Lead Opinion
The court-delivered a PER CURIAM opinion. BOGGS, J. (pp. 613-615), delivered a separate opinion concurring in part and dissenting in part.
Donald and Maxine Davis brought this action under the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6972(a)(1)(B), against Sun Oil Co. (“Sun”). In Davis v. Sun Oil Co.,
I
The facts of this case may be found in detail in Davis I and Davis II, as well as in Davis v. Sun Refining and Marketing Co.,
After Sun largely failed to do so, the Davises sued Sun in state court in May 1991, alleging nuisance, breach of contract, and fraud.
Meanwhile, in October of 1993, the Davises brought this RCRA action in federal district court, alleging that Sun, by leaving gasoline buried in the property, had “contributed to and caused the disposal of solid or hazardous waste on the property which may present an imminent and substantial endangerment to health or environment,” in violation of RCRA, 42 U.S.C. § 6972(a)(1)(B). The court held a pretrial conference and, in July of 1994, issued the first of a series of orders staying proceedings pending the resolution of the litigation in state court, and requesting timely status reports with respect to the other action pending.
II
In July, 1995, the Davises moved for summary judgment. They argued that
the essential factual elements of a claim under 42 U.S.C. § 6972 have been finally determined by the Court of Common Pleas of Cuyahoga County, Ohio ... [which] specifically found that the contamination indicated “high levels of benzene, toluene, eth*609 yl benzene and xylenes (together called ‘BTEX’), lead and PHC. The PHC levels exceeded the State’s guidelines.” ... The several findings of high levels of benzene necessarily determines that there may be an imminent and substantial endangerment. See 40 C.F.R.. §§ 141.32 and 141.50(a). Thus, through the principles of collateral estoppel, Defendant Sun is now estopped from contesting the findings of the Court of Common Pleas.... Under Ohio law, those issues are determined and are entitled to preclusive effect. 28 U.S.C. § 1738 requires that the Court give them the same preclusive effect. Marrese v. American Academy of Orthopaedic Surgeons,470 U.S. 373 ,105 S.Ct. 1327 ,84 L.Ed.2d 274 (1985); Migra v. Warren City School Bd.,465 U.S. 75 ,104 S.Ct. 892 ,79 L.Ed.2d 56 (1984); Kremer v. Chemical Constr. Corp.,456 U.S. 461 , 481-82,102 S.Ct. 1883 ,72 L.Ed.2d 262 (1982).
The district court rejected the Davises’ argument, correctly observing that the precise issue of whether the contamination “may present an imminent and substantial endangerment to health or the environment” had never been actually litigated and determined by the state court. Therefore, the issue was not precluded from further litigation.
Further, the court held that summary judgment was inappropriate because there was a genuine issue of material fact as to whether the contamination “may present an imminent and substantial endangerment.” The Davises and Sun each presented affidavits by consulting engineers, who, after evaluating the same environmental assessments that had been submitted as evidence in state court reached — unsurprisingly—opposite conclusions on this question. As the court observed, “[tjhis disagreement by the experts retained by each of the parties, would appear to create a genuine issue of material fact as to the ultimate legal issue in this case.” Id. at 1082.
The court also rejected the Davises’ attempted use of the Environmental Protection Agency regulations cited in their brief to establish a standard for the level of contamination that might, as a matter of law, “present an imminent and substantial danger.” The district court" noted that the cited EPA regulations pertain to contamination levels in drinking water, not in soil, and observed:
There is simply no evidence as to either the precise quantity of gasoline which remains in the soil; whether this seepage either currently has an effect on the drinking water, or is likely to have such an effect; or what the magnitude of such an effect might be, in regard to health or the environment. Although this Court could speculate on these issues, such speculation would not provide a proper basis for summary judgment.
RCRA is á remedial measure that courts have tended to construe and apply in a liberal, though not unbridled, manner. The Second Circuit has discussed the statute as follows:
When congress enacted RCRA in 1976, it sought to close “the last remaining loophole in environmental law, that of unregulated land disposal of discarded materials and hazardous wastes.” ■ RCRA’s waste management requirements for disposal facilities are designed not only to prevent, but also to mitigate endangermehts to public health and the environment.
Significantly, congress used' the word “may” to preface the standard of liability: “present an imminent and substantial endangerment to health or the environment”. This is “expansive language”, which is “intended, to confer upon the courts the authority to grant affirmative equitable relief to the extent necessary to eliminate any risk posed by toxic wastes.”
The statute is “basically a prospective act designed to prevent improper disposal of hazardous wastes in the future”. It is*610 not specifically limited to emergency-type situations. A finding of “immanency” does not require a showing that actual harm will occur immediately so long as the risk of threatened harm is present: “An ‘imminent hazard’ may be declared at any point in a chain of events which may ultimately result in harm to the public.” Imminence refers “to the nature of the threat rather than identification of the time when the endangerment initially arose.”
In addition, a finding that an activity may present an imminent and substantial endangerment does not require actual harm. Courts have consistently held that “endangerment” means a threatened or potential harm and does not require proof of actual harm.
