro had been “speculatively accumulating” lamps and vinyl blinds, thus causing these items to be considered “wastes.” Enviro was ordered to “immediately cease accepting fluorescent lamps, HID lamps, and vinyl blinds at the facility, as receipt of more lamps and other materials only exacerbates the hazardous waste violations.” Enviro was ordered to send the shredded lamps to a permitted hazardous-waste facility, a facility that was authorized to manage hazardous waste, or a facility that was in compliance with Ohio Adm.Code 3745-51-02(E)(1) or 3745-51-06. Wal-Mart was notified of this violation on or about November 10, 1998, but continued to transfer lamps pursuant to the lamp agreement until approximately December 17,1998.

{¶ 8} On June 8, 2000, the state initiated suit in the Lucas County Court of Common Pleas against Enviro, its owner, and Paxton, in case No. CI00-2912. On June 18, 2003, the state amended its complaint to include Wal-Mart, against *368 which it asserted numerous violations of environmental regulations. Paxton also filed a third-party complaint against Wal-Mart. During the pendency of CI002912, Paxton cleaned up the property at his expense. The state dismissed its claims against Paxton and Wal-Mart on or about November 14, 2005. On February 28, 2006, the common pleas court dismissed Paxton’s third-party claims against Wal-Mart without prejudice. Paxton sued Wal-Mart in this case on March 6, 2006, asserting the following causes of action: (1) contribution and indemnification, (2) violation of R.C. 3734.02(F), (3) negligent storage, treatment and disposal of solid and hazardous waste, (4) negligent contracting, (5) promissory estoppel, (6) breach of contract settlement, (7) unjust enrichment, and (8) violation of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”).

{¶ 9} Wal-Mart filed a motion for summary judgment on March 15, 2007, and Paxton filed a motion for partial summary judgment on May 1, 2007. Responses and memoranda in opposition were filed by both parties. On June 6, 2007, the trial court granted Wal-Mart’s motion for summary judgment and denied Paxton’s motion, dismissing Paxton’s complaint against Wal-Mart.

{¶ 10} Relevant to this appeal, the trial court determined Paxton’s claims as follows. The trial court dismissed Paxton’s indemnification claim because, at best, only an implied contract of indemnification could exist between Paxton and Wal-Mart. Since Paxton “was fully aware of Enviro’s alleged inexperience in the Lamp recycling business and was also aware of Enviro’s financial difficulties,” the trial court-found that “Paxton does not meet the requisite standard of nonculpability or complete innocence necessary for the application of the principle of indemnification.” Paxton’s contribution claim was dismissed on the basis that he failed to comply with the statutory requirements concerning a “voluntary action” and, thus, was unable to recover pursuant to R.C. 3746.23(B). The trial court also found that Wal-Mart had not violated R.C.

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Bluebook (online)
891 N.E.2d 1269, 176 Ohio App. 3d 364, 2008 Ohio 2487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paxton-v-wal-mart-stores-inc-ohioctapp-2008.