Racer Props. LLC v. Nat'l Grid USA

• Decision Date: 08 July 2022
• Docket Number: 5:18-CV-1267
• Parties: RACER PROPERTIES LLC and EPLET, LLC, not individually but solely in its representative capacity as Administrative Trustee of Revitalizing Auto Communities Environmental Response Trust, Plaintiffs, v. NATIONAL GRID USA, et al., Defendants.
• Court: U.S. District Court — Northern District of New York

610 F.Supp.3d 451

RACER PROPERTIES LLC and EPLET, LLC, not individually but solely in its representative capacity as Administrative Trustee of Revitalizing Auto Communities Environmental Response Trust, Plaintiffs,

v.NATIONAL GRID USA, et al., Defendants.

5:18-CV-1267

United States District Court, N.D. New York.

Signed July 8, 2022

ALAN J. KNAUF, ESQ., LINDA R. SHAW, ESQ., AMY K. KENDALL, ESQ., JONATHAN R. TANTILLO, ESQ., MELISSA VALLE, ESQ., KNAUF SHAW LLP, Attorneys for Plaintiffs, 1400 Crossroads Building, 2 State Street, Rochester, New York 14614.

JEFFREY D. TALBERT, ESQ., DAVID B. VAN SLYKE, ESQ., LAURA A. RIDEOUT, ESQ., PRETI FLAHERTY BELIVEAU & PACHIOS, LLP, Attorneys for Plaintiff Racer Properties LLC, P.O. Box 9546, One City Center, Portland, Maine 04112.

YVONNE E. HENNESSEY, ESQ., BARCLAY DAMON LLP-ALBANY, Attorneys for Defendants National Grid USA and Niagara Mohawk Power Corporation, 80 State Street, Albany, New York 12207.

ERICK M. SANDLER, ESQ., ELIZABETH C. BARTON, ESQ., DAY, PITNEY LAW FIRM-HARTFORD, Attorneys for Defendants Carrier Corporation, United Technologies Corporation, and Carlyle Air Conditioning Company Inc., 242 Trumbull Street, Hartford, Connecticut 06103.

DEAN S. SOMMER, ESQ., KRISTIN CARTER, ROWE, ESQ., YOUNG, SOMMER LAW FIRM, Attorneys for Defendant General Electric Company, Executive Woods Five Palisades Drive, Albany, New York 12205.

BERNARD J., GARBUTT, III, ESQ., MORGAN, LEWIS LAW FIRM-NY, Attorneys for Defendant Bristol-Meyers Squibb Company, 101 Park Avenue, New York, New York 10178.

GLEN R. STUART, ESQ., ADINA D. BINGHAM, ESQ., MORGAN, LEWIS LAW FIRM, Attorneys for Defendant Bristol-Meyers Squibb Company, 1701 Market Street, Philadelphia, Pennsylvania 19103.

JOHN T. KOLAGA, ESQ., RUPP, BAASE LAW FIRM-BUFFALO, Attorneys for Defendants Thompson Corners, LLC, 6181 Thompson Road, LLC, Thompson Lawn, LLC, and Thompson NW, LLC, 424 Main Street, 1600 Liberty Building, Buffalo, New York 14202.

ALBERT J. MILLUS, Jr., ESQ., HINMAN, HOWARD LAW FIRM, Attorneys for Defendants Metalico Syracuse Realty, Inc. and Metalico New York, Inc., P.O. Box 5250, 80 Exchange Street, 700 Security Mutual Building, Binghamton, New York 13902.

DANIEL FLAHERTY, ESQ., DANIEL NARVEY, ESQ., GODFREY & KAHN, S.C., Attorneys for Defendant Gardner Denver, Inc., 833 East Michigan Street Suite 1800, Milwaukee, Wisconsin 53202.

GARY S. BOWITCH, ESQ., GARY S. BOWITCH, Attorneys for Defendant Gardner Denver, Inc., 13 Willow Street, Castleton, New York 12033.

DONALD W., O'BRIEN, Jr. ESQ., WOODS OVIATT GILMAN LLP, Attorneys for Defendant ONX1 LLC, 1900 Bausch & Lomb Place, Rochester, New York 14604.

