US v. Consolidated Rail Corp.
| Decision Date | 06 November 1987 |
| Docket Number | Civ. A. No. 85-502 MMS. |
| Parties | UNITED STATES of America, Plaintiff, v. CONSOLIDATED RAIL CORPORATION; Sea-Port Services, Ltd., formerly Sealand, Ltd.; Oil Industries, Ltd.; Wayne Hawkins; Chem Clear, Inc.; Coopers Creek Chemical Corporation; Penn Fuel Gas, Inc.; Philadelphia Gas Works; Public Service Electric and Gas Company; and National Industrial Services, Inc., f/k/a Maine Coastal Service, Defendants. PENN FUEL GAS, INC.; Consolidated Rail Corporation; Chem Clear, Inc.; Coopers Creek Chemical Corporation; Philadelphia Gas Works; and Public Service Electric and Gas Company, Third-Party Plaintiffs, v. WASHINGTON POST COMPANY; Affiliated Publications, Inc., d/b/a Boston Globe; Times Journal Company, f/k/a Army Times Publishing Company; United States Printing Ink Corporation; East Coast Pollution Control, Inc.; Casie Ecology Oil Salvage, Inc.; National Industrial Services, Inc., f/k/a Maine Coastal Service; Farboil Company; Peabody Clean Industries, Inc. of Massachusetts, f/k/a Coastal Services, Inc.; Eklof Marine Corp.; Timber Trucking Co., Inc.; Continental Vanguard, Inc.; Burke Parsons Bowlby Corp.; Peabody-Myers Corporation; USX Corporation f/k/a United States Steel Corp.; Koopers Company, Inc.; the Globe Newspaper Company; A.M. Lavin Machine Works, Inc.; and Robert J. Ziegler, d/b/a American Reclamation Refining Company, Third-Party Defendants. |
| Court | U.S. District Court — District of Delaware |
COPYRIGHT MATERIAL OMITTED
Richard G. Andrews, Asst. U.S. Atty., Dept. of Justice, Wilmington, Del., of counsel: Robert R. Keuhn, Dept. of Justice, Washington D.C., for U.S.
Somers S. Price, Jr. of Potter, Anderson & Corroon, Wilmington, Del., of counsel: Abbi L. Cohen, Philadelphia, Pa., for Consolidated Rail Corp.
John Elzufon, of Elzufon & Bailey, Wilmington, Del., for Sea-Port Services, Ltd.
Wayne Hawkins, defendant pro se, Wilmington, Del.
Stephen E. Herrmann of Richards, Layton & Finger, Wilmington, Del., of counsel: Thomas W. Scott of Killian & Gephart, Harrisburg, Pa., for Chem Clear, Inc.
Henry E. Gallagher and Collins J. Seitz, Jr. of Connolly, Bove, Lodge & Hutz, Wilmington, Del., for Coopers Creek Chemical Corp.
C. Scott Reese of Cooch & Taylor, Wilmington, Del., of counsel: Robert A. Swift of Kohn, Savett, Marion & Graf, P.C., Philadelphia, Pa., for Penn Fuel Gas, Inc.
Philip D. Saxon of Duane, Morris & Hecksher, Wilmington, Del., of counsel: Tyler E. Wren of Obermayer, Rebmann, Maxwell & Hippel, Philadelphia, Pa., for Philadelphia Gas Works.
William D. Johnston of Young, Conaway, Stargatt & Taylor, Wilmington, Del., of counsel: Roger M. Nelson, Newark, N.J., for Public Service Elec. and Gas Co.
Susan C. Del Pesco of Prickett, Jones, Elliott, Kristol & Schnee, Wilmington, Del., for National Industrial Services, Inc.
Barbara D. Crowell of Morris, James, Hitchens & Williams, Wilmington, Del., of counsel: John Quarles, and Janine M. Sweeney of Morgan, Lewis & Bockius, Washington, D.C., for Washington Post Co., Affiliated Publications, Inc., and The Globe Newspaper Co.
Donald E. Reid of Morris, Nichols, Arsht & Tunnell, Wilmington, Del., for Peabody Clean Industries, Inc., Times Journal Co., f/k/a Army Times Publishing Co., and Peabody-Myers Corp., of counsel for Peabody Clean Industries, Inc. and Times Journal Co.
Donald Patterson of Beverage & Diamond, Washington, D.C. of counsel, for Army Times.
Theodore L. Garret, and Keith A. Teel of Coving & Burling, Washington, D.C. of counsel, for Army Times.
Douglas B. Catts of Schmittinger & Rodriguez, P.A., Dover, Del., for U.S. Printing Ink Corp.
Raymond M. Radulski, Wilmington, Del., of counsel: Michael H. Malin of White & Williams, Philadelphia, Pa., for East Coast Pollution Control, Inc.
John C. Lager of Saul, Ewing, Remick & Saul, Wilmington, Del., of counsel: Franklin J. Riesenburger of Greenblatt & Riesenburger, P.A., Vineland, N.J., for Casie Ecology Oil Salvage, Inc.
John W. Noble of Parkowski, Noble & Guerke, Dover, Del., of counsel: Charles D. Hellman of Lowenstein, Sandler, Brochin, Kohl, Fisher, Boylan & Meanor, Roseland, N.J., for Farboil Co.
Beth H. Christman of Tybout, Redfearn, Casarino & Pell, Wilmington, Del., of counsel: Kieron Quinn, and Thomas J. Minton of Quinn, Ward & Kershaw, Baltimore, Md., for Eklof Marine Corp.
