United States v. Multistar Industries Inc

CourtDistrict Court, E.D. Washington
DecidedJanuary 27, 2022
Docket2:21-cv-00262
StatusUnknown

This text of United States v. Multistar Industries Inc (United States v. Multistar Industries Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Multistar Industries Inc, (E.D. Wash. 2022).

Opinion

1 2

3 4 5 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WASHINGTON 6

7 UNITED STATES OF AMERICA NO. 2:21-CV-0262-TOR 8 Plaintiff, ORDER DENYING DEFENDANT’S 9 v. MOTION TO DISMISS AND DENYING DEFENDANT’S MOTION 10 MULTISTAR INDUSTRIES, INC., TO STRIKE

11 Defendant. 12 13 BEFORE THE COURT are Defendant’s Motion to Dismiss (ECF No. 5) 14 and Defendant’s Motion to Strike (ECF No. 19). These matters were submitted for 15 consideration with telephonic oral argument on January 27, 2022. David L. Dain 16 appeared on behalf of Plaintiff. Michael Davidson appeared on behalf of 17 Defendant. The Court has reviewed the record and files herein, considered the 18 parties’ oral arguments, and is fully informed. For the reasons discussed below, 19 Defendant’s Motion to Dismiss (ECF No. 5) is DENIED and Defendant’s Motion 20 to Strike (ECF No. 19) is DENIED. 1 FACTS 2 This matter arises from the transport of a regulated hazardous substances,

3 trimethylamine (“TMA”), via railcar to a transloading facility in Othello, 4 Washington. The following facts are drawn from Plaintiff’s Complaint and 5 construed in the light most favorable to Plaintiff. Schwarz v. United States, 234

6 F.3d 428, 436 (9th Cir. 2000). 7 TMA is shipped by railcar and/or truck to Defendant’s facility in Othello, 8 Washington. ECF No. 1 at 10, ¶¶ 33–34. After the railcars are delivered to 9 Defendant’s facility, the motive power (the engine car) is disconnected from the

10 railcars. Id. at 12, ¶ 44. Defendant then uses a transloader, its associated transfer 11 hoses, and other related equipment to transfer the TMA to trucks. Id. at ¶ 45. The 12 TMA is then delivered to third parties. Id. Between the arrival at Defendant’s

13 facility and the subsequent delivery to third parties, the railcars are stored for at 14 least some time at Defendant’s facility and are not under active shipping papers. 15 Id. at 13, ¶¶ 48, 50. 16 Plaintiff Environmental Protection Agency (“EPA”) alleges Defendant is

17 subject to the Clean Air Act (“CAA”) and the Emergency Planning and 18 Community Right-to-Know Act (“EPCRA”), and their accompanying regulations, 19 due to the nature and quantities of the TMA present at Defendant’s facility, and the

20 manner in which the TMA is stored before delivery. Id. at 12–16, ¶¶ 43–65. 1 Plaintiff further alleges Defendant violated the regulations by failing to develop 2 and implement a risk management program. Id. at 16–31, ¶¶ 66–114.

3 Additionally, Defendant violated the EPCRA by failing to prepare and maintain 4 annually a safety date sheet and an emergency and hazardous chemical inventory 5 sheet, which are to be delivered to the appropriate local emergency response

6 entities. Id. at 31–33, ¶¶ 115–125. 7 Defendant denies the transloading of the TMA is subject to CAA and 8 EPCRA oversight because the TMA is not stored in a manner that would trigger 9 the regulations. ECF No. 5 at 7, ¶ 11. Defendant further denies it owns the

10 railcars, claiming the railcars and TMA are owned by a third-party shipper. Id. at 11 2–3, ¶ 4. Defendant moves for dismissal of the Complaint on the grounds that 12 Plaintiff’s claims fail as a matter of law. ECF No. 5.

13 DISCUSSION 14 I. Legal Standard 15 A motion to dismiss for failure to state a claim under Rule 12(b)(6) “tests the 16 legal sufficiency” of the plaintiff’s claims. Navarro v. Block, 250 F.3d 729, 732

17 (9th Cir. 2001); Fed. R. Civ. P. 12(b)(6). To withstand dismissal, a complaint must 18 contain “enough facts to state a claim to relief that is plausible on its face.” Bell 19 Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A claim has facial plausibility

20 when the plaintiff pleads factual content that allows the court to draw the 1 reasonable inference that the defendant is liable for the misconduct alleged.” 2 Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). This requires the

3 plaintiff to provide “more than labels and conclusions, and a formulaic recitation of 4 the elements.” Twombly, 550 U.S. at 555. While a plaintiff need not establish a 5 probability of success on the merits, he or she must demonstrate “more than a sheer

6 possibility that a defendant has acted unlawfully.” Iqbal, 556 U.S. at 678. 7 When analyzing whether a claim has been stated, the Court may consider the 8 “complaint, materials incorporated into the complaint by reference, and matters of 9 which the court may take judicial notice.” Metzler Inv. GMBH v. Corinthian

10 Colleges, Inc., 540 F.3d 1049, 1061 (9th Cir. 2008) (citing Tellabs, Inc. v. Makor 11 Issues & Rights, Ltd., 551 U.S. 308, 322 (2007)). A complaint must contain “a 12 short and plain statement of the claim showing that the pleader is entitled to relief.”

13 Fed. R. Civ. P. 8(a)(2). A plaintiff’s “allegations of material fact are taken as true 14 and construed in the light most favorable to the plaintiff[,]” however “conclusory 15 allegations of law and unwarranted inferences are insufficient to defeat a motion to 16 dismiss for failure to state a claim.” In re Stac Elecs. Sec. Litig., 89 F.3d 1399,

17 1403 (9th Cir. 1996) (citation and brackets omitted). 18 In assessing whether Rule 8(a)(2) has been satisfied, a court must first 19 identify the elements of the plaintiff’s claim(s) and then determine whether those

20 elements could be proven on the facts pled. The court may disregard allegations 1 that are contradicted by matters properly subject to judicial notice or by exhibit. 2 Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir. 2001). The court

3 may also disregard conclusory allegations and arguments which are not supported 4 by reasonable deductions and inferences. Id. A claim may be dismissed only if “it 5 appears beyond doubt that the plaintiff can prove no set of facts in support of his

6 claim which would entitle him to relief.” Navarro, 250 F.3d at 732. 7 A. Consideration of Supporting Materials 8 In support of their briefing on the pending motion to dismiss, both sides 9 submitted several supporting exhibits. ECF Nos. 5-1–5-6, 8, 8-1, 11-1, 15-1–15-5.

10 Defendant develops no argument as to why the Court should consider their 11 supporting exhibits at this stage in the proceeding. Plaintiff’s supporting materials 12 appear to be offered only as response to Defendant’s materials.

13 “Review [of a motion to dismiss] is limited to the complaint.” Cervantes v. 14 City of San Diego, 5 F.3d 1273, 1274 (9th Cir. 1993). “Generally, district courts 15 may not consider material outside the pleadings when assessing” a Rule 12(b)(6) 16 motion. Khoja v. Orexigen Therapeutics, Inc., 899 F.3d 988, 998 (9th Cir. 2018).

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