ANDREW C. ROSE, ESQ., DANA P. STANTON, ESQ., NIXON, PEABODY LAW FIRM-ALBANY, Attorneys for Defendant Onondaga Pottery Company, Inc., 677 Broadway 10th Floor, Albany, New York 12207.

LORI E. PETRONE, ESQ., KENNEY, SHELTON LAW FIRM, Attorneys for Defendant Amparit Industries, LLC, 233 Franklin Street, Buffalo, New York 14202.

MICHAEL A. FOGEL, ESQ., PATRICK D. DONNELLY, ESQ., FOGEL & BROWN, P.C., Attorneys for Defendants Carrier Circle Business Complex LLC, Syracuse Lepage LLC, and North Midler Properties LLC, 120 Madison Street, Syracuse, New York 13202.

PHILIP H. GITLEN, ESQ., WHITEMAN, OSTERMAN LAW FIRM, Attorneys for Defendant Telesector Resources Group, Inc., One Commerce Plaza Suite 1900, Albany, New York 12210.

DAVID VENDERBUSH, ESQ., ALSTON, BIRD LAW FIRM-NY, Attorneys for Defendant Western Electric Company, Incorporated and Nokia of America Corporation, 90 Park Avenue, New York, New York 10016.

MEAGHAN G. BOYD, ESQ., ALSTON, BIRD LAW FIRM-ATLANTA, Attorneys for Defendant Western Electric Company, Incorporated and Nokia of America Corporation, 1201 West Peachtree Street, Atlanta, Georgia 30309.

CHARLES T. WEHLAND, ESQ., JONES, DAY LAW FIRM-CHICAGO, Attorneys for Defendant Lennox Industries Inc., 77 West Wacker Drive Suite 3500, Chicago, Illinois 60601.

ALLISON L. WAKS, ESQ., JONES, DAY LAW FIRM-NEW YORK, Attorneys for Defendant Lennox Industries Inc., 250 Vesey Street, New York, New York 10281.

GREGORY M. BROWN, ESQ., BROWN DUKE & FOGEL, P.C., Attorneys for Defendants Syracuse Deere Road Associates, LLC and Hauler's Facility LLC, 120 Madison Avenue Suite 1620, Syracuse, New York 13202.

LINDA E. ALARIO, ESQ., LINDA E. ALARIO, Attorneys for Defendant Jagar Enterprises, Inc., 203 Jasper Street, Syracuse, New York 13203.

PAUL D. SYLVESTRI, ESQ., PETER H. ABDELLA, ESQ., HARTER, SECREST LAW FIRM, Attorneys for Defendants Calocerinos and Spina and C&S Engineers, Inc., 1600 Bausch & Lomb Place, Rochester, New York 14604.

JOSEPH R. TALARICO II, ESQ., TALARICO LAW FIRM, Attorneys for Defendant B&B Family Limited Partnership, 6832 East Genesee Street, Fayetteville, New York 13066.

GEOFFREY J. MICHAEL, ESQ., GEOFFREY J. MICHAEL, Attorneys for Defendant Honeywell International Inc., 6407 Eleventh Street, Alexandria, Virginia 22307.

LAUREN COLE DANIEL, ESQ., ARNOLD, PORTER LAW FIRM-DC, Attorneys for Defendant Honeywell International Inc., 601 Massachusetts Avenue Northwest, Washington, District of Colombia 20001.

STEVEN T. MIANO, ESQ., PETER V. KEAYS, ESQ., ROBERT A. WIYGUL, ESQ., HANGLEY ARONCHICK SEGAL PUDLIN & SCHILLER, Attorneys for Defendant Lockheed Martin Corporation, One Logan Square Twenty-Seventh Floor, Philadelphia, Pennsylvania 19103.

DOUGLAS H. ZAMELIS, ESQ., THE LAW OFFICE OF DOUGLAS H. ZAMELIS, Attorneys for Defendant Northeast Management Services, Inc., 7629A State Highway 80, Cooperstown, New York 13326.

MELODY D. WESTFALL, ESQ., WESTFALL LAW PLLC, Attorneys for Defendant Northern Industrial Holdings, LLC, 247 W. Fayette Street, Suite 203, Syracuse, New York 13202.

