MEMORANDUM OPINION AND ORDER
Plaintiff Soo Line Railroad Company (“Soo Line”) sues three entities who previously leased a portion of its railroad yard, Tang Industries, Inc. (“Tang”), Cometco Corporation (“Cometco”) and Cozzi Iron & Metal, Inc. (“Cozzi”), for contribution and response costs recovery under the Comprehensive Environmental Response, Compensation and Liability Act of 1990 (“CERCLA”), as amended, 42 U.S.C. § 9601 et seq. (1990) and violations of state law. Defendant Tang moves to dismiss all portions of plaintiffs complaint concerning its liability.
BACKGROUND
Plaintiffs allegations, accepted as true on a motion to dismiss,
Antonelli v. Sheahan,
On November 3, 1982, SPCS’ tenancy ended when Cometco bought certain SPCS assets and SPCS assigned all its rights under its last effective lease agreement with Soo Line to Cometco. On the same date, Comet-co and Soo Line entered into a written lease agreement, providing Cometco with exclusive rights to the Site. The Cometco lease also provides that Site should be used as a scrap material storage yard. Cometeo operated a scrap yard on the Site for approximately five years. According to plaintiff, Cometco’s operation of the Site resulted in at least one or more of the following substances being brought onto or generated at the Site: oil and hydraulic fluids, fuel oil, diesel fuel, gasoline, lubricants, hydraulic fluids containing PCBs, used batteries, scrap plastic and metal, toxic metal, paints, antifreeze and various solvents. Prior to the termination of the Cometco lease, on October 23,1986, Soo Line requested that Cometeo restore and clean the contaminated media caused by its scrap yard operations. Cometco responded that it would comply with Soo Line’s demand. In February, 1987, Soo Line terminated the Cometco lease agreement.
Once Cometeo vacated the Site in the Spring of 1987, Soo Line retained an environmental engineering firm to perform a preliminary Site contamination assessment of the railroad yard. The assessment showed that the Site was contaminated with hazardous substances and recommended that additional testing be performed and a work plan of remediation be undertaken at the Site. Plaintiff, in a letter dated July 8, 1987, demanded that Cometco indemnify Soo Line for the cost of the work to be done at the facility. By letter dated July 17, 1987, Cometco denied legal responsibility for the costs of the response action.
Plaintiffs amended complaint alleges that from 1987 to 1997, Soo Line paid out over $200,000 to environmental engineering firms for the performance of response action aetivi *893 ties pursuant to and consistent with the Environmental Protection Agency’s National Contingency Plan (“NCP”) and other similarly related Illinois environmental protection guidelines and programs. The Site’s groundwater and soils are contaminated with semi-volatile and volatile organic compounds (poly-nuclear aromatic hydrocarbons, phthlates, benzene and xylenes, total petroleum),- total petroleum hydrocarbons (such as gasoline and diesel fuel), PCBs, and heavy metals. Hazardous substances were also found on the properties adjacent to the Site.
On July 10, 1996, Soo Line sold the Site to the Regional Transportation Authority, d/b/a Metra Commuter Rail System (“Metra”). Prior to the sale of the railroad yard, Metra incurred response costs consistent with the NCP. As a condition of the sale, Soo Line was required to deposit $2,100,000 in an environmental escrow to compensate Metra for the costs incurred in removing the contaminants from the Site and other response activities. Soo Line alleges that it continues to incur costs associated with the cleanup of the Site.
In moving to dismiss, defendant Tang attacks virtually every aspect of plaintiffs amended complaint. For the foregoing reasons, defendant’s motion is granted in part and denied in part.
ANALYSIS
In ruling on Tang’s motion to dismiss, the court adheres to the familiar standard of viewing the complaint in the light most favorable to plaintiff. Consequently, the court accepts all well-pleaded allegations as true and draws all reasonable inferences in favor of the plaintiff.
