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Whittaker Corporation v. United States
825 F.3d 1002
9th Cir.
2016
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*1 excessive); light that amount in Thurman for reconsideration of constitutionally Street, (rejecting forfei- Eighth F.3d at 1198 Amendment’s Excessive of the the max- “more than 40 times Ferro, ture amount v. Fines Clause. See United States the Guide- permitted imum fíne 2012) (re- 1105, 1117 lines”). manding analysis); for excessiveness Thur- (same). Street, 164 at 1198 man up no case government cites a disparity a forfeiture order with holding V here, and it has not to the one similar that the million attempted argue reasons, to $107 AFFIRM foregoing For the we injuries corresponds to sus otherwise of restitution and the amounts of the order the government banks.9 tained Beecroft’s convic- forfeiture ordered on (discuss F.3d at 1018-19 Mackby, 339 10, 11, 13, 14. tions for Counts and We Cf. harms caused defen ing governmental million in forfeiture VACATE $107 Street, crimes); Thurman dant’s on Beeeroft’s conviction for Count ordered (“[T]his amount bears no reason at 1198 and we REMAND for reconsideration any injury suffered able correlation such forfeiture. appropriate amount of party, as the government fully fraudulently-obtained loan will be re And, propriety because the of the

paid.”).

forfeiture amount was not even discussed sentencing, justification ap no such us. parent on the record before CORPORATION, WHITTAKER Eighth have little doubt that We corporation, a Delaware allows Beecroft to be ordered Amendment Plaintiff-Appellant, money to forfeit a substantial sum of participation her in such an extensive and difficulty damaging conspiracy. But re- America, UNITED STATES exceptional with the amount of for- mains Defendant-Appellee. impose. feiture the court did Without even No. 14-55385 argument supporting propriety Appeals, United States Court of forfeiture, million we have no the $107 Ninth Circuit. choice but to conclude that an order which vastly outpaces the otherwise available so Argued and March Submitted. criminal activity penalties for Beecroft’s 2016, Pasadena, California runs afoul of the Excessive Fines Clause. Filed June review, must va- plain-error Even on we respect cate the forfeiture order with 1 and remand the district court

Count Indeed, government wholly ignores simply elect to reduce a district court cannot 9. analysis discretionary Eighth it as a matter. But the court Amendment excessiveness that, argues such a reduction $107 and because million can—and must—make instead factually accounting be unconsti- accurate of the where the order would otherwise Newman, proceeds, court had no tutional. F.3d at 1240-41 crime's the district Cf. mandatory (contrasting limitations on for- discretion to reduce the forfeiture constitutional reductions). government's argument discretionary con- feiture with To hold amount. The concluding discretionary with constitu- otherwise would be tantamount flates reductions that, Eighth simply does not tionally ones. It is correct Amendment statutorily statutorily required apply mandated forfeitures. this forfeiture is *2 Whittaker, company that was injuries caused

