DNREC v. Grantham Lane Properties, LLC
N24C-01-164 FJJ
| Del. Super. Ct. | Mar 4, 2025Background
- The Delaware Department of Natural Resources and Environmental Control (DNREC) incurred cleanup costs following a reported 300-gallon diesel fuel spill at property owned by Grantham Lane Properties, LLC.
- DNREC brought action under the Delaware Hazardous Substance Cleanups Act (HSCA) to recover costs from the property owner, asserting strict liability.
- Grantham Lane Properties denied causation and raised a third-party defense, suggesting various tenants or other individuals may have caused the release.
- Both parties filed for summary judgment: DNREC on strict liability, Grantham Lane on lack of causation and applicability of third-party defense.
- The Superior Court reviewed the motions, focusing on whether DNREC had proved a release occurred and whether the defendant could invoke the third-party defense.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a release of a hazardous substance occurred | DNREC claimed a spill occurred | Grantham Lane argued DNREC offered no evidence a release actually occurred | Court found genuine issue of fact; DNREC failed to prove occurrence—motion denied |
| Strict liability of the property owner under HSCA | Owner strictly liable as statute dictates | Denial of causation; owner didn't cause or participate in release | Owner meets facility definition but strict liability not decided due to factual disputes |
| Applicability of third-party defense | Defendant failed to show release caused solely by third party | Defendant argued need only to raise plausible third parties, not prove identity | Defendant did not meet burden (must identify and prove third party caused release)—defense denied |
| Effect of contractual relationship on third-party defense | Without named third party, can’t address contractual bar | Defendant: Contractual relationship must be relevant to release, not just exist | Defendant must identify third party and show lack of contractual bar—court denied defense |
Key Cases Cited
- United States v. Monsanto Co., 858 F.2d 160 (4th Cir. 1988) (strict liability for owners under CERCLA regardless of their participation)
- New York v. Shore Realty Corp., 759 F.2d 1032 (2d Cir. 1985) (strict CERCLA liability for current facility owners, without regard to causation)
- Westwood Pharm., Inc. v. Nat'l Fuel Gas Distribution Corp., 964 F.2d 85 (2d Cir. 1992) (interpretation of contractual relationship bar for third-party defense)
- Morrison Enterprises v. McShares, Inc., 302 F.3d 1127 (10th Cir. 2002) (contractual relationships affect third-party defense applicability)