MEMORANDUM-DECISION and ORDER

DAVID N. HURD, United States District Judge

I. INTRODUCTION

On October 26, 2018, plaintiffs Racer Properties LLC ("Racer Properties") and EPLET, LLC ("EPLET" and with Racer Properties "plaintiffs") on behalf of Revitalizing Auto Communities Environmental Response Trust ("RACER") filed a complaint in this District. At its core, plaintiffs’ complaint sought money damages to recover the expenses they accrued cleaning pollution caused by dozens of defendant companies (together "defendants") over dozens of years at Onondaga Lake near Syracuse, New York.

That complaint has since been amended twice, but at present plaintiffs assert ten claims for relief against defendants: (1) cost recovery under 42 U.S.C. § 9607(a) ("§ 107") of the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"); (2) contribution under 42 U.S.C. § 9613(f) ("§ 113") of CERCLA; (3) response costs and damages under § 181(5) of the New York Navigation Law ; (4) contribution under § 176(8) of the New York Navigation Law ; (5) negligence under New York common law; (6) public nuisance under the New York common law; (7) restitution under the New York common law; (8) contribution or indemnification under New York common law; (9) declaratory relief under the Declaratory Judgment Act, 28 U.S.C. § 2201 ; and (10) a second claim for contribution under § 113 based on events taking place after the first amended complaint had been filed.

On February 16, 2022, defendants moved to dismiss the Second Amended Complaint. That motion, having been fully briefed, will now be decided on the submissions and without oral argument.

II. BACKGROUND ¹

Onondaga Lake has long been infamous for its pollution.

Revitalizing Auto Cmtys. Ennv't Response Tr. v. Nat'l Grid USA ("RACER I" ), 2020 WL 2404770, at *2 (N.D.N.Y. May 12, 2020). As a result, it comes as little surprise that in 1993 the lake and its immediate environs were added to the National Priorities List of potential CERCLA sites to kickstart a cleanup. Revitalizing Auto Cmtys. Ennv't Response Tr. v. Nat'l Grid USA ("Racer II" ), 10 F.4th 87, 93 (2d Cir. 2021).

But explaining how Onondaga Lake came to be so polluted requires taking a step back. Beginning in the mid-1950s, automotive manufacturer General Motors ("GM") built car parts out of the Syracuse Inland Fisher Guide Plant (the "IFG Plant"). Dkt. 334 ("SAC") ¶¶ 392, 394. Building those parts required hydraulic oils containing substances called polychlorinated biphenyls ("PCBs"), which are apparently particularly destructive to the environment. SAC ¶¶ 394-96.

In the course of disposing of its waste, the IFG Plant caused PCBs to enter the watershed of Ley Creek. SAC ¶¶ 394-96. Ley Creek, in turn, is one of Onondaga Lake's tributaries. SAC ¶ 1. It is also one of the most significant sources of its pollution. See id.

The IFG Plant was situated well upstream—that is, to the east—of Onondaga Lake. See Dkt. 334-19, p. 4. In fact, its property abuts Townline Road, where Ley Creek begins. Id. From the IFG Plant, Ley Creek travels under the LeMoyne Avenue Bridge, before flowing past the Route 11 Bridge furthest to the west. See SAC ¶ 64; Dkt. 334-19, p. 4. Of course, though plaintiffs acknowledge that the IFG Plant caused PCBs to enter the Ley Creek watershed, SAC ¶ 395, they also attribute that pollution to defendants, see id., passim.

As a result, the State of New York began to put pressure on GM to clean up after itself some time around 1985. See SAC ¶¶ 399-400. Ultimately, the New York State Department of Environmental Conservation ("NYSDEC") and GM entered into a consent decree that year to investigate and then redress the pollution at the IFG Plant. Id. ¶ 400.

That consent decree proved to be the first of many. See SAC ¶¶ 405-10. Working in concert with New York, GM slowly began to work towards cleaning up the pollution at and resulting from the IFG Plant. RACER II , 10 F.4th at 94. Eventually, and perhaps due to the strain of trying to remediate the area, GM shut down the IFG Plant in 1993, around the same time Onondaga Lake was added to the National Priorities List. SAC ¶¶ 397-404; see RACER II , 10 F.4th at 93-94.

On June 1, 2009, GM declared bankruptcy. RACER I , 2020 WL 2404770, at *2. But of course, GM's lack of funding did not make the environmental consequences of its long-term...