both found liable pollu- that also to clean pollution and Pillsbury Win- Fong (argued), Kevin M. now seeks reimburse- up. tion Whittaker LLP, Francisco, San throp Pittman Shaw from other cleanup expenses of its ment Siemens, California; L. Mark E. Reynold *3 decide whether Whit- polluters. We must Plant, Pillsbury Elliott, L. and Caroline seeking taker is limited LLP, Ange- Pittman Los Winthrop Shaw polluters, from other whether Whittak- les, California, Plaintiff-Appellant. cleanup recover its ex- er instead (argued), Attor- A. DiMascio Nicholas in a action. Natural Resources ney, and Environment in a We hold Whittaker’s Division, Department of States United contri- seeking case did not limit it to prior Colorado; Justice, Denver, Aaron P. Avila bution for all of its so Whittaker Augustini, Attorneys; Sam and Michael C. recovery action may use a CERCLA cost General; Hirsch, Attorney Acting Assistant for the to seek reimbursement Natural Resources Divi- Environment and costs at issue this case. Justice, sion, Department States United D.C.; Defendant-Appellee. Washington, I REINHARDT, Before: STEPHEN Corporation is a defense con- Whittaker MURGUIA, and JOHN B. MARY H. that manufactures and tests muni- tractor OWENS, Judges. Circuit 1967, military.2 for the In Whit- tions U.S. acquired facility a munitions in Santa taker by Judge Partial OWENS Concurrence Clarita, California, from the Bermite Pow- (the Site). Company Bermite Between der OPINION 1954, Company when the Bermite Powder MURGUIA, Judge: Circuit until charge, was in when Whittaker been people two or more have When operations, approximately per- ceased injury, and one found liable for someone’s manufacturing of the munitions and cent share, than her fair pays of them more testing at the Bermite Site was done paid too lets the who law often military. contracts with U.S. others, in much recover from the order to re- began investigating Whittaker called the things even out. This is lease of hazardous substances the Ber- “contribution,” deep and it has roots In early mite in the 1980s. Whit- Site statutory and common law. See Nw. Air by the Lake Water taker was sued Castaic lines, Transp. Inc. v. Workers Union of (the providers and other water 77, 86-88, Agency Am., AFL-CIO, 451 U.S. (1981). plaintiffs) Lake under CERCLA Castaic 1571, 67 L.Ed.2d 750 CERC S.Ct. state laws. The Castaic Lake LA, statute, and various federal environmental pumping were the business of pollution plaintiffs people pay up allows who to clean the Ber- ground water out of wells polluters.1 costs from the See near recover their 9607(a). They their water alleged in this mite Site. plaintiff U.S.C. allegations complaint "Comprehensive factual in the for the take the 1. “CERCLA” stands Response, Compensation, and light Environmental and construe them in the most as true generally 42 Liability Act 1980.” See to Whittaker. See Chubb Custom favorable §§ 9601-75. Inc., Sys./Loral, Space Ins. Co. reviewing 2. we are the district Because dismiss, we decision on a motion to court’s supplies were contaminated a pollutant taker was never ordered Castaic Lake perchlorate called and other hazardous up to clean the Bermite Site. chemicals as a result of opera- In Whittaker initiated this CERC- Specifically, the plain-

tions. Lake Castaic LA lawsuit the United States to alleged: tiffs recover Whittaker incurred since Plaintiffs, them, injured each of the 1980s from investigating and cleaning by the (including, contamination without the Bermite Site. alleged Whittaker limitation, perchlorate contamina- these included costs for soil sam- tion) caused on a continu- Defendants borings, excavations, pling, surveys, addition, Plaintiffs, ing basis. and groundwater sampling, and remedial oper- them, each have incurred and will addressing ations chlorinated solvents and continue to incur costs in responding to heavy metals. explicitly Whittaker alleged *4 contamination (including,

the without these separate were from limitation, the perchlorate contamina- the costs for which it was liable under the tion) caused Defendants’ activities at Castaic Lake settlement. the Site. Until the prob- contamination The United States moved to dismiss lems caused stopped, are Site Whittaker’s complaint, arguing that be- will Plaintiffs continue to incur substan- cause Whittaker had been sued Castaic tial costs for the indefinite future. Lake, bring it could only a CERCLA con- In action, their CERCLA causes of tribution action—not ac- plaintiffs Castaic Lake sought to recover States, the United and that tion— of response” they “costs had incurred. the statute of limitations for a contribution The Castaic plaintiffs Lake alleged claim had expired. The district court of action negligence, nuisance, causes agreed with the United States. The district trespass, and activity, ultra-hazardous that, court concluded pursuant to CERC- action, in those causes of they sought an §LA Lake Castaic lawsuit trig- injunction ordering Whittaker to “remedi- gered Whittaker’s right bring an action ate and abate all contamination and (ie., for contribution reimbursement threats contamination caused share), paying more than fair and that Site.” instant sought expenses lawsuit The district court in grant- Castaic Lake could have been through reimbursed such summary judgment ed to the Castaic Lake a contribution action. Because Whittaker plaintiffs on their claim based brought could have a contribution on perchlorate plain- contamination the district court concluded under our case tiffs’ wells. Castaic Agency Lake Water law Whittaker not could Corp., F.Supp.2d Whittaker (ie., recovery action reimbursement from (C.D. 2003). Cal. Whittaker and its insur- costs). polluter And cleanup because subsequently ers settled with the Castaic only Whittaker brought plaintiffs Lake in 2007. Under the terms of action, the district court dismissed the settlement, Whittaker and its insurers complaint. agreed to reimburse the Castaic Lake timely Whittaker filed this appeal. We plaintiffs for costs the plaintiffs had in- jurisdiction have 28 U.S.C. under perchlorate pollution curred remove and we reverse. wells, from their water purchase and to replacement water. The result of Castaic II Lake was that Whittaker was found liable for a specific set of the plaintiffs’ costs of We review the district court’s de responding pollution; grant Whit- cision motion to dismiss de novo. Custom, or “PRP.” See Chubb party” Space Sys./Lor ble Ins. Co. v.

