State of New Jersey Department of Environmental Protection v. Gloucester Environmental Management Services, Inc.

138 F.R.D. 421, 1991 U.S. Dist. LEXIS 12303, 1991 WL 170974
CourtDistrict Court, D. New Jersey
DecidedApril 14, 1991
DocketCiv. No. 84-0152(B)
StatusPublished
Cited by10 cases

This text of 138 F.R.D. 421 (State of New Jersey Department of Environmental Protection v. Gloucester Environmental Management Services, Inc.) 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
State of New Jersey Department of Environmental Protection v. Gloucester Environmental Management Services, Inc., 138 F.R.D. 421, 1991 U.S. Dist. LEXIS 12303, 1991 WL 170974 (D.N.J. 1991).

Opinion

OPINION

JEROME B. SIMANDLE, United States Magistrate Judge:1

I. INTRODUCTION

This matter is before the court upon motion of Wilson, Elser, Moskowitz, Edelman & Dicker, as Liaison Counsel for the Transporters Group in this multi-party hazardous waste case, for an Order compelling all delinquent defendant and third-party defendant Transporter Members of the Transporter Group to satisfy the common fees and expenses of Liaison Counsel incurred on behalf of the Group. These unpaid fees and expenses are for Liaison Counsel’s efforts from early 1988 (following Liaison Counsel’s selection by the Group) through the end of 1989. The Transporter Group had 137 members as of 1990, as listed in the payment schedule attached to the Affidavit of James Orr filed March 29, 1990. Each group member has been assessed a per capita share of the group’s expenses for Liaison Counsel services and costs. The per capita allocation arose from discussions at the earliest group meetings, continued as a practice in several billings over the years.

Transporter Liaison Counsel, James C. Orr, Esquire, seeks an Order compelling payments from the Group Members having outstanding balances, that is, alleged Transporters who have not paid in full the per capita assessment of $3,000 for each member. The members allegedly owing payment were as stated in Exhibit H to the Affidavit of James C. Orr (filed Feb. 6, 1990), and these amounts were adjusted for subsequent payments summarized in the attachment to the Supplemental Affidavit of James C. Orr (filed March 29, 1990). These payments were sought for reimbursement of $131,900.01 in unpaid expenses and fees for Liaison Counsel services through the end of 1989, summarized in the following chart:2

lst Invoice 2nd Invoice 3rd Invoice

March 1, 1988 Jan. 1, 1989 Aug. 1, 1989

To Dec. 1, 1988 To July 31, 1989 To Nov. 30, 1989

Attorney/ Paralegal $19,587.50 $ 54,768.25 $75,388.50

Disbursements 6,738.86 12.808.70 7,647.89

Totals $26,326.36 $ 67,576.95 $83,036.39

Grand Total $176,939.90

Payments 45,039.89

Balance $131,900.01

[425]*425The actual invoices reviewed by the court disclose slightly different figures, as follows:

1. Invoice No. 16225, Feb. 28, 1989 (5/16/88 — 1/27/89)

Profess. Services through 2/3/89 $ 19,487.40

Disbursements through 2/3/89 6,029.32

$ 26,029.32

2. Invoice No. 50520, Aug. 31, 1989 (2/89 — 6/89)

Profess. Services through 8/2/89 $ 54,768.25

Disbursements through 8/2/89 9,821.95

$ 64,590.20

3. Invoice No. 59290, Dec. 28, 1989

Profess. Services through 12/1/89 $ 75,388.50

Disbursements through 12/1/89 5,391.90

$ 80,780.40

Grand Total $171,399.92

We will use this figure of $171,399.92 for the total due through 1989, and subtract payments received in the amount of $45,-039.89 to render a net unpaid balance through 1989 of $126,360.03 for which reimbursement is presently sought.

Furthermore, Liaison Counsel states that his firm’s own clients in this case (defendants Manor Care, Inc., Almo-Anti Pollution Services Corp. and Almo Tank Cleaning Services Corp.) were billed over $65,000 for work done from July 1987 through March 31, 1988 while the Transporters Group was still forming. See Affidavit of James Orr, filed March 29, 1990, at ¶ 5. These sums were allegedly largely group-related services which could have been passed on to all group members but were instead paid by these Manor Care clients. Id. Liaison Counsel requests that these Manor Care clients “be credited for these funds in lieu of a contribution but thereafter be billed a share in accordance with the Court’s rulings.” Id.

Various parties submitted objections, all of which have been considered. As discussed further below, these objections fall into several categories, beginning with the most fundamental:

1. That several members do not agree to Liaison Counsel acting on their behalf, and object to any sharing of Group expenses;
2. That Liaison Counsel should provide a more detailed accounting of billing information;
3. That members unable to pay should receive a hardship exemption;
4. That members related to other member companies and represented by a single attorney should not be required to pay a full per capita share;
5. That certain members who were added to the case after Liaison Counsel’s selection in 1987 should not be required to pay a full per capita share;
6. That members believing themselves not to be liable in the underlying litigation should not be required to pay any share.

Many parties submitted no opposition, and a few parties paid their assessment, in whole or in part,3 while this motion was [426]*426under consideration, and two parties were reported as going into bankruptcy.4

After discussing the relevant procedural history of this case and of this motion, this opinion will consider each of the above arguments and determine an equitable apportionment of such expenses among the members benefitting from such services.

II. PROCEDURAL HISTORY

The State of New Jersey, Department of Environmental Protection, filed this action seeking to compel various parties to perform remedial activities to redress conditions at the GEMS Landfill in Gloucester Township, New Jersey. Throughout the five years of federal litigation, pleadings have been amended and new parties have been joined in an orderly process of case management. The State now seeks remedies under state and federal law, including the Comprehensive Environmental Response Compensation, and Liability Act [“CERCLA”, also known as the “Superfund” statute], 42 U.S.C. § 9601 et seq., and the litigation has grown to several hundred active parties. A more detailed case history appears in State of New Jersey, Department of Environmental Protection v. Gloucester Environmental Management Services, Inc., 719 F.Supp. 325 (D.N.J.1989).

The GEMS Landfill is a Superfund site ranked twelfth on the EPA’s National Priorities List.5 Of the top twenty ranked Superfund sites in the nation, only the GEMS Landfill is shown as having a substantial remedial program in place,6 thanks in part to ongoing remedial action being undertaken by a large group of the settling defendants and third-party defendants in this case who have funded a State-approved Phase I settlement by creating a $32-million trust fund in 1989. The issues related to Phase II of remediation remain. The litigation continues, leading either to resolution of the remaining issues by a total or partial Phase II settlement and/or a trial.

This Superfund-site litigation is thus a complex multi-party hazardous waste case.

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Bluebook (online)
138 F.R.D. 421, 1991 U.S. Dist. LEXIS 12303, 1991 WL 170974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-new-jersey-department-of-environmental-protection-v-gloucester-njd-1991.