State v. N. Storonske Cooperage Co.

144 F.R.D. 179, 24 Fed. R. Serv. 3d 1254, 1992 U.S. Dist. LEXIS 17360, 1992 WL 332593
CourtDistrict Court, N.D. New York
DecidedNovember 12, 1992
DocketNo. 87-CV-1351
StatusPublished
Cited by2 cases

This text of 144 F.R.D. 179 (State v. N. Storonske Cooperage Co.) is published on Counsel Stack Legal Research, covering District Court, N.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 v. N. Storonske Cooperage Co., 144 F.R.D. 179, 24 Fed. R. Serv. 3d 1254, 1992 U.S. Dist. LEXIS 17360, 1992 WL 332593 (N.D.N.Y. 1992).

Opinion

MEMORANDUM — DECISION AND ORDER

McCURN, Chief Judge.

I. OVERVIEW

This environmental litigation arises from the defendants’ alleged contamination of land and water in Schodack, New York. The plaintiff, the State of New York, filed its complaint on October 8, 1987, against defendants N. Storonske Cooperage Co. (“Storonske”) and its president, Michael Greenberg, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. §§ 9601-9657 (1988 & West Supp.1992) and New York common law. Jurisdiction is based upon the existence of a federal question, 28 U.S.C. § 1331 (1988), and supplemental jurisdiction, 28 U.S.C. § 1367 (West Supp.1992). The State generally alleges that the defendants unlawfully contaminated soil and groundwater at a site in Schodack on which Storonske operates a drum reconditioning facility. The State seeks equitable and monetary relief relating to cleanup of the contaminated site.

In 1989, defendant Greenberg allegedly formed a new company, Container Management Corporation. Like defendant Storonske, Container Management is engaged in the drum reconditioning business. Leary Aff. (7/13/92) at ¶ 33 & exh. “R” (certificate of incorporation). The State contends that Container Management is a successor corporation to Storonske. After forming Container Management, Green-berg passed away and two individuals were appointed co-executors of his estate. Id. ¶ 20 & exh. “H”, “J”.

Currently before the court are motions in which the State seeks the following relief:

(1) to amend its complaint pursuant to Fed.R.Civ.P. 15(a) to add Container Management to the case;
(2) to amend its complaint pursuant to Fed.R.Civ.P. 15(a) to clarify the capacity in which Greenberg has been sued;
(3) to substitute the co-executors of Greenberg’s estate as defendants pursuant to Fed.R.Civ.P. 25(a); and
(4) to recover sanctions for Storonske’s refusal to consent to such an amended complaint.

On September 1, 1992, the court heard oral argument on the State’s motions. The court granted from the bench the State’s motion for leave to amend its complaint to assert a claim against Container Management on a theory of successor liability. The court reserved decision on the remaining motions and announced that this memorandum-decision and order on those motions would be forthcoming.

II. DISCUSSION

In the wake of Greenberg's death, the State seeks to take two procedural steps to protect its ability to recover in the event that it prevails on the merits of this case. First, it seeks to amend (or “clarify”, as the State describes it) its complaint as to the capacity in which Greenberg has been sued. More specifically, the State seeks to amend its complaint so as to more clearly describe Greenberg’s individual role in causing the contamination. If this relief is granted, the [181]*181State would delete any references to Greenberg as being sued merely in his “official” capacity. In the state’s view, such an amendment would remove any doubt as to the State’s ability to effectuate its second step: to substitute the co-executors of Greenberg’s estate as defendants pursuant to Fed.R.Civ.P. 25(a).1 By clarifying the complaint to assert that the suit is brought against Greenberg in his individual — not official — capacity, the State would thereafter be entitled to its proposed substitution under Rule 25(a). See generally International Ass’n of Machinists v. Estate of Dickey, 808 F.2d 483 (6th Cir.1987) (‘Dickey”).

By moving first to amend its complaint so as to assert claims against Greenberg in his individual capacity, the State purports to evade defendants’ argument in opposition to the substitution. Defendants oppose the motion to substitute the co-executors of Greenberg’s estate because the complaint’s caption expressly states that the suit is against “Michael Greenberg in his capacity as President of N. Storonske Cooperage Co., Inc.” Since the caption states that the complaint is asserted against Greenberg in his corporate capacity, defendants maintain that the suit does not implicate him in his individual capacity. Therefore, argue defendants, substitution of the co-executors of Greenberg’s personal estate would be inappropriate. See Dickey, 808 F.2d at 485-86.

A. Consent to the amendment

The State preliminarily argues that the defendants’ cannot now oppose amending the complaint because Storonske previously consented to the amendment as part of a settlement agreement. According to the State, Storonske’s consent arose from a July, 1989 motion in which the State sought summary judgment against Storonske and Greenberg.' While the motion was pending, the parties entered negotiations which ultimately resulted in a settlement. Leary Aff. ¶ 12 & exh. "F”, “G”. The State contends that under the settlement, it agreed to forego seeking judgment against Green-berg in exchange for judgment on consent against Storonske and consent to a future amendment of the State’s complaint. Id.; Sommer Aff. (9/3/92) ¶ 7. Storonske, for its part, insists that it never formally consented to such an amendment and that the prerequisite to its consent, a case management order, was never completed. See Def.Mem. (8/18/92) at 10-12; Young Aff. (8/18/92) ¶ 8.

Determination of whether Storonske consented to the amendment has no bearing on the matters remaining before the court. The applicable provision of Fed.R.Civ.P. 15(a) requires that the moving party obtain “written consent of the adverse party” (emphasis added). The adverse party in this instance is not Storonske; rather, it is Greenberg (or his estate), the party that stands to lose by the amendment. Neither Greenberg nor his co-executors were parties to the alleged agreement in which consent to amendments was stipulated, however; only the State’s attorney and Storonske’s attorney signed the agreement. See Leary Aff. exh. “F”, “G”.2 Therefore, neither can be held to any stipulation to that effect. The State’s reliance upon Storonske’s consent to future amendments of [182]*182the pleadings is necessarily rejected insofar as it relates to amendments affecting Greenberg or his estate.

B. Leave of court to amend

Of course, Greenberg’s failure to consent to the amendment does not entirely preclude the State from amending its complaint.

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Related

State of NY v. N. Storonske Cooperage Co., Inc.
174 B.R. 366 (N.D. New York, 1994)
Varrone v. Bilotti
867 F. Supp. 1145 (E.D. New York, 1994)

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Bluebook (online)
144 F.R.D. 179, 24 Fed. R. Serv. 3d 1254, 1992 U.S. Dist. LEXIS 17360, 1992 WL 332593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-n-storonske-cooperage-co-nynd-1992.