Chubb Custom at 956. al, Inc., 710 F.3d in the com allegations factual take the We to recover other mechanism them in the construe true and plaint as 113(f), allows a plaintiff. Id. to the most favorable light circum two to seek “contribution” complaint when proper “Dismissal is provides, rele stances. Section theo cognizable legal make out a does not part: vant facts to allege sufficient ry or does may seek contribution Any person legal theory.” Id. We cognizable support a poten- is liable who interpretation of the district court’s review 107(a) title, of this tially ] liable under [§ novo. Id. de statute action ... any civil during following 107(a) title. ... of this ] [§ Ill claims, the court resolving contribution A among liable response costs may allocate in 1980 factors as equitable enacted CERCLA Congress parties using such of hazardous the remediation appropriate. facilitate the court determines the resolution of sites and waste 113(f)(3)(B) 9613(f)(1). And 42 U.S.C. costs, especially through for the related provides: *5 Custom, 710 Chubb negotiated settlements. liability to has its A who resolved ways CERCLA F.3d at 956. One of a for some States or State United by allowing party goals these achieves for some or all response action or all of site to waste remediates hazardous who in an action adminis- of the costs such of its obtain reimbursement judicially settlement approved trative or id. pollution. See responsible those for any person contribution from may seek at 956-57. .... party to a settlement who is pro- CERCLA relevant to this As 9613(f)(3)(B). short, gen- § § Id. private parties vides two mechanisms bring a contribu- erally polluter allows a cleanup ex- to recover their environmental if the against polluters claim other tion First, CERCLA parties. from other § in a 107 cost has been sued polluter 107(a) bring “cost re- parties allows govern- with the recovery action or settled polluters for wide covery” actions ment. “any ... nec- including range “contribu- does not define CERCLA incurred” and response essary costs of However, the Su- tion.” id. 9601. See of, to, injury destruction “damages a definition Unit- provided Court preme resources, including the natural loss of Research, another ed States Atlantic injury, such assessing costs of reasonable case: destruction, resulting from such a or loss as the “tortfea- is defined Contribution substance].” release a hazardous [of from others re- sor’s to collect 9607(a)3; v. Atl. States United tort after the sponsible for the same 128, 139, 127 Corp., 551 U.S. Research than his or her tortfeasor has more (2007). 2331, In the S.Ct. 168 L.Ed.2d share, being the shares proportionate who litigation, polluter lingo of CERCLA of fault.” a percentage determined as recov- might be liable under 113(f) sug- Nothing [CERCLA] responsi- ery “potentially action is called a 42 of the provided in Title litigants to the sections Adopting and the convention of the 3. courts, opinion refers to body of this Code. other United States sections, citations but CERCLA’sPublic Law gests Congress used terra “con- neously seek to recover the same ex- 107(a). anything tribution” in other than this penses under traditional sense. (internal 139, Id. at 127 S.Ct. 2331 quota- 138, (quoting omitted). 551 U.S. S.Ct. 2331 tion marks and A party citations 2004)). Dictionary Black’s Law ed. uses get contribution to reimbursed for being pay made to more than its fair share Court has made clear else, to someone and uses cost recovery” that “cost and “contribution” are get reimbursed its own voluntary ‘clearly “two (quot distinct’ remedies.” Id. cleanup costs. See id. 127 S.Ct. Indus., Servs., ing Cooper Inc. v. Aviall 2331 n. 6. Inc., 543 U.S. 163 n. 125 S.Ct. However, (2004)). problems with 160 L.Ed.2d 548 this distinction The Court ex arise when a plained the is ordered to incur distinction as follows: own cleanup costs. Such a party is not 107(a) §§ [T]he remedies available in else, reimbursing someone but neither are 113(f) complement each “voluntary.” its own costs pro Because the providing persons causes of action to cedural requirements and the remedies for procedural different circumstances. Sec- recovery and contribution claims are tion authorizes a contribution distinct,4 every federal court appeals action to PRPs with common have considered the question since Atlan stemming from an action un- instituted Research, tic including Court, 107(a). 107(a) this has said der ... permits And that a (as may bring who a contribution distinct from contribu- tion) action for certain must use the private party itself if even Hence, incurred cleanup costs. a PRP See, action would otherwise be available. pays money satisfy a settlement e.g., N. Cal., Kotrous v. agreement or a Goss-Jewett Co. judgment may court *6 (9th 113(f) 924, 2008) (“A 523 pursue § F.3d 932 contribution. But re- Cir. PRP remedies, cannot choose imbursing response paid by proceed costs but must 113(f)(1) § parties, the PRP under has not incurred its contribution if the response party own costs of has paid satisfy and therefore can- to a settlement 107(a). result, § not recover agreement under As a or a court judgment pursuant though eligible to seek un- to an § contribution action instituted under ... 107 [for 113(f)(1), § der the PRP cannot recovery].”).5 simulta- that, recognized 113(f) given proceed § 4. Several courts have under [for if contribution] choice, plaintiffs generally prefer would to they statutory trig meet one of that section's action, proceed § under a 107 cost Bankert, 190, gers.”); v. Bernstein 733 F.3d action, § rather than a 113 contribution due (7th 2013); 1237; Solutia, 206 Cir. 672 F.3d at § to the action’s different Enters., Corp., Morrison LLC v. Dravo 638 limitations, provision statute of its for strict 594, (8th 2011) (holding F.3d 603 Cir. "that defenses, liability, opportu- its limited and its provides the exclusive [contribution] See, nity joint recovery. e.g., and several remedy party compelled for a liable to incur Co., Corp. George Whiting Paper NCR A. 768 response pursuant costs to an administrative 682, Solutia, (7th 2014); F.3d 690 Cir. Inc. v. judicially approved or ... settlement under McWane, Inc., 1230, (11th 1236-37 recovery]”); Niagara 107 [§ ] [for cost Mo Cir. U.S.A.,Inc., Corp. hawk Power v. Chevron 596 (2d 2010) ("In 124-28 our NCR, 690-92; 5. See also 768 F.3d at Hobart view, 113(f)(3)(B) only § Ohio, Inc., pro [contribution] Corp. Mgmt. v. Waste of 2014) ("CERCLA’s proper procedural vides the 767 mechanism for text and claims.”). plaintiffs] structure lead us to conclude that must [the PRPs voluntarily only by if could curred are recoverable precedent, Whittaker Under a contribu- 107(a)(4)(B), claim in this case as bring way its and costs of reim- action, it to do so. See id. tion is pursuant bursement to another to argues, and the district government legal judgment or settlement are recovera- determined, right court Whittaker’s 113(f).” only ble 551 U.S. at 139 n. trig- in bring its claim contribution 2331; id. at 127 S.Ct. see also lawsuit, barring Lake gered by the Castaic (rejecting government’s ar- S.Ct. bringing this cost Whittaker gument “synonymous that contribution is Lake It clear that the Castaic action. is any apportionment with ability bring triggered suit PRPs”). among Although for at least the costs it claim explicitly party’s has not held that a Court was found liable for that case.6 See id. in right to contribution in a CERCLA case is question here is wheth- The determinative party limited to the costs for which the could, must, and therefore er Whittaker liable, reasoning found been the Court’s a contribution action for costs bring strongly supports Atlantic Research for which it was not found liable Castaic interpretation: Lake, entry judgment after the Contribution is defined as the “tortfea- case. right sor’s to collect from others re- sponsible for the same tort after the

