974 F.3d 486
3rd Cir.2020Background
- The Combe Fill South Landfill Superfund Site in New Jersey was remediated under a USEPA–NJDEP cooperative agreement; USEPA incurred over $104 million and NJDEP about $24 million in response costs.
- Carter Day (operator/owner successor) settled with NJDEP in 1991 in bankruptcy, obtaining a court-approved release discharging "all liabilities to NJDEP" for the Site (the NJDEP Settlement); the USEPA was not a party.
- In 1998 the United States sued multiple PRPs; a 2009 global Consent Decree (not including Carter Day) allocated most recovery to USEPA; Compaction paid roughly $11 million (split between USEPA and NJDEP) and agreed to a $26 million contingent Consent Judgment.
- Compaction sued Carter Day for contribution under CERCLA §113(f) to recoup federal cleanup-related payments; the District Court granted Carter Day summary judgment, holding the NJDEP Settlement barred contribution suits covering the same "matters."
- Compaction and the United States appealed; the Third Circuit considered (1) whether the United States had Article III standing to appeal and (2) whether a state settlement (with NJDEP) bars contribution claims for federal response costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a PRP’s settlement with a State (NJDEP) bars contribution claims by other PRPs for federal response costs under CERCLA §113(f)(2) | Compaction/US: NJDEP Settlement only resolved Carter Day’s liability to NJDEP and therefore does not bar contribution claims for USEPA-incurred costs | Carter Day: §113(f)(2) contribution protection covers "matters addressed" by the settlement, which broadly referenced the Site and thus precludes contribution claims as to both State and Federal matters | The Third Circuit reversed: limit "matters addressed" to the sovereign party to the settlement; NJDEP Settlement does not bar contribution claims for federal liability incurred by USEPA |
| Whether the United States has Article III standing to appeal the District Court’s grant of summary judgment for Carter Day | US: it has a concrete financial stake because the Consent Judgment ties the Government’s recovery to Compaction’s contribution recoveries (and the ruling impedes US recovery) | Carter Day: US’s interest is contingent and speculative; government did not intervene in Carter Day bankruptcy or the NJDEP settlement | The Third Circuit held the US has standing: its financial interest is concrete, traceable, and redressable (the District Court’s ruling impedes the Government’s ability to recover under the Consent Judgment) |
Key Cases Cited
- CTS Corp. v. Waldburger, 573 U.S. 1 (2014) (stating CERCLA’s purpose to promote timely cleanups and allocate costs to responsible parties)
- United States v. Atlantic Research Corp., 551 U.S. 128 (2007) (discussing PRP contribution remedies under CERCLA amendments)
- In re Combustion Equip. Assocs., 838 F.2d 35 (2d Cir. 1988) (explaining CERCLA ripeness concerns and deferring liability disputes until remedial plans are set)
- Trinity Industries, Inc. v. Chicago Bridge & Iron Co., 735 F.3d 131 (3d Cir. 2013) (interpreting CERCLA settlement-language regarding who has "resolved" liability)
- Akzo Coatings, Inc. v. Aigner Corp., 30 F.3d 761 (7th Cir. 1994) (advising narrow interpretation of "matters addressed" when different sovereigns are involved)
- United States v. Charter Int’l Oil Co., 83 F.3d 510 (1st Cir. 1996) (on contribution protection and incentivizing settlements)
- United States v. Se. Pa. Transp. Auth., 235 F.3d 817 (3d Cir. 2000) (presuming settlements protect settlors from contribution for an entire site absent explicit language)
- Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016) (setting the Article III injury-in-fact standard)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992) (standing principles concerning concreteness and imminence)
