Shea Homes Ltd. Partnership v. United States

397 F. Supp. 2d 1194, 35 Envtl. L. Rep. (Envtl. Law Inst.) 20231, 61 ERC (BNA) 2110, 2005 U.S. Dist. LEXIS 28438, 2005 WL 3020123
CourtDistrict Court, N.D. California
DecidedNovember 10, 2005
DocketC04-0092 TEH
StatusPublished
Cited by9 cases

This text of 397 F. Supp. 2d 1194 (Shea Homes Ltd. Partnership v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shea Homes Ltd. Partnership v. United States, 397 F. Supp. 2d 1194, 35 Envtl. L. Rep. (Envtl. Law Inst.) 20231, 61 ERC (BNA) 2110, 2005 U.S. Dist. LEXIS 28438, 2005 WL 3020123 (N.D. Cal. 2005).

Opinion

ORDER GRANTING MOTION TO DISMISS CLAIMS FOUR THROUGH TEN

HENDERSON, District Judge.

This matter came before the Court on July 11, 2005, on Defendant’s Motion to Dismiss the fourth through tenth claims in this action under Fed.R.Civ.P. 12(b)(1), or alternatively, Fed.R.Civ.P. 56(c). Defendant contends that this Court is barred, under Section 113(h) of CERCLA, from exercising jurisdiction over Plaintiffs fourth through tenth claims because they improperly seek to challenge the government’s ongoing clean up of a contaminated site. Defendant also contends that this Court lacks jurisdiction over Plaintiffs fifth through tenth claims on the ground that they are barred by the discretionary function and misrepresentation exceptions to the FTCA. Having carefully considered the parties’ extensive written and oral arguments, supplemental filings, and the entire record herein, the Court grants Defendant’s motion for the reasons set forth below.

I. BACKGROUND

On September 2, 1999, Plaintiff, Shea Homes Limited Partnership (“Shea”) purchased a 10 acre parcel of property in Novato, California, which was previously part of the Hamilton Air Force Base (“HAFB”) prior to its closure in 1974. On December 30, 1999, Shea acquired an adjoining 18 acre parcel. The combined 28 acre property adjoins a part of the former HAFB which used to be the primary repository for garbage generated at the HAFB (including solid and hazardous wastes) from the early 1940s until 1974. This area is now referred to as Landfill 26 (“LF 26”). It is roughly 47 acres in size, and consists of a 200 foot buffer zone surrounding a 30 acre landfill “cap” that covers the area where the garbage was formerly deposited. Shea, a large residential housing developer, developed the 28 acres it purchased in 1999, and has transferred ownership of some or all of the property to third-parties. It contends, however, that Defendant, the United States, failed to meet its obligations to address the contamination at LF 26, causing Shea to suffer damages.

*1197 Since 1986, the United States Army-Corps of Engineers (“Corps”) has been in engaged in various efforts to investigate, remediate, and monitor the waste in LF 26 pursuant to the Defense Environmental Restoration Program — -Formerly Used Defense Sites (“DERP-FUDS”) and orders issued by the Regional Water Quality Control Board (“RWQCB”). The basic remedy chosen was the installation of the cap, referenced above, which was installed in 1994-95 and covers the landfill, a ground water treatment system, and a gas perimeter monitoring network.

In June 1996, methane in excess of 5.7% by volume was detected at one of the LF 26 perimeter gas monitoring probes (“GMP”) — GMP No. 5. Further sampling in early and mid 1999 did not detect methane in excess of 5% by volume. In September 1999, however, after Shea’s purchase of the first 10 acre parcel, methane was again detected in excess of 5 % by volume at GMP 5 (17.3%) and GMP 9 (9.8%). Subsequent monitoring in October 1999 and December 1999 did not detect methane in excess of 5%.

In October 1999, the RWQCB did not approve final closure of the site and ordered further landfill gas sampling. In June 2000, the Corps began a supplemental testing program. By the Fall of " 2000, the Corps determined that methane might be migrating off-site from LF 26 in excess of 5% by volume and that further action was required. On February 7, 2001, the RWQCB directed the Corps to submit a plan to, inter alia, reduce methane to below compliance levels. In March 2001, the Corps proposed and evaluated seven approaches for controlling methane migration. In April 2001, the RWQCB raised various concerns with respect to the proposed remedial options, and directed the Corps to implement (1) an interim stopgap measure to immediately intercept gas migrating from LF 26 and towards the Hamilton Meadows development, (2) a long-term management plan of methane at its source, and (3) a time-schedule for implementing the gas collection and treatment activities.

In December 2001, the RWQCB issued Cleanup and Abatement Order (“CAO”) 01-139 requiring the Corps to investigate, design, and implement a final remedy with respect to the methane or face civil penalties. Between January 2002 and January 2003, the Corps installed a 1600 foot Vent Trench with an impermeable liner in the buffer zone area between the landfill cap and Shea’s property in order to intercept any landfill gas prior to migrating off-site. The Corps is currently evaluating the effectiveness of the Trench. The Corps is also working under a RWQCB-imposed deadline of September 30, 2006 for the installation and operation of a “Landfill Corrective Action [gas control system].” See Def.’s Ex. 31 at 10.

Shea does “not challenge[] the remedy selected by Defendant to abate the contamination.” PL’s Opp. at 2. It complains, however, that the Corp has failed to properly and timely implement its remedy and to satisfactorily abate the contamination, causing it to suffer damages. Id. at 1-2. The instant action seeks monetary damages and injunctive relief. Specifically, the complaint asserts claims for (1) cost recovery and contribution under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. § 9601 et seq., (2) for injunctive relief under the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901 et seq., and (3) tort damages based on claims of public and private nuisance, trespass, negligence, negligence per se and equitable indemnity.

Defendants subsequently filed the instant motion under Fed.R.Civ.P. 12(b)(1) to dismiss the RCRA and tort-based *1198 claims on the ground that the claims are barred by (1) exceptions to the Federal Tort Claims Act, and/or (2) section 113(h) of CERCLA. 1 The Court addresses these arguments in turn.

II. FEDERAL TORT CLAIMS ACT

Defendant contends that this Court lacks jurisdiction over Plaintiffs state law tort claims because they fall within the discretionary function exception to the Federal Tort Claims Act (“FTCA”), which provides for a limited waiver of sovereign immunity from claims for damages against the United States. United States v. Gaubert, 499 U.S. 315, 111 S.Ct. 1267, 113 L.Ed.2d 335 (1991). It is the government’s burden to demonstrate that this exception applies. Prescott v. U.S., 973 F.2d 696, 703 (9th Cir.1992).

The discretionary function exception to the FTCA “is a statutory reservation of sovereign immunity for a particular class of tort claims.” Gager v. United States,

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397 F. Supp. 2d 1194, 35 Envtl. L. Rep. (Envtl. Law Inst.) 20231, 61 ERC (BNA) 2110, 2005 U.S. Dist. LEXIS 28438, 2005 WL 3020123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shea-homes-ltd-partnership-v-united-states-cand-2005.