B tortfeasor has more than his or her bring allows con- share, proportionate being the shares tribution claim two circumstances: “dur- percentage determined of fault.” as being in a ing following” sued right ... PRP’s to contribution un- [A] and after the contingent upon der an in- liability to the United “has resolved equitable distribution of common liabili- ... in an administrative States or State ty among parties. liable judicially approved settlement.” (3)(B). 9613(f)(1), Although 107(a) contrast, § By permits recovery trig- these procedural CERCLA sets forth not costs but does create a claim, gers a contribution private party to contribution. A actually define “contribu- statute does 107(a) recover under without tion,” as noted above. See id. 9601. The par- establishment of third that, government argues once one of the ty- *7 procedural triggers party’s for a contribu- occurred, party’s right tion claim has the Section authorizes a contribu- party’s to contribution extends to all of the action to tion PRPs common liabili- with site, regardless of whether expenses at the ty stemming from an action instituted expenses trig- those were at issue the 107(a). under ... However, gering litigation or settlement. government’s argument the mischaracter- (citation 138-39, at omit- Id. S.Ct. 2331 remedy. izes ted). The Court’s statement that right “contingent to contribution is party’s expenses Not all of a related to upon inequitable distribution of liabili- scope fall remediating site within right that a Research, ty” indicates contribution. In Atlantic the Su- in- preme explained only Court that “costs recover contribution for those costs belongs solely 6. We do not here decide Castaic Lake to Whittaker's in- whether contribution claim based on its surers. liable; for which it has been found trigger decree did a right riot costs can be recovered in a contribution. Id. at 207-08. The Seventh recovery action “without establishment Circuit held that the Trust bring could liability.” id. This is consistent See with action under 107 for the the traditional notion of contribution. See expenses it incurred under the 2002 de- (Third) 23(b) Restatement of Torts cree, because, the extent “[t]o (2000) (“A person entitled to recover con- Trustees’ suit seeks to recover expenses may tribution recover no more than the arising performance out of their of the plaintiff amount to the in excess of decree], it [consent is not a contribu- person’s comparative respon- share of tion action.” Id. at 207. sibility.”). In Corp. NCR v. George Whiting A Research, Following Atlantic we have Co., Paper the Seventh Circuit reaffirmed explained private party also that a must Bernstein’s, approach separately evalu use a contribution action to recov- ating costs, different sets of but arrived at expenses paid er under a settlement slightly different outcome. 768 F.3d Kotrous, agreement judgment. or a (7th 2014). NCR, 690-92 plain “If, however, F.3d at 932. the private party NCR, tiff company, sought reimbursement costs, has itself incurred response it cleanup expenses it had incurred seek ac- [a separate site under three orders from the pursuant tion 107.”Id. to] EPA and the Department Wisconsin of' The two other circuits to have consid- 2001, 2004, Natural Resources issued in question that, ered the have held even and 2007. argued Id. at 691. NCR it could statutory where one of the triggers for a bring action for these ex contribution claim has occurred for certain penses, and that it was not limited to a site, expenses at a a party may still contribution action. Id. Applying Bern cost recovery action for its other expenses. stein, the Seventh Circuit held that each Bankert, In Bernstein v. the Seventh Cir- triggered order right NCR’s of contribu cuit confronted a case where some of a tion for expenses covered that or plaintiffs cleanup expenses at a site were der. Id. at 691-92. NCR conceded that its pursuant incurred to a 1999 finalized set- expenses incurred under the 2001 order EPA, tlement with expenses and other triggered to contribution. Id. at pursuant were incurred to a 2002 consent 691. The Seventh Circuit held that NCR’s yet decree that was not final. 