*1 input into the se- had substantial Petroelean clearly LEO, Tippins relied of the Estate Elaine Administratrix process,
lection Bekes, deceased, ultimately choosing M. Admin expertise special Catherine Prosequendum behalf of County. Ad Four istratrix deceased, Bekes, of Thomas the Estate fa- the CECOS first identified Petroelean Yoder, individually; Linda individu EAF dust cility disposal site as the ally to Tippins with subsequently contracted Later, after there. dispose of the waste disposal CECOS about discussions CHEMICAL CORPOR KERR-MCGEE ac- costs, learned CECOS Petroelean Corporation, TION, succes Delaware A a special dis- only packaged cepted waste Company to interest Welsbach “pro- bags Petroelean considered posal which Incandescent Gas Welsbach and/or thereafter hibitively” expensive. Petroelean Co., Lindsay Co., Light Ameri Chemical completed surveyed alternative landfills and Corp. and can and Chemical Potash disposal loca- possible applications for two Potash, Corpora an American Illinois tions, County. Af- Wayne Four Disposal and Improve tion; U.G.I., United Gas f/k/a disposal costs for the receiving estimated ter Pennsylvania Corpo Company, ment a sites, for- from those Petroelean EAF dust 1-20; ration; Robert Roes 1- Does John Tippins, information to the financial warded 1-20; 20; Corporation XYZ James Joes final upon it to make its selec- which relied 1-20; Rudd, corporation suc Rheem disposal facility.10 County tion Four City Investing Co., to cessor interest Although Petroelean did make fi- Rudd Division and Rudd Waterheater dispose of the at Four nal dust decision Manufacturing Company, Kerr-McGee substantially to and County, it contributed Corporation, Appellant. Chemical locating and sub- shared in that decision potential disposal 93-5730. mitting limited number of No. Tippins could More- from which select. sites Appeals, Court of United States over, Tip- from the it is evident record Third Circuit. upon
pins all relied Petroclean’s at times waste expertise in the field of hazardous Argued Aug. 1994. deciding appropriate management when Sept. Decided dispose EAF location to means facts, was far these Petroelean dust. On conduit of hazardous
more than mere
waste; rather, actively participated in the decision, such Petroelean
site selection working together, Four selected Tippins, Consequently,
County disposal site. under CERCLA
Petroelean liable 107(a)(4) transporter
§ selected as a which disposal facility. judgment district will be
affirmed. Region concerning complete Tippins State of and EPA also relied on Petroelean Indiana County, inquire Tippins and to whether landfill necessary receive an Four forms for number, protection. contact the had insurance EPA waste identification *2 Hagner Freeman, (argued),
Thomas J. Mintz, Hagner Deiches, Haddbnfield, NJ, & for appellee.
Peter (argued), J. Nickles Coleman S. Hicks, Meserve, Schulder, Richard A. Elliott Brown, M. Covington Burling, Caroline & DC, Washington, appellant. BEFORE: GREENBERG and STAPLETON, ATKINS, Judges, Circuit Judge.* District OPINION OF THE COURT GREENBERG, Judge. Circuit I. FACTUAL AND PROCEDURAL HISTORY following matter is before the court .This entry of our order on November granting defendant-appellant Kerr-McGee Corporation permission appeal Chemical 1292(b). § pursuant to 28 U.S.C. willWe deny- reverse the order of the district ing summary judg- Kerr-McGee’s motion for 8, 1993, September ment entered on and we will remand the matter to the district court entry summary judgment in its favor. and, largely dispute, The facts are not in event, any accept allegations plaintiffs-appellees Elaine Leo and Linda Yo- purposes appeal. prior der for From century continuing to the turn of the 20th Light until the Welsbach Incandescent Company operated factory maintained and * Atkins, da, Clyde designation. sitting by Honorable C. Senior United States Judge District for the District Southern of Flori- allege Yoder cancer. Leo and Jersey, for manufac- bladder City, New
in Gloucester
cancer
mantles,
parents contracted their bladder
process
turing incandescent
other waste
exposure to thorium and
monazite
extracting thorium from
involving
land.
deposited on the Welsbach
substances
generated toxic wastes
process
This
ores.
