Reading Co. v. City of Philadelphia

823 F. Supp. 1218, 1993 U.S. Dist. LEXIS 6170, 1993 WL 175382
District Court, E.D. Pennsylvania·Decided May 11, 1993·No. 91-2377·Published·Cited by 28 cases

Opinion

MEMORANDUM AND ORDER

YOHN, District Judge.

The Reading Company (“Reading”) commenced a suit against defendants under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), as amended, 42 U.S.C.A. §§ 9601-9675 and the Pennsylvania Hazardous Sites Cleanup Act (“HSCA”), 35 Pa.Stat. Ann. §§ 6020.101-6020.1305. Reading seeks contribution from defendants for their share of the $8.6 million in clean-up costs already incurred by it, as well as any future costs incurred, in removing polychlorinated biphe-nyls (“PCBs”) from the viaduct which formerly bore tracks of the Ninth Street branch of the Reading Railroad to the Reading Terminal train shed, the Reading Terminal train *1222 shed, the structures associated with that train shed, the structural components of the train shed, and the interstitial materials lying between the floor of the train shed and the ceiling of the Reading Terminal Market. Defendants SEPTA, Conrail, Bucks County, Chester County, and Montgomery County 1 have filed a motion for summary judgment on all claims asserted against them. For the reasons explicated below, the court denies the motion for summary judgment.

DISCUSSION

I. The Facts

This case involves an enormous number of facts. Therefore, in an effort to achieve clarity, the court subdivides the pertinent facts.

General background

Reading operated both freight and passenger rail service. Its passenger service was extant in 1893 and perhaps earlier.

For many years, Reading ran steam-powered locomotives on its passenger lines. Around 1930, Reading commenced electrification of its rail lines. The company electrified the last of its passenger lines in 1961.

Reading utilized self-propelled electric railroad cars on the electrified rail lines. The electric railcars housed traction motors that in turn contained electrical transformers. These electrical transformers contained oils mixed with PCBs.

Due to the normal operation of these transformers and to leaks in them, the transformers released PCBs into the railbeds underneath them. As a result of the releases of PCBs, the train shed (including the Reading Terminal train shed, the structures associated with that train shed, the structural components of the train shed, and the interstitial materials located between the floor of the train shed and the ceiling of the Reading Terminal market) and the viaduct that formerly bore the tracks of the Ninth Street branch of the Reading Railroad to the train shed became contaminated.

During the 1950’s, Reading suffered a severe decline in the number of passengers using its commuter rail lines. This decline in riders placed the continued existence of commuter rail operations between Philadelphia and the nearby counties of southeastern Pennsylvania in jeopardy.

In response to the threatened discontinuance of commuter service between Philadelphia and the surrounding counties, in 1958, the City of Philadelphia (the “City”) entered into a series of contracts with Reading to increase service and decrease fares on selected rail lines, mostly within the city. By the end of 1960, the City created the Passenger Service Improvement Corporation (“PSIC”) to manage the plan to increase service and decrease fares on the six in-city rail lines.

Realizing that the burgeoning mass transportation crisis necessitated a regional approach to the problem, in September 1961, Bucks, Chester, and Montgomery Counties joined with the City to form the Southeastern Pennsylvania Transportation Compact (“SEPACT”). SEPACT planned to increase ridership on commuter rail lines by increasing the quality and quantity of service and decreasing fares.

SEPACT applied for and received a demonstration grant from the Housing and Home Finance Agency (“HHFA”) (later replaced by the Urban Transportation Administration under the U.S. Department of Housing and Urban Development) pursuant to the Housing Act of 1961. The first demonstration project, christened SEPACT I, commenced during the last week of October 1962 and lasted for three years, ending in October 1965. The project cost $4.7 million, two-thirds of which was paid for by the federal government and the remaining one-third of which was contributed by the local participants.

Reading’s Philadelphia to Lansdale line and its Glendale to Hatboro branch, along with the Pennsylvania Railroad’s commuter *1223 service between Philadelphia and Levittown, served as demonstration lines for SEPACT I.

Although SEPACT I successfully increased ridership on the demonstration lines, overall the volume of commuters riding on the Reading system declined. Because of the continued passenger deficit, Reading applied for service abandonments.

