600 F. App'x 357
6th Cir.2015Background
- The LWD incinerator Superfund site in Calvert City, KY required EPA-ordered removal activities; EPA entered an Administrative Settlement Agreement and Order on Consent for Removal Action with 58 potentially responsible parties on March 1, 2007.
- The LWD PRP Group (plaintiff) is an association of some settling PRPs that performed removal work under the Settlement Agreement; EPA issued a notice of completion on September 29, 2009.
- Plaintiff filed suit on August 31, 2012 asserting, inter alia, contribution claims under CERCLA § 113(f) for costs incurred under the Settlement Agreement.
- Defendants moved to dismiss the § 113(f) contribution claims as time-barred, arguing the three-year contribution statute of limitations began on the settlement’s effective date (March 1, 2007); plaintiff argued the limitations period began on the removal completion date (September 29, 2009).
- The district court sided with plaintiff (limitations run from completion), denied dismissal and certified the issue for interlocutory appeal; the Sixth Circuit reversed based on its intervening precedent in Hobart.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does the 3-year § 113(f) contribution limitations period start for claims arising from an administrative settlement that resolved liability? | Limitations run from completion of the removal action (so plaintiff's claims timely). | Limitations run from the settlement’s effective date (so claims untimely). | The court held the 3-year limitations period runs from the settlement’s effective date; reversed district court dismissal denial. |
Key Cases Cited
- Hobart Corp. v. Waste Mgmt. of Ohio, Inc., 758 F.3d 757 (6th Cir. 2014) (held § 113(g)(3) three-year contribution limitation applies to contribution claims after administrative settlements and the clock runs from the settlement effective date)
- RSR Corp. v. Commercial Metals Co., 496 F.3d 552 (6th Cir. 2007) (supports application of § 113(g)(3) limitations to contribution claims following settlements that resolve liability)
- Atl. Research Corp. v. United States, 551 U.S. 128 (2007) (recognized, without deciding, potential overlap between § 107 cost-recovery and § 113(f) contribution remedies)
- ITT Indus. v. BorgWarner, Inc., 506 F.3d 452 (6th Cir. 2007) (addressed whether § 122(a) settlements can support § 113(f) contribution claims; discussed in Hobart and distinguished where settlements resolve liability)