United States v. The Boeing Company

CourtDistrict Court, W.D. Washington
DecidedApril 25, 2023
Docket2:22-cv-00485
StatusUnknown

This text of United States v. The Boeing Company (United States v. The Boeing Company) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington 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. The Boeing Company, (W.D. Wash. 2023).

Opinion

1 2

3 4 5 6 7 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 8 AT SEATTLE

9 10 UNITED STATES OF AMERICA, CASE NO. C22-0485JLR 11 Plaintiff, ORDER v. 12 THE BOEING COMPANY, 13 Defendant. 14

15 I. INTRODUCTION 16 Before the court is Defendant The Boeing Company’s (“Boeing”) motion to 17 dismiss. (MTD (Dkt. # 30)1; Reply (Dkt. # 41).) Plaintiff the United States of America 18 (the “Government”) opposes the motion. (Resp. (Dkt. # 39).) Boeing has also filed a 19 separate request that the court take judicial notice of or incorporate by reference sixteen 20

1 Boeing first filed a redacted version of its motion (see Dkt. # 29), then filed an 21 unredacted version under seal (see Dkt. # 30), and the court later granted the parties’ stipulated motion to unseal the motion (see 9/26/22 Order (Dkt. # 40)). In this order, the court cites the 22 un-sealed, unredacted version of Boeing’s motion to dismiss. (See MTD.) 1 documents in its consideration of the instant motion. (Req. (Dkt. # 31); see also 6/21/22 2 King Decl. (Dkt. # 32) (identifying documents subject to the request).) The Government

3 did not file a separate opposition to this request but opposes the court’s consideration of 4 any documents beyond the complaint. (See Resp. at 22 n.12; Dkt.) The court has 5 reviewed the parties’ submissions, the balance of the record, and relevant law. Being 6 fully advised,2 the court GRANTS in part and DENIES in part Boeing’s request for 7 judicial notice and DENIES Boeing’s motion to dismiss. 8 II. BACKGROUND

9 The Government brings this action for damages and declaratory relief against 10 Boeing to recover costs for environmental remediation measures at a site where Boeing’s 11 predecessor operated. (See Compl. (Dkt. # 1) ¶ 2.) Below, the court sets forth the factual 12 and procedural background relevant to Boeing’s motion to dismiss. 13 In 1962, the United States Navy and National Aeronautics and Space

14 Administration (“NASA”) contracted with North American Aviation, Inc. (“NAA”) to 15 assemble and test the Saturn V Rocket, which would later land on the moon. (Compl. 16 ¶¶ 5, 9, 12-13.) This work took place at the Naval Weapons Station Seal Beach in 17 California (“the Site”). (Id. ¶ 1.) NASA and NAA entered a series of contracts 18 (collectively, “the Agreements”) governing NAA’s work on the Saturn V Rocket,

19 including a Facilities Contract that governed the acquisition, installation, and use of the 20

21 2 Both parties request oral argument (see MTD, Resp.), but the court concludes that oral argument would not be helpful in its disposition of the motion, see Local Rules W.D. Wash. 22 LCR 7(b)(4). 1 Site. (See Compl. ¶ 9-11; MTD at 3; King Decl. (Dkt. # 32) ¶ 2, Ex. A (“Facilities 2 Contract”) 3) According to Boeing, the Facilities Contract contains a “Facilities Clause”

3 in which NASA agreed to indemnify or hold harmless NAA for damage to the facilities. 4 (MTD at 5-7, 11-16.) 5 In 1967, NAA merged with Rockwell Standard to create North American 6 Rockwell (“NAR”), which assumed NAA’s obligations under its contract with NASA. 7 (Id. ¶¶ 5, 12.) NAR continued work on the Saturn V Rocket until 1973, when the project 8 was cancelled. (Id. ¶ 14.) In 1996, Boeing acquired NAR’s aerospace and defense

9 assets, as well as its liabilities. (Id. ¶ 6.) Although Boeing later sold the assets, the 10 Government asserts that it retained the liabilities. (Id.) 11 The Navy is responsible for identifying, evaluating, and responding to 12 contaminants released into the environment from its facilities, including the Site. (Id. 13 ¶ 18.) In the 1990s, the Navy began to identify contaminated groundwater in and around

