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United States v. General Electric Co.
670 F.3d 377
1st Cir.
2012
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Background

  • 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)
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Case Details

Case Name: United States v. General Electric Co.
Court Name: Court of Appeals for the First Circuit
Date Published: Feb 29, 2012
Citation: 670 F.3d 377
Docket Number: 11-1034
Court Abbreviation: 1st Cir.