Thomas Sand sued Colonial for damages, alleging a spill from its pipeline rupture contaminated a sand deposit Thomas Sand had leased on the Reedy River. The trial court held the failure to exhaust administrative avenues to obtain a permit was the proximate cause of its inability to mine the sand and granted Colonial summary judgment. We reverse.
FACTS
Colonial owns and operates a 36 inch pipeline extending from Houston to New York which transports petroleum products. In late June 1996, Colonial’s pipeline ruptured at its junction with the Reedy River in Greenville County, spilling approximately one million gallons of diesel fuel into the river. The investigation by state and federal agencies, the extensive sampling and assessment, and the numerous lawsuits surrounding the spill, were not resolved until late 1998 or early 1999.
In May 1996, Thomas Sand had applied to the South Carolina Department of Health and Environmental Control (DHEC) for the necessary permit to mine the sand deposit. Because mining could impact U.S. navigable waters, the project was also subject to the U.S. Army Corps of Engineers (Corps) permitting requirements. Other interested state and federal agencies reviewed the application and expressed a range of concerns both related and unrelated to the spill,
Similarly, the United States Department of the Interior (USDOI) Fish and Wildlife Service expressed concerns with the possibility of stirring up preexisting contaminants amplified by the oil pipeline rupture. It recommended that no permit be issued until the extent of the sediment contamination could be further studied. The USDOI recommended to the Corps that the permit be denied, due solely to the oil contamination. Based on available information, the Corps in turn advised Thomas Sand that, “due to the breaching of the Conestee Lake dam and the recent oil pipelinе rupture, this office has reason to believe that there is a presence of contaminants that could cause or contribute to significant degradation of the waters of the United States.” The Corps requested more specific information from USDOI and Thomas Sand before determining what testing would be required.
Shortly thereafter, Thomas Sand withdrеw the application “rather than have the permit denied with consequent prejudice.” It requested that DHEC hold the application in abeyance until evaluation of the damage caused by the oil spill was completed. DHEC agreed to do so for six months to allow Thomas Sand to complete “sufficient work” to enable DHEC to detеrmine whether mining could be environmentally safe. Thomas Sand elected not to perform testing but rather submitted a revised application vastly reducing the size of the proposed operation. In response, concerned agencies renewed their objections based on potential damage to wetlands, wildlife, and riverbed аnd bank stability, as well as possible diesel contamination and the lack of requested sediment testing. USDOI specifically noted the prior application was “eventually retired at least partially due to a major oil pipeline spill.... ” Thus, USDOI recommended the permit not be issued until “adequate sediment testing is done to be able to conclude that contaminants including heavy metals, PAH’s and/or other petroleum related compounds would not be released by mining this site.... ” While noting elevated levels of contaminants from upstream industries, DHEC specifically
Thomas Sand did not appeal DHEC’s decision but filed this action against Colonial seeking damages for economic loss due to inability to exercise its mining rights under its lease. Colonial admitted the oil spill from a rupture in its pipeline but denied any contamination of the sand deposit. Colonial moved for summary judgment on the grounds that (1) Thomas Sand failed to exhaust its administrative remedies; and (2) Thomas Sand adduced no evidence of contamination in the proposed sand mining site resulting from the Colonial spill, nor that such contamination, if present, would preclude the mining permit being issued. The trial court granted the motion, finding that Thomas Sand failed to establish the spill proximately caused its damages.
STANDARD OF REVIEW
In an action granting summary judgment, an appеllate court reviews the record under the same standard applied by the trial court under Rule 56, SCRCP.
Jones v. Equicredit Corp.,
Summary judgment is appropriate when it is clear there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. In determining whether any triable issue of fact exists, the evidence and all inferences which can be reasonably drawn therefrom must be viewed in the light most favorable to the nonmovingparty. If triable issues exist, those issues must go to the jury.
Worsley Cos. v. Town of Mount Pleasant,
It is the duty of the court, on a motion for summary judgment, not to try issues of fact, but only determine whether there are genuine issues of fact to be tried; and, once having found that triable issues exist, must lеave those issues for determination at a trial. The problem besetting courts lies in deciding what is or what is not a ‘genuine issue as to any material fact.’
Spencer v. Miller,
DISCUSSION
Thomas Sand asserts the trial court erred in finding it failed to establish Colonial’s oil spill proximately caused its damages. We find the evidence raises a genuine issue of material fact on that issue.
I. Proximate Cause
The elements “of negligence are: (1) a duty owed to the plaintiff by the defendant, (2) a breach of that duty by the defendant, and (3) damages proximately resulting from the breach of duty.”
Hubbard v. Taylor,
Proximate cause requires proof of both causation in fact and legal cause.
Rush v. Blanchard,
He may be held liable for anything which appears to have been a natural and probable consequence of his negligence. If the actor’s conduct is a substantial faсtor in the harm to another, the fact that he neither foresaw nor should have foreseen the extent of harm or the manner in which it occurred does not negative his liability.
