959 F.3d 491
2d Cir.2020Background
- Defendants Saint-Gobain (current owner) and Honeywell (past owner) operated a Hoosick Falls, NY manufacturing facility that used and disposed of perfluorooctanoic acid (PFOA), contaminating municipal and private wells.
- Testing showed very high PFOA concentrations (municipal up to 662 PPT, private up to 412 PPT, groundwater up to 18,000 PPT); EPA advised alternative water and issued a 70 PPT health advisory.
- Plaintiffs are Village residents who allege: elevated PFOA in their blood (increased future disease risk), contamination and loss of potable water, property-value diminution, and expenses for testing/remediation; they seek declarations, remediation, monitoring, damages, and medical monitoring.
- Defendants moved to dismiss under Fed. R. Civ. P. 12(b)(6), arguing New York law bars (a) personal-injury claims based only on asymptomatic toxic accumulation, (b) medical-monitoring awards absent physical injury, and (c) property/trespass/nuisance claims based solely on groundwater contamination or economic loss.
- The district court denied dismissal as to: (1) personal-injury claims based on measurable PFOA accumulation in blood, (2) property-owner negligence/strict-liability/trespass/nuisance claims where owners allege loss of potable water or special burden, and (3) medical monitoring tied to personal-injury claims; it also held medical monitoring might be available as consequential damages for property claims. The court certified the interlocutory questions under 28 U.S.C. § 1292(b).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether measurable elevated PFOA in blood (without symptoms) suffices to plead personal injury and entitlement to medical monitoring | Accumulation of toxin in blood is a present, clinically demonstrable physical injury that supports tort claims and consequential medical-monitoring relief | Caronia and New York law bar tort recovery or medical-monitoring relief absent disease or symptomatic injury | Court: Alleged measurable/observable presence of PFOA in blood meets Caronia/Abusio threshold for physical injury; personal-injury claims and medical-monitoring claims tied to those injuries may proceed |
| Whether medical monitoring can be awarded solely on basis of property damage (no personal injury) | Plaintiffs: Caronia permits medical monitoring as consequential damages where an existing tort (including property damage) is proven | Defendants: Caronia precludes medical-monitoring relief absent physical injury; awarding monitoring for property-only claims improperly expands tort liability | Court: New York law is unclear on medical monitoring solely for property damage; interlocutory review not ripe under §1292(b); appeal on this point dismissed as improvidently allowed |
| Whether negligence/strict liability claims can be based on groundwater contamination and diminution in home value | Plaintiffs: Contamination of potable water and remediation costs constitute property damage (not purely economic) and support negligence/strict-liability recovery | Defendants: Groundwater is not private property and 532 Madison limits recovery for purely economic loss (diminution) | Court: Denied dismissal — New York law permits property claims for contamination of potable water and remediation costs; diminution-in-value consequential to contamination is recoverable |
| Whether private well owners can maintain trespass and private nuisance claims | Private-well owners: contamination of private wells imposes a special, tangible burden (costs, point-of-entry treatment), supporting trespass and private nuisance | Defendants: Widespread contamination is a public nuisance for which only government or the Village has standing; private nuisance is unavailable when community water is affected | Court: Denied dismissal for private-well owners — contamination caused a special burden (cost/maintenance/repair) distinguishing them from community-wide public-nuisance claimants |
Key Cases Cited
- Caronia v. Philip Morris USA, Inc., 22 N.Y.3d 439 (N.Y. 2013) (rejecting an independent equitable medical-monitoring cause of action absent present physical injury or property damage; treats medical monitoring as consequential damages tied to existing torts)
- 532 Madison Ave. Gourmet Foods, Inc. v. Finlandia Ctr., Inc., 96 N.Y.2d 280 (N.Y. 2001) (limits recovery for purely economic losses; distinguishes public nuisance and private special injury)
- Schmidt v. Merchants Despatch Transp. Co., 270 N.Y. 287 (N.Y. 1936) (discusses accrual and consequential damages flowing from an initial invasion; historical foundation for medical-monitoring consequential-damages concept)
- Askey v. Occidental Chem. Corp., 102 A.D.2d 130 (App. Div. 4th Dep't 1984) (earlier Appellate Division recognition of medical monitoring as consequential damages for latent toxic injuries)
- Abusio v. Consolidated Edison Co., 238 A.D.2d 454 (App. Div. 2d Dep't 1997) (articulates the ‘‘clinically demonstrable presence of toxins in the body or indication of toxin-induced disease’’ test for medical-monitoring damages)
- In re Methyl Tertiary Butyl Ether (MTBE) Prod. Liab. Litig., 725 F.3d 65 (2d Cir. 2013) (applies New York law to uphold negligence recovery for remediation costs due to well contamination)