Southeast Texas Environmental, L.L.C. v. BP Amoco Chemical Co.

329 F. Supp. 2d 853, 2004 U.S. Dist. LEXIS 15436, 2004 WL 1775019
CourtDistrict Court, S.D. Texas
DecidedMay 17, 2004
DocketCIV.A. G-03-969
StatusPublished

This text of 329 F. Supp. 2d 853 (Southeast Texas Environmental, L.L.C. v. BP Amoco Chemical Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southeast Texas Environmental, L.L.C. v. BP Amoco Chemical Co., 329 F. Supp. 2d 853, 2004 U.S. Dist. LEXIS 15436, 2004 WL 1775019 (S.D. Tex. 2004).

Opinion

ORDER GRANTING PLAINTIFFS’ MOTION TO REMAND

KENT, District Judge.

This lawsuit centers on the operation of a hazardous waste facility in Texas City, Galveston County, Texas. The case comes before the Court on removal from the 10th Judicial District Court of Galveston County, Texas. Now before the Court comes Plaintiffs’ Motion to Remand. Because the Court lacks subject matter jurisdiction, Plaintiffs’ Motion is hereby GRANTED.

I. Background

Plaintiffs characterize this lawsuit as the latest chapter in a saga of treachery perpetrated by “outlaw waste disposal operators.” The case arises out of the operation of a 150-acre toxic and hazardous *857 waste disposal facility located in Texas City, Texas, commonly known as the Malone Facility (“the Malone Facility” or “the Facility”). The Malone Service Company, Inc. owned and operated the Facility for over 30 years. In 1997, the Texas Natural Resource Conservation Commission (“TNRCC”), now known as the Texas Commission on Environmental Quality (“TCEQ”), revoked the Malone Facility’s permits, causing the Facility to cease operations. Malone Service Company, Inc. and its parent company, Malone Company, Inc. (collectively “Malone”) filed for Chapter 7 bankruptcy on July 15,1998. The Chapter 7 Trustee filed a Motion to Sell the Malone Facility to Plaintiff Southeast Texas Environmental, L.L.C., on August 4, 1999. The bankruptcy court signed its Order granting the Motion to Sell on August 13, 1999.

Plaintiffs purchased the Facility on September 24, 1999. Plaintiffs maintain that they purchased the Facility innocently and in good faith with the intention of restoring operations in a lawful manner. Prior to the purchase, the Texas Attorney General and the TNRCC appointed Plaintiffs caretakers of the Facility with the approval of the United States Bankruptcy Court. Plaintiffs decided to purchase the Facility, despite its checkered past, because they believed that it could generate a multimillion dollar revenue stream for several years. Plaintiffs intended to use the toxic sludge for alternative energy sources, fuels, and refining products, and they planned to renew the operation of two deep-well injection disposal wells. Plaintiffs also intended to retrofit the Facility to serve the adjacent Texas City Container Port Terminal.

These plans ground to a halt when the EPA determined that there had been a release or threatened release of hazardous substances at the Facility. On October 26, 1999, the Superfund Division Director of EPA Region 6 signed an Action Memorandum declaring that conditions at the Malone Facility posed an imminent and substantial threat to the environment and the public health. On June 14, 2001, after an investigation of the site, the EPA declared the Facility a Superfund site and placed the waste pit on the National Priority List for Superfund cleanup. The EPA sent general notice letters to a number of potentially responsible parties (“PRPs”), including Plaintiff Southeast Environmental, L.L.C. 1 See Malone Cooperating Parties’ Response to Plaintiffs’ Motion to Remand, Exh. B.

Plaintiffs filed their Original Petition on June 12, 2003 in the 10th Judicial District Court of Galveston County, Texas. Plaintiffs sued over one hundred entities that operated or disposed of waste at the Malone Facility. Plaintiffs’ Original Petition alleged generally that Defendants were responsible for the Facility’s classification as a Superfund site and that, had the Facility not been declared a Superfund site, Plaintiffs would have provided substantial commercial services to the Texas City Container Port Terminal. Plaintiffs asserted the following claims: (1) negligence arising out of Defendants’ disposal of waste at a facility known to have violated environmental laws; (2) negligent entrustment of hazardous waste to Malone; (3) strict tort liability for transportation of hazardous materials in a manner inconsistent with state environmental regulations; (4) fraudulent *858 concealment of Malone’s unlawful disposal practices; and (5) gross negligence. Plaintiffs’ Original Petition enumerated the following categories of damages: (1) the reasonable and necessary expenses incurred to maintain the Malone Services Site while Plaintiffs were the designated caretakers of the Facility; (2) costs and expenses incurred in the purchase of the Facility; (3) lost revenue anticipated from renewal of deep well injection permits; (4) lost revenue anticipated from Plaintiffs’ planned commercial and industrial waste disposal operations; (5) lost revenue anticipated from commercial services provided to container port facilities; and (6) the cost to fully and responsibly remediate the Malone Facility. On November 20, 2003, Defendants filed their Notice of Removal, 2 which asserted federal subject matter jurisdiction pursuant to 28 U.S.C. § 1331 and § 1441. On December 5, 2003, Plaintiffs filed their Motion to Remand, to which Defendants timely responded.

II. Legal Standard

Absent an express provision to the contrary, a defendant may remove a state-court action to federal court only if the suit could have been filed originally in federal court. See 28 U.S.C. § 1441(a); Caterpillar, Inc. v. Williams, 482 U.S. 386, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). “Federal courts are courts of limited jurisdiction.” Howery v. Allstate Ins. Co., 243 F.3d 912, 916 (5th Cir.2001). Federal courts must presume that all suits lie outside their limited jurisdiction, id., and “doubts regarding whether removal jurisdiction is proper should be resolved against federal jurisdiction.” Acuna v. Brown & Root, 200 F.3d 335, 339 (5th Cir.2000). The party seeking removal bears the burden of proving that the Court has subject matter jurisdiction. See, e.g., Manguno v. Prudential Property & Cas. Ins. Co., 276 F.3d 720, 723 (5th Cir.2002).

Defendants allege, in their Notice of Removal, that this case comes within the Court’s federal question jurisdiction. Congress has provided the federal courts with jurisdiction over “all civil actions arising under the Constitution, laws, and treaties of the United States.” 28 U.S.C. § 1331. Generally, the existence of federal question jurisdiction is governed by the well-pleaded complaint rule, which provides that “federal question jurisdiction exists only when a federal question is presented on the face of the plaintiffs properly pleaded complaint.” Caterpillar, 482 U.S. at 392, 107 S.Ct. at 2429 (citing Gully v. First Nat'l Bank,

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329 F. Supp. 2d 853, 2004 U.S. Dist. LEXIS 15436, 2004 WL 1775019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southeast-texas-environmental-llc-v-bp-amoco-chemical-co-txsd-2004.