733 F.3d expenses incurred under the 2004 order 202-03 plaintiff required were also to be reimbursed (the Bernstein, the Third Site Trust Fund contribution, through because that order Trust), group established of com- liability” “resolved NCR’s for those ex panies that potentially responsible were 113(f)(3)(B). penses, triggering Id. at pollution at a hazardous waste site. Id. finally, 692. And the Seventh Circuit held 196. For the in- Trust NCR’s under the 2007 order settlement, curred under the finalized 1999 were brought to be in contri *8 the Seventh Circuit held the Trust that bution, government brought because the required bring a contribution ac- order, an action in 2010 to enforce that and tion, since the settlement “resolved its lia- “during contribution action is available 113(f)(3)(B). bility” triggered and at Id. following” enforcement action. Id. at However, 204-06. the Seventh Circuit also 9613(f)(1)). 691-92 (citing U.S.C. The held that the non-final 2002 consent decree rejected argument did not Seventh Circuit NCR’s liability resolve the Trust’s for costs, separate those expenses and therefore the that it the incurred under the Third government’s expenses. Id. at 225-26. The Circuit 2007 order before Agere Sys- by plaintiff, also held that another action were not covered enforcement tems, (Agere), bring Inc. could cost re- slicing right NCR’s of contribution: “Such covery action because it had not been sued dicing costs incurred under the and EPA for the related to by expenses order makes little same administrative Operational either Unit. Id. The Third Cir- liability all of party’s when a for sense explained “Agere cuit and TI 'do not ultimately be determined those costs will have contribution claims action.” Id. at 692. the enforcement parties settlement sums because those Inc. v. Advanced En Agere Systems, In never themselves sued those were Technology Corp., the Third vironmental by by the EPA or other PRPs.” amounts that a who had been Circuit held added). (emphasis Id. at 225 recovery action could sued in a 107 cost Bernstein, NCR, Agere and each demon- action for bring still its own party’s strate that a right contribution separate liability from the estab expenses expenses for some of its at a site does not suit, by prior lished because 113 had necessarily mean that the loses its triggered separate been for those costs right bring action for action was therefore and Agere expenses. other Both Bernstein and (3d unavailable. 602 F.3d plaintiffs bring held that could cost recov- 2010). plaintiffs Agere, of the TI One ery expenses separate actions for (TI), Systems Automotive LLC had plaintiffs right those for which the had potentially into a trust fund with other plain- And that the contribution. NCR held responsible parties to cover a certain set of bring tiff was all of its claims (the “Operational at a site expenses Unit contribution because each set ex- expenses), though One” even TI had not triggering was covered an order expenses. been sued for those Id. at 212. to contribution.7 previously TI had also been sued EPA in a cost action under Considering closely related issue of (the expenses “Opera for a different set of party’s right whether a to contribution for expenses), resulting in a tional Unit Two” expenses triggers some of its the statute of requiring pay TI to those consent decree limitations for contribution for all of its separate expenses. Id. 212-13. expenses, the First Circuit has held TI Third Circuit held that was not re periods separate limitations all quired to use a contribution action for expenses triggered indepen sets of claims, of its and could dently. Cyanamid Capuano, Am. Co. v. (1st 6, 13-15 action to recover its share of the In Amer Operational' One even Cyanamid, Unit ican a hazardous waste site though TI had sued the EPA required groundwater been both soil and Operational 107 for the liti- previous Unit Two remediation. Id. 10-11. regarding problematic 7. The Seventh Circuit’s statement to consider different sets of ex- “slicing dicing” and of costs under the penses separately, separate- because the court 2007 administrative order is consistent with ly evaluated NCR’s under each of analysis. “slicing The statement refers Instead, the three orders. the Seventh Circuit dicing incurred of costs under the same problematic found it to further divide NCR’s order," “liability administrative where NCR’s order, expenses under the 2007 when NCR’s ultimately for all those costs will be deter- for all of those would be mined in the enforcement action.” government's determined in the enforcement added). (emphasis apparent at 692 It is action. generally the Seventh Circuit did not find it

