United States v. Montrose Chemical Corp. of California

835 F. Supp. 534, 94 Daily Journal DAR 2978, 24 Envtl. L. Rep. (Envtl. Law Inst.) 20452, 39 ERC (BNA) 1228, 1993 U.S. Dist. LEXIS 14993, 1993 WL 427340
Procedural entryThis page is a short order in United States v. Montrose Chemical Corp. of California. Read the opinion of the Court — 793 F. Supp. 237
District Court, C.D. California·Decided October 19, 1993·No. CV 90-3122 AAH(JRx)·Published

Opinion

COURT’S OPINION AND ORDERS ON REVIEW OF SPECIAL MASTER’S RULINGS:

HAUK, Senior District Judge.

BACKGROUND

In 1991, the United States and the State of California (“Plaintiffs”) filed a Second *536 Amended Complaint against ten named defendants, 1 pursuant to section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). 42 U.S.C. § 9607(a). Plaintiffs allege that the corporate defendants 2 released hazardous substances such as DDT and PCBs from their plants into the San Pedro Channel by dumping waste and discharge into the ocean via the Los Angeles County Sanitation District (“LACSD”) wastewater treatment system.

Plaintiffs’ action arising from the corporate defendants’ alleged pollution involves two claims. The first claim is for recovery of natural resource damages and associated response and damage assessment costs. Plaintiffs brought this claim jointly and severally against all ten defendants under section 107(a)(4)(C) of CERCLA. The second claim is for cost recovery of approximately $1.8 million that the United States incurred in cleaning up pollution at the Montrose DDT plant site. The United States alone brought the second claim against the owners and operators of the Montrose DDT plant site. 3

On March 18, 1991, this Court issued an Order referring this case to Special Master Harry V. Peetris for discovery and pretrial matters. PreTrial Order No. 1 and Reference to Special Master to Supervise and Superintend Discovery and all PreTrial Matters (“PreTrial Order No. 1”). In addition, this Court has entered two consent decrees removing from this action Potlach, Simpson Paper Company, District No. 2, and 150 third-party defendant local governmental entities. See Potlach Settlement dated May 19, 1992 and Order Granting Plaintiffs’ Motion for Entry of Second Consent Decree dated April 26, 1993. At this time, the Special Master is supervising all discovery and pretrial matters as Plaintiffs’ proceed with their action against the remaining defendants. 4

In February 1993, Westinghouse brought the following motions before this Court:

1. Westinghouse Electric Corporation’s Motion for an Order Precluding any Recovery for Any Injury or Damage Aleged to Have Occurred within the Three Mile Limit (“Westinghouse’s Three Mile Limit Motion”);

2. Westinghouse Electric Corporation’s Motion to Dismiss the Second Amended Complaint with Prejudice under Rule 11 of the Federal Rules of Civil Procedure (“Westinghouse’s Rule 11 Motion”); and

3. Westinghouse Electric Corporation’s Motion Either for an Order Requiring Plaintiffs to Comply with Their Own Regulations or for an Order Disposing of Plaintiffs’ Attempt to Rely at Trial Upon a Presumption that Requires Compliance with Those Very Regulations (“Westinghouse’s Regulations Motion”).

This Court refused to hear all three of Westinghouse’s motions by order dated March 16,1993, finding that each motion was a pretrial matter and not dispositive within the meaning of PreTrial Order No. 1. Accordingly, the Court transferred the motions to Special Master Peetris who, after reviewing the briefs and holding a hearing, denied each of Westinghouse’s motions in a Memo *537 randum of Decision issued July 23, 1-993 (“Memorandum of Decision”).

In response to the Special Master’s rulings, on August 13, 1993, Westinghouse filed Objections to the Special Master’s Recommendations, 5 asking this Court to grant de novo review of its Three Mile Limit Motion, Rule 11 Motion, and Regulations Motion. 6

In February 1993, the DDT Defendants filed with this Court a motion in limine seeking an order precluding Plaintiffs from recovering pre-1980 damages and limiting damage recovery from the DDT Defendants to $50 million. The Court directed this motion to the Special Master for the same reasons it similarly directed Westinghouse’s Three Mile Limit Motion, Rule 11 Motion, and Regulations Motion, as already discussed above. After extensive briefing and argument, the Special Master denied the DDT Defendants’ motion without prejudice in his Memorandum of Decision.

In response, the DDT Defendants asked this Court for de novo review of the DDT Defendants’ Motion for Review of Special Master’s Memorandum Addressing Defendants’ Motion to (1) Preclude Recovery of pre-1980 Damages and (2) Limit Recovery from One Facility to $50 Million (“DDT Defendants’ Motion for Review”).

1. SPECIAL MASTER’S RULING RE: COMPELLING ADMISSIONS

Review Requested by Westinghouse

A. Special Master’s Ruling

On April 8, 1993, Special Master Peetris granted Plaintiffs’ motion to compel Westinghouse to further respond to Plaintiffs’ first set of requests for admissions and second request for production of documents. Order Granting, in Part, Plaintiffs’ Motion to Compel Defendant Westinghouse Electric Corporation to Respond to Plaintiffs’ Requests for Admissions and to Complete Production of Documents in Response to Plaintiffs’ Second Requests for Production of Documents (dated April 15, 1993) (“Order Granting Plaintiffs’ Motion to Compel”). In particular, Special Master Peetris ordered Westinghouse to serve amended responses to Plaintiffs’ requests for admissions within thirty days.

Although Westinghouse believed Special Master Peetris’ ruling was without legal basis, Westinghouse served amended responses to Plaintiffs’ requests for admissions. Westinghouse Electric Corporation’s Reply Memorandum in Support of its Application for Review of a Portion of a Ruling by the Special Master (Westinghouse’s “Reply in Support of its Application for Review”) at p. 2. In addition, on May 27, 1993, Westinghouse filed a Notice of Application for Review of a Portion of a Ruling by the Special Master (“Notice of Application”), which requests that this Court review the portion of the Order Granting Plaintiffs’ Motion to Compel ordering Westinghouse to further respond to Plaintiffs’ request for admissions.

B. Westinghouse’s Arguments

PreTrial Order No. 1 provides that any written ruling made by the Special Master in discovery matters shall be subject to review by this Court upon application by a party, as long as the party makes such application, at the latest, within ten days after the Special Master issues the written ruling. PreTrial Order No. 1 at p. 13. On May 17, 1993, Plaintiffs served Westinghouse with a Notice of Entry of the Special Master’s Order Granting Plaintiffs’ Motion to Compel. Westinghouse filed its Notice of Application ten days later on May 27, 1993.

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United States v. Montrose Chemical Corp. of California, 835 F. Supp. 534, 94 Daily Journal DAR 2978, 24 Envtl. L. Rep. (Envtl. Law Inst.) 20452, 39 ERC (BNA) 1228, 1993 U.S. Dist. LEXIS 14993, 1993 WL 427340 (C.D. Cal. 1993).

835 F. Supp. 534 (United States v. Montrose Chemical Corp. of California) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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