RSR Corp. v. Avanti Development, Inc.

69 F. Supp. 2d 1119, 49 ERC (BNA) 2054, 1999 U.S. Dist. LEXIS 20651, 1999 WL 791539
CourtDistrict Court, S.D. Indiana
DecidedJuly 9, 1999
DocketIP 95-1359-C-M/S
StatusPublished
Cited by2 cases

This text of 69 F. Supp. 2d 1119 (RSR Corp. v. Avanti Development, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RSR Corp. v. Avanti Development, Inc., 69 F. Supp. 2d 1119, 49 ERC (BNA) 2054, 1999 U.S. Dist. LEXIS 20651, 1999 WL 791539 (S.D. Ind. 1999).

Opinion

ORDER

McKINNEY, District Judge.

Both of the plaintiffs, RSR Corporation and Quemetco, Inc., (“Plaintiffs” or “RSR/Quemetco”) and the defendant, Alter Barge Line, Inc., (“Alter Barge”), have filed motions for summary judgment in this 'matter. The Plaintiffs claim Alter Barge is liable under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. §§ 9601-9675 (1995), for “arranging] for disposal or treatment ... .of hazardous substances.” Id. at § 9607(a)(3). Alter Barge contends it is not responsible for clean-up costs under CERCLA because it delivered a useful product, not a solid waste. The parties have filed briefs in support of their cross-motions’ for summary judgment and the issues are now ready to be resolved. For the reasons discussed below, the Court GRANTS Alter Barge’s motion for summary judgment and DENIES RSR/Quemetco’s motion.

I. FACTUAL & PROCEDURAL BACKGROUND

In 1994, the Environmental Protection Agency, (“EPA”), found that the property on which a secondary lead smelter was located contained contaminants. The secondary smelter was managed by Benjamin McKinney (“McKinney”), whose company, Quemetco, Inc. (“Quemetco”), owned property under various titles at the contaminated site from 1964 to 1972. McKinney Dep. at 22, 140, 148. The contaminated property is now referred to as the “Avanti” site. Quemetco and others had used the Avanti property for years to operate a secondary lead smelter. McKinney Dep. at 21-22. A secondary smelting operation collects scrap materials containing lead and processes them to produce new usable forms of lead. Id. at 21. Edward L. Puckett (“Puckett”), a former employee of the smelter, explained that “smelting” is the process of placing scrap lead in a furnace to recover pure lead, lead oxide, and other lead alloys. Puckett Dep. at 190; McKinney Dep. at 21. In 1972, Quemetco ceased its operations at the Avanti site. McKinney Dep. at 140, 148. Quemetco was later acquired by Plaintiff, RSR Corporation. Third Am.Compl. ¶ 74.

The Avanti site Quemetco had used for its smelter, and the surrounding residential property, were found by the EPA to be contaminated with lead, a hazardous substance. 1994 Admin. Order Pursuant to § 106(a) of CERCLA & Liability Act of 1980, as Am. 42 U.S.C. § 9606(a) (“Admin.Order”). The EPA directed RSR/Quemetco and others to clean up the site. Id. RSR/Quemetco filed this action in 1995 against Alter Barge and other defendants, seeking contribution to its clean-up costs pursuant to CERCLA. 42 U.S.C. §§ 9607, 9613. The Plaintiffs claim that Alter Barge is a responsible person under CERCLA because Alter Barge had arranged for the treatment or disposal of hazardous substances at the Avanti site. Third Am.Comp. ¶¶ 7, 24.

According to Donald Geurink (“Geu-rink”), a former Alter Barge employee, Alter Barge was in the business of collecting scrap metals from the marketplace, including copper, brass, aluminum, lead, zinc, and steel, and preparing them for consumer use. Geurink Dep. at 7, 8, 12. Alter Barge also received used batteries, usually as part of a larger shipment of other scrap metals. Id. at 10. Collecting used batteries was not one of Alter *1123 Barge’s main business activities. However, to ensure that sellers would continue supplying it with materials, Alter Barge never refused used batteries when they were brought in as part of a larger delivery of scrap metals. Id. at 12, 13. As Geurink explains, “batteries were not really our biggest focus. We were basically a metal company ... [but] somebody would come in and say, ‘Here is what I got; you either buy everything from me or ... someone else will take everything.’” Id. at 12. Alter Barge took everything offered by a scrap metal seller in order .to remain competitive with other metal recyclers in the area. Id. at 13. In addition, Alter Barge occasionally bid for used batteries from the government. Id.

Upon receiving the used batteries, the company would break them open to salvage usable metals. Id. at 14. This involved cutting the case off the battery to remove the lead parts inside, referred to as lead plates. Id. Usually, Alter Barge collected the lead plates on a barge and shipped them to secondary lead smelters when enough had accumulated, approximately once a month. Id. at 15, 23, 47, 48. An employee of Quemetco, Lawrence Bartlett (“Bartlett”), initiated contact with Alter Barge to purchase the company’s lead plates. Bartlett Dep. at 161; Geurink Dep. at 26. Beginning in 1970, and continuing for approximately one and one-half to two years, Quemetco purchased lead plates from Alter Barge to" use in its lead smelter. Bartlett Dep. at 161, 162, 272; Geurink Dep. at 26; Puckett Dep. at 186. Alter Barge sold to Quemetco only when Quemetco offered a price higher than other secondary smelters. Guerink Dep. ■ at 26. Pursuant to the arrangement it had with Quemetco, Alter Barge delivered the reclaimed lead plates to the Avanti site by truck. Geurink Dep. at 26, 27.

This order discusses the potential liability of Alter Barge. In a previous ruling on a motion for summary judgment filed by co-defendant, Ace Battery, Inc. (“Ace”), the Court granted summary judgment in Ace’s favor. RSR/Quemetco v. Avanti, IP 95-1359, Order Dated June 25, 1999 (“Order”). Because of the many factual similarities between Ace’s situation and Alter Barge’s, this Court has applied the law as explained in its previous Order, to grant summary judgment in favor of Alter Barge.

II. SUMMARY JUDGMENT STANDARD

Summary judgment is granted “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed. R.Civ.P. 56(c). An issue is genuine only if the evidence is such that a reasonable jury could return a verdict for the opposing party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A disputed fact is material only if it might affect the outcome of the suit in light of the substantive law. Id.

The moving party has the initial burden to show the absence of genuine issues of material fact. See Schroeder v. Barth, 969 F.2d 421, 423 (7th Cir.1992). This burden does not entail producing evidence to negate claims on which the opposing party has the burden of proof. See Green v. Whiteco Indus., Inc., 17 F.3d 199

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69 F. Supp. 2d 1119, 49 ERC (BNA) 2054, 1999 U.S. Dist. LEXIS 20651, 1999 WL 791539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rsr-corp-v-avanti-development-inc-insd-1999.