1011 potentially responsible party questions, a statute of limitations gation, their rea- (R&H) Company soning party’s called the Rohm & Haas confirms that a in recovery held liable 107 cost is limited to the expenses contribution for expenses action for related to the soil which it has been found liable. cleanup. Id. at 10. R&H also entered into a In this Whittaker was found separate consent decree with the United plaintiffs liable to the Castaic Lake for the groundwater cleanup. related to the States expenses specifically removing related to Id. at 11. R&H later brought CERCLA perchlorate from plaintiffs’ wells potential contribution action other replacing their water. Whittaker now ly responsible parties groundwater for its seeks reimbursement govern cleanup expenses. Id. The First Circuit ment for a different set of for upheld R&H’s contribution action over the which Whittaker was not found in liable argument defendants’ the statute of Castaic Lake.8 Following guidance ground limitations for contribution for the Court and the other circuit expenses triggered by

water had been courts, we hold that Whittaker was not liability earlier for the R&H’s soil ex its in claims this case in Id. at 13. penses. The First Circuit ex §a contribution action after its lia plained that statute of CERCLA’s limita bility was resolved in Castaic Lake. tions for contribution claims bases the timeliness of an “action for contribution for C any response damages” costs or on “the government presents The two text- judgment any date of action ... arguments why based party who has damages.” of such costs or Id. been sued 107 cost action (quoting 9613(g)(3)). The First pollution related to at a site “ phrase Circuit held ‘such costs should be limited to a contribution action damages’ damages refers to the costs or site, for all of the party’s expenses at the ” ‘judgment.’ contained in the Id. (empha regardless of whether the added). years sis PRP “[A] has three liability covered established seek contribution for costs contained with prior argument 107 suit. We find neither limitations, judgment. in a statute persuasive. however, triggered is not for costs not 15; First, the judgment.” noting contained within Id. at allows ASARCO, brought see also LLC v. action to “during Celanese Chem. contribution be (9th 2015) Co., following” action under (“[T]here 9613(f)(1), is no limit in pre gov the statute to see U.S.C. early in an argues party’s right vent settlement from ernment that a seeking contribution related to a later set contribution cannot be limited to the liabil tlement, long ity as as those settlements cover established all, separate obligations.”); Corp. RSR v. Com action. After it would not make sense Co., to recover permit mercial Metals 2007) (“Rather liability par than focus is established if the on who before short, cost-recovery ty’s right to contribution is limited to its settled the However, liability. the statute asks us to focus on what was established the Su settled.”). that: Although preme explained these cases considered Court has litigation, 8. Nor is Whittaker’s own for the ex- as far as we are aware. pending it seeks in this case *10 1012 This is how contribution discharged.”). authorizes a PRP to seek

