White Lion Holdings, LLC v. State

CourtCourt of Appeals of Texas
DecidedApril 9, 2015
Docket01-14-00104-CV
StatusPublished

This text of White Lion Holdings, LLC v. State (White Lion Holdings, LLC v. State) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White Lion Holdings, LLC v. State, (Tex. Ct. App. 2015).

Opinion

Opinion issued April 9, 2015

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-14-00104-CV ——————————— WHITE LION HOLDINGS, L.L.C., Appellant V. THE STATE OF TEXAS, Appellee

On Appeal from the 98th District Court Travis County, Texas Trial Court Case No. D-1-GV-13-001068

MEMORANDUM OPINION

The trial court entered summary judgment for the State of Texas that White

Lion Holdings, L.L.C. violated the terms of a compliance plan issued by the Texas

Commission on Environmental Quality (TCEQ). White Lion appeals, arguing in

two issues that the trial court improperly denied its motion for continuance and that the summary judgment evidence raised questions of material fact sufficient to

prevent summary judgment. We affirm.

Background

In 2006, the State initiated this lawsuit, alleging that White Lion violated a

waste-management compliance plan issued by TCEQ. The plan and a

contemporaneously-issued permit govern the monitoring, treatment, and

management of surface wastewater impoundments and a plume of contaminated

groundwater at a facility now owned by White Lion and formerly used for pipe

manufacturing in Rosenberg, Texas. During its operational life, the facility

generated hazardous wastewater that was treated on-site in a system that included

five surface impoundments. The prior owner of the facility, Vision Metals,

discovered that the impoundments were sources of groundwater contamination,

including elevated concentrations of cadmium, cobalt, lead, barium, chromium,

nickel, silver, zinc, iron, sulfate, and acidic compounds.

In 1988, the TCEQ’s predecessor, the Texas Natural Resources

Conservation Commission, issued Hazardous Waste Permit 50129-001 to Vision

Metals to govern the management, closure, and long-term care of the wastewater

impoundments. Contemporaneously, it issued to Vision Metals Compliance Plan

50129. The compliance plan has been modified several times since then.

2 White Lion acquired the facility in a bankruptcy sale in April 2004. At the

same sale, various third parties purchased machinery and equipment at the

property. According to White Lion, some of those third parties damaged the

facility while removing their property in the period from April 2004 through

August of that year. White Lion estimated the costs of repairs to exceed $1.4

million and initiated lawsuits to recover damages from the third parties.

Meanwhile, the existing permit and compliance plan were transferred to

White Lion. White Lion, however, did not provide the State with a required

“financial assurance” mechanism, such as a bond or irrevocable letter of credit,

guaranteeing its performance of its obligations under the permit and compliance

plan. It did, however, request an extension of time to provide such assurance.

White Lion also discussed with the United States Environmental Protection

Agency switching the site to a “plume management approach,” which would

simplify management of the site, but the EPA told White Lion that such an

approach was not feasible.

TCEQ gave White Lion an extension of time to address outstanding

compliance issues and submit an amendment to the compliance plan, but did not

extend the time for White Lion to provide financial assurance. White Lion never

submitted any application to amend the compliance plan and never provided any

financial assurance.

3 In 2006, the State sued White Lion for violations of the compliance plan,

seeking civil penalties under the Water Code, unpaid hazardous waste facility fees,

an injunction to secure White Lion’s performance of its duties under the

compliance plan, and attorney’s fees. The case was set for trial in 2008, continued,

set again in 2011, and continued again. In August 2013, the State filed a motion

for summary judgment. White Lion responded, arguing in part that full

compliance with the plan was impossible, that it had complied to the extent

possible, and that injunctive relief was improper in the absence of a showing of a

risk of irreparable injury. White Lion also moved for a continuance to obtain an

expert opinion on the costs and feasibility of repairs to the site.

The trial court held a hearing at which it denied White Lion’s motion for

continuance and then granted the State’s motion for summary judgment. It entered

judgment that the State recover from White Lion (1) civil penalties of $325,600,

(2) unpaid hazardous waste facility fees of $129,464.15, (3) pre-judgment interest

on the unpaid hazardous waste facility fees, (4) attorney’s fees, (5) costs of court,

and (6) post-judgment interest.1 It also enjoined White Lion as follows: “White

1 The original judgment incorrectly stated, under the heading “Post-Judgment Interest,” that “[t]he State shall recover pre-judgment interest on all amounts awarded in this judgment at the annual rate of 5.00%.” On the State’s motion, the trial court entered judgment nunc pro tunc correcting “pre-judgment” in that section to “post-judgment” and making other clerical corrections.

4 Lion shall [immediately] comply with each limitation, requirement, and condition

of the Compliance Plan.”

In two issues, White Lion appeals, arguing, first, that the trial court erred in

denying White Lion’s motion for continuance and, second, that the trial court

improperly granted summary judgment because White Lion raised questions of

material fact. 2

Motion for Continuance

In its first issue, White Lion argues that the trial court erred in denying

White Lion’s motion for continuance. White Lion requested a continuance on two

occasions. First, in its response to the State’s motion for summary judgment, it

requested “that any hearing on [the motion] be reset for at least 90 days to give

[White Lion] time to consult with experts to determine what remedial action is

feasible.” In that response, it admitted that the facility’s mitigation and monitoring

systems had no electrical power and were not operational, arguing that

“[c]ompliance with the [Compliance] Plan has been rendered impractical and

commercially and economically [i]nfeasible by damages to the facility by third

parties.” White Lion then filed a motion for continuance, asking “that the court

2 On January 7, 2014, the Texas Supreme Court ordered this appeal transferred from the Court of Appeals for the Third District of Texas. See TEX. GOV’T CODE ANN. § 73.001 (West 2013) (authorizing transfer of cases). We are unaware of any conflict between the precedent of the Court of Appeals of the Third District and that of this Court on any relevant issues. See TEX. R. APP. P. 41.3.

5 reset the hearing [on] the State’s [motion for summary judgment] for 90 days . . . to

give [White Lion] time to confer with experts to determine the cost and feasibility

of restoring the existing remedial system and/or modifying the remedial system.”

According to White Lion, it “want[ed] to resolve this matter but need[ed] a

reasonable time to evaluate the situation.” In the motion, it acknowledged that it

needed “an extension to comply with TCEQ’s requests” and that, as of August

2013, White Lion “need[ed] to quickly come into full compliance with the existing

[compliance] plan.” The trial court denied the motion for continuance at the start

of the hearing on the motion for summary judgment.

A. Standard of review

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