Suffolk County Water Authority v. Dow Chemical Co.

121 A.D.3d 50, 991 N.Y.S.2d 613
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 23, 2014
Docket2012-07097
StatusPublished
Cited by15 cases

This text of 121 A.D.3d 50 (Suffolk County Water Authority v. Dow Chemical Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Suffolk County Water Authority v. Dow Chemical Co., 121 A.D.3d 50, 991 N.Y.S.2d 613 (N.Y. Ct. App. 2014).

Opinion

OPINION OF THE COURT

Hinds-Radix, J.

The Suffolk County Water Authority (hereinafter the SCWA) operates public water drinking systems and supplies drinking water to thousands of residents and businesses in Suffolk County. On July 12, 2010, the SCWA commenced this action against a number of manufacturers, distributors, and retailers of perehloroethylene (hereinafter PCE), a chemical commonly used in dry cleaning, and manufacturers, distributors, and retailers of dry cleaning equipment intended for use with PCE. The SCWA alleged that the defendants were responsible for the contamination of many of its wells with PCE and two chemicals resulting from degradation of PCE, trichloroethylene (hereinafter TCE) and dichloroethylene (hereinafter DCE). At issue here is whether SCWA had standing to raise those claims, and whether those claims were timely asserted.

The 12 defendants involved in this appeal are Dow Chemical Company, E.I. du Pont de Nemours and Company, Legacy Vulcan Corporation, formerly known as Vulcan Materials Company, Bayer CropScience, Inc., individually and as successor-in-interest to Stauffer Chemical Company, Bowe-Permac, Inc., Sail Star USA, Inc., Hoyt Corporation, R.R. Street & Co., Inc., Forenta, LI) Renzacci of America, Inc., Multimatic Dry Cleaning Machine Corporation, Firbimatic, also known as Eco Dry of America, Inc., Direct Machinery Sales Corp., Detrex Corporation, and Hoffman/New Yorker, Inc. (hereinafter collectively the movants). After issue was joined, and a preliminary round of discovery conducted, the movants and several other defendants jointly moved for summary judgment dismissing, for lack of standing, so much of the complaint insofar as asserted against them as sought to recover damages for contamination of 115 wells, where such contamination did not reach or exceed the maximum contaminant level (hereinafter MCL) set by the United States Environmental Protection Agency and the New York State Department of Health of 5 parts per billion (hereinafter ppb) of PCE. They also moved for summary judgment dismissing, as time-barred, so much of the complaint insofar as *54 asserted against them as sought to recover damages for the contamination of 151 wells, where such contamination was detected before July 12, 2007. In support of their position that the SCWA did not have standing, the movants argued that where the level of contamination in drinking water falls below the MCL, that water is safe for human consumption, and a public water supplier has no duty to act to remediate the contamination. Thus, the movants maintained that the SCWA had not suffered a compensable injury with respect to the 115 wells where the contamination level fell below the MCL. The movants additionally contended that, since the SCWA sought to recover damages for injury to property caused by the latent effects of exposure to PCE and its degradation products, its claims were governed by the three-year statute of limitations set forth in CPLR 214-c, and began to run on the date the contamination was discovered, or should have been discovered through the exercise of reasonable diligence. Accordingly, the movants submitted that, since the SCWA detected some level of contamination in 151 wells more than three years prior to the commencement of this action, the claims to recover damages for the contamination of those wells were time-barred.

In opposition to the motion, the SCWA asserted that there was no legal authority or policy basis for establishing a bright-line rule that contamination had to exceed the MCL to confer standing. The SCWA further contended that CPLR 214-c was not controlling because the injury to its property had not been caused by the latent effect of exposure to a substance. Rather, the SCWA maintained that its claims were governed by the three-year statute of limitations set forth in CPLR 214 (4), and were not time-barred under that provision because continuous injury to property caused by the maintenance of a nuisance creates separate causes of action, and the statute of limitations runs from each successive trespass which caused multiple separate injuries to the wells. In the alternative, the SCWA argued that even if CPLR 214-c applied, there was an issue of fact as to whether the claims were time-barred because there were multiple releases at separate times which constituted separate injuries. The SCWA also submitted an expert’s affidavit, which stated that fluctuations in the contamination levels of the wells could indicate that multiple releases of contaminants had occurred.

The Supreme Court denied the motion in its entirety. With respect to the issue of standing, the Supreme Court rejected the *55 movants’ contention that the MCL standard was the minimum level at which injury could be said to have occurred, and determined that there were triable issues of fact as to whether the SCWA sustained a compensable injury based on its allegations that the release of contaminants at levels below the MCL resulted in monitoring and remediation costs. With respect to the issue of timeliness, the Supreme Court determined that, while the claims were governed by the three-year statute of limitations for latent exposure contained in CPLR 214-c, there were triable issues of fact as to whether claims relating to contamination discovered more than three years before the commencement of the action were timely because there were “multiple releases, discharges, leaks and/or disposals” of contaminants which caused separate injuries (Suffolk County Water Auth. v Dow Chem. Co., 35 Misc 3d 307, 316-317 [2012]).

On appeal from the order denying their motion, the movants continue to maintain that, as a matter of law, the presence of contaminants at levels below the applicable MCL cannot constitute a legally compensable injury sufficient to confer standing in a tort action to recover damages related thereto. In this regard, the movants submit that the contamination of 115 wells at levels under the MCL did not cause injury to the SCWA’s property interest because the water remained potable, and thus, could be sold to customers. The movants further contend that although the Supreme Court properly concluded that the applicable statute of limitations was CPLR 214-c, it erred in finding that the SCWA raised an issue of fact as to whether the claims with respect to 151 wells were barred by the statute of limitations. More specifically, the movants argue that the SCWA failed to raise an issue of fact as to the applicability of the “two-injury rule” because it failed to establish that there were separate and distinct injuries to the wells. The SCWA cross-appeals from the order, contending that the Supreme Court erred in finding that its claims were governed by CPLR 214-c.

Generally, a plaintiff has standing to sue if it has suffered an injury in fact (see In re Methyl Tertiary Butyl Ether [MTBE] Prods. Liab. Litig., 725 F3d 65, 107 [2d Cir 2013]; MRI Broadway Rental v United States Min. Prods. Co., 92 NY2d 421, 427-428 [1998]) in some way different from that of the public at large and within the zone of interests to be protected by relevant statutory and regulatory provisions (see Matter of Save the Pine Bush, Inc. v Common Council of City of Albany, 13 NY3d 297, 304 [2009]; Society of Plastics Indus. v County of Suffolk, 77 NY2d 761, 774 [1991]).

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Cite This Page — Counsel Stack

Bluebook (online)
121 A.D.3d 50, 991 N.Y.S.2d 613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suffolk-county-water-authority-v-dow-chemical-co-nyappdiv-2014.