Federal Circuits, 1st Cir. (January 25, 1995)
Docket number: 94-1841
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U.S. Court of Appeals for the 3rd Cir. - United States of America; Commonwealth of Pennsylvania, Department of Environmental Resources v. Southeastern Pennsylvania Transportation Authority ("Septa"), National Railroad Passenger Corporation ("Amtrak"), and Consolidated Rail Corporation ("Conrail") v. City of Philadelphia; Penn Central Corporation, Third-Party Defendants Penn Central Corporation, Now Known as American Premier Underwriters, Inc., Appellant, 235 F.3d 817 (3rd Cir. 2000) Department of Environmental Resources v. Southeastern Pennsylvania Transportation Authority ("Septa"), National Railroad Passenger Corporation ("Amtrak"), and Consolidated Rail Corporation ("Conrail") v. City of Philadelphia; Penn Central Corporation, Third-Party Defendants Penn Central Corporation, Now Known as American Premier Underwriters, Inc., Appellant
U.S. Court of Appeals for the 3rd Cir. - in Re: Tutu Water Wells Cercla Litigation Commissioner of the Dept. of Planning & Natural Resources, Dean C. Plaskett, in His Capacity as Trustee for Natural Resources of the Territory of the United States Virgin Islands v. Esso Standard, Oil S.A., Ltd.; Esso Virgin Islands, Inc.; Esso Standard Oil Company (Puerto Rico); Texaco Caribbean, Inc.; Texaco Puerto Rico; the Successor Panex Industries Stockholders' Liquidating Trust; Michael D. Debaecke, Esq., in His Capacity as Trustee of the Successor Panex Industries, Inc. Stockholders Liquidating Trust; Panex Co.; the Estate of Paul Lazare By Its Executors, Norman Halper and Oliver Lazare; Andreas Gal; L'Henri, Inc. D/B/a O'Henry Cleaners Andreas Gal; the Estate of Paul Lazare By Its Executors, Norman Halper and Oliver Lazare; Panex Co., Appellants the Successor Panex Industries, Inc. Stockholders' Liquidating Trust and Michael D. Debaecke, Esq., Successor Trustee, Appellants., 326 F.3d 201 (3rd Cir. 2003) Dean C. Plaskett, in His Capacity as Trustee for Natural Resources of the Territory of the United States Virgin Islands v. Esso Standard, Oil S.A., Ltd.; Esso Virgin Islands, Inc.; Esso Standard Oil Company (Puerto Rico); Texaco Caribbean, Inc.; Texaco Puerto Rico; the Successor Panex Industries Stockholders' Liquidating Trust; Michael D. Debaecke, Esq., in His Capacity as Trustee of the Successor Panex Industries, Inc. Stockholders Liquidating Trust; Panex Co.; the Estate of Paul Lazare By Its Executors, Norman Halper and Oliver Lazare; Andreas Gal; L'Henri, Inc. D/B/a O'Henry Cleaners Andreas Gal; the Estate of Paul Lazare By Its Executors, Norman Halper and Oliver Lazare; Panex Co., Appellants the Successor Panex Industries, Inc. Stockholders' Liquidating Trust and Michael D. Debaecke, Esq., Successor Trustee, Appellants.
U.S. Court of Appeals for the 3rd Cir. - United States of America v. General Battery Corporation, Inc., Exide Corporation Exide Corporation, Appellant., 423 F.3d 294 (3rd Cir. 2005) Inc., Exide Corporation Exide Corporation, Appellant.
U.S. Court of Appeals for the 1st Cir. - US v. Ashland Chemical Inc (1st Cir. 2001)
U.S. Court of Appeals for the 1st Cir. - State of RI v. Env. Tech. (1st Cir. 2001)
U.S. Court of Appeals for the 1st Cir. - USA v. Davis (1st Cir. 2001)
Stephen M. Leonard, with whom Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, Boston, MA, was on brief, for appellants.
