Suffolk County Water Authority v. Dow Chemical Co.Suffolk County Water Authority v. Dow Chemical Co.
Orrick, Herrington & Sutcliffe LLP, New York City (Siobhan Handley, Morton Dubin and Richard A. Jacobsen of counsel), and King & Spalding LLP, New York City, for Dow Chemical Company, appellant-respondent.
Leader & Berkon LLP, New York City (Joshua K. Leader of counsel), for E.I. du Pont de Nemours and Company, appellant-respondent.
Fulbright & Jaworski LLP, New York City (James H. Neale of counsel), for Legacy Vulcan Corporation, formerly known as Vulcan Materials Company, appellant-respondent.
Morgan, Lewis & Bockius, New York City (Shaina Stahl of counsel), for Bayer CropScience, Inc., individually and as successor-in-interest to Stauffer Chemical Company, appellant-respondent.
Harwood Lloyd, LLC, New York City (Gregg A. Ilardi and Levi W. Barrett of counsel), for Bowe-Permac, Inc. and another, appellants-respondents.
Hanig & Schutzman, LLP, Poughkeepsie (Adrienne Odierna, Richard S. Baron, admitted pro hac vice, and Brian H. Phinney, admitted pro hac vice, of counsel), for Hoyt Corporation, appellant-respondent.
Bleakley Platt & Schmidt, LLP, White Plains (William P. Harrington and Taylor M. Hicks of counsel), for R.R. Street & Co., Inc., appellant-respondent.
Lester Schwab Katz & Dwyer, LLP, New York City (Seth I. Weinstein of counsel), for Forenta, LP, appellant-respondent.
Porzio, Bromberg & Newman, P.C., New York City (Allan I. Young of counsel), for Renzacci of America, Inc., appellant-respondent.
McGivney & Kluger, P.C., New York City (Richard E. Leff of counsel), for Multimatic Dry Cleaning Machine Corporation, appellant-respondent.
Jones Hirsch Connors & Bull P.C., New York City (Neil E. Higgins and Tonya M. Lindsey of counsel), for Firbimatic, also known as Eco Dry of America, Inc., appellant-respondent.
Cullen and Dykman, LLP, New York City, for Direct Machinery Sales Corp., appellant-respondent.
Connell Foley LLP, New York City (Michael Bojbasa of counsel), for Detrex Corporation, appellant-respondent.
Weitz & Luxenberg, P.C., New York City (William A. Walsh and Carla Burke of counsel), for respondent-appellant.
OPINION OF THE COURT
Hinds-Radix, J.
The Suffolk County Water Authority (hereinafter the SCWA) operates public water drinking systems and supplies drinking water to thousands of residents and businesses in Suffolk County. On July 12, 2010, the SCWA commenced this action against a number of manufacturers, distributors, and retailers of perchloroethylene (hereinafter PCE), a chemical commonly used in dry cleaning, and manufacturers, distributors, and retailers of dry cleaning equipment intended for use with PCE. The SCWA alleged that the defendants were responsible for the contamination of many of its wells with PCE and two chemicals resulting from degradation of PCE, trichloroethylene (hereinafter TCE) and dichloroethylene (hereinafter DCE). At issue here is whether SCWA had standing to raise those claims, and whether those claims were timely asserted.
