STEPAN COMPANY v. PFIZER, INC.

CourtDistrict Court, D. New Jersey
DecidedJune 26, 2024
Docket2:23-cv-01676
StatusUnknown

This text of STEPAN COMPANY v. PFIZER, INC. (STEPAN COMPANY v. PFIZER, 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
STEPAN COMPANY v. PFIZER, INC., (D.N.J. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

: STEPAN COMPANY, : : Civil Action No. 23-1676 (JXN) (JSA) Plaintiff, : : v. : : OPINION : PFIZER, INC., : : Defendant. : :

NEALS, District Judge:

This matter comes before the Court on Defendant Pfizer Inc.’s (“Pfizer’s”) motion to dismiss Plaintiff Stepan Company’s (“Plaintiff”) amended complaint (ECF No. 31) (the “Amended Complaint”) pursuant to Federal Rule of Civil Procedure 12(b)(6). (ECF No. 32). Plaintiff opposed (ECF No. 38-1), and Pfizer replied (ECF No. 39). Jurisdiction is proper pursuant to 28 U.S.C. §§ 1331, 2201, and 42 U.S.C. § 9613. Venue is proper pursuant to 28 U.S.C. § 1391(b), 42 U.S.C. § 9613(b). The Court has carefully considered the parties’ submissions and decides this matter without oral argument. Fed. R. Civ. P. 78(b); L. Civ. R. 78.1(b). For the reasons set forth below, Pfizer’s motion to dismiss (ECF No. 32) is GRANTED in part and DENIED in part. Count Four is DISMISSED with prejudice; Counts One and Two are limited to the 2021 Unilateral Administrative Order (“UAO”) and 2021 Amendment to Administrative Settlement Agreement and Order on Consent (“AASAOC”); and all other requests are DENIED. I. BACKGROUND AND PROCEDURAL HISTORY

This is an environmental matter brought under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”), 42 U.S.C. § 9601, et seq., and the New Jersey Spill Compensation and Control Act (the “Spill Act”), N.J.S.A. 58:10- 23.11, et seq. The relevant facts follow.1 “Pfizer’s predecessor, Citro Chemical Company (‘Citro’),” which Pfizer is the “legal successor in interest to[,]” “generated hazardous substances resulting from its manufacture of citric acid” that was “disposed of” at the Maywood Chemical Company Superfund Site” (the “Superfund Site”). (Am. Compl. ¶¶ 2, 41). Citro disposed of the “hazardous substances” on part of the Superfund Site “known as the Gypsum Area[,]” as well as the “groundwater under the Gypsum Area.” (Id. ¶ 2; exhibit A (ECF No. 31-1)). “Beginning in the early 1900’s, Citro manufactured citric acid” that “generated gypsum waste.” (Id. ¶ 19). “Citro disposed of some of its gypsum waste[,]” which “may have contained hazardous substances[,]” on property “adjacent to” Plaintiff’s property that is known as the “Citro

Property[,] as well as at the adjacent Gypsum Area . . . .” (Id. ¶¶ 16, 22). Citro also “disposed of some of its gypsum waste from” a “fermentation process” “developed by Pfizer,” that “contained hazardous substances,” including “cyanide, copper, barium, solvents, and PAHs” on the Citro Property and the Gypsum Area. (Id. ¶¶ 29, 32, 38). On August 21, 1987, Plaintiff “entered into an Administrative Order on Consent” with the United States Environmental Protection Agency (the “EPA”) to conduct a remedial investigation and feasibility study for commercial properties near Plaintiff’s “operations” within two of the four “operable units” at the Superfund Site: (1) (“OU-1”) and (2) (“OU-4”). (Id. ¶¶ 45-46)). As the

1 The following factual allegations are taken from the Amended Complaint that are accepted as true. Sheridan v. NGK Metals Corp., 609 F.3d 239, 262 n.27 (3d Cir. 2010). result of settlement agreements, Orders, and negotiations with the EPA, Plaintiff “incurred and will continue to incur response costs involved with” the OU-1 work. (Id. ¶¶ 50-52, 57-62). And because the OU-4 “remedial investigation and feasibility study” continues, Plaintiff “will continue to incur response costs to perform the remedial design and remedial action[.]” (Id. ¶¶ 63-64).

Plaintiff alleges causes of action for: (i) cost recovery under CERCLA § 107(a) (Count One); (ii) contribution under CERCLA § 113 (Count Two); (iii) declaratory judgment under CERCLA § 113(g)(2) and 28 U.S.C. §§ 2201, 2202 (Count Three); (iv) cost recovery under the Spill Act (Count Four); (v) contribution under the Spill Act (Count Five); and (vi) declaratory relief under New Jersey’s Declaratory Judgment Act, N.J.S.A. 2A-16-50, et seq. (Count Six). On July 31, 2023, Pfizer filed the pending motion to dismiss. On August 22, 2023, Plaintiff opposed. On August 29, 2023, Pfizer replied. This matter is ripe for consideration. II. LEGAL STANDARD Rule 8 requires that a pleading include “a short and plain statement of the claim showing that the pleader is entitled to relief” and provide the defendant with “fair notice of what the claim

is and the grounds upon which it rests[.]” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (citation and internal quotations and ellipses omitted). On a Rule 12(b)(6) motion, the “facts alleged must be taken as true” and dismissal is not appropriate where “it appears unlikely that the plaintiff can prove those facts or will ultimately prevail on the merits.” Phillips v. Cnty. Of Allegheny, 515 F.3d 224, 231 (3d Cir. 2008) (citation omitted). A complaint will survive a motion to dismiss if it provides a sufficient factual basis to state a facially plausible claim for relief. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). In analyzing the sufficiency of a complaint, the Third Circuit requires that courts engage in a three-part inquiry: (1) recite the elements that must be pled in order to state a claim; (2) determine which allegations in the complaint are merely conclusory and therefore need not be given an assumption of truth; and (3) “assume the[] veracity” of well-pleaded factual allegations and ascertain whether they plausibly “give rise to an entitlement for relief.” Santiago v. Warminster Twp., 629 F.3d 121, 130 (3d Cir. 2010) (citations omitted).

III. DISCUSSION

Pfizer summarizes the arguments supporting the motion to dismiss as follows. (Pfizer’s Mem. of Law (ECF No. 32-1) (the “Mem. of Law”) at 8-9).2 First, Count Four must be dismissed with prejudice because the Spill Act does not private a right of action for cost recovery. Second, the Amended Complaint fails to allege sufficient facts linking Pfizer to groundwater contamination to trigger liability under CERCLA or the Spill Act. And without an underlying predicate claim, Counts Three and Six for declaratory relief with respect to groundwater costs must also be dismissed with prejudice. Third, the Court should dismiss any claims for costs pursuant to the 1987 Administrative Order on Consent, as well as a settlement agreement in 2015. Further, to the extent that Counts One and Two seek the recovery of such costs, those claims are barred by the applicable statutes of limitation. Plaintiff counters that the Spill Act provides a private cause of action for cost recovery.

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STEPAN COMPANY v. PFIZER, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/stepan-company-v-pfizer-inc-njd-2024.