Whittaker Corporation v. United States
2016 U.S. App. LEXIS 10660
| 9th Cir. | 2016Background
- Whittaker Corporation owned and operated a former munitions facility (Bermite Site) where contamination occurred; most operations were military contracts.
- In 2000 Whittaker was sued by Castaic Lake Water Agency under CERCLA §107 and state tort law for perchlorate contamination of groundwater; the district court granted summary judgment for plaintiffs on the CERCLA claim.
- Whittaker settled the Castaic Lake claims in 2007, reimbursing plaintiffs for costs tied to removing perchlorate and purchasing replacement water; the settlement did not require Whittaker to clean the Bermite Site itself.
- In 2013 Whittaker sued the United States under CERCLA §107 seeking recovery of its own decades-long investigation and cleanup costs at the Bermite Site (soil, groundwater, sampling, remedial work), expressly excluding costs for which it had already been held liable or settled in Castaic Lake.
- The United States moved to dismiss, arguing Whittaker was limited to a §113 contribution action (and that contribution claims were time-barred) because the Castaic Lake litigation triggered Whittaker’s right to contribution; the district court granted dismissal.
- The Ninth Circuit reversed, holding Whittaker may pursue a §107 cost-recovery action for expenses not covered by the prior judgment or settlement, and was not required to seek contribution for those separate costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Whittaker must bring all site-related reimbursement claims as §113 contribution once it was sued in a §107 action | Whittaker: §107 cost recovery is available for its own costs that were not the subject of the prior suit or settlement | United States: once a §107 suit triggers §113, contribution covers all site costs and Whittaker is limited to §113 for everything | Court: Whittaker may bring §107 cost-recovery for expenses separate from those for which liability was established in Castaic Lake (reversed dismissal) |
| Whether the §113 contribution trigger in prior litigation starts contribution rights/statutes for unrelated site costs | Whittaker: contribution is limited to costs for which liability was established or resolved; other costs remain recoverable under §107 | United States: procedural trigger (being sued) converts all site costs into contribution claims subject to §113 | Court: contribution rights/statute are tied to the specific costs resolved or covered by the triggering judgment/settlement; separate costs may proceed under §107 |
Key Cases Cited
- United States v. Atlantic Research Corp., 551 U.S. 128 (distinguishing §107 cost recovery from §113 contribution; defining contribution in traditional tort terms)
- Kotrous v. Goss-Jewett Co. of N. Cal., 523 F.3d 924 (9th Cir.) (PRPs must proceed under §113(f) when statutory triggers apply for those costs)
- Bernstein v. Bankert, 733 F.3d 190 (7th Cir.) (permitting §107 recovery for costs not resolved by the triggering settlement; separate-cost analysis)
- NCR Corp. v. George A. Whiting Paper Co., 768 F.3d 682 (7th Cir.) (analyzing separate orders and when each triggers contribution)
- Agere Systems, Inc. v. Advanced Envtl. Tech. Corp., 602 F.3d 204 (3d Cir.) (allowing §107 recovery for costs not covered by prior §107 suit or settlement)
- Am. Cyanamid Co. v. Capuano, 381 F.3d 6 (1st Cir.) (statute-of-limitations and trigger analysis tied to costs in the specific judgment)
- ASARCO, LLC v. Celanese Chem. Co., 792 F.3d 1203 (9th Cir.) (separate obligations in settlements do not bar later contribution for different obligations)
