Third Circuit Holds Federal Courts Have Exclusive Jurisdiction Over RCRA Claims

Faced with an issue of first impression in the Circuit, the Court of Appeals for the Third Circuit in Litgo New Jersey Inc. v. Comm'r New Jersey Dep't of Envtl. Prot., Nos. 12-1288 and 12-1418 (3d Cir.), has joined the majority of other Federal Courts in concluding that Federal District Courts in the District where a contaminated site is located have exclusive jurisdiction over claims under the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. § 6972 et seq. Amongst other causes of action, RCRA permits citizen suits against any person who has contributed to the handling or disposal of waste that "may present an imminent and substantial endangerment to health or the environment," and authorizes courts to issue injunctions to reduce harm and, under certain circumstances, to award costs of litigation to the prevailing or substantially prevailing party. The Third Circuit's ruling in Litgo shuts the door to State Court—which is often a desired and favorable forum—to plaintiffs seeking to hold alleged polluters responsible for contamination under RCRA.

The District Court Action

In Litgo, the current owner of a contaminated property in Somerville, New Jersey (the "Property") and its sole shareholder (collectively, "Litgo") sued a former owner of the Property and related parties (the "Sanzaris") and the United States of America, claiming that those parties are responsible for the remediation of contaminants in soil and groundwater at the Property under RCRA, the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 42 U.S.C. § 9601 et seq., the New Jersey Spill Compensation and Control Act ("Spill Act"), N.J. Stat. Ann. § 58:10-23.11 et seq., and the New Jersey Sanitary Landfill Closure Act and Contingency Fund ("Closure Act"), N.J. State. Ann. § 13:1E-100 et seq. Since the early 1900s, the Property has been owned and operated by numerous parties and used exclusively for manufacturing, commercial, and industrial purposes. During the 1940s, the Property was leased by a manufacturer who produced machined precision parts for the United States military. That manufacturer allegedly cleaned and degreased the parts with trichloroethylene ("TCE")a toxic industrial solventand disposed of the TCE by dumping it onto the ground at the Property. As a result of this and other commercial activity that occurred over time at the Property, both the soil and groundwater became contaminated with various metals, petroleum...