U.S. v. Hardage

Citation985 F.2d 1427
Decision Date16 February 1993
Docket NumberNo. 92-6101,A-1,DONNELL-DOUGLAS,D-M,A-B,92-6101
CourtUnited States Courts of Appeals. United States Court of Appeals (10th Circuit)
PartiesUNITED STATES of America, Plaintiff, v. Royal N. HARDAGE, Oklahoma National Stockyards Company, J.O.C. Oil Exploration, Dal-Worth Industries, Double Eagle, Samuel Bishkin, doing business as Eltex Chemical, L & S Bearing Company, Kerr-McGee Corporation, Cato Oil, Advance Chemical Distribution, Inc., Allied-Signal, Inc., AT & T Technologies, Inc., Ashland Oil, Inc., Atlantic Richfield Company, Borg-Warner Corporation, Exxon Corporation, The Firestone Tire and Rubber Company, Foster Feed & Seed Co., Gencorp, Inc., Bull HN Information Systems Inc., Magnetic Peripherals, Inc., Maremont Corporation, Mobil Chemical Company, Nalco Chemical Company, Oklahoma Gas & Electric Company, The Oklahoma Publishing Company, Rockwell International Corporation, Texaco, Inc., Texas Instruments, Inc., Uniroyal Inc., UOP, Inc., Westinghouse Electric Corporation, Weyerhaeuser Company, Powell Sanitation Service, Inc., Defendants, and United States Pollution Control, Defendant-Appellant, McCORPORATION, Defendant-Appellee, v. A.H. BELO, doing business as Dallas Morning News, Acme Fence & Iron Co., Alamo Group Texas, Inc., Aircraftsman, Inc., Agnew Auto Parts, American National Can Corporation, Anadite, Inc., Arrow Tank Trucks, Aztec Manufacturing, Arrow Industries, Aviall of Texas, Inc., BASF, Betz Laboratories, Inc., Blanks Engraving, Beazers Materials, Blackwell Zinc Company, Inc., Broadway Machine & Motor Supply, Inc., The Bucket Shop, Inc., Charles Machine Works, Inc., Container Supply, Inc., Carnation Company, Container Corp. of America, Continental Can Company, Inc., Cook Paint & Varnish Co., CTU of Delaware, Country Home Meat Company, Dart Industries, Delta Faucet Company, Del Paint Corporation, Dixico, Inc., Downtown Airpark, Inc., Drilex Systems, Inc., Dubois Chemicals, Inc., Dresser Industries, Inc., Drillers Engine & Supply, Inc., Dura Chrome, Fisher Controls, GAF, E C Industries, Fred Jones Manufacturing Company, General Dynamics, General Motors Corporation, Glidden Company, SCM Co

Raymond T. Reott (Theodore R. Tetzlaff and Gary W. Ballesteros, of Jenner & Block, were with him on the briefs), of Jenner & Block, Chicago, IL, for defendant-appellant.

Susan L. Gates (Michael D. Graves, was with her on the brief), Tulsa, OK, for defendant-appellee.

Before TACHA and BALDOCK, Circuit Judges, and BROWN, District Judge. *

TACHA, Circuit Judge.

Defendant-Appellant United States Pollution Control, Inc. ("USPCI") appeals a judgment of the United States District Court for the Western District of Oklahoma finding USPCI liable in indemnification for McDonnell Douglas Corporation's ("MDC") costs relating to the Hardage Superfund Site and awarding attorneys' fees and prejudgment interest. We exercise jurisdiction under 28 U.S.C. § 1291 and affirm in part, reverse in part, and remand for further proceedings consistent with this opinion.

I. Background

This appeal arises out of a suit filed in 1986 by the United States for relief under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 42 U.S.C. § 9601 et seq., for the cleanup of the Royal N. Hardage Industrial Waste Site ("Hardage Site") near Criner, Oklahoma. MDC and USPCI were among 37 defendants named in that suit. MDC generated hazardous waste deposited at the Hardage Site; USPCI transported MDC's and other parties' waste to the Hardage Site. Due to the size and complexity of the litigation, the district court divided the case into four phases: Phase I determined the appropriate cleanup remedy; Phase II determined the liability of the named defendants to the government as responsible parties under CERCLA; Phase III resolved all cross-claims and third-party claims; and Phase IV allocated the amounts to be paid by the liable parties.

In Phase I, the district court opted not to implement the government's proposed remedy, instead favoring the remedy proposed by the Hardage Steering Committee ("HSC"). 1 In Phase II, MDC, along with most of the HSC defendants, stipulated to liability as a generator of hazardous waste pursuant to CERCLA § 107(a)(3). USPCI...

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    ...sweeps all events — including those occurring because of the indemnitee's actions — into its coverage." United States v. Hardage, 985 F.2d 1427, 1434-35 (10th Cir.1993). See Fosson, 309 S.W.2d at 178. How to determine whether an indemnity agreement contemplated CERCLA liability was discusse......
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