United States v. General Electric Co.
670 F.3d 377
1st Cir.2012Background
- GE manufactured scrap Pyranol (PCB-containing) and stored it in drums in scrap areas; Fletcher purchased scrap Pyranol for use as a plasticizer in paints.
- From approximately 1953–1967, Fletcher bought over 200,000 gallons of GE’s scrap Pyranol; shipments were sent to the Fletcher Site via trucks and third-party haulers.
- In 1966–1967 shipments surged; Fletcher began delinquent payments, yet GE continued deliveries through November 1967.
- In early 1968 Fletcher claimed deteriorating quality and proposed a disposal plan; GE did not follow up, effectively ending the GE–Fletcher relationship.
- EPA identified drums of scrap Pyranol and other chemicals at the Fletcher Site in 1987; the site was listed as a Superfund site in 1989.
- In 1991 the United States sued GE for CERCLA liability; a 1994 consent decree resolved costs through 1993 while reserving future claims; this case began in 2006.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether GE is an arranger under CERCLA §9607(a)(3). | U.S. contends GE deliberately disposed of waste via Fletcher. | GE argues absence of sufficient intent; the arrangement was a sale of a useful product. | GE liable as arranger under §9607(a)(3). |
| Whether the 1993 and 1995 Removal Actions costs are timely under §9613(g)(2). | Costs qualify as a subsequent action; 1991 action was initial. | The instant suit is not a subsequent action because no prior declaratory judgment on liability. | The instant suit is a subsequent action; 1991 action was initial; costs are timely. |
Key Cases Cited
- Burlington Northern & Santa Fe Ry. Co. v. United States, 556 U.S. 599 (2009) (arranger liability requires intent to dispose; includes less clear permutations)
- Cello-Foil Prods., Inc. v. United States, 100 F.3d 1227 (6th Cir. 1996) (intent and 'arrangement' inform liability under §9607(a)(3))
- Freeman v. Glaxo Wellcome, Inc., 189 F.3d 160 (2d Cir. 1999) (useful product doctrine limits arranger liability)
- Team Enters., LLC v. Western Real Estate Trust, 647 F.3d 901 (9th Cir. 2011) (distinguishes indifference from intent in 'useful product' contexts)
- Navistar Int'l Transp. Corp., 152 F.3d 702 (7th Cir. 1998) (interpretation of §9613(g)(2) as a mechanism to manage litigation)
- Findett, 220 F.3d 842 (8th Cir. 2000) (rejects prerequisite declaratory judgment for 'initial action')
- Am. Cyanamid Co. v. Capuano, 381 F.3d 6 (1st Cir. 2004) (CERCLA liability framework and cleanup costs)
- Dedham Water Co. v. Cumberland Farms Dairy, Inc., 805 F.2d 1074 (1st Cir. 1986) (CERCLA cost allocation principles)
- United States v. Davis, 261 F.3d 1 (1st Cir. 2001) (strict liability framework under CERCLA)