The 12 defendants involved in this appeal are Dow Chemical Company, E.I. du Pont de Nemours and Company, Legacy Vulcan Corporation, formerly known as Vulcan Materials Company, Bayer CropScience, Inc., individually and as successor-in-interest to Stauffer Chemical Company, Bowe-Permac, Inc., Sail Star USA, Inc., Hoyt Corporation, R.R. Street & Co., Inc., Forenta, LP, Renzacci of America, Inc., Multimatic Dry Cleaning Machine Corporation, Firbimatic, also known as Eco Dry of America, Inc., Direct Machinery Sales Corp., Detrex Corporation, and Hoffman/New Yorker, Inc. (hereinafter collectively the movants). After issue was joined, and a preliminary round of discovery conducted, the movants and several other defendants jointly moved for summary judgment dismissing, for lack of standing, so much of the complaint insofar as asserted against them as sought to recover damages for contamination of 115 wells, where such contamination did not reach or exceed the maximum contaminant level (hereinafter MCL) set by the United States Environmental Protection Agency and the New York State Department of Health of 5 parts per billion (hereinafter ppb) of PCE. They also moved for summary judgment dismissing, as time-barred, so much of the complaint insofar as
In opposition to the motion, the SCWA asserted that there was no legal authority or policy basis for establishing a bright-line rule that contamination had to exceed the MCL to confer standing. The SCWA further contended that
The Supreme Court denied the motion in its entirety. With respect to the issue of standing, the Supreme Court rejected the
On appeal from the order denying their motion, the movants continue to maintain that, as a matter of law, the presence of contaminants at levels below the applicable MCL cannot constitute a legally compensable injury sufficient to confer standing in a tort action to recover damages related thereto. In this regard, the movants submit that the contamination of 115 wells at levels under the MCL did not cause injury to the SCWA‘s property interest because the water remained potable, and thus, could be sold to customers. The movants further contend that although the Supreme Court properly concluded that the applicable statute of limitations was
Generally, a plaintiff has standing to sue if it has suffered an injury in fact (see In re Methyl Tertiary Butyl Ether [MTBE] Prods. Liab. Litig., 725 F3d 65, 107 [2d Cir 2013]; MRI Broadway Rental v United States Min. Prods. Co., 92 NY2d 421, 427-428 [1998]) in some way different from that of the public at large and within the zone of interests to be protected by relevant statutory and regulatory provisions (see Matter of Save the Pine Bush, Inc. v Common Council of City of Albany, 13 NY3d 297, 304 [2009]; Society of Plastics Indus. v County of Suffolk, 77 NY2d 761, 774 [1991]).
We also note that to accept both the movants’ argument that
Thus, the Supreme Court properly denied that branch of the movants’ motion which was for summary judgment dismissing, for lack of standing, so much of the complaint insofar as asserted against them as sought to recover damages for contamination of 115 wells where such contamination did not reach or exceed the MCL.
However, the Supreme Court erred in denying that branch of the movants’ motion which sought dismissal of claims with respect to 151 wells on the basis that the claims were barred by the statute of limitations pursuant to
A latent injury occurs at the time of exposure: the reason that the injury is latent is that the injury is concealed, and not visible or otherwise apparent (see Giordano v Market Am., Inc., 15 NY3d 590, 598 [2010]), and the property damage “results from the seepage or infiltration of a toxic foreign substance over time” (Germantown Cent. School Dist. v Clark, Clark, Millis & Gilson, 100 NY2d 202, 207 [2003]), specifically, the migration of PCE or TCE into the wells (see Incorporated Vil. of Garden City v Genesco, Inc., 596 F Supp 2d at 605 n 14; Christy v Harvey, 262 AD2d 755; Boswell v Leemilt‘s Petroleum, 252 AD2d 889). A patent injury, on the other hand, is immediately apparent (see Manhattanville Coll. v James John Romeo Consulting Engr., P.C., 5 AD3d 637 [2004]), and there is no interval between the alleged exposure and the resulting harm (see Dabb v NYNEX Corp., 262 AD2d 1079 [1999]). In the instant case, the alleged harm to the SCWA‘s wells occurred over time, and was not immediately apparent. Accordingly, the Supreme Court properly determined that
The movants established, as a matter of law, that the claims relating to the 151 wells where PCE contamination was discovered more than three years prior to the commencement of the action were time-barred pursuant to
The Supreme Court relied upon the “two-injury rule” (see Suffolk County Water Auth. v Dow Chem. Co., 35 Misc 3d at 316-317), also referred to as the “second-injury rule” (Prohaska v Sofamor, S.N.C., 138 F Supp 2d 422, 431 [2001]) in denying that branch of the movants’ motion which was for summary judgment dismissing, as time-barred, so much of the complaint insofar as asserted against them as sought to recover damages for the contamination of 151 wells, where such contamination was detected before July 12, 2007. The two-injury rule “evolved in the context of exposure-related medical problems but . . .
