Rohm and Haas Co. v. American Cyanamid Co.

187 F. Supp. 2d 221, 2001 U.S. Dist. LEXIS 23191, 2001 WL 1795537
CourtDistrict Court, D. New Jersey
DecidedNovember 20, 2001
DocketCivil Action Nos. 95-1865(DMC), 99-1891(DMC)
StatusPublished
Cited by24 cases

This text of 187 F. Supp. 2d 221 (Rohm and Haas Co. v. American Cyanamid Co.) 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
Rohm and Haas Co. v. American Cyanamid Co., 187 F. Supp. 2d 221, 2001 U.S. Dist. LEXIS 23191, 2001 WL 1795537 (D.N.J. 2001).

Opinion

OPINION

CAVANAUGH, District Judge.

This matter comes before the Court on motion, filed as an Order to Show Cause, by Defendant, American Cyanamid Company (“American Cyanamid”), to disqualify counsel for Plaintiff, Rohm and Haas Company (“Rohm and Haas”). Pursuant to Rule 78 of the Federal Rules of Civil Procedure, oral argument was heard on November 5, 2001. After carefully reviewing the record and for the reasons set forth below, Defendant’s motion to disqualify Plaintiffs counsel is denied.

BACKGROUND

This case involves many individuals and entities, therefore, the following dramatis personae should prove helpful in understanding the Court’s analysis.

Rohm and Haas — Plaintiff in both consolidated actions and one of the parties held jointly and severally liable for contaminating the Picillo site in other cases.

Ellen Friedell — In-house counsel for Rohm and Haas.

Schnader, Harrison, Segal & Lewis, LLP — The law firm repre--senting Rohm and Haas in both consolidated actions since on or about April 11, 1995.

John Armstrong — Attorney from the firm of Schnader, Harrison, Segal & Lewis, LLP representing the Rohm and Haas Company.

Dennis Suplee — Attorney from the firm of Schnader, Harrison, Segal & Lewis, LLP representing the Rohm and Haas Company.

American Cyanamid — Defendant in the 99-1891 action and co-plaintiff with Rohm and Haas in the 95-1865 action.

Margaret Tribble — In-house counsel for the American Cyanamid Company.

Sills Cummis Radin Tischman Epstein & Gross — Counsel representing American Cyanamid Company in this present matter, primarily through attorney Mark S. Olinsky.

Deming Sherman of Edwards & An-gelí — Represented American Cyanamid Company between approximately 1980 and 1995.

Ashland Inc. — A primarily responsible party participating in the cleanup of the Picillo site.

GAF Corp. — A primarily responsible party participating in the cleanup of the Picillo site.

*224 General Electric Company — A primarily responsible party participating in the cleanup of the Picillo site.

Monsanto Company — A primarily responsible party participating in the cleanup of the Picillo site.

The Performing Group — American Cyan-amid Company, along with Ashland Inc., GAF Corp., General Electric Company, Monsanto Company refer to themselves collectively as the Performing Group because they have entered negotiations with the United States resolve their liability for contaminating the site by agreeing to “perform” part of the decontamination procedures on the Picillo site. It is Rohm and Haas Company’s disagreements with the Performing Group that has prompted the present litigation (especially in 99-1891).

The Picillo Pig Farm Litigation and Efforts Totvard Negotiation

At some point in the mid-1970’s, the Picillo pig farm in Rhode Island was used by dozens of companies for the illegal dumping of hazardous waste. See Rohm and Haas’ Brief in Opposition to the Motion to Disqualify the Law Firm of Schnader Harrison Segal & Lewis, LLP (“Opposition Brief’) at 7. This dumping became public on or about September 30, 1977, when the site caught fire. See Opposition Brief at 7. A series of legal disputes have arisen since then. In 1988 and 1990, Rohm and Haas and American Cyanamid, the present litigants and two of many companies partially responsible for the contamination, were held jointly and severally liable for past and future response costs for contaminating the Picillo site. See Brief in Support of the Performing Group’s Motion to Disqualify the Law Firm of Schnader Harrison Segal & Lewis, LLP (“Supporting Brief’) at 3. In each action, Deming Sherman, Esq. represented both parties. See Certification of Margaret Tribble (“Tribble Cert.”), ¶ 2; Supporting Brief at 3.

After the 1990 case, American Cyanamid joined with four other primarily responsible parties, Ashland Inc., GAF Corp., General Electric Company and the Monsanto Company (collectively referred to as the Performing Group) and Rohm and Haas to attempt to account for future response costs at the Picillo site. See Tribble Cert., ¶ 4; Supporting Brief at 3. These negotiations allegedly led to a rough allocation of financial responsibility (by percentage), contingent, in part, on the contribution of some outside groups. See Tribble Cert., ¶ 5, 12; Supporting Brief at 3-4. These outside groups eventually decided not to participate in negotiations with the Performing Group and the United States with regard to the Picillo Site. As a result, all six responsible parties were called upon to assume a greater percentage of responsibility in their proposed consent decree with the United States. See Tribble Cert., ¶ 5; Supporting Brief at 4. American Cyanamid asserts that Rohm and Haas objected to this potential increase in financial responsibility and opted out of the negotiations in March 1995. See Tribble Cert., ¶ 14; Supporting Brief at 4.

Rohm and Haas opted out of the negotiations toward developing a consent decree because it disagreed with the method of allocation used by the Performing Group. The Performing Group advocates a drums-on-site approach. Under this approach, liability is determined by calculating the percentage of identifiable drums attributable to each of the primarily responsible parties (Rohm and Haas and the five members of the Performing Group). Rohm and Haas asserts that this method is improper because a mere 700 out of an estimated 20,000 drums of waste were identi *225 fied at the Picillo site. In contrast, Rohm and Haas advocates a “transhipment” theory that seeks to assess the percentage of responsibility through a more roundabout analysis. First Rohm and Haas would obtain discovery on the total amount of waste sent out by American Cyanamid to various waste haulers or “transhippers,” then Rohm and Haas would subtract the amount of waste that was dumped in sites other than the Picillo site by these tran-shippers. The remaining waste, under a transhipment theory, constitutes an approximation of the amount of waste dumped by American Cyanamid at the Pi-cillo site. 1

The Conflict of Interest

In March 1995, American Cyanamid and Rohm and Haas were held jointly and severally liable for contaminating at the Picillo site. Subsequently, in-house counsel for both companies began exploring the option of utilizing joint counsel to file contribution actions in order to recover expenditures incurred in litigation. See Tribble Cert, ¶ 7; Supporting Brief at 4-5. These discussions appear, at least in part, to have been motivated by an impending statute of limitations, set to run on April 20, 1995. See Suplee Cert, ¶ 3; Armstrong Cert., ¶ 9; Friedell Cert., ¶ 29.

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187 F. Supp. 2d 221, 2001 U.S. Dist. LEXIS 23191, 2001 WL 1795537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rohm-and-haas-co-v-american-cyanamid-co-njd-2001.