The statute traditionally claims work. See Restatement following” a “during or suit contribution (Third) 23(b) § 113(f)(1) of Torts & cmt. b.10 For 107(a). Thus, § § ... under reason, this it was not the terms of the or after the estab- permits suit before that complaint Castaic Lake determined liability. In either lishment of common contribution, right to recover right to contribution un- a PRP’s but rather the extent of the costs for which 113(f)(1) contingent upon § is der in ease. was held liable Whittaker of common lia- inequitable distribution 113(f)(1) Second, § noting that allows a bility among parties. liable brought against contribution action to be 107(a) contrast, § By permits person poten who is liable or “any not create a of costs but does § under see 42 tially liable” private party A right to contribution. 9613(f)(1), that,, government argues 107(a) may any under without recover trig claim has been once a contribution liability par- to a third establishment of gered, scope expenses of recoverable ty- in contribution is coextensive with 138-39, Research, 551 U.S. at 127 Atl. potential liability under scope added; (emphasis citation omit S.Ct. 2331 ... including “any necessary costs of re ted). permits While the statute by party, incurred” id. sponse see §a initiate a contribution action while 9607(a)(4)(B). If the to contribution pending, suit is actual recov broad, were so there would be no reason ery of is lim contribution to evaluate different courts sets ited to the for which the is expenses separately deciding whether a Bernstein, 733 F.3d at found liable.9 See claim, yet party has contribution evaluat (“To the extent the Trustees’ suit ing expenses separately precisely is what expenses arising to recover out of seeks See, NCR, e.g., courts have done. 768 F.3d the 2002 performance [consent their Bernstein, 207-08; 690-92; action.”); decree], it is not a contribution 225-26; Agere Sys., Cyan 602 F.3d at Am. (1st Davis, United States 113(f)(1)’s amid, 381 F.3d at 14-16. Section 2001) (“This [statutory] language an potentially responsible §to 107’s reference ticipates that a defendant in a [107] parties indicates from whom contribution may initiate a contribution action may sought, scope be not the liability action before its own is estab that are recoverable contribution. lished. Consistent [107] defendant whose with this liability scheme, has been D may declaratory awarded Finally, holding established be is with consistent above, liability fully purposes. relief has been CERCLA’s As noted before judgment. party may plaintiff satisfaction of 9. A also be able to obtain declar- rules, atory judgment by procedural person contribution permitted As assign proportionate liability order to seeking a claim for assert Boeing expenses. See Co. v. uncertain future contingent judg- contribution and obtain a Corp., Cascade 1191-92 person in an in which the ment action seeking plaintiff, contribution is sued though liability person even of the explained 10. As in the comment: sought against whom contribution seeking person A contribution must extin- extinguished. yet been guish of the (cita- (Third) of Torts 23 cmt. b Restatement sought por- whom contribution is for that omitted). tions liability, tion of either settlement with *11 was intended to CERCLA incentivize both bringing basis from recovery cost action environmental negoti efforts and against the United States. liability. ated settlements Chubb Cus REVERSED and REMANDED.

