Team Enterprises v. Western Investment Real Estate

647 F.3d 901
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 26, 2011
Docket10-16916
StatusPublished

This text of 647 F.3d 901 (Team Enterprises v. Western Investment Real Estate) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Team Enterprises v. Western Investment Real Estate, 647 F.3d 901 (9th Cir. 2011).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

TEAM ENTERPRISES, LLC,  Plaintiff-Appellant, v. WESTERN INVESTMENT REAL ESTATE TRUST, AKA Western Properties Trust; WPT, INC., Defendants, and PK II CENTURY CENTER LP; PAN PACIFIC RETAIL PROPERTIES, INC., as a corporation and as successor-in- interest to Western Investment

 Real Estate Trust; KIMCO REALTY CORPORATION, as a corporation and as successor-in-interest to Pan Pacific Retail Properties, Inc.; PRUDENTIAL REAL ESTATE INVESTORS, as a corporation and as successor-in-interest to Pan Pacific Retail Properties, Inc.; JOHN A. BRANAGH, individually and as a partner of Modesto Center Investors, LP and MC II, LP; LYNETTE F. BRANAGH, individually and as a partner of Modesto Center Investors, LP and MC II, LP; GAYLON C. PATTERSON, individually and as a partner of 

18245 18246 TEAM ENTERPRISES v. WESTERN INVESTMENT

Modesto Center Investors, LP and  MC II, LP; MARLA J. PATTERSON, individually and as a partner of Modesto Center Investors, LP and MC II, LP; MODESTO CENTER INVESTORS, LP; MC II, LP; No. 10-16916 VULCAN MATERIALS COMPANY; LEGACY VULCAN CORPORATION; D.C. No. MULTIMATIC CORPORATION, now 1:08-cv-00872-LJO- known as Kirrberg Corporation;  SMS MULTIMATIC, LLC; THE KIRRBERG ORDER AND CORPORATION, FKA Multimatic AMENDED Corporation; THE DOW CHEMICAL OPINION COMPANY; R.R. STREET & CO. INC., Defendants-Appellees, v. CITY OF MODESTO, Third-party-defendant.  Appeal from the United States District Court for the Eastern District of California Lawrence J. O’Neill, District Judge, Presiding

Argued and Submitted May 13, 2011—San Francisco, California

Filed July 26, 2011 Amended September 26, 2011 TEAM ENTERPRISES v. WESTERN INVESTMENT 18247 Before: Diarmuid F. O’Scannlain and Ronald M. Gould, Circuit Judges, and Amy J. St. Eve, District Judge.*

Opinion by Judge O’Scannlain; Concurrence by Judge St. Eve

*The Honorable Amy J. St. Eve, United States District Judge for the Northern District of Illinois, sitting by designation. 18250 TEAM ENTERPRISES v. WESTERN INVESTMENT

COUNSEL

Jan A. Greben, Greben & Associates, Santa Barbara, Califor- nia, argued the cause and filed the briefs for the plaintiff- appellant. With him on the briefs were Jeff G. Coyner and Danielle L. De Smeth, Greben & Associates, Santa Barbara, California.

Eric Grant, Hicks Thomas LLP, Sacramento, California, argued the cause and filed a brief for the defendant-appellee. With him on the brief was John B. Thomas, Hicks Thomas LLP, Houston, Texas.

ORDER

The opinion filed July 26, 2011, slip op. 9559 is amended as follows:

1. At slip op. page 9560, line 14 and 9565, line 12, replace “R.R. Street & Co., Inc.” with “R.R. Street & Co. Inc.”

2. At slip op. page 9573, lines 23-25, replace “in McHenry, California” with “on McHenry Avenue” and “Mo- desto” with “Orangeburg Avenue.” TEAM ENTERPRISES v. WESTERN INVESTMENT 18251 An amended opinion is filed concurrently with this order.

