Asarco, LLC v. Union Pac. R.R. Co.
Decision Date | 26 July 2018 |
Docket Number | Case No. 2:12-cv-00283-EJL |
Parties | ASARCO, LLC, Plaintiff, v. UNION PACIFIC RAILROAD COMPANY, Defendant. |
Court | U.S. District Court — District of Idaho |
Plaintiff, Asarco, LLC, has brought a contribution claim against Defendant, Union Pacific Railroad Company, under § 113(f) of the federal Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C. §§ 9601-9675. Union Pacific argues Asarco has no right to bring a contribution claim, denies it is liable under CERCLA, and contends that Asarco released any contribution claim against it in the parties' Bankruptcy Settlement.
The Court has jurisdiction over this matter under 28 U.S.C. § 1331. On November 21, 2017, the Court completed a thirteen-day bench trial. Thereafter, the parties filed post-trial briefing. Having weighed and evaluated all of the evidence presented and fully considering the legal arguments of counsel, the Court makes the following Findings of Fact and Conclusions of Law pursuant to Federal Rule of Civil Procedure 52(a).
The following facts are relevant to the Court's ruling herein and were proven by a preponderance of the evidence at the trial.1
1. The "Coeur d'Alene Basin" ("CDA Basin")2 encompasses the watershed of the CDA River, part of the Spokane River and Lake CDA. The headwaters of the South Fork of the CDA River ("South Fork") begin in the Bitterroot Mountain Range at the Idaho-Montana border, and the river flows westward past the town of Mullan to Wallace, Idaho, where it joins Canyon and Ninemile Creeks. The river flows past Osburn, Kellogg, Smelterville, and Pinehurst. Below Pinehurst, the South Fork joins the North Fork of the CDA River ("North Fork"), and the river empties into the 25-mile-long Lake CDA. Lake CDA is drained by the Spokane River at its northern end. (Dkt. 281.)
2. The Bunker Hill Mining and Metallurgical Complex Superfund Site (the "Site" or "CDA Site") is a 1,500 square mile area located primarily in northern Idaho, in the CDA Basin. The CDA Site was listed on the National Priorities List ("NPL") in 1983 and is assigned CERCLIS identification number IDD048340921. (Dkt. 281.)
3. The Environmental Protection Agency ("EPA") has divided the CDA Site into three operable units ("OU"):
(Dkt. 281.)
4. The CDA Site has been impacted as a result of more than 120 years of historical mining, milling, smelting, and related activities by a number of different entities at more than 100 historical mines, and ore processing facilities. (Dkt. 281.)
5. The EPA identified jig tailings, flotation tailings, and other mining wastes as a source of hazardous substances at the CDA Basin. (Dkt. 281.)
1. In 1991, the Coeur d'Alene Tribe ("CDA Tribe") filed a complaint asserting natural resource damages ("NRD") claims under CERCLA against Asarco, Union Pacific, and other potentially responsible parties ("PRPs"). (Dkt. 281); Coeur d'Alene Tribe v. Asarco Inc., Case No. 3:91-cv-00342-EJL ("CDA Tribe v. Asarco").
2. In 1994, the United States, the State of Idaho, Asarco, and other PRPs entered into a Consent Decree, Case No. 3:94-cv-00206-EJL ("1994 Consent Decree") addressing OU1. (Dkt. 281.)
3. In 1996, the United States filed a separate action asserting CERCLA claims against Asarco and other PRPs. United States v. Asarco Inc., Case No. 3:96-cv-00122-EJL ("United States v. Asarco"). The United States' case was consolidated with the CDA Tribe case in 1996. (Dkt. 281.)
4. After 78 days of trial in the consolidated cases, on September 3, 2003, this Court issued an Order, Coeur d'Alene Tribe v. Asarco Inc., 280 F.Supp. 2d. 1094 (D. Idaho 2003), wherein it made findings of fact and conclusions of law that are relevant to the issues presented in this case. As a result, the parties have adopted the following findings of fact made in that case here:
(Dkt. 281.)
1. On August 9, 2005, Asarco filed a voluntary petition for bankruptcy relief in the Bankruptcy Court for the Southern District of Texas ("Bankruptcy Court"), In re Asarco LLC, et al., Bankr. No. 05-21207, 2009 WL 8176641 (S.D. Tex. June 5, 2009) (the "Bankruptcy Case"); (Dkt. 281.)
2. In the Bankruptcy Case, Asarco sought a "global" and "comprehensive" resolution of its nationwide environmental liabilities and corporate reorganization under Chapter 11 of the Bankruptcy Code. (Ex. 74); In re Asarco LLC, 2009 WL 8176641, at *1.
1. The United States of America ("Government") filed two (2) relevant Proofs of Claim ("POCs") against Asarco addressing the CDA Site. (Ex. 3, 6.) The second POC, filed July 13, 2006, claimed that Asarco should be held jointly and severally liability for claims relating to OU3 for approximately $2.5 billion in 2008 dollars; $2.0537 billion of which was for response costs. (Dkt. 281); (Ex. 6.)
2. On January 30, 2007, Asarco filed a motion to estimate all of its environmental liabilities so that it could formulate a plan of reorganization and disclosure statement. (Dkt. 281); (Ex. 8.)
3. On May 7, 2007, the United States filed a "General Background Brief" explaining certain provisions of CERCLA and its operation, arguing that liability is presumptively joint and several. (Dkt. 281); (Ex. 10.)
4. Asarco opposed the imposition of joint and several liability, arguing it should only be responsible for 22% of the total claims at the CDA Site, and disputed the United States' estimated damages calculations for OU3 of $2.5 billion, arguing Asarco's total liability for all past and future response costs and NRD associated with the CDA Basin should not exceed $120.5 million. (Ex. 17, 22.)
5. Paul Ammann, the United States' retained cost expert, submitted an expert report, rebuttal report, and proffer in the Bankruptcy Court's estimation hearing which calculatesthe cost to remedy OU3 for the next 100 years would be approximately $2.56 billion, with $2.0537 billion of that total being response costs. (Ex. 15, 20, 26.)
6. Jeffrey Zelikson and Richard White, Asarco's retained experts, also submitted expert reports and proffers in the estimation hearing. (Ex. 16, 24, 25.)...
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