In response to the escalating mass transportation crisis, SEPACT III, known as Operation Reading, evolved. This project’s goal was to increase ridership on all seven of Reading’s commuter lines. Operation Reading commenced in April 1965 and terminated in October 1966.

In 1964, the Southeastern Pennsylvania Transportation Authority (“SEPTA”) formed. Incorporated pursuant to the Urban Mass Transportation Law, SEPTA was created as an agency of the Commonwealth of Pennsylvania, although it was subsidized by a number of sources. In November 1965, SEPTA assumed management of SEPACT’s programs thereby becoming SEPACT’s managing agent.

Reading subsequently went bankrupt and in 1976, pursuant to a final system plan required by the Regional Rail Reorganization Act, conveyed most of its property to Conrail. However, it retained a reversionary interest in certain property. Reading ceased all railroad services on March 31, 1976. When the properties in question reverted back to Reading in 1985, Reading began to clean up the PCB contamination.

Ownership and operation of Reading Terminal

Reading constructed the Reading Terminal in 1893 as part of its passenger operations. Part of the Reading Terminal complex was a structure known as the train shed. The train shed contained 13 trackbeds and a number of passenger walkways and loading platforms. Trains would travel in and out of the shed to pick up and deposit passengers.

The train shed, covered by an arched roof supported by steel framing, was completely open at its north end thereby enabling trains to travel in and out of the shed. Reading Terminal Market was situated directly underneath the train shed. Located between the floor of the train shed and the ceiling of the market was an area known as the interstitial space. The interstitial space housed support beams and a stormwater drainage system.

Outside the train shed was an area known as the viaduct. The viaduct was an open, elevated masonry structure that bore tracks of the Ninth Street branch of the Reading Railroad. In order to reach the shed, trains passed over the viaduct.

Free access — add to your briefcase to read the full text and ask questions with AI

Reading Co. v. City of Philadelphia, 823 F. Supp. 1218, 1993 U.S. Dist. LEXIS 6170, 1993 WL 175382 (E.D. Pa. 1993).

823 F. Supp. 1218 (Reading Co. v. City of Philadelphia) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Otay Land Co. v. U.E. Limited
California Court of Appeal, 2017
Otay Land Co. v. U.E. Ltd., L.P.
225 Cal. Rptr. 3d 119 (California Court of Appeals, 5th District, 2017)
Castaic Lake Water Agency v. Whittaker Corp.
272 F. Supp. 2d 1053 (C.D. California, 2003)
United States v. Union Corp.
259 F. Supp. 2d 356 (E.D. Pennsylvania, 2003)
Ruffing v. Union Carbide Corp.
193 Misc. 2d 350 (New York Supreme Court, 2002)
Sherwin-Williams Co. v. Artra Group, Inc.
125 F. Supp. 2d 739 (D. Maryland, 2001)
Nashua Corp. v. Norton Co.
116 F. Supp. 2d 330 (N.D. New York, 2000)
Uniroyal Chem Co Inc v. Deltech Corp
160 F.3d 238 (Fifth Circuit, 1999)
Uniroyal Chemical Co. v. Deltech Corp.
160 F.3d 238 (Fifth Circuit, 1998)
United States v. Power Engineering Co.
10 F. Supp. 2d 1145 (D. Colorado, 1998)
Morrison Enterprises v. McShares, Inc.
13 F. Supp. 2d 1095 (D. Kansas, 1998)
Elf Atochem North America v. United States
914 F. Supp. 1166 (E.D. Pennsylvania, 1996)
Smith v. Weaver
665 A.2d 1215 (Superior Court of Pennsylvania, 1995)
Bethlehem Iron Works, Inc. v. Lewis Industries, Inc.
891 F. Supp. 221 (E.D. Pennsylvania, 1995)
United States v. M/V Santa Clara I
887 F. Supp. 825 (D. South Carolina, 1995)
Consolidated Rail Corp. v. United States
883 F. Supp. 1565 (Special Court under the Regional Rail Reorganization Act, 1995)
Elf Atochem North America, Inc. v. United States
868 F. Supp. 707 (E.D. Pennsylvania, 1994)
Hatco Corp. v. W.R. Grace & Co.—Conn.
849 F. Supp. 931 (D. New Jersey, 1994)