Dague v. City of Burlington,
In keeping with the language recited in Dague, courts might in some eases be justified in holding, as a matter of law, that a certain degree of hazardous waste at a particular site “may present an imminent and substantial endangerment.” They could do so where the specific circumstances of the disposal site presented such large and unmitigated hazards (such as the amount and type of waste, combined with its proximity to the public) that “reasonable minds could not differ as to the import of the evidence.” See Anderson v. Liberty Lobby,
Ill
The district court next addressed Sun’s claim that the doctrine of res judicata prevents the Davises from maintaining this federal action. In its cross-motion for summary judgment, Sun argued that “Plaintiffs have obtained the only relief they are entitled to under 42 U.S.C. § 6972 by the decision and order in plaintiffs’ parallel state cause of action. By the application of the common law doctrine of res judicata, plaintiffs cannot maintain the present action having obtained the same relief in state court.”
Any person who violates any requirement of this subehapter shall be liable to the United States for a civil penalty in an amount not to exceed $25,000 for each such violation. Each day of such violation shall, for purposes of this subsection, constitute a separate violation.
Initially, the district court rejected Sun’s argument that the Davises could not enforce the civil penalty provision as a private party. Indeed, civil penalties payable to the United States may be awarded in a citizen suit brought under § 6972(a). See Clorox Co. v. Chromium Corp.,
The district court then noted Sun’s argument that the Davises could not maintain the federal action under the doctrine of res judi-cata, because they had obtained in state court all the relief the district court could have given them in the federal litigation. The court declined to address that claim specifically, however, because it found that even if the Davises had not obtained all such relief in state court, Ohio’s laws on claim preclusion prevented.the Davises from maintaining the federal action.
The district court relied on Stuhlreyer v. Armco, Inc., 12 F.3d 75 (6th Cir.1993), as an accurate statement of Ohio’s law on claim preclusion:
State judicial proceedings are entitled to the same preclusive effect in federal court as they would receive in the judgment-rendering state____ In Ohio, “ ‘[t]he doctrine of res judicata is that an existing final judgment rendered upon the merits, without fraud or collusion, by a court of competent jurisdiction, is conclusive of rights, questions and facts in issue, as to the parties and their privies, in all other actions in. the same or any other judicial tribunal of concurrent jurisdiction.’ ” ... This includes all claims which were or might have been litigated in the first lawsuit. ... Thus, under Ohio law, claim preclusion requires that the rendering court possess subject matter jurisdiction over the original claim.
Stuhlreyer,
The district court recognized that Tafflin v. Levitt,
In the instant case, we find that the citizen suit provision of the RCRA does not expressly provide for exclusive jurisdiction.
The dissent is of the view that, even if jurisdiction is concurrent, Sun may not rely on a res judicata defense because it acquiesced in the claim-splitting. We disagree. Sun gave notice to the plaintiffs that it would rely on the defense of res judicata in its answer, which specifically states that Sun is relying upon the doctrine of res judicata as a defense. The district court relied upon that pleading and held the doctrine of res judica-ta applicable as a defense, and the court did not err in holding that the doctrine applies. Therefore, the proper application of the doctrine precludes this action in federal court. We conclude, moreover, that the defense was not waived in the district court. Having stated in its answer that “Plaintiffs’ claims are barred by the doctrine of res judicata,” defendant may rely on this defense and we find no error in the district court’s determination.
We join with the dissent that ¶ 26 of the Restatement of Judgments adopted in Grava v. Parkman Township,
We are mindful, as the dissent points out, that the defense of res judicata can mean several things. The district court relied on the “other action pending” facet of the res judicata doctrine in finding that this federal suit was barred. It is unfortunate that the district court did not earlier rule on the issue, at a time when the Davises could have had the opportunity to amend their state-court action to add the RCRA suit if they so desired. But we are of the view that Sun properly asserted the defense in its answer, and that the district court was warranted in addressing all aspects of the res judicata claim.
Accordingly, we AFFIRM the denial of plaintiffs’ motion for summary judgment and the granting of defendant’s motion, and entry of judgment for the defendant.
Notes
. The complaint in state court originally included a claims for violations of federal law, which were eliminated in an amended complaint. No specific statutory basis was stated for the federal allegations, and we do not know why the Davises dropped them from the lawsuit.
. Although the judgment of the Ohio court did not settle as a matter of law the issue of RCRA liability, we hold that other facts and issues actually and necessarily litigated and determined by the Ohio court are precluded from relitigation, in accordance with Ohio’s law of issue preclusion. See Whitehead v. General Tel. Co.,
. In Meghrig v. KFC Western, Inc.,
. It would be possible to reformulate Sun's theory as a challenge to the Davises’ standing to bring their RCRA action — specifically, as an assertion that the Davises fail to meet the "remedial benefit” requirement of standing. See Warth v. Seldin,
Alternatively, Sun's argument could be viewed as expressing the facet of the mootness doctrine under which it may be held that ”[i]f full relief is accorded by another tribunal, a proceeding seeking the same relief is moot...." See 13A Wright & Miller § 3533.2 & n. 28 (citing cases). Where substantial civil penalties might be assessed against Sun, the case is clearly not moot.