*3
by-products which
consisting of thorium
29, 1993,
January
Leo and Yoder filed
On
site,
factory
thus
on the
deposited
Welsbach
suit,
par-
individually,
of their
and on behalf
In
surrounding land.
contaminating the
estates,
Superior
of New
in the
ents’
competitor,
1940,
Illinois-based
Welsbach’s
and certain oth-
Jersey against Kerr-McGee
Company, pur-
Lindsay Light and Chemical
death, injuries,
to recover for
er defendants
In
gas mantle business.
chased Welsbach’s
arising from
potential
of cancer
and the
risk
out-
sale, Lindsay acquired Welsbach’s
exposure to thorium and other waste
formulas,
records,
orders,
raw ma-
standing
gas
generated in the Welsbach
substances
lists,
terials,
gas mantle
inventory, customer
deposited on the
operation and
Glou-
mantle
line,
to use the
right
production
and
City
germane
Leo
property. As
cester
However, Lindsay did
‘Welsbach” name.
liability on Kerr-
impose
seek to
and Yoder
land
acquire
the Gloucester
liability.1
theory
McGee on a
of strict
While
Rather,
gas
mantle
factory.
it moved
Kerr-
Yoder do not claim that
Leo and
in Illinois.
plant
business to its own
generated the waste which
McGee itself
they
injuries,
assert
caused the deaths and
acquisitions, Kerr-
Following a series of
by
acquisition
its
that it is liable
reason of
Lindsay, and it thus con-
McGee
gas mantle business. On March
in Lind- Welsbach’s
litigation it stands
cedes that in this
4, 1993,
removed
one of the other defendants
Accordingly, we will refer to
say’s shoes.
District Court
the case to the United States
Lindsay
simply as Kerr-
and Kerr-McGee
Jersey
the District of New
on the basis
a second line of
owned
McGee. Welsbach
diversity
citizenship.
it sold to Rheem Manufactur-
business which
successors,
Rheem’s
ing Company but
Subsequently,
filed a motion
action,
in this
though originally defendants
12(b)(6) on the
to dismiss under Fed.R.Civ.P.
from the case. Wels-
dismissed
have been
ground
complaint did not state a
in 1944.
bach was dissolved
may
granted inas-
claim on which relief
Yoder,
sisters,
owned the
1961,
much as Kerr-McGee never has
who are
In
Leo
factory.
City land and
Gloucester
parents,
and their
Thomas
Catherine
opinion
court treated the
Bekes,
bench
the district
to a home close to the former
moved
summary judgment
a motion for
factory in
motion as
Gloucester
site of the Welsbach
than the
it
material other
City,
now live else-
because
considered
though Leo and Yoder
5, 1988,
complaint
on the motion. The
submitted
Thomas
where. On December
Jersey
predicted
court then
the New
In March
died from bladder cancer.
Bekes
1991,
Supreme Court would extend
Department of Envi-
the New
corporate liability,
of successor
line doctrine
Protection notified Catherine
ronmental
Indus.,
explicated
as
in Ramirez Amsted
high
gamma
radiation
Bekes of the
levels
Inc.,
332,
(1981),
3,
86 N.J.
heightened by
fact that
omitted).
whereas
liability
im-
We could allow
to be
products
likely
are
trau
from defective
to be
posed
only
in
this case Kerr-McGee
we
obvious,
matic,
inju
immediately
and thus be
beyond
original
stretched Ramirez far
its
ry
exposure
may devel
from
to toxic wastes
and,
scope
light City
Philadelphia
in
of
of
period.
op over an extended
We also ob
Ass’n, Inc.,
Lead Indus.
not do that.
will
likely
serve that it would be more
that the
the' district court believed that
this
While
acquire
coverage
could
insurance
successor
holding,
case could come within the Ramirez
flowing
for the discrete risks
from
large part
in
it reached that conclusion be-
directly by
predecessor’s product
thought
it
traditional
cause of what
was “the
than for environmental risks from conditions
you
injured
view that
are
New
on real estate.
somebody ought to be liable for it.” But we
reject
approach.
While we
rationale, that it
fair
The third Ramirez
willing
apply
precedents
of the New
require
responsi-
a successor to assume
Jersey Supreme
Court
circumstances
bility
products
responsi-
defective
as
beyond
somewhat
the limits of
bility
necessarily
is a burden
attached to the
cases,
recognized in extant
we will
court has
predecessor’s
acquisition
successor’s
Ramirez in the circumstances
will,
application in this
good
has no
case.
beyond
which are far
the limits of that case.
good
The
will that Kerr-McGee
parties in
closing,
we note that the
from Welsbaeh was attached to
mantles,
involving liability
acquired, gas
rather than to briefs discuss cases
of suc-
Indus,
course,
length
period depends
recognize
person-
8. We
that T & E
is not a
7. Of
of
injury
al
demonstrate how it is
quences
case. Nevertheless we cite the case to
type
example,
ma-
involved.
possible
that the conse-
chinery might
longer
automobiles.
last
than
disposal may
of chemical
endure for a
long
very
period.
Jersey’s
Development
New
A. The
property and
contaminated
acquiring
cessors
Line” Doctrine
arising
“Product
involving liabilities
other cases
real estate.
and activities on
ownership of
plain-
the district court denied the
When
Indus.,
Safety Light
Inc. v.