The panel has voted to deny the petition for rehearing with suggestion for rehearing en banc. The panel has unanimously voted to deny the petition for rehearing. Judges O’Scannlain and Gould have voted to deny the suggestion for rehearing en banc, and Judge St. Eve has so recommended. The full court has been advised of the suggestion for rehearing en banc, and no active judge has requested a vote on whether to rehear the matter en banc. Fed. R. App. P. 35.

The petition for rehearing and the suggestion for rehearing en banc are DENIED. No further petitions for rehearing will be entertained.

OPINION

O’SCANNLAIN, Circuit Judge:

We must decide, among other things, whether the manufac- turer of a machine used in the dry cleaning process may be held liable for contribution to environmental cleanup costs under the Comprehensive Environmental Response, Compen- sation, and Liability Act.

I

Plaintiff-Appellant Team Enterprises, LLC (“Team”) has, since 1980, leased space in a shopping center in Modesto, California, where it operates a dry cleaning store. From 1980 to 2004, Team used perchlorethylene (“PCE”), a volatile organic compound defined as a “hazardous substance” by the State of California, in its dry cleaning operation. Team’s dry cleaning machines used PCE as part of the cleaning process, thereby generating wastewater containing the chemical. Team used Puritan Rescue 800 filter-and-still combination equip- 18252 TEAM ENTERPRISES v. WESTERN INVESTMENT ment (“Rescue 800”), designed and manufactured by Defendant-Appellee R.R. Street & Co., Inc. (“Street”), to fil- ter and to recycle the PCE-laden wastewater for reuse. The Rescue 800 returned distilled PCE to Team’s dry cleaning machines and deposited the resulting wastewater into an open bucket. Once in the bucket, some of the remaining PCE would separate from the water, allowing Team to recapture “pure” (or visible amounts of) PCE for reuse. The remaining waste- water contained dissolved—and invisible—PCE.

Team disposed of this wastewater by pouring it down the sewer drain. Some of the PCE then leaked into the soil, and the California Regional Water Quality Control Board deemed the affected property in need of cleanup, which Team duly performed at its own expense.

Team sued Street and several other defendants in the East- ern District of California,1 for contribution under the Compre- hensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. §§ 9601-9675. Team also alleged various state-law causes of action, including claims for trespass and nuisance.

The district court granted summary judgment to Street on all claims and entered final judgment as to it. Team timely appealed the district court’s grant of summary judgment as to Team’s CERCLA, trespass, and nuisance claims.

II

A

[1] Congress enacted CERCLA in 1980 “in response to the 1 In a memorandum disposition filed concurrently with this opinion, we decide Team’s appeal from the district court’s grant of judgment on the pleadings to Multimatic Corporation. See Team Enters., LLC v. Multimatic Corp., No. 10-16486. TEAM ENTERPRISES v. WESTERN INVESTMENT 18253 serious environmental and health risks posed by industrial pollution.” Burlington N. & Santa Fe Ry. Co. v. United States, 129 S. Ct. 1870, 1874 (2009). CERCLA was “designed to promote the timely cleanup of hazardous waste sites and to ensure that the costs of such cleanup efforts were borne by those responsible for the contamination.” Id. (internal quota- tion marks and citation omitted). The statute imposes strict liability for environmental contamination upon four broad classes of covered persons.2 42 U.S.C. § 9607(a).

[2] Once identified as a covered person, “an entity . . . may be compelled to clean up a contaminated area or reimburse the Government for past and future response costs.” Burling- ton N., 129 S. Ct. at 1878; see also 42 U.S.C. § 9607(a)(4)(A)-(D) (describing the remediation and cleanup costs for which covered persons may be held liable). CER- CLA further provides that a person who has incurred cleanup costs may seek contribution from any other covered person. 42 U.S.C. § 9613(f)(1). Team argues that Street is a covered person because Street allegedly “arranged for disposal” of hazardous substances.

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647 F.3d 901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/team-enterprises-v-western-investment-real-estate-ca9-2011.