White Lion Holdings, LLC v. State

Court of Appeals of Texas·Decided April 9, 2015·No. 01-14-00104-CV·Published

Opinion

Opinion issued April 9, 2015

In The

Court of Appeals

For The

First District of Texas

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.

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.

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.

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.

Free access — add to your briefcase to read the full text and ask questions with AI

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

White Lion Holdings, LLC v. State (White Lion Holdings, LLC v. State) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding
289 S.W.3d 844 (Texas Supreme Court, 2009)
BMC Software Belgium, NV v. Marchand
83 S.W.3d 789 (Texas Supreme Court, 2002)
Hatteberg v. Hatteberg
933 S.W.2d 522 (Court of Appeals of Texas, 1995)
Rio Grande Oil Co. v. State
539 S.W.2d 917 (Court of Appeals of Texas, 1976)
Parks v. U.S. Home Corp.
652 S.W.2d 479 (Court of Appeals of Texas, 1983)
Carter v. MacFadyen
93 S.W.3d 307 (Court of Appeals of Texas, 2002)
DAVID JASON WEST AND PYDIA, INC. v. State
212 S.W.3d 513 (Court of Appeals of Texas, 2006)
American Tobacco Co., Inc. v. Grinnell
951 S.W.2d 420 (Texas Supreme Court, 1997)
Gulf Holding Corporation v. Brazoria County
497 S.W.2d 614 (Court of Appeals of Texas, 1973)
Star-Telegram, Inc. v. Doe
915 S.W.2d 471 (Texas Supreme Court, 1996)