Player v. Motiva Enters., LLC

240 F. App'x 513
CourtCourt of Appeals for the Third Circuit
DecidedJuly 13, 2007
Docket06-1663
StatusUnpublished
Cited by28 cases

This text of 240 F. App'x 513 (Player v. Motiva Enters., LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Player v. Motiva Enters., LLC, 240 F. App'x 513 (3d Cir. 2007).

Opinion

OPINION OF THE COURT

JORDAN, Circuit Judge.

Plaintiffs, Jeff and Cheryl Player and several of their neighbors, appeal the decision of the United States District Court for the District of New Jersey granting a Daubert motion to exclude their damages expert, Daniel McDonald, and granting summary judgment in favor of Defendant Motiva Enterprises, LLC (“Motiva”). Plaintiffs argue that the District Court abused its discretion in finding that McDonald was not qualified and that his methodology was unreliable. They also contend that the District Court erred by not conducting a hearing before ruling on the Daubert motion. Alternatively, Plaintiffs argue that, even if McDonald’s testimony was properly excluded, there was still sufficient evidence in the record to establish that they were injured by Motiva, and, thus, the District Court should not have granted Motiva’s motion for summary judgment on Plaintiffs’ negligence claim. Lastly, Plaintiffs assert that the District Court erred in dismissing their claim under the New Jersey Environmental Rights Act (“ERA”). For the following reasons, we will affirm the decision of the District Court.

I.

Plaintiffs are the current and former owners of residential properties located in Gloucester Township, New Jersey. Plaintiffs assert numerous claims against Motiva, all relating to their central allegation that, in or about April 2000, Motiva was responsible for the discharge of hazardous substances from a gasoline service station into the soil and groundwater near Plaintiffs’ properties. The District Court provided an extensive review of the undisputed facts in this case, see Player v. Motiva Enters. LLC, No. Civ. 02-3216, 2006 WL 166452, at *1-3 (D.N.J. Jan.20, 2006). Because we write only for the parties and because the appeal challenges only the District Court’s legal conclusions, we limit our discussion of the facts to those necessary to address the parties’ arguments, after providing some basic background information.

Plaintiffs own twenty-seven parcels of residential property in Gloucester Township. 1 Only one of those properties, 583 Berlin Cross Keys Road, is connected to the municipal water supply. That property is owned by John and Maria Wallace, who admitted that their drinking water was not affected by the leak at Motiva’s gasoline station. The other twenty-six properties all draw their drinking water from potable wells connected to the Kirk-wood-Cohansey Aquifer, and, unlike the Wallaces, the owners of those properties claim that Motiva has contaminated their drinking water.

Pursuant to a directive issued by the New Jersey Department of Environmental *516 Protection (“NJDEP”), Motiva tested Plaintiffs’ wells for volatile organic compounds (“VOCs”) associated with gasoline. According to the District Court’s review of those test results, eighteen of the properties showed no signs of contamination, and although VOCs were detected in the wells of the other eight properties, the detected amounts were within the permissible range for portability set by the NJDEP’s Ground Water Quality Standard (“GWQS”). Plaintiffs do not argue that the District Court’s discussion of the test data was inaccurate.

II.

The District Court granted summary judgment in favor of Motiva with respect to all of Plaintiffs’ claims. On appeal, however, Plaintiffs challenge only the District Court’s decisions with respect to the exclusion of expert testimony and the granting of summary judgment against them on their negligence claim and their New Jersey Environmental Rights Act (“ERA”) claim. Following is a summary of the reasoning of the District Court as to each of those rulings.

A.

The District Court granted Motiva’s Daubert motion to exclude the testimony of McDonald on two alternative grounds. First, the District Court found that McDonald was not qualified to opine on the value of Plaintiffs’ properties. Although McDonald had been a licensed appraiser in New Jersey for twenty-two years, the District Court determined that McDonald was not qualified to offer an opinion in this case because he had no particular experience in appraising property that had been devalued by contamination or the stigma of contamination.

Second, the District Court found that McDonald’s report was based on unreliable methodology. The Court explained that McDonald divided Plaintiffs’ properties into two groups: those that had detected levels of VOCs in their potable wells and those that did not. McDonald concluded that the properties with no contaminants detected in their drinking water suffered a thirty-five percent loss in market value, and that the properties with any amount of detected contamination lost sixty-six percent of their market value. The District Court discussed each calculation individually and concluded that both were the product of unreliable methodology.

In his report, McDonald explained that, for the properties with no detected contamination, damages were based on the stigma that normally attaches to property near a contamination site. To quantify that stigma, McDonald compared Plaintiffs’ properties with properties located near a contamination site in Dover Township, New Jersey. McDonald determined that the contamination site in Dover Township was in the final stage of recovery, but the properties near that site were still suffering from a thirteen percent loss in value. He then concluded that, because Plaintiffs’ properties were in an earlier stage of recovery, the loss in value must be two to three times greater than that of the Dover properties, or about thirty-five percent.

The District Court found that McDonald’s conclusion was based on a “highly misleading analogy.” The Court pointed out that, unlike this case, the ground water contamination in Dover Township caused a relatively large number of children to develop cancer. Moreover, McDonald admitted that he selected the Dover Township site because the data was readily available, not because it was a comparable site. The District Court thus held that the severity of the contamination and the resulting illnesses in Dover Township made it inap *517 propriate to compare that site with Plaintiffs’ properties, “where there were few detections of contaminants and no reported physiological effects.” (Dist. Ct. Op. at 28.)

For the properties that had detected levels of VOCs in their potable wells, McDonald determined that there was a sixty-six percent loss in value because, in addition to stigma, there would also be a loss in value due to the lack of financing options available to potential buyers. According to his report, McDonald sent a survey to thirteen lenders. McDonald claimed that the six lenders who responded said they would not approve a loan to purchase Plaintiffs’ properties, or they would require substantial conditions on such a loan. As a result, McDonald concluded that, “it can be assumed that a purchaser with private financing or cash would be the only potential buyer.” (Appx. at A245.) Based on the three years of data that McDonald reviewed, the only two homes in the same area as Plaintiffs’ properties that were purchased in cash were sold for $39,205.00 and $47,000.00.

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Bluebook (online)
240 F. App'x 513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/player-v-motiva-enters-llc-ca3-2007.