United States v. Kayser-Roth Corp.

917 F. Supp. 889, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21113, 42 ERC (BNA) 1854, 1996 U.S. Dist. LEXIS 3272, 1996 WL 117999
CourtDistrict Court, D. Rhode Island
DecidedMarch 14, 1996
DocketC.A. No. 88-0325B
StatusPublished

This text of 917 F. Supp. 889 (United States v. Kayser-Roth Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island 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. Kayser-Roth Corp., 917 F. Supp. 889, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21113, 42 ERC (BNA) 1854, 1996 U.S. Dist. LEXIS 3272, 1996 WL 117999 (D.R.I. 1996).

Opinion

MEMORANDUM AND ORDER

FRANCIS J. BOYLE, Senior District Judge.

Pursuant to Federal Rule of Civil Procedure 60(b), Hydro-Manufacturing, Inc. (“Hydro”) filed a Motion to Vacate or Modify the Consent Decree entered into on January 18, 1990. Hydro argues that the Decree should be altered or vacated because of circumstances which are unfairly burdensome. Based upon recent First Circuit law and principles of equity, Defendant’s Motion is denied.

I. Background

A. The Initial Contamination and Previous Litigation

This matter commenced years ago under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. §§ 9601-9675 (1995), when the United States entered into a Consent Decree with Hydro and litigated successfully against Kayser-Roth Corporation (“Kayser”) in response to pollution at Stamina Mills.

The Stamina Mills Superfund site is located 14 miles north of Providence, Rhode Island, in the town of North Smithfield, on the Branch River. Contamination of the river and surrounding residential water wells occurred in March 1969 when trichlorethylene (“TCE”) escaped as it was improperly pumped into storage tanks. At that time, Stamina Mills was a textile manufacturing company owned by a subsidiary corporation of Kayser. Because it was the owner at the time of the pollution, the Court found Kayser liable for the release of hazardous-materials, under 42 U.S.C. § 9607(a)(2).

Hydro purchased the site in March of 1981 and thereby, as an owner, became liable for response costs incurred, and to be incurred, according to § 9607(a)(1) of CERCLA. Rather than litigate liability, Hydro and the United States agreed to settle. The Consent Decree was first submitted in 1989, further negotiations then took place, and a final Decree was entered in January of 1990.

For a fuller expose of the facts, the reader should refer to United States v. Kayser-Roth Corp., 724 F.Supp. 15 (D.R.I.1989), aff'd., 910 F.2d 24 (1st Cir.1990), cert. denied, 498 U.S. 1084, 111 S.Ct. 957, 112 L.Ed.2d 1045 (1991) and Hydro-Manufacturing, Inc. v. Kayser-Roth Corp., 903 F.Supp. 273 (D.R.I.1995).

B. The Consent Decree

Under the terms of the Decree, Hydro retains legal title to the property, pays real estate and sewer assessment taxes to the Town of North Smithfield until the site is remedied, at which point, Hydro must sell the land and pay the proceeds to the United States.1 However, should Hydro find an acceptable buyer, it need not wait for clean-up completion before selling the property. In exchange, Hydro received a covenant not to sue under § 107 of CERCLA and contribution protection pursuant to § 113 of CERC-LA. Hydro now seeks to vacate the Consent Decree entirely. In the alternative, Hydro proposes a new decree which provides that if Kayser fails to pay the cost of clean-up, Hydro will either forfeit the net proceeds from a sale of the property, or pay the market value of the property to the government.

Hydro argues that under Fed.R.Civ.P. 60(b)(5) or (6), a Consent Decree may be vacated or modified by the court. Hydro contends that because Kayser has been found to be the uncontroverted contaminator of the site, and Hydro is simply an innocent land-owner, the Decree is no longer equitable. Furthermore, the pollution cleanup will take longer than reasonably anticipated, so the obligation to pay municipal taxes for an additional ten to twenty years would be an undue hardship on Hydro. The issue is [891]*891whether these two arguments warrant modification or vacation of the Consent Decree.

II. Discussion

A. Legal Standards for Consent Decree Modifícation

Rule 60(b) of the Fed.R.Civ.P. does not set forth the exact circumstances when a decree may be changed. The relevant provision allows alteration if: “(5) the judgement has been satisfied, released, or discharged, reversed or otherwise vacated, or it is no longer equitable that the judgment should have prospective application; or (6) any other reason justifying relief from the operation of the judgment.” Fed.R.Civ.P. 60(b)(5) and (6). In the absence of any codified standards, guidance may be found in case law.

B. Supreme Court Precedent

In 1932 the Supreme Court wrote that a movant must make “a clear showing of grievous wrong” in order to modify a consent decree. United States v. Swift & Co., 286 U.S. 106, 119, 52 S.Ct. 460, 464, 76 L.Ed. 999 (1932). In Swift the Court resolved a longstanding antitrust dispute between the government and the meat-packing industry. In the decree the meat-packers agreed not to manufacture, sell or transport various food products. Id. at 111, 52 S.Ct. at 461. Ten years later, the meat-packers argued the industry had changed such that the restraints of the decree’s injunction “were now useless and oppressive.” Id. at 113, 52 S.Ct. at 462. The Court reaffirmed that a court of equity retains the power to modify an injunction in adaptation to changed circumstances. Id. at 114, 52 S.Ct. at 462; See also In re Pearson, 990 F.2d 653, 658 (1st Cir.1993). However, the Court refused to vacate the order and held that, “[njothing less than a clear showing of grievous wrong evoked by new and unforeseen conditions should lead us to change what was decreed after years of litigation with the consent of all concerned.” Id. at 119, 52 S.Ct. at 464.

Almost sixty years later, the Supreme Court revisited the issue of consent decrees and possible modification, although in a different context. This time the Court examined a district court’s order to dissolve an injunction which enforced a school desegregation order in Oklahoma City. Board of Education of Okl. City Public Schools v. Dowell, 498 U.S. 237, 111 S.Ct. 630, 112 L.Ed.2d 715 (1991). Here, the Court declined to utilize the strict Swift standard, rather, the Court held that the school board must simply show that it was operating consistently with the Equal Protection Clause of the Fourteenth Amendment and it was unlikely for the discrimination to reoccur. Id. at 247, 111 S.Ct. at 636-37. The consent decree could be lifted because the aim of the desegregation litigation had been met. Id., citing United States v. United Shoe Machinery Corp., 391 U.S. 244, 248, 88 S.Ct. 1496, 1499, 20 L.Ed.2d 562 (1968).

In Dowell

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917 F. Supp. 889, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21113, 42 ERC (BNA) 1854, 1996 U.S. Dist. LEXIS 3272, 1996 WL 117999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-kayser-roth-corp-rid-1996.