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Keywords

liabilitystatutesummary judgmentenvironmental lawsuperfund
liabilitystatutesummary judgmentregulationsuperfund

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U.S. v. CDMG Realty Co., 875 F.Supp. 1077, 40 ERC 1466, 136 A.L.R. Fed. 693, 25 Envtl. L. Rep. 20,930

Facts

The case involves a ten-acre plot of land in Parsippany–Troy Hills Township, previously part of the Sharkey's Farm Landfill, which became a Superfund site. Dowel Associates acquired the property in 1981 and was aware of its status as part of a Superfund site by 1983. Dowel commissioned a subsurface investigation in 1981, which did not reveal obvious contamination. In 1987, Dowel sold the property to HMAT Associates, fully disclosing its Superfund status. Following this, federal and state authorities initiated actions against parties responsible for cleanup costs, leading HMAT to file a third-party suit against Dowel.

Dowel acquired the Property as an undeveloped tract of land on December 17, 1981. The Sharkey Landfill became a Superfund site in or around December of 1982. As of November, 1983, at the latest, Dowel was aware that the Property was part of the Sharkey Landfill Superfund site.

Issue

The main legal issues were whether Dowel could be held liable for 'disposal' under CERCLA and whether HMAT had standing to assert claims under New Jersey's environmental statutes.

The court held that: (1) CERCLA requires some element of active human participation before owner liability for 'disposal' can attach; (2) landowner's commissioning subsurface investigation of property, allegedly involving eight drive borings to depths of 12 to 18 feet, each encountering groundwater, and in three of which waste materials collapsed into holes during drilling, was insufficient to support imposition of CERCLA 'disposal' liability.

Rule

The court ruled that CERCLA requires some element of active human participation for owner liability for 'disposal' to attach. Additionally, mere ownership of contaminated property does not trigger liability under New Jersey's Spill Compensation and Control Act or the Water Pollution Control Act.

Unless and until government could be shown to have fallen short of its dedication to full enforcement of respective statutes and regulations involved in connection with environmentally contaminated site, private party could not maintain action under New Jersey's Environmental Rights Act; (4) mere ownership of property on or in which contamination was ongoing before particular owner's watch does not trigger 'discharge' liability under New Jersey Spill Compensation and Control Act.

Analysis

The court analyzed Dowel's actions during its ownership of the property, particularly the subsurface investigation conducted by Thor Engineers. It concluded that the investigation did not constitute 'disposal' as defined under CERCLA, as there was no evidence of active contamination or disturbance of existing contaminants. The court emphasized that Dowel's mere ownership and the passive nature of the contamination were insufficient to impose liability.

The court must decide, based on these facts and the differing conclusions drawn from them by the parties, whether the investigative work commissioned by Dowel and carried out by Thor constituted 'disposal' as interpreted by the Tanglewood line of cases.

Conclusion

The court granted summary judgment in favor of Dowel Associates, concluding that HMAT failed to establish a prima facie case of CERCLA disposal liability and dismissed all state law claims against Dowel.

Accordingly, summary judgment is entered in Dowel's favor on that element of HMAT's case.

Who won?

Dowel Associates prevailed in the case because the court found that there was no evidence of active participation in the contamination, which is necessary for liability under CERCLA and state environmental laws.

Dowel has countered HMAT's conclusions (which Dowel terms 'conjectures') by showing that the borings undertaken by Thor were 'open', i.e. that they consisted of tubes being driven into the ground at prescribed depths and extracted with soil in them.

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