Pinal Creek Group v. Newmont Mining Corp.

218 F.R.D. 652, 56 Fed. R. Serv. 3d 1211, 57 ERC (BNA) 1420, 2003 U.S. Dist. LEXIS 17187
CourtDistrict Court, D. Arizona
DecidedSeptember 24, 2003
DocketNo. CIV91-1764 PHX-DAE (LOA)
StatusPublished
Cited by1 cases

This text of 218 F.R.D. 652 (Pinal Creek Group v. Newmont Mining Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pinal Creek Group v. Newmont Mining Corp., 218 F.R.D. 652, 56 Fed. R. Serv. 3d 1211, 57 ERC (BNA) 1420, 2003 U.S. Dist. LEXIS 17187 (D. Ariz. 2003).

Opinion

ORDER

ANDERSON, United States Magistrate Judge.

This matter arises on the motion of Defendant Atlantic Richfield Company (“Atlantic Richfield”) to bifurcate trial on the issue of Atlantic Richfield’s alleged “operator” and “arranger” liability for activities conducted at the facilities of Phelps Dodge Miami, Inc. (“Phelps Dodge” or “PDMI”) and Inspiration Consolidated Copper Company (“Inspiration”) within the Pinal Creek Drainage Basin, a hazardous waste site in Arizona, (document # 1333-1) Atlantic Richfield further requests that the Court implement “special procedures” to “streamline the presentation of evidence at trial.” (document # 1333-2) Plaintiff BHP Copper, Inc. (“BHP”), and Defendants Canadian Oxy Offshore Production Co. (“Canadian Oxy”) and Newmont Mining Corporation (“Newmont”) support Atlantic Rich-field’s request for bifurcated trial on the issue of “operator” and “arranger” liability. Only PDMI and Inspiration oppose bifurcation. The Court will address the motion to bifurcate after discussing the background of this matter.

BACKGROUND

Plaintiffs, a group of three mining companies, have engaged in the cleanup of the Pinal Creek Drainage Basin (“Pinal Creek Site”). Plaintiffs bring this action pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601-9675 (“CERCLA”) and the Arizona Water Quality Assurance Revolving Fund, Ariz.Rev.Stat. §§ 49-201-49-298 (“WQARF”) to recover past “response costs” and for declaratory relief and/or monetary relief regarding potential future groundwater remediation costs. The Pinal Creek Site has been contaminated by nearly 100 years of mining including various mining practices at various locations by various mine operators. This litigation involves two main property divisions within the Pinal Creek Site: Property A and Property B. Property A is currently owned by PDMI and was formerly owned by Inspiration. Plaintiffs allege that Defendant Atlantic Richfield was a former “operator” and “arranger” of Property A and is liable for a substantial portion of cleanup costs that may otherwise be Inspiration’s responsibility. On the other hand, Property B is currently owned by Plaintiff BHP, formerly owned by Defendant Canadian Oxy, and allegedly formerly operated by Defendant Newmont Mining. Atlantic Richfield’s motion to bifurcate involves Property A. This case has been in active litigation for nearly twelve years1 and it is in the best interests of the parties and the Court to resolve this complicated matter as expeditiously and as fairly as possible.

ANALYSIS OF MOTION TO BIFURCATE

I. District Court’s Authority to Bifurcate a Trial

Atlantic Richfield requests that the Court conduct an initial trial to determine whether [654]*654Atlantic Richfield is liable as an “operator” and/or “arranger” as to Property A which is currently owned by PDMI. Then, if necessary, the Court would conduct a second trial on allocation, damages and remaining issues regarding Property B.

Federal Rule of Civil Procedure 42(b), which authorizes the court to bifurcate a trial, provides that:

The court, in furtherance of convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy, may order a separate trial of any claim, cross-claim, counterclaim, or third party claim, or of any separate issue or of any number of claims, cross-claims, counterclaims, third-party claims or issues always preserving inviolate the right to trial by jury.

Id. (emphasis added) Only one of Rule 42(b)’s requirements must be satisfied for the court to bifurcate a trial. United States v. Shell Oil, Co., 1992 WL 144296, *11 (C.D.Cal. Jan.16, 1992)(citing In re Paris Air Crash of March 3, 1974, 69 F.R.D. 310 (C.D.Cal.1975)). The main purpose of Rule 42(b) is to promote “efficient judicial administration.” Id. (citing Stoddard v. Ling-Temco-Vought, Inc., 513 F.Supp. 314 (C.D.Cal.1980)). The district court has inherent authority to manage a case “with economy of time and effort for itself, for counsel and for litigants.” Landis v. North American Co., 299 U.S. 248, 254, 57 S.Ct. 163, 81 L.Ed. 153 (1936). In the CERCLA context, courts determine whether to bifurcate on a case-by-case basis. United States v. Kramer, 770 F.Supp. 954 (D.N.J.1991).

Mindful of these principles, the Court will consider Atlantic Richfield’s Motion to Bifurcate trial into two phases: Phase One: Atlantic Richfield’s liability as an “operator” and/or “arranger” regarding activities at facilities owned by PDMI and Inspiration; and Phase Two: damages, allocation and the remaining issues.2

II. Procedural History

The procedural history of this matter supports bifurcation and undermines the argument of PDMI and Inspiration that a bifurcated trial would be unfair. Since 1993, this matter has been structured into two phases separating the owner/operator liability issues from the issues of damages/allocation. (See, document #271, Case Management and Discovery Order) In the 1993 Case Management Order, the Court stated that “it is the Court’s intent in entering this Order to provide a mechanism for the efficient, cost-effective and timely discovery and resolution as between plaintiffs and ARCO [Atlantic Richfield] on the Control issues ...” (Id.) Hindsight, however, has proven otherwise.

In an October 2001 Memorandum which contained a section entitled “Phasing or Bifurcation of Trial”, (which is recent in view of this case’s long history), PDMI/Inspiration advised the Court that:

PDMI and Inspiration support bifurcation of trial in this matter between (i) trial resolving liability and (ii) a trial resolving damages and allocation. PDMI and Inspiration support this bifurcation, which is consistent with the procedural history of this case, because this bifurcation enables the Court to render its initial determinations on the merits of the claims most quickly. This traditional bifurcation simply resolves the issues toward which the parties have devoted the last ten years.

(See, document # 969, October 19, 2001 Memorandum of PDMI and Inspiration Regarding Case Management and Scheduling at 12-13)

In the same memorandum, PDMI and Inspiration acknowledged that the complexity of this case made bifurcation appropriate, stating that “[a]dding additional issues, such as allocation, would necessarily complicate the initial trial ... [A]ny attempt to try the allocation issues in the same trial with the [655]*655liability issues would significantly delay and elongate trial of the liability issues.” (Id. at 13.) In support of bifurcation, PDMI and Inspiration detailed the benefits of such an approach.

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218 F.R.D. 652, 56 Fed. R. Serv. 3d 1211, 57 ERC (BNA) 1420, 2003 U.S. Dist. LEXIS 17187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinal-creek-group-v-newmont-mining-corp-azd-2003.