United States of America v. Charles George Trucking, Inc.

34 F.3d 1081, 30 Fed. R. Serv. 3d 1343, 25 Envtl. L. Rep. (Envtl. Law Inst.) 20199, 39 ERC (BNA) 1690, 1994 U.S. App. LEXIS 24930, 1994 WL 483903
CourtCourt of Appeals for the First Circuit
DecidedSeptember 13, 1994
Docket93-1691, 93-2372
StatusPublished
Cited by50 cases

This text of 34 F.3d 1081 (United States of America v. Charles George Trucking, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First 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 v. Charles George Trucking, Inc., 34 F.3d 1081, 30 Fed. R. Serv. 3d 1343, 25 Envtl. L. Rep. (Envtl. Law Inst.) 20199, 39 ERC (BNA) 1690, 1994 U.S. App. LEXIS 24930, 1994 WL 483903 (1st Cir. 1994).

Opinion

SELYA, Circuit Judge.

These appeals arise out of two consent decrees that together resolve a majority of the cost recovery disputes associated with the cleanup of a hazardous waste site in Tyngsboro, Massachusetts (the Site). Appellants, who are the principal owners and operators of the Site, 1 strive to convince us that the district court misjudged the relevant goals of the Comprehensive Environmental Response, Compensation, & Liability Act (CERCLA), 42 U.S.C. §§ 9601-9675, and, therefore, erred in placing its imprimatur on the decrees. We are not persuaded.

I. BACKGROUND

This litigation dates back to 1985, when the United States and the Commonwealth of Massachusetts filed separate cost recovery actions, soon consolidated, against appellants and other alleged owner-operators (collectively, “the junior Georges”), including Charles George, Jr. and James George (children of Charles and Dorothy George), and the sons’ firm, C & J Trucking Co. The federal government’s complaint alleged claims under 42 U.S.C. §§ 9604(a), 9604(b), 9604(e), 9607(a), 6928(a) & 6928(g). The Commonwealth’s complaint alleged claims under 42 U.S.C. § 9607(a) and Mass.Gen. Laws ch. 21E, § 5.

The early procedural history of the struggle is described in a previous opinion of this court, see United States v. Charles George Trucking Co., 823 F.2d 685 (1st Cir.1987), and need not be revisited. Thereafter, acting on plaintiffs’ motions for partial summary judgment, the district court adjudged appellants to be jointly and severally liable for the costs of cleanup. However, the court left *1084 open the question of the junior Georges’ liability due to factual disputes anent the degree of control that they exercised over the Site.

In June of 1989, plaintiffs amended their complaints to add twenty-four generator and transporter defendants. In turn, these defendants brought third-party claims for contribution against thirty-one other putative generators. They also filed counterclaims against the plaintiffs, charging negligent regulation. Appellants emulated this tactic, serving similar counterclaims.

The district court intervened to impose some structure on this welter of claims and cross-claims. By a case management order (CMO) dated April 12, 1990, Judge Woodlock deemed the third-party defendants to have asserted all available cross-claims and counterclaims against other parties, but precluded the plaintiffs from asserting claims directly against the third-party defendants. The judge supplemented the CMO in a subsequent bench ruling through which he limited development of so-called trans-shipment issues, that is, issues involving wastes hauled to the Site after first being dumped elsewhere.

By the fall of 1991, the dust had settled. A new round of summary judgment motions had been heard (most were denied), and trialworthy issues had been identified as to the liability of all defendants, save only the appellants, and as to virtually all aspects of the remedial phase. Unresolved questions also remained as to the counterclaims asserted against the plaintiffs. The likelihood of lengthy litigation loomed large.

Before too long, settlement negotiations began in earnest. After a fitful start, the district court appointed Chief Judge Tauro as a settlement master. 2 Numerous meetings among the parties yielded an agreement by the plaintiffs, in essence, to extinguish all claims against the generators and transporters (including the third-party defendants) in exchange for a global “cash-out” payment of approximately $36,000,000. The generators and transporters were to decide among themselves how to share the aggregate cost of the settlement. The federal and state governments agreed to contribute an additional $3,108,712 as a token of their responsibility. After further negotiations, again held under Judge Tauro’s auspices, the plaintiffs and the junior Georges also reached an accord, proposing to extinguish the latters’ liability in return for a payment of $3,100,000. Though appellants participated in bargaining sessions from time to time, they eventually withdrew from the negotiations. The claims against them remain unresolved.

The settling parties prepared two proposed consent decrees. They presented the first, embodying the settlement reached by the plaintiffs with the generators and transporters, to the district court on December 17, 1992. They presented the second, embodying the plaintiffs’ suggested settlement with the junior Georges, on July 27, 1993. Both were advertised in the Federal Register, see 28 C.F.R. § 50.7, but elicited no public comment.

At a hearing held on May 24, 1993, Judge Woodlock applied the standards set forth in United States v. Cannons Engineering Corp., 899 F.2d 79, 85 (1st Cir.1990), and found the generator/transporter decree to be reasonable, fair, and faithful to CERCLA’s objectives. Following a separate hearing held on November 12, 1993, the court made similar findings in regard to the second decree. Judge Woodlock entered both decrees under Fed.R.Civ.P. 54(b), thus permitting appellants, as the lone objectors, to prosecute these appeals.

II. STANDARD OF REVIEW

Despite appellants’ animadversions, Cannons has not rusted. It teaches that CERCLA consent decrees must be reasonable, faithful to the statute’s objectives, and fair (both procedurally and substantively). Cannons, 899 F.2d at 85. The battle over whether a particular decree achieves these benchmarks will usually be won or lost in the *1085 trial court. By the time such decrees arrive on the doorstep of the court of appeals, they are “encased in a double layer of swaddling.” Id. at 84. In the first place, a trial court, without abdicating its responsibility to exercise independent judgment, must defer heavily to the parties’ agreement and the EPA’s expertise. See id. In this case, the inner layer of swaddling is especially thick because of the role played by the distinguished special master in overseeing negotiations. The second basis for deference is equally compelling. Because an appellate court ordinarily cannot rival a district court’s mastery of a factually complex case—a mastery that is often, as in this instance, acquired through painstaking involvement over many years— the district court’s views must also be accorded considerable respect.

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34 F.3d 1081, 30 Fed. R. Serv. 3d 1343, 25 Envtl. L. Rep. (Envtl. Law Inst.) 20199, 39 ERC (BNA) 1690, 1994 U.S. App. LEXIS 24930, 1994 WL 483903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-of-america-v-charles-george-trucking-inc-ca1-1994.