United States v. Envirite Corp.

143 F.R.D. 27, 1991 WL 353358
CourtDistrict Court, D. Connecticut
DecidedNovember 7, 1991
DocketCiv. No. H-89-279 (EBB)
StatusPublished

This text of 143 F.R.D. 27 (United States v. Envirite Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Envirite Corp., 143 F.R.D. 27, 1991 WL 353358 (D. Conn. 1991).

Opinion

ORDER

ELLEN B. BURNS, Chief Judge.

After de novo review and over objection, the ruling of the Magistrate Judge is approved, adopted, and so ordered.

RECOMMENDED RULING ON DEFENDANT’S MOTION TO REOPEN AND SET ASIDE CONSENT DECREE

EAGAN, United States Magistrate Judge.

The defendant, Envirite Corporation, seeks relief from a consent decree it entered into with the United States Environmental Protection Agency (“EPA”) to resolve claims brought against Envirite for alleged violations of the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901 et seq. In support of its motion, Envirite asserts that the EPA wrongfully failed to produce potentially exculpatory documents which, if given to Envirite, would have led to litigation of the action rather than the entry of a consent decree. The court agrees that the government wrongfully withheld potentially exculpatory documents, and therefore grants Envirite’s motion in accordance with the following memorandum and order.

FACTUAL BACKGROUND

The parties do not dispute the factual predicate of the defendant’s motion. The defendant, Envirite Corporation, operates waste treatment and disposal facilities in four states, including Connecticut. More specifically, Envirite employs a treatment process whereby liquid waste, which is considered hazardous within the meaning of relevant EPA regulations, is neutralized and reduced to a nonhazardous solid residue. Envirite disposes of the solid nonhazardous waste pursuant to a “waste exclusion” issued by the EPA which establishes that the solid waste generated by the treatment process is in fact nonhazardous provided that the potentially hazardous elements of the solid waste remain below certain constituent levels. The entire treatment process is regulated by the RCRA as enforced by the EPA.

In October, 1988, and January, 1989, the EPA took ground samples of the landfill at Envirite’s facility at Thomaston, Connecticut as well as “archived” samples of previously treated waste that had been reduced to solid form and disposed in the Thoma[28]*28ston landfill.1 The EPA had nine of these archived samples tested in its laboratory and found that each sample substantially exceeded the standards for at least one of four detected metals. Envirite’s tests of the same samples showed that it was in full compliance with EPA regulations and the waste exclusion issued by the EPA. The EPA and Envirite exchanged the results of their tests with each other in April, 1989.

On May 3, 1989, the EPA, through counsel, filed a two-count complaint against Envirite, alleging violations of the RCRA (Count I) and deviations from established laboratory procedures (Count II). Envirite responded to the complaint by attempting to engage in discussions with the EPA concerning the alleged inaccuracy of the EPA tests. During this period of time after the filing of the complaint, the parties had a good faith agreement to exchange documents, but in July, 1989, Envirite took the additional step of filing a discovery request which would have required that the EPA produce all laboratory test documents. However, the EPA never complied with Envirite’s document request because the parties deferred engaging in discovery in order to focus upon settlement negotiations.

In June, 1989, the EPA, concerned that the results of its original test of the Envirite archived samples may be inaccurate, submitted those samples to an independent laboratory for retesting. The independent laboratory tests revealed that only one of the nine samples contained an element in excess of the waste exclusion, and that this exceedence was not nearly as substantial as reported in the original EPA test which gave rise to this action. Despite having the written results of this new test in June, 1989, and despite the filing by Envirite of a production request in July, 1990, no employee of the EPA or its counsel ever submitted a copy of these results to counsel for Envirite prior to the entry of the final consent decree.

The final consent decree, entered into in March, 1990, required Envirite to treat its hazardous waste in a more expensive manner and pay a civil penalty of $60,000.00. Counsel for the EPA proceeded to negotiate the final consent decree with full knowledge that the original EPA test was invalid, and yet did not provide the results of the retest to Envirite. Envirite has paid the civil penalty and apparently has continued to comply with the consent decree.

In August, 1990, Envirite propounded a Freedom of Information Act ("FOIA”) request to the EPA, and received 1,800 pages of documents in response. Included in the EPA’s response to the FOIA request was an internal EPA memorandum written by an EPA official who investigated the present action against Envirite. In this memorandum, the EPA official stated that the original tests performed on the archived samples by the EPA laboratory were “highly questionable and were ultimately considered invalid.” The EPA official went further in the memorandum to state that the EPA agreed to enter into the consent decree “given the weakness in the United States’ case (the invalid laboratory results from [the EPA laboratory] and only a small amount of supportable evidence generated by the ... re-analysis ...).” The memorandum also refers to questionable laboratory testing procedures employed by both the EPA laboratory and an independent laboratory, further calling into question the accuracy of the test results.

Based upon the discovery of the above memorandum, and subsequent review of the more accurate test results, Envirite has moved, pursuant to Rule 60(b) of the Federal Rules of Civil Procedure, to reopen and set aside the consent decree. The EPA, asserting that the test results were available to Envirite prior to the entry of the decree and that they are not exculpatory, opposes that motion.

DISCUSSION

Envirite’s claim for relief from the consent decree is premised upon Fed.R.Civ.P. [29]*2960(b), which permits courts, upon such terms as are just, to relieve parties from final judgments, including those entered pursuant to consent decrees.2 The decision to grant relief under Rule 60(b) is left to the sound discretion of the court. Nemaizer v. Baker, 793 F.2d 58, 61-62 (2d Cir. 1986). The Second Circuit has “instructed] district courts that ‘final judgments should not be lightly opened’ — Since 60(b) allows extraordinary judicial relief, it is invoked only upon a showing of exceptional circumstances.” Tetra Sales (U.S.A.) Div. of Warner-Lambert Co. v. T.F.H. Publications, Inc., 727 F.Supp. 92, 93 (S.D.N.Y.1989), quoting Nemaizer, 793 F.2d at 61; Seven Elves, Inc. v. Eskenazi, 635 F.2d 396, 401 (5th Cir.1981). Because the relief available under Rule 60(b) is equitable in nature, the court’s decision “must be based upon the specific facts and circumstances that are presented.” United States v. United Shoe Machinery Corp., 391 U.S. 244, 248-49, 88 S.Ct.

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143 F.R.D. 27, 1991 WL 353358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-envirite-corp-ctd-1991.