State of New York v. Solvent Chemical Co.

179 F.R.D. 90, 1998 WL 217916
CourtDistrict Court, W.D. New York
DecidedMarch 20, 1998
DocketNo. 83-CV-1401C
StatusPublished
Cited by5 cases

This text of 179 F.R.D. 90 (State of New York v. Solvent Chemical Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of New York v. Solvent Chemical Co., 179 F.R.D. 90, 1998 WL 217916 (W.D.N.Y. 1998).

Opinion

DECISION and ORDER

CURTIN, District Judge.

BACKGROUND

Currently pending is Solvent Chemical Co., Inc.’s (“Solvent”) motion for leave to file a fifth amended third-party complaint (Item 549). On February 6, 1997, Solvent filed a motion for leave to file a fourth amended third-party complaint in which Solvent sought to add Olin Corporation (“Olin”) as a third-party defendant, to assert an additional claim against Consolidated Rail Corporation (“Conrail”), and to make various additional minor changes (Item 529). That motion was superseded on March 21, 1997, when Solvent filed its motion for leave to file a fifth amended third-party complaint incorporating all changes in its proposed fourth amended third-party complaint and adding fifty-two waste generators as third-party defendants (Item 549). The court heard argument on the motion on January 23, 1998.

DISCUSSION

I. Solvent’s Proposal to Add Olin as a Third-Party Defendant

Solvent’s proposed amendment alleges two claims against Olin: (1) Olin is liable under CERCLA as a former operator of the subject site (Item 549, Exhibit A, ¶¶ 96-104), and (2) Olin’s nearby facility is the source of contamination at an off-site “hot spot” which Solvent is being required to address as well as the source of some on-site contamination (Id., ¶¶ 133-137). Olin contends that Solvent should not be permitted to assert the operator claim.

Olin argues that its limited involvement at the site nearly forty years ago has been a matter of public record since before 1983, when the State originally filed suit against Solvent; therefore, Solvent knew, or through a reasonable inquiry could have known, of Olin’s involvement, at the site when Solvent filed its original third-party complaint in 1986 against other former owners and operators (Item 552, p. 2). Olin submits that as a result of Solvent’s delay in impleading Olin, Olin will be forced to defend itself with “one hand tied behind its back” while the other alleged owners and operators have been dismissed with prejudice and full contribution protection (Item 632, p. 6; Item 706, p. 9). Olin notes that it had a maintenance contract with the United States during the time Solvent alleges Olin was an operator at the site. Olin argues that because the United States is no longer a party, Olin cannot use normal discovery procedures or use the force of a ease management order to get information from the United States that would be necessary in defending against Solvent’s claims, and this extra burden is unfairly prejudicial (Item 632, pp. 6-7; Item 706, pp. 9-10). Olin asserts that Fed.R.Civ.P. 14(a) requires Solvent to establish a reasonable excuse for its delay in moving to add Olin as a third-party defendant, and that Solvent has not met this burden.

Solvent contends that under Rule 14(a) and the cases construing the rule, a court should freely grant leave to amend a complaint to add parties where such leave would promote judicial efficiency by eliminating the necessity for the moving party to bring a separate action against the proposed new parties (Item 612, pp. 3-4). Solvent argues that presumably all of the claims related to the contamination of the subject site are being adjudicated in this action; therefore, it would be inefficient to require Solvent to pursue its operator claims against Olin in a separate action, particularly since Olin will be part of the present action for the hot spot claim (Id.; Item 731, p. 2). Solvent asserts that delay in seeking to add a party, standing alone, is an insufficient basis to deny leave to amend a pleading under Rule 14(a) (Item 612, p. 5). Solvent contends that the cases on which Olin has relied in support of its [93]*93“reasonable excuse for any delay” argument are not applicable here because the courts in those cases were applying a local rule, which is not applicable here, which specifically requires such a reasonable excuse (Id., pp. 5-6; Item 665, pp. 3-4). Furthermore, Solvent asserts that there can be no delay before the statute of limitations has ever begun to run (Item 665, p. 2).

Solvent contends that even if the court requires it to supply an explanation for its alleged delay, Solvent did not learn of Olin’s involvement on the site until the fall of 1996; consequently, it has not unreasonably delayed bringing claims against Olin (Id., p. 3). Solvent argues that the public documents which Olin contends identified Olin’s involvement at the site do not in fact provide any notice of the gravamen of Solvent’s operator claim against Olin, and that Solvent only learned of the involvement through further investigation (Id., pp. 2-3). Finally, Solvent asserts that Olin will not suffer any undue prejudice if the court permits Solvent to assert the operator claim in the present action because the third-party action is still in the very early stages. Discovery remains far from complete, and the court has not yet approved a ease management order or set a trial date (Item 612, pp. 6-7).

Finally, Solvent asserts that it will bring a separate action against Olin on the operator claims if the court denies Solvent’s current motion. Olin argues that Solvent would not be able to “do an end run” around this court’s denial of Solvent’s motion to implead Olin by filing a new action (Item 632, pp. 3, 7-8; Item 706, pp. 4, 10-11), citing United States v. McGann, 951 F.Supp. 372 (E.D.N.Y.1997), for authority. The question of whether Solvent would be able to initiate a separate action against Olin on the operator claims is not before the court at this time. As the McGann decision makes clear, such an inquiry turns on the specific circumstances of the case at the time the party attempts to bring a new action. I will not attempt to predict what those circumstances will be at some future date.

Rule 14(a) of the Federal Rules of Civil Procedure provides in pertinent part that:

At any time after commencement of the action a defending party, as a third-party plaintiff, may cause a summons and complaint to be served upon a person not a party to the action who is or may be liable to the third-party plaintiff for all or part of the plaintiffs claim against the third-party plaintiff.

If the defendant fails to file a third-party complaint within ten days of its answer, the trial court has discretion to permit impleader. Rule 14(a) does not specify the factors a court should consider when evaluating whether impleader is proper. It is well established, however, that Rule 14(a) “ “was designed to permit the liberal joinder of parties so that judicial energy could be conserved and consistency of results guaranteed.’ ” State of New York v. Solvent Chemical Co., Inc., 875 F.Supp. 1015, 1021 (W.D.N.Y.1995) (quoting Olympic Corp. v. Societe Generale, 462 F.2d 376, 379 (2d Cir. 1972)). A Rule 14(a) motion should be “freely granted to promote ... efficiency unless to do so would prejudice the plaintiff, unduly complicate the trial, or would foster an obviously unmeritorious claim.” Hicks v. Long Island R.R., 165 F.R.D. 377, 379 (S.D.N.Y. 1996) (quoting Shafarman v. Ryder Truck Rental, Inc., 100 F.R.D. 454, 459 (S.D.N.Y. 1984)).

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Bluebook (online)
179 F.R.D. 90, 1998 WL 217916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-new-york-v-solvent-chemical-co-nywd-1998.