John E. Darling, with whom Joseph C. Correnti, Ellen M. Winkler, and Serafini, Serafini and Darling, Salem, MA, were on brief, for defendant-appellee South Essex Sewerage Dist.Joan M. Pepin, with whom Lois J. Schiffer, Asst. Atty. Gen., David C. Shilton, Catherine Adams Fiske, and Andrea Nervi Ward Attorneys, U.S. Dept. of Justice, Environment & Natural Resources Div., Washington, DC, and John T. McNeil, Sr. Asst. Regional Counsel, U.S. E.P.A., Boston, MA, were on brief, for U.S.Before SELYA, Circuit Judge, BOWNES, Senior Circuit Judge, and STAHL, Circuit Judge.SELYA, Circuit Judge.The United States negotiated a settlement with a potentially responsible party, the South Essex Sewerage District (SESD), fixing SESD's share of certain emergency removal costs incurred by the government in the cleanup of a Superfund site.1 The district court placed its imprimatur on the settlement by entering a consent decree (the SESD decree). Appellant, Ugo DiBiase, a non-settling responsible party left to hold the bag for the remainder of the emergency removal costs, prosecuted this appeal in hopes of convincing us that the consent decree is unfair. We are not persuaded.I. BACKGROUNDThe Salem Acres Superfund Site (the Site) consists of five acres of undeveloped land containing wetlands and a brook, located in Salem, Massachusetts. From 1946 until 1969, James Grasso owned it. During that interval, Grasso permitted SESD to dump at the Site. SESD deposited sewerage wastes into unlined "sludge pits" which were surrounded by earthen berms and fences. SESD maintained the Site, including the berms and interior fencing, during the period that Grasso permitted it to dump there.In December of 1969, Grasso sold a large tract of land that encompassed the Site to Salem Acres, Inc., a corporation owned jointly by two brothers, Ugo and Elio DiBiase.2 Unaware that the property had changed hands, SESD transported a shipment of solid wastes to the sludge pits early in 1970. When appellant learned of this occurrence, he informed SESD that he would not tolerate disposal at the Site in the future. SESD refrained from further dumping.During the 1970s, appellant received correspondence from various municipal agencies, including the Board of Health and the Fire Department, expressing concern over the unrestricted access to the Site and the random dumping that was taking place. Appellant responded by erecting gates at the entrances to the property, but he did not thereafter maintain them. Consequently, intermittent dumping by unknown parties continued.Appellant claims that he had no direct knowledge of the sludge pits until 1980, when a state agency notified him that legal action would be taken unless he rectified conditions at the Site. Even when confronted with this threat, appellant failed to take meaningful action. He agreed to install new gates, but, in the end, neglected to do so. And although the earthen berms and interior fencing around the sludge pits had completely decayed, appellant made no discernible effort to investigate the situation or ameliorate the obvious hazards (or so the district court supportably found).In 1987, an easily foreseeable contretemps occurred. Heavy rains caused the sludge pits to overflow and release deleterious substances into the nearby wetlands (including the brook). The United States Environmental Protection Agency (EPA) reacted to the release by conducting the two emergency removal actions that underlie this appeal. After completing that work, the government sued appellant and SESD, seeking not only to recover EPA's emergency removal costs but also to secure a declaration of the defendants' liability for future cleanup costs.In due season, the district court granted the government's motion for partial summary judgment against appellant, finding him liable for past and future response costs at the Site under the Comprehensive Environmental Response, Compensation, & Liability Act (CERCLA), 42 U.S.C. Secs . 9601-9675. The government lodged a similar motion against SESD, but the district court never ruled on it. Thus, at the time it signed the consent decree, SESD remained a potentially responsible party (PRP) rather than a demonstrably responsible party (like DiBiase) whose liability had been judicially established.Throughout the proceedings, the government endeavored to arrange a global settlement. Though EPA's negotiations with appellant came to naught, its negotiations with SESD bore fruit. After notice, opportunity for public comment, and an in-court hearing, the district court, over appellant's vigorous objection, entered the SESD decree on April 5, 1994. Under it, SESD agreed, inter alia, to reimburse the United States for 85% of the past removal costs calculated as of the settlement date. SESD's payment amounted to $1,822,775.On May 6, 1994, the district court entered judgment against appellant