Antonelli,
Potentially Responsible Party under CERCLA § 107
CERCLA creates two different causes of action by which parties can recoup costs associated with environmental cleanups. The first, § 107(a) provides a direct cost recovery-action against potentially responsible parties (“PRPs”), or persons who are liable because they fall into one of four categories: (1) the owner or operator of the facility; (2) any person who owned or operated the facility at the time of disposal of any hazardous substance; (3) any person, who by contract, agreement, or otherwise, arranged for the disposal or treatment of hazardous substances owned or possessed by that person; and (4) any person who accepted any hazardous substances for transport to disposal or treatment facilities. CERCLA § 107(a), 42 U .S.C. §§ 9607(a)(l-4). Under § 107(a), PRPs are strictly and jointly and severally liable if there was a release or threat of a release of a hazardous substance at a facility and a person incurred necessary response costs consistent with the national contingency plan. Id. The other mechanism by which parties can recoup costs is § 113, which provides that “[a]ny person may seek contribution from any other person who is liable or potentially liable.” CERCLA § 113, 42 U.S.C. § 9613(f)(1).
In Count VI, plaintiff seeks relief against Tang pursuant to § 107(a) of CERCLA. Tang responds that plaintiffs § 107(a) claim fails as a matter of law because plaintiff, itself, is a potentially responsible party (“PRP”), and, therefore, cannot recover under § 107. According to Tang, plaintiffs only remedy is an action for contribution under § 113 of CERCLA.
Generally, parties who are themselves liable are barred from suing directly under § 107(a)
Akzo Coatings, Inc. v. Aigner Corp.,
However, in
Akzo,
the Seventh Circuit hypothesized that an innocent PRP, such as a “landowner forced to clean up hazardous materials that a third party spilled onto its property” may maintain a cost recovery action under § 107(a).
Consequently, the key question is whether Soo Line is an “innocent landowner” so as to permit it to maintain a suit for direct response costs under § 107(a). Soo Line argues that it falls squarely within the Akzo exception.. Soo Line contends that the allegations in the complaint, which provide that the Site was generally unused until it was leased to SPCS in 1952 and that it has remained vacant since Cometco’s lease expired in 1987, demonstrate that Soo Line could not have polluted the Site. Comp. ¶¶ 9,17.
Defendant, however, attempts to distinguish Rumpke from the present case. Tang argues that unlike the plaintiff in Rumpke, who purchased land, without any knowledge of its contamination,- Soo Line must have known that the recycling scrap industry involved the potential for environmental pollution, and leased the yard knowing that it may be contaminated.
To begin, in
AM Int’l, Inc. v. Datacard Corp.,
Furthermore, it is unclear from the allegations of the complaint, whether plaintiff knew that its tenants were disposing hazardous substances on its land, so as to make it ineligible for the innocent landowner exception. Contrary to defendant’s argument, Soo Line’s knowledge of the contamination cannot be inferred from the fact that Soo Line was aware that the land was being utilized as a scrap yard. Such a presumption relies on the overbroad assumption that every scrap yard operation emits hazardous substances into the environment. Consequently, plaintiffs knowledge of its tenants, emissions of hazardous substances on the land is an open question of fact, and, as such, inappropriate for resolution at this juncture.
Neither is the court persuaded by defendant’s argument that the allegations of the complaint demonstrate that Soo Line “arranged for the disposal or treatment of hazardous substances” so as to subject itself to liability under § 107(a)(3). To find Soo Line liable under § 107(a)(3), the court must be able to “infer from all the circumstances that a transaction in fact involves an arrangement for the disposal [or treatment] of a hazardous substance.”
Cadillac Fairview/California Inc., v. United States,
*895
Finally, defendant states that even if the innocent landowner exception is applied, plaintiff has not specifically alleged, in the complaint that it never polluted the Site. Defendant correctly points out that the Seventh Circuit stated in
Rumpke
that it must be alleged in the complaint that plaintiff did not pollute the Site.
Rumpke,
The court concludes that, if plaintiff amends its complaint, it may proceed under § 107. However, as the case progresses, if the facts reveal that plaintiff was partially responsible for the pollution, its § 107 claim will be stricken, and it will have to proceed exclusively under § 113.
See Rumpke,
Response Costs
To establish a prima facie case under CERCLA, plaintiff must show that it has incurred “necessary response costs consistent with the national contingency plan.” CERCLA § 107(a)(4)(B), 42 U.S.C. § 9607(a)(4)(B). Defendant argues that plaintiff has run afoul of this requirement. Tang points out that plaintiff has only spent money to investigate the contamination of the Site and that these expenditures do not qualify as “necessary.” Tang further maintains that plaintiffs complaint merely speculates that Soo Line will have to pay response costs in the future, but does not allege that plaintiff is currently paying for a clean-up. However, § 107(a)(2)(B) allows recovery of “costs of response,” which includes the costs of “such actions as may be necessary-to monitor, assess and evaluate the release or threat of release of hazardous substances.”