. The Davises do not argue that the statutory scheme of the RCRA would plainly be disrupted by the exercise of state-court jurisdiction. See Holmes,
Concurrence Opinion
concurring in part and dissenting in part.
I concur in parts I and II of the court’s opinion in this case. I dissent from the holding in part III that Sun Oil’s general invocation of “res judicata” in its amended answer suffices to overcome Sun’s acquiescence in the maintenance by Davis of concurrent actions in state court and federal court.
Section 24 of the Restatement of Judgments (2d) (1982), which articulates the rule against claim-splitting, provides that it is subject to the exceptions described in § 26. Consequently, when the Ohio Supreme Court “expressly adherefd] to the modern application of the doctrine of res judicata ” found in §§ 24-25, see Grava v. Parkman Township,
EXCEPTIONS TO THE GENERAL RULE CONCERNING SPLITTING
(1) When any of the following circumstances exists, the general rule of § 24 does not apply to extinguish the claim, and part or all of the claim subsists as a possible basis for a second action by the plaintiff against the defendant:
(a) The parties have agreed in terms or in effect that the plaintiff may split his claim, or the defendant' has acquiesced therein....
The accompanying comment states in part:
A main purpose of the general rule stated in § 24 is to protect the defendant from being harassed by repetitive actions based on the same claim. The rule is thus not applicable where the defendant consents, in express words or otherwise, to the splitting of the claim____ Where the plaintiff is simultaneously maintaining separate actions based upon parts of the same claim, and in neither action does the defendant make the objection that another action is pending based on the same claim, judgment in one of the actions does not preclude the plaintiff from proceeding and obtaining judgment in the other action. The failure of the defendant to object to the splitting of the plaintiffs claim is effective as an acquiescence in the splitting of the claim.
Sun filed an amended answer to the Davises’ RCRA suit on March 22, 1994, asserting, among other defenses, that “Plaintiff’s claims are barred by the doctrine of waiver,” and “Plaintiffs claims are barred by the doctrine of res judicata.” The question arises whether this was an objection, or a sufficient one, to the Davises’ claim-splitting. I conclude that it was not, and that Sun thereby in effect acquiesced in the bringing of the federal action. See, e.g., In re Super Van Inc.,
Conceivably the mention of waiver suggests that the Davises waived their opportunity to bring the RCRA claim in state court, but that is a speculation never borne out in Sun’s briefs below. As for the defense of res judicata, it is true that claim-splitting falls under that broad heading. But Sun’s brief below suggests that by claiming this defense,
I note, too, the boiler-plate nature of Sun’s amended answer. Here it is useful to look to the rules pertaining to the pleading of affirmative defenses. I recognize, of course, that Fed R. Civ. P. 8(e) provides that “[n]o technical forms of pleadings or motions are required.” But requiring an affirmative defense to be stated in an intelligible manner is not a mere formalism. While the rule against splitting claims is essential to the repose to which defendants are ultimately entitled, it must be applied fairly to plaintiffs, as well. An essential aspect of that fairness is adequate notice of the nature of the affirmative defense. “Res judicata and collateral estoppel are affirmative defenses that must be pleaded---- The purpose of such pleadings is to give the opposing party notice of the plea of estoppel and a chance to argue, if he can, why the imposition of an estoppel would be inappropriate.” Blonder-Tongue Labs., Inc. v. University of Ill. Found,.,
In short, I do not think that Sun’s cloudy answer sufficed — if such was its intent at all — to put the Davises on fair notice that Sun objected to the Davises’ maintenance of separate state and federal actions. A useful comparison can be found in Diversified Foods, Inc. v. First Nat’l Bank of Boston,
The prejudice to the Davises is obvious. If they had perceived such an objection, then they could have repaired to state court before the entry of judgment, seeking to amend their complaint to include a RCRA count. Or they could have asked the district court to strike the defense, and mustered arguments at. that time in favor of exclusive federal jurisdiction.
The difficulty for the Davises was compounded by the fact that no court, so far as I can tell, had ever held that RCRA cases could be brought in state court, and that numerous courts had either held or assumed that jurisdiction was exclusively federal.
Thus, I would hold that the Davises’ RCRA suit was not barred by the application of Ohio’s rule against claim-splitting, and may proceed, I therefore respectfully dissent.
. This court has had occasion to comment on the confusion caused by the use of the broad term "res judicata,” and to "express our hope that future litigants, in the interests of precision and clarity, will formulate arguments which refer solely to issue or claim preclusion and which refrain from using the predecessors of those terms, whose meanings have become so convoluted.” Barnes v. McDowell,
. See Middlesex County Bd. of Chosen Freeholders v. New Jersey,
The Eighth Circuit has flatly stated that “RCRA places exclusive jurisdiction in federal courts for suits brought pursuant to section 6972(a)(1)....” Blue Legs v. Bureau of Indian Affairs,