Childers v. Gas Lines, Inc.,
“Proximate cause does not mean the sole cause. The defendant’s conduct can be a proximate cause if it was at least оne of the direct, concurring causes of the injury.”
Small,
at 464,
In addition, Thomas Sand offered the testimony of Dr. David Hargett, a principal in Pinnacle Consulting Group, which consults on environmental and natural resource management, regulatory compliance, hazardous site reclamation, and permitting assistance, as well as being subcontracted by DHEC to study the riparian conditions of the entire Reedy River basin. Dr. Hargett is a recognized expert on the Reedy River and serves on the Reedy River Task Force citizen-based planning group, as well as other committees that regularly meet with state agencies about the Reedy River. He personally viewed the spill by helicopter immediately following the event, and was extensively involved in monitoring and assisting in reclamation efforts.
The trial court ruled that Dr. Hargett did not have sufficient knowledge of DHEC sand mining permitting requirements and refused to qualify him as an expert or consider his testimony in ruling on the motion for summary judgment. As Dr. Hargett’s testimony was the primary expert basis for establishing proximate cause between the diesel spill and denial or delay of the permit, Thomas Sand clearly suffered prejudice from its exclusion. “To be competent to testify as an expert, ‘a witness must have acquired by reason of study or experience or both such knowledge and skill in a profession or science that he is better qualified than the jury to form an opinion on the particular subject of his testimоny.’ ”
Gooding v. St. Francis Xavier Hosp.,
The term ‘expert’ has many lights and shadows. It can denote a man who is a recognized authority and, perhaps as accurately, a fellow who once went to the city. At what point between those two extremes he will be allowed to express an opinion on the witness stand will be for the trial judge to decide in the first instance. But whatever his status in life may be, his qualifications can not be assumed; they must be established by evidence. The quality оr quantity of that evidence occasionally may require some adjustment, depending upon the exigencies of the moment, and in such circumstances, the trial judge will need to exercise the full measure of his judgment, skill, and discretion.
Hewitt v. Md. State Bd. of Censors,
While it is true that the qualification of an expert witness and the admissibility of the expert’s testimony are matters within the trial court’s discretion, we think Dr. Hargett’s qualifications to testify as an expert speak for themselves and any gap in his experience would go to the weight and credibility of his testimony, rather than to its admissibility. “Where the expert’s testimony is based upon facts sufficient to form the basis for an opinion, the trier of fact determines its probative value.”
Berkeley Elec. Coop., Inc. v. S.C. Pub. Serv. Comm’n,
Dr. Hargett opined the site in question was “extraordinarily well-suited for sand mining and ... no other stretch of the river would be appropriate,” based on the absence of bedrock, deeper deposits of sediments, unusual accessibility due to the broad flood plain and gentle slope, and low water velocities in the backwater area. According to Dr. Hargett, had there been no spill and had Thomas Sand pursued the application, he believed the permit would have been issued, and the site would continuе to produce for at least ten years. However, he testified it would have been ill-advised to pursue the permit or attempt mining after the spill until federal and state agencies had resolved contamination concerns, which included extensive sampling, testing, and assessment close to the site. Specifically, the degree of contamination was less relevant than the ongoing agency investigations. Had Thomas Sand pursued the permit, he stated other parties likely would have taken action to stop their operation because it could confuse the ongoing studies. Dr. Hargett opined the environmental impacts were uncertain and subject to ongoing investigatiоns until the agency reports came out two to three years later.
Colonial argues Dr. Hargett is not qualified to render an expert opinion because he did not know the specific DHEC permitting standards and project parameters and had never been personally involved in obtaining a sand mining permit. Dr. Hargett clarified that any lack of specifics in his testimony did not demonstrate a lack of expertise but resulted from the limited amount of time he had spent with this specific case. Our review of his deposition indicates that Dr. Hargett, while not intimately familiar with the specifics of DHEC mining permit processes, was sufficiently familiar with them that it did not detract from his demonstrated expertise on еnvironmental issues generally and as they relate to the Reedy River specifically. It was, therefore, an abuse of discretion not to qualify him as an expert and consider his testimony.
II. Exhaustion of Administrative Remedies
Colonial argues Thomas Sand’s failure to exhaust its administrative remedies precludes tort action against a third
The basic purpose of the exhaustion requirement, to allow the agency to render a final decision and set forth its reasоns for the permit denial, would not assist the court in this instance. The alleged wrong is not one which the administrative process was designed to redress. “The doctrine of exhaustion of administrative remedies
only
comes into play when a litigant attempts to invoke the original jurisdiction of a circuit court to adjudicate a claim based on a statutory violation for which the legislature has provided an administrative remedy.”
Med. Mut. Liab. Ins. Soc. of Md. v. B. Dixon Evander & Assocs.,
CONCLUSION
Viewing the evidence in the light most favorable to Thomas Sand, as we are required to do, there is a genuine issue of
REVERSED.