tom, 710 Allowing party 956. who has incurred substantial environmental re

sponse span costs over a of decades to OWENS, Judge, Circuit concurring in recover from other potentially responsible all but Part III D: parties goals. serves these dual See Fire opinion The Court’s persuasively follows Lodi, City Cal., man’s Fund Ins. Co. v. Supreme current Court and circuit law (9th 2002) (“Poten interpreting statutory relevant provi- purchasers tial of abandoned or underuti sions, so I concur. join Yet I do not Part properties lized contaminated are often de D, law, III view, as the my case purchasing terred from and cleaning up drifted from what Congress these properties by exposure to intended when unbound Bernstein, ed and uncertain it liability.”); passed and amended CERCLA (“[T]he F.3d at 214 action is 1980s. See Chubb Custom Ins. Space Co. v. subject limitations, a longer statute of Inc., Sys./Loral, it making arguably preferable

vehicle for a PRP embarking on what Requiring all related contribution claims might effort, well be a decade-long cleanup to be “dealt with in a single action” would actually creating and thus posi further “encourage private party settlements and settle.”). tive incentive to cleanup” because the threat of being sued recognize We goal CERCLA’s defendant, “as a third-party concurrent encouraging prompt settlement with original litigation, has the effect by interpreting be served the right of con- of bringing all such responsible parties to broadly, tribution imposition because the the bargaining table at early date.” of a shorter statute of limitations would 99-253, H.R. Rep. (1985), No. pt. at 80 parties incentivize to initiate lawsuits soon- reprinted in 1986 U.S.C.C.A.N. 2862. ASARCO, er. 9613(g); See U.S.C. Rather than dining at the same table F.3d at 1211. interpreta- Yet such broad feast, big one holding tion of “contribution” is inconsistent with —dic- by Congress my the balance struck tated view language and with Atlantic interpretation Court’s permits fight adversaries to Research — term. We do not believe that Congress generations moldy over leftover crumbs. mandated parties who have been sued in lawyers, Good but bad for the environ- § 107 actions to all of ment and the communities affected their own CERCLA claims in the form of contamination. a contribution on an accelerated I urge Congress to take a second look timeframe, regardless of the merit or the aspect this of CERCLA. result of the suit.

IV

Because Whittaker seeks to recover ex- separate that are from those for

which Whittaker’s is established or

pending, Whittaker was not

bring this suit as a claim for contribution.

Whittaker therefore is not barred on this

Case Details

Case Name: Whittaker Corporation v. United States
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Jun 13, 2016
Citation: 825 F.3d 1002
Docket Number: 14-55385
Court Abbreviation: 9th Cir.
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