See
CERCLA ' §§ 101(23), 101(25), 42 U.S.C. §§ 9601(23), 9601(25). Therefore, contrary to defendant’s argument, plaintiff’s costs paid to consultants to evaluate the Site and develop a plan of remedial action constitute investigation and testing costs cognizable under CERCLA irrespective of whether plaintiff has incurred actual clean-up costs.
See Wickland Oil Terminals v. Asarco, Inc.,
Additionally, to make out a prima facie ease, plaintiff must only allege one type of cognizable response costs under CERCLA.
Ascon Properties, Inc. v. Mobil Oil Co.,
Finally, since the court has determined that plaintiffs allegations are sufficient to state a claim under CERCLA, it obviates the *896 need to consider defendant’s derivative arguments regarding the dismissal of Count Eight, which seeks a declaratory judgment as to liability pursuant to CERCLA.
State Law Claims
The court now turns to plaintiffs state law claims. Tang argues that all of plaintiffs state law claims are barred by the applicable statutes of limitations and, further, that each fails to state a claim. The court will consider each of plaintiffs state claims in turn.
Counts I & II: Breach of Contract and Indemnification
Under Illinois law, plaintiffs breach of contract and indemnification claims are subject to the ten-year statute of limitations on written instruments. 735 ILCS § 5/13-206 (West 1982). Illinois follows the “discovery rule” to determine when a period of limitations begins.
Hermitage Corp. v. Contractors Adjustment Co.,
This suit was filed on January 31, 1997. Defendant, however, argues that the amended complaint “flat out admits that plaintiff was aware of the conditions giving rise to its state law claims” more than ten years prior to this date. Def.’s Resp. at 9. On October 23, 1986, Soo Line sent a letter to Cometco requesting it to cleanup the “contaminated media associated with and caused by the scrap yard operations” pursuant to its lease obligations. Compl., ¶ 15. The letter, which is attached to the complaint, and, therefore, can be considered on a motion to dismiss, Venture Assoc. Corp. v. Zenith Data Sys. Corp.; 987 F.2d 429, 431-32 (7th Cir.1993), further notes “that these kinds of things attract the unfavorable attention of local, state, and federal government authorities.” Defendant argues that this letter demonstrates that plaintiff had notice that the property was wrongfully polluted prior to January 31,1987.
In its response, plaintiff does not dispute the fact that it was aware that the property was polluted when it wrote the letter to Cometco. Instead, plaintiff argues that Tang’s dumping of toxic substances created continuous injury to its property, thereby postponing the commencement of the statutes of limitations. Where a tort involves continuing or repeated conduct, “the limitation period does not begin until the date of the last injury or when the tortious acts cease.”
Johnson v. Tipton,
A continuing tort “is occasioned by continuing unlawful acts and conduct.”
Hyon Waste Management Services, Inc. v. City of Chicago,
The case of
Powell v. City of Danville
is particularly instructive. In that case, the operator of a municipal landfill allegedly dumped toxic waste into a landfill.
Similarly, plaintiffs allegations -describe continuing injury, not a continuing pattern of tortious activity. Tang vacated the property when its lease ended on November 3, 1982. Consequently, although the effects from Tang’s violations may be persisting, any tortious activities by Tang ended in 1982. Therefore, the continuing tort theory is inapplicable here, and the cause of action accrues when plaintiff knew or should have known of its injuries and that actionable conduct was involved. Id.
Applying the discovery rule, it is apparent that Soo Line was aware of its injuries and that they were wrongfully caused more than ten years ago. First, as previously mentioned, plaintiff does not dispute, in its response brief, that it was on notice that the property was polluted and that such pollution was wrongfully caused when it demanded that Cometco clean up the Site on October 2, 1986. The October. 23 létter disclosed plaintiffs knowledge of pollution on the Site and that it was wrongfully caused.
The only reasonable inference that can be drawn from these facts is that plaintiff possessed enough information about its injury at this point, even if it did not actually know the extent of the contamination on the Site, to investigate whether there was actionable conduct involved and, thereby, trigger the limitations period. As the Illinois Supreme Court pointed out, “once it reasonably appears that an injury was wrongfully caused, the party may not slumber on his rights.”