See,
E
e.g., T &
Summary Judgment,
it re-
tiffs’ Motion for
1249;
Jersey,
New
State
A.2d
Corp., 587
defining
present
string of cases
lied on a
v. Ventron
Protection
Envtl.
Dep’t
theory
corpora-
of successor
“product line”
(1983).
have
A.2d 150
We
94 N.J.
From
liability for strict
torts.
tion
not discuss
but do
cases
these
examined
opinions,
dis-
these
the trend formed
tangential
only
them,
have
the most
“predicted” how the
trict court
light
of the fact
this case
relationship to
present
rule under the
would
owned,
or
never
controlled
that Kerr-McGee
district court
factual circumstances.
on the Gloucester
engaged
activities
product line doctrine
succes-
held that the
property.
liability originally adopted in Ramirez v.
Industries,
Inc.,
Amsted
III. CONCLUSION
(1981),
applied
should be
to include
A.2d 811
predecessor corpora-
September
where a
the order of
circumstances
reverse
We will
improperly disposed of toxic manufactur-
tion
remand
matter
factory
and then
summary judg-
ing by-products on its
site
entry
aof
court for
district
patented process,
sold
entire
Kerr-McGee.
favor of
ment in
will, inventory,
trade
sales records and
specially
ATKINS,
Judge,
itself,
District
name,
factory
Senior
not the
site
but
concurring:
corporation which continues the
manufacturing process at
site.
same
different
fact,
not reflect the
record does
While
dealing
Upon
of the line of cases
review
judicial
proce-
notice of
judge takes
theory
corpo-
“product line”
of successor
Supreme Courts
dure,
by 44 of the
adopted
cases,
I
products
rate
courts,
appellate
final state
comparable
or
the district court was correct
believe that
appellate
to submit
courts
permitting federal
determining
that the New
courts, in-
by such
questions for resolution
apply the strict
doctrine
Court would
remain
law issues that
volving
common
state
liability environmental
under
to a strict
tort
cries
for deci-
procedure
out
“open.” Such
circumstances.
these factual
judice. The issue
appeal sub
sion
*7
Analysis
majority opinion
clearly B.
concerns,
so
demonstrates,
this
should hold
whether
corporate
not a
the
This is
case where
degrada-
for
entity liable
environmental
an
purchases
of the land that
some
engrandizement
for commercial
tion of land
and then con
predecessor
the
contaminated
degrada-
obviously profited from such
after it
land.
separate
tinued a
business
tion,
was not
though acquisition of land
even
Therefore,
Dept.
Environmental
State
of
purchase. This salu-
part
product
line
of
N.J.Super.
Corp.,
151
Protection
Exxon
procedure
avoids
tary certification
(Ch.Div.1977),
464,
is distin
Here, sively for and Kerr-McGee upon called to we are decide essentially facts, predecessors undertook the same under new set of Welsbach, manufacturing operation Kerr- issue it has of would decide an strictly injuries liable for upon to Our McGee should called consider. never been by by in units or by Jersey’s fail- defects waste problem complicated New is prod of the same procedure per- production those units a certification provide ure to of line, previously uct manufactured proper voice even mitting it to have a needed Ramirez, 431 See law of its Welsbach. development in the distributed common A.2d at 825. state.
103
(1981),
Ray
Corp.,
policies
gauge
injury
v. Alad
was able “to
The
risks of
Cal.Rptr.
removal final prevent resolution a sword
used as example, where a defen-
a state claim. highest court the state’s
dant realizes circum- specific factual on their
has not ruled
stance, developed a doctrine has but defendant, then be adverse assuredly most remove will
defendant that, knowing appeal, court
case to federal summary judg- grant court circuit Phila- favor based on
ment create an atmo- The result will delphia. rights will be vindi-
sphere state never where proceed to their cases will
cated and conclusion.
ultimate join reluctantly, I the ma-
Accordingly and remanding this matter to the district
jority summary entry judgment
favor of Kerr-McGee. CO., a New DEVELOPMENT
FISHER Partnership Limited
v. CORPORATION; CASCADE
BOISE Industries, Keystone
Chesapeake Inc.; Company; Reliance Universal
Millwork severally jointly
Chemicals,
the alternative. CORPORATION, CASCADE
BOISE
Defendant/Third-Party Plaintiff COMPANY, PRODUCTS
PACIFIC WOOD P.W.P.; Plywood Panels, Davidson
a/k/a Inc., Third-Party Defendants. Development Co., Appellant.
Fisher *9 93-5163.
No. Appeals, Court of
United States
Third Circuit.
Argued Nov. Sept.
Decided
