United States v. Conservation Chemical Co.

661 F. Supp. 1416, 26 ERC 1878, 26 ERC (BNA) 1878, 1987 U.S. Dist. LEXIS 5136
CourtDistrict Court, W.D. Missouri
DecidedApril 28, 1987
Docket82-0983-CV-W-5
StatusPublished
Cited by8 cases

This text of 661 F. Supp. 1416 (United States v. Conservation Chemical Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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United States v. Conservation Chemical Co., 661 F. Supp. 1416, 26 ERC 1878, 26 ERC (BNA) 1878, 1987 U.S. Dist. LEXIS 5136 (W.D. Mo. 1987).

Opinion

ORDER

SCOTT 0. WRIGHT, Chief Judge.

On April 17, 1987, the Special Master filed recommendations concerning the motion ■ of the United States to enforce the Preliminary Agreement between the United States and the Original Generator Defendants. The Special Master also filed recommendations concerning the Court’s jurisdiction to proceed with the CERCLA Section 106(a) action. As required, the Court has independently reviewed the record regarding the issues relating to the Master’s report, including the Government’s motion and responses thereto, as well as the Government’s objections filed to the report. See United States v. Louisiana, 470 U.S. 93, 105 S.Ct. 1074, 1080 84 L.Ed.2d 73 (1985).

The Court fully concurs with the Master’s recommendation that the remedy provisions of the Preliminary Agreement cannot be construed as a partial consent decree, “functional or otherwise” and that even assuming a contract exists, the conditions precedent to the Original Generator Defendants’ performance have not occurred, and performance therefore is not due. Further, the Court finds that the 1986 Amendments to CERCLA (SAPA) do not divest federal district courts of equity jurisdiction in CERCLA Section 106(a) actions, and that the Court will exercise its equitable powers to determine the appropriate remedy for the CCC site.

Accordingly, it is hereby

ORDERED that the Special Master’s Recommendation that the Motion of the United States to Enforce the Preliminary Agreement be denied, is approved and adopted by the Court.

SPECIAL MASTER’S RECOMMENDATIONS ON MOTION OF UNITED STATES TO ENFORCE PRELIMINARY AGREEMENT

ROBERT H. FREILICH, Special Master.

INTRODUCTION

During proceedings before the Special Master on February 17, 1987, the Special Master asked that motions and briefs 1 be filed with respect to various substantive and procedural issues “so that we know what is the relief you are asking.” (Transcript of Proceedings, p. 32; see also, pp. 16, 20-21, 46 and 50).

On February 18,1987, the Special Master issued his 30th Set of Recommendations Concerning Pretrial Matters. 2 Under the third section, six issues likely to be raised via the anticipated motions were listed and the parties were invited to file motions and to brief each issue. Except for the United States’ motion relating to enforcement of the Preliminary Agreement, no other motions have been filed, although the parties 3 have filed extensive briefs and memoranda *1418 of law addressing each of the six procedural issues. 4

Some of the matters addressed in the briefs and memoranda are useful in settling the legal predicate for further actions, and to that degree they will be discussed. Issues and matters which are unnecessary because of this Recommendation as well as those not properly framed or not yet properly before the Court will not be addressed. 5

I. PENDING MOTION.

Pending is the United States’ (hereinafter “the government” or “plaintiff”) Motion 6 to Enforce the Preliminary Agreement Between the United States and the Original Generator Defendants. 7

To support its motion, the government principally relies on two arguments. First, it argues that the Preliminary Agreement is a binding contract between the government and the Original Generator Defendants which requires performance absent facts justifying modification or recession. Secondly, the government argues that the Preliminary Agreement is “functionally a partial consent decree,” for the reason that the portion of the Agreement relating to the remedy was consented to by the parties and approved by an order of the court and brings finality to that portion of the case dealing with the remedy. (United States’ Memorandum, p. 11). Under its interpretation, the government relies on Rule 60(b), Fed.R.Civ.P., to obtain relief in enforcing the Preliminary Agreement and the Court’s order in approving it.

In opposition to the motion, the Original Generator Defendants argue that specific performance will not lie against them because there is an adequate remedy at law, because performance would be impossible, and because conditions precedent to their obligations have not been met. Similarly, they contend that the Preliminary Agreement is not a consent decree, but that if it is, it should be modified under Rule 60(b) because the Rule allows for modification where prospective application of the judg *1419 ment is not longer equitable, or because potential relief lies in an independent action in equity.

In reply, the government contends that the Original Generator Defendants have failed to demonstrate mutual mistake of fact going to the essence of the contract since subsurface conditions were known to the Original Generator Defendants, and thus they should not be released from their obligations. The government also argues that cost increases are not extreme, attaching as evidence the affidavit of a private consultant and a letter allegedly containing admissions by the Original Generator Defendants’ putative agent, IT Corporation.

A brief review of the pertinent history that brought the parties to this motion is in order. On August 2, 1985, the government and the Original Generator Defendants entered into a “Preliminary Agreement” relating to the implementation of a remedy at the CCC site in Kansas City, Missouri. The remedial action set out in the Preliminary Agreement included specifications for: (1) surface cleanup/surface preparation; (2) a multilayered surface cap; (3) a slurry wall; (4) an interior withdrawal well system; (5) an interior withdrawal well water treatment system; (6) a groundwater monitoring system; and (7) an operation and maintenance program.

The Preliminary Agreement was the subject of a hearing before the Court on October 21, 1985. The primary purpose of the hearing was to determine the appropriateness of the remedy provisions of the Preliminary Agreement. In approving the proposed remedy, the Court found the remedy to be “legal, fair and reasonable.” See, United States v. Conservation Chemical Co., 628 F.Supp. 391, 404 (W.D.Mo.1985).

Although the Original Generator Defendants have solicited bids and awarded a contract for the design and implementation of the remedial work, the Original Generator Defendants now contend that geologic investigations suggest that subsurface conditions at the site are materially different from that which the parties had assumed. Since the Original Generator Defendants have not begun to implement the remedy specified by the Preliminary Agreement, the government has sought to enforce the Preliminary Agreement.

At the outset, a definitional issue not addressed by the parties should be noted.

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661 F. Supp. 1416, 26 ERC 1878, 26 ERC (BNA) 1878, 1987 U.S. Dist. LEXIS 5136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-conservation-chemical-co-mowd-1987.