Reynolds Metals Co. v. Arkansas Power & Light Co.

920 F. Supp. 991, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21179, 42 ERC (BNA) 1847, 1996 U.S. Dist. LEXIS 4189, 1996 WL 157163
CourtDistrict Court, E.D. Arkansas
DecidedMarch 26, 1996
DocketCivil LR-C-95-281
StatusPublished
Cited by5 cases

This text of 920 F. Supp. 991 (Reynolds Metals Co. v. Arkansas Power & Light Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reynolds Metals Co. v. Arkansas Power & Light Co., 920 F. Supp. 991, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21179, 42 ERC (BNA) 1847, 1996 U.S. Dist. LEXIS 4189, 1996 WL 157163 (E.D. Ark. 1996).

Opinion

*993 MEMORANDUM OPINION AND ORDER

EISELE, District Judge.

Before the Court is Arkansas Power & Light Company’s (AP & L’s) Motion to Dismiss, filed pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. Reynolds Metals Company (Reynolds) has responded to this motion, opposing the relief sought. For the reasons expressed in the following opinion, AP & L’s motion will be granted.

I.

Reynolds’ Complaint (Docket No. 1) asserts two independent causes of action against AP & L under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), 42 U.S.C. §§ 9601 to 9675. First, Reynolds seeks to maintain a direct, private party recovery action against AP & L under 42 U.S.C. § 9607(a) (CERCLA § 107(a)) to recover “all necessary costs of response incurred at the Site by Reynolds.” Complaint ¶25 (Count I). Second, and apparently in the alternative, Reynolds seeks to maintain a contribution action against AP & L under 42 U.S.C. § 9613(f) (CERCLA § 113(f)) to recover “costs of response in excess of Reynolds’ equitable share.” Complaint ¶29 (Count II). Additionally, Reynolds seeks to invoke the Court’s supplemental jurisdiction, 28 U.S.C. § 1367(a), to maintain a contribution action against AP & L under Arkansas’ Remedial Action Trust Fund Act (RATFA), Ark.Code Ann. §§ 8-7-501 to -523 (Michie 1993 & Supp.1995), specifically Ark.Code Ann. § 8-7-520 (Michie Supp.1995), to recover the “costs of the remedial action which are in excess of Reynolds’ equitable share.” Complaint ¶ 42 (Count III).

In its motion, AP & L argues that Counts I and III of Reynolds’ Complaint fail, as a matter of law, to state a claim for relief against it, and that accordingly all but Count II of the Complaint should be dismissed. See Fed.R.Civ.P. 12(b)(6). In ruling upon this motion, the Court must accept the factual allegations of Reynolds’ Complaint as true. Albright v. Oliver, — U.S. -, -, 114 S.Ct. 807, 810, 127 L.Ed.2d 114 (1994); Coleman v. Watt, 40 F.3d 255, 258 (8th Cir.1994). Moreover, the Court may grant AP & L’s motion only if, after so viewing the pleadings, it is patently clear that there is no set of facts that Reynolds could prove thereunder which would entitle it to the relief sought in those counts of its Complaint. Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct. 2229, 2232-33, 81 L.Ed.2d 59 (1984); Frey v. City of Herculaneum, 44 F.3d 667, 671 (8th Cir.1995).

Reynolds has alleged the following facts in its Complaint which, as discussed above, must be accepted as true.

From 1954 to 1985, Reynolds owned and operated an aluminum reduction plant in Clark County, Arkansas (the Site). AP & L supplied electrical services to the Site, and, in the course of doing so, AP & L installed and operated equipment, which it also owned and maintained, that used polychlorinated biphenyls (PCBs). Reynolds likewise owned and operated PCB-utilizing equipment at the Site. During the period described above, the Site experienced various incidents of leaks and/or spills involving PCB-eontaining fluids, which were caused by the equipment of both AP & L and Reynolds. Complaint ¶¶7-8.

When Reynolds decided to close its Clark County aluminum reduction plant, an environmental assessment was conducted at the Site by the Radian Corporation (Radian), a private environmental consultant. That assessment concluded that several areas of the Site were contaminated with PCBs, including areas on which AP & L’s PCB-utilizing equipment had been located. In July, 1990, Reynolds, AP & L and Radian met with the Environmental Protection Agency’s (EPA’s) regional PCB coordinator to discuss the Site’s PCB contamination problem, as well as potential clean-up plans. In August, 1990, Reynolds submitted a written PCB remediation plan proposal to the EPA, and in December, 1990 the EPA and Reynolds agreed upon a remedial course of action. Reynolds’ PCB clean-up of the Site began in August, 1991 and was largely completed by September, 1992. Complaint ¶¶ 9-11. In December, 1992, Reynolds submitted a closure report to the EPA, which indicated that, with two exceptions (namely the interior of an area known as the “Cast House” and certain *994 sections of a NPDES 1 ditch), the remediation efforts at the Site had been completed. The EPA confirmed this fact in March, 1993, and in 1994 Reynolds completed its remediation efforts at the Cast House, with the remediation of the NPDES ditch scheduled to be completed in 1995. Complaint ¶¶ 12-13. AP & L has declined to participate in any of these remediation efforts, Complaint ¶ 10, and Reynolds has incurred no less than $11,210,000 in remediation costs in cleaning up the Site. Complaint ¶ 14.

H.

The Court turns first to AP & L’s CERCLA-related arguments. As the Court has previously explained, Reynolds is attempting to bring two separate CERCLA causes of action against AP & L: (1) a direct cost recovery action under § 107(a); and (2) a contribution action under § 113(f). The basic difference in these two causes of action, at least as they have plead, is that in its § 107(a) cause of action Reynolds is attempting to hold AP & L liable for all of its response costs, see 42 U.S.C. § 9607(a)(1)(B) (which provides in relevant part that “the owner and operator of a ... facility 2 ” shall be held liable for “any ... necessary response costs incurred by any other person consistent with the national contingency plan”), while its § 113(f) cause of action only seeks to hold AP & L liable for a portion of its total response costs, see 42 U.S.C. § 9613(f)(1) (which provides, in relevant part, that “[a]ny person 3 may seek contribution from any other person who is liable or potentially liable under section 9607(a)” for his equitable share of the total response costs). However, AP & L argues that because Reynolds, having incurred response costs pursuant to an agreement with the EPA, is itself a potentially responsible party (PRP) 4 under CERCLA, it should be precluded from maintaining a direct cost recovery action against it under § 107(a), and that the only CERCLA claim Reynolds has against AP & L is a contribution action under § 113(f).

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Bluebook (online)
920 F. Supp. 991, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21179, 42 ERC (BNA) 1847, 1996 U.S. Dist. LEXIS 4189, 1996 WL 157163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reynolds-metals-co-v-arkansas-power-light-co-ared-1996.