Peeler v. SRG Global Coatings, LLC

District Court, E.D. Missouri·Decided October 30, 2024·No. 1:23-cv-00023·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI SOUTHEASTERN DIVISION

MICHELLE PEELER, on behalf of ) herself and all others similarly situated, ) ) Plaintiff, ) ) v. ) Case No. 1:23-CV-23-SNLJ ) SRG GLOBAL COATINGS, LLC, et al., ) ) Defendants. ) ) ) )

MEMORANDUM and ORDER Plaintiff initially filed this putative class action against defendant SRG Global Coatings, LLC (“SRG”) in February 2023. Plaintiffs filed a second amended complaint [Doc. 47] in April 2024 that added several defendants, including defendants 3M Company and Atotech USA, LLC. This matter is before the Court on 3M’s and Atotech’s separately-filed motions to dismiss [Doc. 79, Doc. 113]. Because these motions largely make the same arguments, the Court addresses them together. I. Background For the purposes of the pending motion to dismiss, the facts alleged in the complaint are accepted as true. Plaintiffs’ complaint alleges injuries and damages resulting from the “migration of hazardous carcinogenic chemicals” and “metals” from defendant SRG’s manufacturing facilities in Portageville, Missouri, including hexavalent chromium, chromium, arsenic, PFAS, and nickel, as well as other hazardous chemicals and metals. [Doc. 47 at ¶¶ 1-2, 32, et seq.] Specifically, plaintiffs alleged that “Defendant SRG failed to adequately prevent migration of the contaminated groundwater plume from

the SRG site into the aquifer under Portageville, Missouri, that caused dangerous pollutants to enter the drinking water of Portageville residents.” [Id. at ¶ 107(d).] Defendant SRG’s wastewater allegedly contained hexavalent chromium, as well as perfluorooctane sulfonic acid (“PFOS”) and perfluorooctanoic acid (“PFOA”), two chemicals from a larger family known collectively as per- and polyfluoroalkyl substances (“PFAS”). SRG allegedly used PFOS- and PFOA-containing products it purchased from

defendant Atotech USA, LLC (“Atotech”) to suppress hazardous fumes in its manufacturing processes. The complaint alleges that PFOS, PFOA, and hexavalent chromium seeped into the groundwater and eventually entered public and private water sources. Plaintiff Peeler seeks to recover for an alleged personal injury; the other plaintiffs seek property and medical-monitoring damages on behalf of two different

putative classes. Plaintiffs allege the electroplating facilities in Portageville have manufactured automotive products since 1969. SRG purchased the facilities in 2008. According to the complaint, before SRG purchased the facilities, SRG discovered “hazardous chemical and metal contamination” of groundwater and soil at the facilities. SRG “entered an

agreement with the State of Missouri to . . . remediate” that contamination. From 2008 on, SRG allegedly began using products containing PFOS and PFOA to “suppress hazardous hexavalent chromium fumes in its manufacturing processes.” [Doc. 47 ¶¶ 47– 48, 82.] Plaintiffs allege that, since 2008, SRG has known that hexavalent chromium, a human carcinogen, was being released into the groundwater, but that SRG refused to repair “leaks” in its “drainage system” and continued capturing “wastewater” that

contained PFOS, PFOA, and hexavalent chromium within that system. Id. ¶¶ 52–54, 107(e). Plaintiffs allege SRG still uses “PFAS containing materials” in its operations, despite state regulators’ contrary instructions, and that SRG has taken “no steps to remediate its” alleged releases. Id. ¶¶ 50, 55. Plaintiffs also state that SRG “withheld” information about the “nature and extent” of alleged “hazardous contamination.” Id. ¶ 56. Plaintiffs allege that SRG bought the “PFAS-containing chemicals” it used from

defendant Atotech, which began manufacturing PFAS-containing electroplating products in 2006. Former defendant DuPont1 is alleged to have supplied PFAS to Atotech, and 3M is alleged to have manufactured “raw” PFAS and “supplied PFAS to DuPont.” Id. ¶¶ 61– 62. Plaintiffs do not specify which PFAS 3M supplied. See id. ¶ 37 (defining “PFAS” to include, without limit, “PFOS, PFOA, PFNA, PFHxS, and PFHpA”). DuPont allegedly

manufactured PFOA until 2013. Id. ¶ 64. 3M also allegedly manufactured PFOA and “was the only known manufacturer of PFOS and PFHxS in the United States.” Id. ¶¶ 59– 60. However, defendant 3M contends in its motion to dismiss that, in 2000, 3M announced a voluntary phase-out of the manufacture of PFOS and PFOA. EPA,

