United States of America and State of Indiana v. Navistar International Transportation Corporation

152 F.3d 702, 1998 WL 469771
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 16, 1998
Docket97-3829
StatusPublished
Cited by34 cases

This text of 152 F.3d 702 (United States of America and State of Indiana v. Navistar International Transportation Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States of America and State of Indiana v. Navistar International Transportation Corporation, 152 F.3d 702, 1998 WL 469771 (7th Cir. 1998).

Opinions

RIPPLE, Circuit Judge.

This is an interlocutory appeal. The United States and the State of Indiana (the “governments”) filed separate actions under the Comprehensive Environmental Response, Compensation and Liability Act (“CERC-LA”), 42 U.S.C. §§ 9601-9675, to recover costs incurred by them in connection with environmental clean-up and remediation of a site in Fort Wayne, Indiana. In addition to its federal CERCLA claim, Indiana also brought a state law action seeking similar relief. See Ind.Code § 13-25-4-8. These actions against Navistar International Transportation Corporation and the twenty-five other defendants (hereinafter referred to collectively as “Navistar”) were consolidated by the district court. Navistar sought summary judgment on the ground that the governments’ claims were time barred by the six-year CERCLA statute of limitations, 42 U.S.C. § 9613(g)(2)(B). The district court denied the motion for summary judgment, and Navistar sought and received certification to appeal the ruling immediately under 28 U.S.C. § 1292(b). This court accepted the certification and permitted the interlocutory appeal. For the reasons set forth in the following opinion, we reverse the district court’s judgment denying Navistar’s motion for summary judgment.

I

BACKGROUND

A. Facts

The environmental site at issue in this litigation is located on the Maumee River in Fort Wayne, Indiana. The site was used as a municipal landfill from approximately 1967 to 1976 for the disposal of residential and industrial wastes, including hazardous wastes. The United States Environmental Protection Agency (“EPA”) placed the site on the National Priorities List in 1986, indicating that it was considered a significant threat to the public health and the environment. See generally 42 U.S.C. § 9605(a)(8); 40 C.F.R. § 300.425. This action resulted in the initiation by the EPA of a formal administrative process regarding the site, including an evaluative process to determine what action was necessary to neutralize the threat posed by the site. See generally 40 C.F.R. §§ 300.400-440 (outlining methods and procedures for evaluating, prioritizing and remedying environmental harms). At the conclusion of this process, the EPA determined that, among other things, the landfill needed to be covered with a permanent clay cap to isolate the hazardous materials from the rest of the environment.

In February 1989, the governments filed an action against SCA Services of Indiana, Inc. (“SCA”), the owner and operator of the site at that time. Simultaneously, the parties filed a consent decree which provided that SCA would perform and pay for the necessary remedial action at the site under the governments’ supervision and in accordance with the various documents produced during the formal EPA administrative process. SCA also agreed to pay a portion of the governments’ costs to oversee the remedial action up to a maximum of $200,000. The consent decree was approved by the district court in July 1989.

The consent decree, in combination with several administrative documents, established a timeline for the preparation and creation of the remedial design plan for the site and for the implementation of that plan. Moreover, the decree indicates that the implementation of the remedial action was to begin after the final remedial design plans were approved by the EPA and the State. The EPA asserts that this approval had to be [705]*705in writing.1 In July 1990, SCA obtained permission to begin certain activities in connection with the remedial action. These activities included hooking up utilities at the site for use in the remedial action, constructing an access road and clearing and grubbing part of the site to prepare for placement of the clay cap. The governments note that the final design of the remedial action had not been submitted at this time, and so approval to begin the implementation phase of the action had not been obtained.

On September 11, 1990, the final design documents were submitted to the EPA. On September 14, 1990, the EPA’s project manager gave SCA oral approval of the final design, and on September 17, 1990, oral authorization was given to SCA to proceed with construction of the remedial action. On September 18, 1990, the first “lift” of clay to build the permanent clay cap was placed on the landfill.2 On September 20, 1990, SCA obtained written approval of the design plan and written authorization to begin construction. The construction of the remedy was completed by SCA in 1995, but the governments continued to incur oversight costs because some response activities at the site, such as groundwater monitoring, are ongoing.

Navistar and the other defendants in this action became involved in the EPA-SCA litigation in 19923 when SCA filed a third-party complaint naming them, as well as more than fifty other parties, as third-party defendants and seeking contribution for the costs of the remedial action. However, the governments did not file any claims directly against the defendants at that time; in fact, the United States attempted unsuccessfully to sever the third-party litigation from the settled action between itself and SCA. The litigation between SCA and the third-party defendants ultimately was settled through various agreements to which the governments were not a party. Because some of the agreements could have been construed to preclude any cost-recovery claims by the United States against the parties to the settlements, the governments obtained an order from the district court reserving their rights to bring separate claims against the third-party defendants to recover their oversight costs. This action was filed by the United States against Navistar on September 19, 1996, to recover its costs for the remedial action that were not covered by the SCA consent decree. The State of Indiana filed a similar action on September 20,1996.

B. Proceedings in the District Court

The complaints filed by the governments sought reimbursements for costs incurred from November 1, 1989, through April 30, 1995, and a declaration that the defendants are jointly and severally hable for future costs. The defendants moved for summary judgment on the ground that the action was brought beyond the six-year statute of limitations and thus was time barred. The statute of limitations at issue provides:

(2) Actions for recovery of costs

An initial action for recovery of the costs referred to in section 9607 of this title must be commenced—
(B) for a remedial action, within 6 years after initiation of physical on-site construction of the remedial action....
[706]

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Bluebook (online)
152 F.3d 702, 1998 WL 469771, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-of-america-and-state-of-indiana-v-navistar-international-ca7-1998.