William L. Garrett, Jr. of O'Donnell & Hughes, P.A., Wilmington, Del., of counsel: Robert G. McLusky of Jackson, Kelly, Holt & O'Farrell, for Timber Trucking Co., Inc. and Burke Parsons Bowlby Corp.
Robert K. Beste, Jr. of Biggs & Battaglia, Wilmington, Del., of counsel: Frank Thatcher of Moss, Thatcher, Moss, McNeill & Ferreri, Runnemede, N.J., for Continental Vanguard, Inc.
Roger A. Akin of Sawyer & Akin, Wilmington, Del., of counsel: Mark McNally, Pittsburgh, Pa., for USX Corp.
Richard Herrmann of Bayard, Handelman & Murdoch, Wilmington, Del., for Koopers Co., Inc.
Joseph W. Weik of Czajkowski, Weik & Knepper, Wilmington, Del., of counsel: Lewis Kates of Kates & Mozzocone, Philadelphia, Pa., for A.M. Lavin Machine Works, Inc.
Robert J. Katzenstein of Lassen, Smith, Katzenstein & Furlow, Wilmington, Del., of counsel: Robert J. Ziegler, of Pressman & Pressman, Philadelphia, Pa., for Robert J. Ziegler.
OPINION ON THE GLOBE NEWSPAPER COMPANY'S MOTION TO DISMISS
In August 1985, plaintiff United States of America brought an action under the Comprehensive Environmental Response Compensation and Liability Act ("CERCLA"), 42 U.S.C. §§ 9601-9657 (1982), seeking reimbursement of response costs for the clean-up of hazardous wastes at the Sealand disposal site in Delaware. On August 7, 1986 Conrail and other defendants filed an amended third-party complaint adding third-party defendant The Globe Newspaper Company ("Globe") and others. The third-party plaintiffs sought indemnification and/or contribution under Section 107 of CERCLA, 42 U.S.C. § 9607 (1982), and Delaware common law. Third-party plaintiffs executed a third-party summons upon Globe on August 7, 1986 through the Secretary of State of Delaware, and subsequently notified the Court that a notice of receipt was received from Globe on August 12, 1986.
The issue now before the Court is Globe's motion to dismiss for lack of personal jurisdiction.
The Boston Globe is a newspaper incorporated under the laws of the Commonwealth of Massachusetts, with its principal place of business in Massachusetts. Globe has no business facilities, employees or bank account in Delaware.
Globe, however, did generate waste ink that was transported to the Sealand site in Delaware for disposal and treatment. As part of Globe's contract with United States Printing Ink ("USPI") for the purchase of ink, USPI arranged for the disposal of Globe's waste ink. On two occasions in 1983 Globe employees signed hazardous waste manifests stating that the waste ink was destined for the Sealand facility in Delaware and that the facility had a valid permit and could accept the shipment.
In addition, Globe had business contacts with Delaware residents unrelated to the disposal of the waste ink. Globe has maintained subscriptions and advertising accounts with Delaware residents. In 1986 Globe had eleven Delaware advertising accounts which totaled 832 lines and $4,618, less than one percent of Globe's total paid advertising. Appendix to Defendant/Third-Party Plaintiff's Answering Brief, Document No. 81 hereinafter Appendix; see Henn Affidavit at ¶ 16. Globe also had sixteen mail subscriptions with Delaware addresses in 1986. Henn Affidavit at ¶ 17. In 1985, Globe had eight Delaware advertising accounts totalling $6,107 and 1,537 lines, and twenty-six Delaware subscribers. Appendix, Document No. 89; Henn Affidavit at ¶ 17. In 1984, twelve Delaware advertisers accounted for $3,284 in advertising revenue and 696 lines. Appendix, Document No. 95. In 1983, Globe's three Delaware advertisers were responsible for $1858.80 in revenue and 468 lines. Id. The record contains no figures for the years prior to 1983.
A threshold issue is whether at the time third-party plaintiffs brought this action under Section 107 of CERCLA, 42 U.S. C. § 9607 (1982), there was nationwide service of process. At the pertinent time that act contained no section explicitly authorizing nationwide service of process.1 Following the lead of other tribunals which have addressed this issue, the Court holds nationwide service of process can not be implied under CERCLA. See Violet v. Picillo, 613 F.Supp. 1563, 1573 (D.R.I.1985); Wehner v. Syntex Agribusiness, 616 F.Supp. 27, 28-29 (E.D.Mo.1985); but see United States v. Bliss, 108 F.R.D. 127, 136-37 (E.D.Mo.1985) ().
If there is no federal statute authorizing nationwide service of process, the district courts look to the jurisdictional statute of the state in which they sit, in accordance with Rule 4(e) of the Federal Rules of Civil Procedure. Max Daetwyler Corp. v. R. Meyer, 762 F.2d 290, 295 (3d Cir.), cert. denied, 474 U.S. 980, 106 S.Ct. 383, 88 L.Ed.2d 336 (1985). Therefore, this Court must examine jurisdiction under the Delaware long-arm statute.
Determining jurisdiction is a two-step process. First, the Court must examine whether the Delaware long-arm statute establishes jurisdiction. If it does, the Court must decide if its assertion of jurisdiction comports with the due process guarantees of the Fourteenth Amendment of the United States Constitution. Fischer v. Hilton, 549 F.Supp. 389, 390 (D.Del.1982).
Third-party plaintiffs assert two bases for jurisdiction under the Delaware long-arm statute, Del.Code Ann. tit. 10, § 3104 (Supp.1986). Subsection (c) provides in pertinent part that:
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