14 the Site. (See id. ¶¶ 19-22.) The Navy conducted groundwater monitoring and pilot tests 15 for certain treatments between 1995 and 1997. (Id. ¶ 22.) According to the Government, 16 NAA and NAR used and disposed of trichloroethylene (“TCE”), a “chlorinated solvent 17 and a volatile organic compound” at the Site during its work on the Saturn V Rocket. (Id. 18 ¶¶ 15-16.) As a result of NAA and NAR’s wastewater disposal techniques, the

19 Government alleges, the groundwater near the Site is contaminated with TCE. (Id. ¶¶ 16, 20 21

3 The court takes judicial notice of the Facilities Contract because it is a government 22 record whose “accuracy cannot reasonably be questioned.” See Fed. R. Evid. 201(b). 1 22, 37-38.) Since the cancellation of the Saturn V program in 1973, no TCE has been 2 used at the Site aside from a small amount at a laboratory. (Id. ¶ 17.)

3 In 2002, the Navy prepared a Final Groundwater Feasibility Study to evaluate 4 different remedial approaches for contaminated groundwater. (Id. ¶ 23.) In 2005, the 5 Navy revised its 2002 Feasibility Study and added a new alternative remedial approach, 6 Alternative 11. (Id. ¶ 25.) The Navy recommended Alternative 11 to the state and local 7 entities that have exercised oversight over the Navy’s efforts to address the TCE 8 contamination at the Site. (Id. ¶¶ 24-25.) The state and local entities concurred with the

9 Navy’s selection and formally adopted the final remedial action plan on September 25, 10 2006 and October 2, 2006. (Id. ¶ 25; King Decl. ¶ 10, Ex. I (“ROD”)4.) The Navy has 11 completed construction of the final groundwater remedy and expects remediation 12 activities to continue until approximately 2026 and monitoring activities to continue until 13 2071. (Compl. ¶ 26.) The Navy has incurred at least $32 million in response costs

14 associated with the Site. (Id. ¶ 27.) 15 In September 2012, the Government notified Boeing that it had a cause of action 16 against Boeing under the Comprehensive Environmental Response Compensation and 17 Liability Act, 48 U.S.C. § 9607(a) (“CERCLA”). (See King Decl. (Dkt. # 32) ¶ 13, Ex. L 18 (“Initial Tolling Agreement”).) The parties entered tolling agreements that ultimately

19 tolled the running of the statute of limitations from September 12, 2012, through April 20

4 According to the complaint, the local entity formally adopted the remedial action plan 21 on October 3, 2006, by signing the ROD. (Compl. ¶ 25.) However, the local entity signed the ROD on October 2, 2006. (See ROD at 8.) The court takes judicial notice of the ROD and of the 22 October 2, 2006 adoption date. See Fed. R. Evid. 201(b). 1 15, 2022, inclusive. (See Initial Tolling Agreement; King Decl. ¶ 14, Ex. M (“Second 2 Tolling Agreement”).) On January 14, 2022, the Government sent Boeing a letter

3 indicating its intent to file the instant lawsuit. (King Decl. ¶ 15, Ex. N (“Termination 4 Letter”).)5 The Termination Letter gave Boeing until February 7, 2022, to make a 5 settlement offer and terminated the parties’ tolling agreement, effective February 14, 6 2022. (Termination Letter at 2.) Boeing did not make a settlement offer, and the 7 Government commenced this action for damages and declaratory relief on April 12, 8 2022. (See Compl.) Boeing filed the instant motion to dismiss and a separate request for

9 judicial notice or incorporation by reference of Exhibits A-O of the King Declaration on 10 June 21, 2022. (See MTD; Req.) This case was transferred from the Honorable Judge 11 Lauren King to the undersigned on March 20, 2023. (See Dkt.) 12 III. ANALYSIS 13 The court first reviews the legal standard for a motion to dismiss before turning to

14 Boeing’s motion. 15 A. Legal Standard for a Motion to Dismiss 16 Federal Rule of Civil Procedure

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