Public Interest Research Group of New Jersey, Inc. v. Ferro Merchandising Equipment Corp.

680 F. Supp. 692, 18 Envtl. L. Rep. (Envtl. Law Inst.) 21368, 26 ERC (BNA) 1850, 1987 U.S. Dist. LEXIS 13386, 1987 WL 44310
CourtDistrict Court, D. New Jersey
DecidedOctober 6, 1987
DocketCiv. A. No. 86-4741
StatusPublished

This text of 680 F. Supp. 692 (Public Interest Research Group of New Jersey, Inc. v. Ferro Merchandising Equipment Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Public Interest Research Group of New Jersey, Inc. v. Ferro Merchandising Equipment Corp., 680 F. Supp. 692, 18 Envtl. L. Rep. (Envtl. Law Inst.) 21368, 26 ERC (BNA) 1850, 1987 U.S. Dist. LEXIS 13386, 1987 WL 44310 (D.N.J. 1987).

Opinion

BARRY, District Judge.

Plaintiffs, Public Interest Research Group of New Jersey, Inc. (“PIRGNJ”) and Friends of the Earth (“FOE”) bring this citizens suit under the Federal Water Pollution Control Act (“The Act”), 33 U.S.C. § 1251, et seq. (1982) against Ferro Merchandising Equipment Corporation (“Ferro”) alleging discharge of certain toxins, particularly nickel, into the waterway known as the Arthur Kill in violation of pretreatment standards issued as regulations under the Act. On March 11, 1987, the parties entered into a consent decree whereby the defendant agreed to operate its facility in compliance with the Act and further agreed to extensive monitoring of its wastewater discharge. The consent decree was entered as an order of this Court on March 13, 1987. When subsequent reports indicated continuing violations of the Act, plaintiffs moved this court to both hold defendant in contempt of the consent decree and also to assess a civil penalty for seventeen of defendant’s continuing violations of the applicable pretreatment regulations.

After a hearing, this Court issued an order on May 6, 1987 rejecting defendant’s good faith defense to plaintiffs’ motion for contempt, holding defendant liable under the strict standards of liability contemplated by the Act and assessing civil contempt fines of $2,000 per violation and civil penalties under the Act of $1,000 per violation, for nine of the seventeen violations pressed by plaintiffs. As for the remaining eight violations, the Court, based upon representations made by counsel at oral argument and the affidavits of defendant’s consulting engineer, reserved judgment on •the propriety of contempt and statutory penalties for those violations based upon the court’s assessment that defendant had “raised at least a colorable question as to the cause of the violations occurring on March 15, 30 and 31st and April and 5th, rendering decision on those violations inappropriate until a more complete factual [694]*694record is presented.” Order of May 6,1987 at 4.

Since that time defendant has submitted further affidavits and other documents in support of its contention that it should not be held liable for the eight unresolved violations and has timely moved the court to reconsider its May 6th order holding defendant in contempt for the other nine violations. Plaintiff now presses the court to assess the same penalties for the eight remaining violations as the court assessed for the earlier nine. For the reasons that follow, I will deny defendant’s motion for reconsideration and assess statutory penalties for the eight violations left unresolved by this Court’s May 6th order. However, because defendant has now apparently taken the steps necessary to insure compliance with the Act, I will deny plaintiffs’ application for further contempt sanctions.

Turning first to defendant’s motion of reconsideration, I reject defendant’s contention that the cases cited in support of the order of contempt are “inappropriate.” Fundamental to each of those decisions is the proposition that a good faith effort to comply with an order of the court is not a defense. McComb v. Jacksonville Paper Co., 336 U.S. 187, 191, 69 S.Ct. 497, 499, 93 L.Ed. 599 (1949) (“[a]n act does not cease to be a violation of a law merely because it may have been done innocently”).