Perfluorooctanoic Acid (PFOA), Fluorinated Telomers; Request for Comment,

1 “DuPont” refers collectively to several defendants, namely E.I. du Pont de Nemours and Company, The Chemours Company, The Chemours Company FC, LLC, Corteva, Inc., and DuPont de Nemours, Inc. DuPont was previously a defendant in this case but has been dismissed for lack of personal jurisdiction. [Doc. 111.] Solicitation of Interested Parties for Enforceable Consent Agreement Development, and Notice of Public Meeting, 68 Fed. Reg. 18,626, 18,628 (Apr. 16, 2003); see Compl. ¶ 58.

In 2000, 3M stopped manufacturing PFOS in the United States; 3M phased out production and sale of raw PFOS and PFOA by 2002. 68 Fed. Reg. at 18,628; see also Doc. 47 at ¶ 58 (“3M was the primary manufacturer of PFAS chemicals in the United States from the 1940s through the early 2000s.”). After 2002, “PFOS” and “PFOA” nevertheless could “still be . . . imported” from abroad. EPA, Designation of Perfluorooctanoic Acid (PFOA) and Perfluorooctane-

sulfonic Acid (PFOS) as CERCLA Hazardous Substances, 89 Fed. Reg. 39,124, 39,140 (May 8, 2024).2 Plaintiffs allege that Atotech, DuPont, and 3M knew of the dangers of PFOS and PFOA and that SRB has continued to use PFAS-containing products despite warnings from state regulators and that SRG knew that its disposal practices—funneling

wastewater into a leaky drainage system—“would cause an unreasonable risk of harm to Plaintiffs and others in” Portageville. Id. ¶ 50, 52-53, 105. In late 2022, water samples revealed the presence of PFOS and PFOA in public and private water wells near the SRG facilities. In April 2024, plaintiffs filed the operative complaint against SRG, Atotech, DuPont, and 3M. One plaintiff, Michelle

2 Defendant 3M urges this Court to “take judicial notice of publicly available reports,” Owner- Operator Indep. Drivers Ass’n v. U.S. Dep’t of Transp., 831 F.3d 961, 968 n.2 (8th Cir. 2016), and “government websites,” Missourians for Fiscal Accountability v. Klahr, 830 F.3d 789, 793 (8th Cir. 2016). Plaintiffs do not argue otherwise, and this Court will thus take judicial notice of those materials. Notably, the information conveyed in those materials do not conflict with the complaint. Peeler, asserts she has ulcerative colitis, which she attributes to exposure to chemicals originating at SRG’s facilities, including PFOS, PFOA, and hexavalent chromium. The

remaining plaintiffs are landowners who allege no present physical injury and instead seek, for themselves and on behalf of two different putative classes, property and medical-monitoring damages based on alleged PFOS and PFOA contamination. This Court granted DuPont’s motion to dismiss for lack of personal jurisdiction. Defendants 3M and Atotech separately move to dismiss the claims against them—Count III for Strict Liability Design Defect, and Count IV for Negligence—under Federal Rule

of Civil Procedure 12(b)(6) and 12(b)(1). II. Legal Standard To survive a motion to dismiss for lack of jurisdiction or for failure to state a claim, see Fed. R. Civ. P. 12(b)(1), (6), a complaint must “allege sufficient factual matter, accepted as true, to . . . satisf[y] the elements of Article III standing,” Hawse v. Page, 7

F.4th 685, 688–89 (8th Cir. 2021), or to “‘state a claim to relief that is plausible on its face,’” Ashcroft v.

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