Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_09-cv-02275/USCOURTS-casd-3_09-cv-02275-9/pdf.json

Nature of Suit Code: 893
Nature of Suit: Environmental Matters
Cause of Action: 42:9607 Real Property Tort to Land - Liability

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09-CV-2275 WQH (JLB)

WEST\260744180.2

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

CITY OF SAN DIEGO,

Plaintiff,

v.

NATIONAL STEEL AND 

SHIPBUILDING COMPANY; et al.,

Defendants.

CASE NO. 09-CV-2275 WQH (JLB)

ORDER CONFIRMING GOOD 

FAITH SETTLEMENT BETWEEN 

BAE SYSTEMS SAN DIEGO SHIP 

REPAIR INC., SOUTHWEST 

MARINE, INC., AND THE CITY OF 

SAN DIEGO AND BARRING AND 

DISMISSING CLAIMS AGAINST 

THE CITY

AND RELATED CROSS-ACTIONS 

AND COUNTERCLAIMS

The Joint Motion of BAE Systems San Diego Ship Repair Inc., Southwest 

Marine, Inc. (collectively, “BAE Systems”) and the City of San Diego (“City”) for 

Order Confirming Settlement and Barring and Dismissing Claims came on 

regularly for hearing before this Court on November 9, 2015, the Honorable 

William Q. Hayes presiding. 

After considering the moving and opposition papers, declarations submitted 

by the parties, the Settlement Agreement submitted to the Court for approval 

(attached to the Declaration of Michael S. Tracy) (the “Settlement Agreement”) 

and the record as a whole, the COURT HEREBY FINDS THAT the Settlement 

Case 3:09-cv-02275-WQH-JLB Document 548 Filed 11/13/15 Page 1 of 5
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WEST\260744180.2

Agreement entered into by and between BAE Systems and the City is in the public 

interest, is fair and reasonable, both procedurally and substantively, consistent with 

the purposes of the Comprehensive Environmental Response, Compensation and 

Liability Act (“CERCLA”), 42 U.S.C. section 9601, et seq., and the Uniform 

Comparative Fault Act (“UCFA”), 12 U.L.A. 147, and was entered into in good 

faith under California Code of Civil Procedure sections 877 and 877.6 and the rule 

of Tech-Bilt, Inc. v. Woodward-Clyde & Associates, 38 Cal.3d 488 (1985), and that 

the City is entitled to contribution and indemnity protection under federal and state 

law theories for the apportionment of liability among alleged joint tortfeasors.

This matter having been briefed and submitted for decision, and good cause 

appearing,

IT IS HEREBY ORDERED that the Motion is GRANTED, and the 

Settlement Agreement is APPROVED. 

IT IS FURTHER ORDERED that:

1. The Settlement Agreement is hereby approved as a good faith 

settlement and shall be afforded all the rights and protections that accompany this 

determination.

2. The Court further finds and determines that Section 6 of the UCFA is 

adopted in this case for purposes of determining the legal effect of the Settlement 

Agreement, which means the proportionate share rule (and not the pro tanto rule of 

the Uniform Comparative Fault Among Tortfeasors Act (“UCATA”)) shall apply 

to reduce BAE Systems’ claims against non-settling parties.

3. Pursuant to Section 6 of the UCFA, Section 877.6 of the California 

Code of Civil Procedure, and CERCLA section 113(f), any and all claims for 

contribution or equitable indemnity against the City arising out of the facts alleged 

in the counterclaims, and cross-claims in this Action, regardless of when such 

claims are asserted or by whom, relating to Covered Matters under the Settlement 

Agreement are hereby BARRED. Such claims are barred regardless of whether 

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they are brought pursuant to any federal or state statute, common law, or any other 

theory, as any such claims against the City arising out of the facts alleged in this 

Action are in the nature of contribution claims arising out of a common liability, 

whether framed in terms of federal or state statute or common law.

4. Subject to Paragraph 6 of this Order, and this Order becoming final 

and effective, all claims, cross-claims and counterclaims by and between BAE 

Systems and the City in the Action with respect to “Covered Matters” under the 

Settlement Agreement (which expressly does not include "Excluded Matters") are 

hereby dismissed with prejudice. 

5. Subject to Paragraph 7 of this Order, and this Order becoming final 

and effective, any and all claims by the City and BAE Systems, and each of them, 

against each other, whether in claims, cross-claims or counterclaims, relating to 

"Excluded Matters" shall be reserved and not deemed barred by entry of judgment 

or dismissal pursuant to the Settlement Agreement. 

6. Except as provided in Paragraph 7 below, all claims or counterclaims 

by the City, including the City’s CERCLA Section 107(a)(4) and California Water 

Code Section 13304 claims, asserted against the North Parties (specifically 

including those against the United States, San Diego Gas & Electric (“SDG&E”), 

Campbell Industries (“Campbell”), Star & Crescent Boat Company (“Star & 

Crescent”), and the San Diego Unified Port District (“Port District”)), with respect 

to the following matters are hereby dismissed with prejudice: (1) any and all 

claims that were, that could have been, that could now be, or that could hereafter 

be asserted by the City against the North Parties as of the Effective Date of the 

Settlement Agreement that arise out of or in connection with this Action; and (2) 

any and all costs incurred by the City that have arisen out of, or that arise out of, or 

in connection with, the investigation and remediation required to comply with all 

legally enforceable requirements imposed by the Agency in connection with the 

implementation of the CAO, including all reasonably necessary measures required 

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to satisfy the requirements of the CAO or any amendments thereto. Any and all 

claims the City has or may have in the future against the North Parties relating to 

any Excluded Matters are expressly reserved and not deemed barred by any 

dismissals in this Order. As to all dismissals in this Paragraph 6(a), each party 

shall bear its own attorney's fees, costs and expenses. For purposes of this Order, 

the terms “Agency,” “CAO,” and “Excluded Matters” shall have the same meaning 

as in the Settlement Agreement.

7. All claims relating to Polygon SW-29 and the Tidelands Property (as 

said terms are defined in the Tolling and Standstill Agreement previously entered 

into by and between BAE Systems, the Port District, SDG&E, the City, Star & 

Crescent and Campbell Industries (the “Tolling and Standstill Agreement”)) 

including, without limitation, contract-related claims, made by the City against 

BAE Systems and by BAE Systems against the City, and the City’s claims relating 

to Polygon SW-29 and the Tidelands Property against any other North Party, shall 

be dismissed WITHOUT prejudice, subject to the terms of the Tolling and 

Standstill Agreement. 

8. The Court shall retain jurisdiction over both the subject matter of the 

Settlement Agreement and the parties to the Settlement Agreement for the duration 

of the performance of the terms and provisions of the Settlement Agreement for the 

purpose of enabling BAE Systems and the City, and each of them, to apply to the 

Court at any time for such further order, direction, and relief as may be necessary 

or appropriate to construe, implement, or enforce compliance with the terms of the 

Settlement Agreement or for any further relief as the interest of justice may 

require.

9. BAE Systems and the City shall each bear their own costs and 

expenses, including attorneys' fees in this Action, as between BAE Systems and 

the City, through the date of this Order but shall retain their respective right to seek 

costs and expenses, including attorneys' fees, from other parties to this Action to 

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the extent such claims have not been dismissed or barred.

IT IS SO ORDERED.

Dated: November 13, 2015

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