While “factual impossibility” remains a defense, the defendant has not met that high burden. See United States v. Rylander, 460 U.S. 752, 757, 103 S.Ct. 1548, 1552, 75 L.Ed.2d 521 (1983) (burden of production on defendant raising defense of factual impossibility). As plaintiffs pointedly observe, defendant tacitly admits that compliance was possible prior to the subsequent violations. What is really at issue here is a situation in which a recalcitrant polluter who, after a long period of noncompliance, now points to its own inadequate and poorly maintained sewer system, lacking a precise monitoring point, to excuse its violations of the Act. On these facts, the “defense” is totally unavailing. Defendant has produced no evidence to suggest that it lacked the resources to reach compliance or that compliance was not technically feasible. In fact, defendant is a rather large and profitable concern that has now achieved discharge levels within the confines of its permit. The simple fact that it initially focused its efforts on a recovery system to the neglect of its discharge system is not a defense. Defendant’s obligations under the Act extend beyond the four walls of its plant to the point of discharge. Even if I assume good faith, the fact that difficulties with the sewer system were “unanticipated” does not excuse noncompliance with the consent decree.

As the Court of Appeals for the Third Circuit recently pointed out, a consent decree is both a judicial act and also a voluntary contractual one. United States v. Wheeling-Pittsburgh Steel Corp., 818 F.2d 1077 (3d Cir.1987). As an order of the court, it is due the sanctity and respect that insures the legitimacy of our judicial system. Similarly, it carries with it a finality that insures a consent decree will not be used as a device to simply buy time or forestall judgment:

[A] party to a consent decree, having made a ‘free, calculated and deliberate choice to submit to an agreed upon decree rather than seek a more favorable litigated judgment,’ bears a burden which is perhaps even more formidable than had they litigated and lost.’

Id. at 1088 (quoting United States Steel Corp. v. Fraternal Ass’n of Steel Haulers, 601 F.2d 1269, 1274 (3d Cir.1979)). Here, by signing the consent decree, the defendant acknowledged the applicability of the Act and its obligations thereunder and, further, implicitedly promised both to its adversary and to the court that it would take the steps necessary to get the job done. It is in this fashion that the consent decree is also a contract. Like any other contract, the breaching party will not be heard to say that performance on its part proved more burdensome or expensive than it had anticipated.

Under long-held principles of contract law a party who enters into an agreement knowingly and voluntarily assumes the risk that it has entered into a bad bargain. In [695]*695sum, the fact that Ferro did not anticipate the deficiences of its sewer system can not excuse its violations of a consent decree voluntarily assumed. I, therefore, decline defendant’s invitation to modify my May 6th order and deny its motion for reargument.

As for those eight alleged violations on which this court reserved judgment, this Court made clear at oral argument and by the terms of the subsequent order that defendant would be accorded a reasonable opportunity to present evidence, despite every indication to the contrary, that the violations that occurred on March 15, 30, 31 and April 14 and 15 could not be traced to Ferro. No such evidence has been forthcoming. In fact the affidavits of defendant’s expert reveal that defendant can attribute no other source than its own sludge-laden sewer for the nickel and chronium discharged on those dates.

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Related

McComb v. Jacksonville Paper Co.
336 U.S. 187 (Supreme Court, 1949)
United States v. Rylander
460 U.S. 752 (Supreme Court, 1983)
United States v. Tex-Tow, Inc.
589 F.2d 1310 (Seventh Circuit, 1978)
Cities Service Pipe Line Company v. The United States
742 F.2d 626 (Federal Circuit, 1984)
United States v. Wheeling-Pittsburgh Steel Corp.
818 F.2d 1077 (Third Circuit, 1987)

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680 F. Supp. 692, 18 Envtl. L. Rep. (Envtl. Law Inst.) 21368, 26 ERC (BNA) 1850, 1987 U.S. Dist. LEXIS 13386, 1987 WL 44310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/public-interest-research-group-of-new-jersey-inc-v-ferro-merchandising-njd-1987.