for $494,207, representing the unremunerated portion of the government's historic removal costs calculated as of that date.3 After the court denied DiBiase's motion for reconsideration, this appeal ensued.II. STANDARD OF REVIEWThe legislative history of the Superfund Amendments and Reauthorization Act of 1986 (SARA), P.L. 99-499, Sec. 101 et seq., clearly indicates that, when reviewing a proposed consent decree in the CERCLA context, a trial court does not write on a pristine page. Instead, its function is circumscribed: it must ponder the proposal only to the extent needed to " 'satisfy itself that the settlement is reasonable, fair, and consistent with the purposes that CERCLA is intended to serve.' " United States v. Cannons Eng'g Corp., 899 F.2d 79, 85 (1st Cir.1990) (quoting House Report).This circumscription has important ramifications for appellate oversight. We elucidated the standard of review governing the entry of CERCLA consent decrees in Cannons, and reaffirmed that standard in United States v. Charles George Trucking, Inc., 34 F.3d 1081 (1st Cir.1994). We noted that, by the time CERCLA consent decrees reach this court,they are "encased in a double layer of swaddling." In the first place, a trial court, without abdicating its responsibility to exercise independent judgment, must defer heavily to the parties' agreement and the EPA's expertise.... The second basis for deference is equally compelling. Because an appellate court ordinarily cannot rival a district court's mastery of a factually complex case ... the district court's views must be accorded considerable respect.Largely in consequence of these layers of protective swaddling, an appellate tribunal may overturn a district court's decision to approve or reject the entry of a CERCLA consent decree only for manifest abuse of discretion. [In other words], the decision below stands unless the objectors can show that, in buying into [the decree], the lower court made a serious error of law or suffered a meaningful lapse of judgment.Id. at 1085 (quoting and citing Cannons, 899 F.2d at 84). It is this yardstick which must be used to measure the lower court's acceptance of the SESD decree.III. DISCUSSIONOn appeal, DiBiase does not attack the district court's liability determination. Rather, he fires a rifle shot aimed strictly and solely at the appropriateness of the court's allocation of the emergency removal costs. The shot misses the mark.In actuality, appellant draws a bead on an even tinier target. He virtually concedes that two of the three criteria for the approval of an environmental consent decree have been satisfied, and snipes only at the fairness vel non of the SESD decree. Moreover, while fairness in respect to CERCLA settlements has both a procedural and a substantive aspect, see Cannons, 899 F.2d at 86, appellant does not train his sights on any alleged procedural unfairness. Since our inquiry must be limited accordingly, the issue before us reduces to whether the SESD decree, as approved below, is substantively fair.Substantive fairness has a protean quality and, therefore, is often discussed in general terms. In Cannons, we wrote:Substantive fairness introduces into the equation concepts of corrective justice and accountability: a party should bear the cost of the harm for which it is legally responsible. The logic behind these concepts dictates that settlement terms must be based upon, and roughly correlated with, some acceptable measure of comparative fault, apportioning liability among settling parties according to rational (if necessarily imprecise) estimates of how much harm each PRP has done....Whatever formula or scheme EPA advances for measuring comparative fault and allocating liability should be upheld so long as the agency supplies a plausible explanation for it, welding some reasonable linkage between the factors it includes in its formula or scheme and the proportionate shares of settling PRPs.Id. at 87 (citations omitted). Viewing the SESD decree in this deferential perspective, we find EPA's rationale for the proposed allocation to be plausible, and also find the district court's endorsement of that rationale to be well within the parameters of fundamental fairness.In the first instance, the allocation reflects EPA's determination that both SESD and DiBiase are legally responsible to reimburse the public fisc for the emergency removal costs. It is impossible to quarrel with this determination. SESD, though not adjudged liable, no longer contests its liability. By like token, DiBiase has not appealed the district court order adjudging him liable for the damages; and, legally, the liability of responsible parties in a CERCLA case is joint and several, see O'Neil v. Picillo, 883 F.2d 176, 178-79 (1st Cir.1989), cert. denied,Try vLex for FREE for 3 days
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