Nolan v. Johns-Manville Asbestos,
Count IX: Negligence & Negligence Per Se
Plaintiffs negligence claim similarly runs afoul of the statute of limitations. Under Illinois law, actions to recover damage to real property must commence within five years from when the cause of action accrues. 735 ILCS § 5/13-205 (West 1982). Applying the discovery rule to determine when the cause of action accrued, it is clear that plaintiff knew of the injury to its property more than five years before filing suit. In fact, in 1987, Soo Line retained an engineering firm to analyze the contamination of the Site and demanded that Cometco indemnify it for the costs of the cleanup. Thus, Count IX of the Complaint is dismissed.
Count X: Illinois Joint Contribution Tortfeaser Act
In Count X, plaintiff asserts a claim for contribution under the Illinois Joint Tortfeaser Contribution Act (“Contribution Act”), 740 ILCS 100/0.01 et seq. The right of contribu *898 tion exists under the Act “where two or more persons are subject to liability in tort arising out of the same injury” and one tortfeasor “has paid more than his pro rata share of liability.” Id. at § 100/2(a).
The court first turns to defendant’s argument that plaintiffs contribution claim is barred by the statute of limitations. The statute of limitations for claims under the Contribution Act is two years. 735 ILCS § 5/13-204 (West 1996). Although the right of contribution arises in inchoate form at the time of plaintiffs injury, the cause of action accrues for purposes of the statute of limitations when payment is made or suit is brought.
Hahn v. Norfolk and Western Ry. Co.,
Here, the complaint alleges that Soo Line has made two different payments. First, from Spring, 1987 to August 10, 1996, Soo Line paid $200,000 to environmental engineering firms to perform response action activities. ' Coihpl. ¶ 21. Second, on August 10, 1996, Soo Line deposited $2.1 million in an environmental escrow for cleanup of the Site. Compl. ¶24. Since this action was commenced on January 31, 1997, the payments made by Soo Line after January 31,1995 are not time-barred. Consequently, although some of the payments Soo Line has alleged in the complaint are stale, such as portions of the $200,000 paid to environmental engineering firms, Soo Line’s payments to Metra survive. Thus, Soo Line’s claim for contribution of payments made after January 31, 1995 is not barred by the statute of limitations.
Next, defendant argues that plaintiffs contribution claim is deficient because plaintiff fails to allege that it is jointly liable in tort. However, in Illinois, “there need not be actual tort liability in order to state a cause of action for contribution.”
People v. Brockman,
Defendant further contends that plaintiffs claim is barred by the Illinois economic loss doctrine enunciated in
Moorman Mfg. Co. v. National Tank Co.,
First, it does not appear that
Moor-man
is applicable to the present case. Although the recovery of solely economic losses “due to defeated expectations of a commercial action” are precluded in a tort action, a tort action is proper when “harm above and beyond disappointed expectations” of a contract are shown.
City of Oakbrook Terrace v. Hinsdale Sanitary Dist., 172
Ill.App.3d 653,
Moreover, the pleadings sufficiently allege damage to property to overcome the
Moor-man
doctrine. Although it appears that the bulk of Soo Line’s damages are in the nature of economic losses, the complaint does allege damage to the Site and properties adjacent to the railroad yard. In paragraph 22, Soo Line pleads that “[t]he [hazardous [s]ub: stances were also found in the soils and groundwater located on properties adjacent to the Site, with the Site as the probable and likely source.” These allegations are sufficient to withstand a-motion to dismiss.
See In re Chicago Flood Litigation,
No. 93 C 1214,
Finally, defendant urges the court to dismiss plaintiffs claim because plaintiff fails to allege costs in excess of its own equitable share of liability. In the complaint, Soo Line alleges that it has incurred response costs in excess of $2.5 million. Amend. Compl. ¶¶ 24, 32, 39. Further, Soo Line pleads that it has “advanced more than its equitable share” of the costs related to the cleanup. These allegations are sufficient to state a claim under the Contribution Act.
See Victory Memorial Hosp. Assoc. v. Schmidt, Garden & Erickson,
CONCLUSION
In conclusion, defendant’s motion to dismiss is granted in part and dismissed in part. Defendant’s motion is denied as to Counts VII, VIII and X. Count VI is dismissed without prejudice. Plaintiff has until March 27, 1998 to amend Count VI. Counts I, II, and IX of the amended complaint are dismissed.
IT IS SO ORDERED.