The two-injury rule permits the splitting of one cause of action (see Braune v Abbott Labs., 895 F Supp 530, 556 [1995]), or recognizes the accrual of a new cause of action (see Bimbo v Chromalloy Am. Corp., 226 AD2d 812, 815 [1996]), where a single exposure has resulted in separate and distinct injuries (see Shapiro v Ansell Perry, Inc., 291 AD2d 301 [2002]). Pursuant to the rule, “the Statute of Limitations starts to run anew upon the discovery of a second injury” caused by the same wrong (Fusaro v Porter-Hayden Co., 145 Misc 2d at 918; see Shapiro v Ansell Perry, Inc., 291 AD2d 301 [2002]), such as contamination spreading to a new site (see Bimbo v Chromalloy Am. Corp., 226 AD2d at 815). However, the two-injury rule does not apply to an injury which is the “outgrowth, maturation, or complication of the original contamination” (DiStefano v Nabisco, Inc., 282 AD2d at 705; see Bimbo v Chromalloy Am. Corp., 226 AD2d at 815; FCA Assoc. v Texaco, Inc., 2008 WL 314511, 2008 US Dist LEXIS 8116, 67 ERC [BNA] 1058 [WD NY, Feb. 4, 2008, No. 03-CV-6083T]). Rather, the second injury must be “separate and distinct” and arise independently of prior injuries (Griffin v Garratt-Callahan Co., 74 F3d 36, 40 [1996]), and must be “‘qualitatively different from that sustained earlier‘” (Oeffler v Miles, Inc., 241 AD2d 822, 826 [1997], quoting Coughlin v International Bus. Machs. Corp., 225 AD2d 256, 260 [1996]; see DiStefano v Nabisco, Inc., 282 AD2d at 705; cf. State of New York v Fermenta ASC Corp., 238 AD2d 400 [1997]). The plaintiff bears the burden of coming forward with a “factual substantiation” of a new injury occurring within the period of limitations which was “qualitatively different from that sustained earlier” (Coughlin v International Bus. Machs. Corp., 225 AD2d at 260; see Piper v International Bus. Machs. Corp., 219 AD2d 56, 62-63 [1996]; Dugan v Schering Corp., 210 AD2d 974 [1994], affd 86 NY2d 857 [1995]).
In the instant case, the SCWA alleged damages of the same nature in wells where contamination was previously discovered,
The Supreme Court considered not only whether there was an issue of fact as to multiple injuries, but also whether there was an issue of fact as to multiple distinct acts of tortious conduct (see Suffolk County Water Auth. v Dow Chem. Co., 35 Misc 3d at 315). While the two-injury rule is based upon allegations of a second injury resulting from “the continuing effects of earlier unlawful conduct” (Selkirk v State of New York, 249 AD2d 818, 819 [1998]), additional wrongful conduct could give rise to additional wrongful releases of contamination, resulting in new wrongs and the accrual of new causes of action (see Oeffler v Miles, Inc., 241 AD2d at 825-826; see generally Prachel v Town of Webster, 96 AD3d 1365, 1366 [2012]). However, it was incumbent upon the SCWA to come forward with evidence in admissible form that there was new wrongful conduct, giving rise to new causes of action not barred by
The parties’ remaining contentions are without merit (see Bass v Union Carbide Corp., 22 AD3d 618, 620 [2005]; see also Oeffler v Miles, Inc., 241 AD2d 822 [1997]).
Accordingly, the Supreme Court erred in denying that branch of the movants’ motion which was for summary judgment dismissing, as time-barred, so much of the complaint insofar as asserted against them as sought to recover damages for the contamination of 151 wells, where such contamination was
Dillon, J.P., Dickerson and Cohen, JJ., concur.
Ordered that the cross appeal is dismissed, without costs or disbursements; and it is further,
Ordered that the order is modified, on the law, by deleting the provision thereof denying that branch of the motion of the defendants Dow Chemical Company, E.I. du Pont de Nemours and Company, Legacy Vulcan Corporation, formerly known as Vulcan Materials Company, Bayer CropScience, Inc., individually and as successor-in-interest to Stauffer Chemical Company, Bowe-Permac, Inc., Sail Star USA, Inc., Hoyt Corporation, R.R. Street & Co., Inc., Forenta, LP, Renzacci of America, Inc., Multimatic Dry Cleaning Machine Corporation, Firbimatic, also known as Eco Dry of America, Inc., Direct Machinery Sales Corp., Detrex Corporation, and Hoffman/New Yorker, Inc., which was for summary judgment dismissing, as time-barred, so much of the complaint insofar as asserted against them as sought to recover damages for the contamination of 151 wells, where such contamination was detected before July 12, 2007, and substituting therefor a provision granting that branch of the motion; as so modified, the order is affirmed insofar as appealed from, without costs or disbursements.