Source: https://elr.info/sites/default/files/litigation/27.20392.htm
Timestamp: 2020-05-27 02:44:14
Document Index: 799092732

Matched Legal Cases: ['§ 107', '§ 107', '§ 107', '§ 113', '§ 9607', '§ 2201', '§ 101', '§ 107', '§ 9607', '§ 9607', '§ 9607', '§ 9607', '§ 107', '§ 9607', '§ 107', '§ 107', '§ 107', '§ 107', '§ 107', '§ 107', '§ 107', '§ 107', '§ 9613', '§ 113', '§ 107', '§ 113', '§ 107', '§ 107', '§ 107', '§ 9607', '§ 107', '§ 107', '§ 113', '§ 107', '§ 107', '§ 113', '§ 9613', '§ 113', '§ 113', '§ 9613', '§ 9613', '§ 113', '§ 9613', '§ 6901', '§ 9601', '§ 9607', '§ 107', '§ 113', '§ 107', '§ 107', '§ 107']

Laidlaw Waste Systems, Inc. v. Mallinckrodt, Inc.
27 ELR 20392 | Environmental Law Reporter | copyright © 1996 | All rights reserved
No. 4:95-CV-2033 CAS (925 F. Supp. 624) (E.D. Mo. May 6, 1996)
The court rules on motions to dismiss claims that a sanitary landfill owner and related corporations brought against hazardous-waste generators that disposed of their waste at the landfill. The court first holds that plaintiffs may sue the generators under § 107 of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) even though plaintiffs are potentially responsible parties (PRPs). The plain language of §§ 107 and 113 does not indicate that PRPs are prohibited from bringing claims under § 107 or that § 113(f) is the exclusive remedy for PRPs. The court next refuses to dismiss plaintiffs' claim for declaratory judgment on future response costs. CERCLA specifically contemplates entry of a declaratory judgment on liability that will be binding in subsequent actions to recover further costs. The court next holds that the generators' entry into a consent order with, and payment of a civil fine to, Illinois does not protect them from potential liability to plaintiffs under CERCLA. The consent order was limited to recovery of civil penalties and did not seek to recover response costs; was entered into under Illinois law and the Resource Conservation and Recovery Act, and did not mention or implicate CERCLA; preserved Illinois' right to bring further actions against one of the generators; and specifically excepted from its scope private-party claims for contribution and/or response costs arising from the facts stipulated in the order. The court next refuses to dismiss plaintiffs' contract-based claims. Purchase orders pertaining to the alleged disposal of the generators' waste products refer to all the plaintiffs by name and specifically state that one of the plaintiffs will be an independent contractor. This language establishes, at a minimum, the existence of an issue of material fact as to whether there was a contract between them. The court further refuses to dismiss plaintiffs' nuisance claim, because plaintiffs adequately allege that the generators interfered with their use and enjoyment of their property. The court dismisses, however, plaintiffs' misrepresentation claim. Plaintiffs' allegations that defendants repeatedly represented that their waste was nonhazardous, when they either knew the waste was hazardous or made the representations in reckless disregard for their truth or falsity, are lacking in specific supporting facts. Further, plaintiffs have not alleged with adequate particularity what representations were actually made, by whom, when, and where. The court next holds that the economic loss doctrine is inapplicable to plaintiffs' tort claims. That doctrine bars recovery on a tort theory in the commercial context wherein harm is to a consumer's commercial expectations. But plaintiffs clearly assert claims for damage above and beyond any mere disappointed commercial expectations or desire to enjoy the benefit of their alleged agreement with the generators. Finally, the court refuses to dismiss a generator that is the parent corporation of another generator defendant. Plaintiffs have alleged that the generator individually committed the various acts and omissions of which they complain.
R. Henry Branom Jr.
Jenkins & King
10 S. Brentwood, Ste. 200, St. Louis MO 63105
Peter, Martin, Jensen, Maichel & Hetlage
[27 ELR 20392]
This matter is before the Court on a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) filed by defendants Mallinckrodt, Inc. and Mallinckrodt Chemical, Inc., formerly known as Mallinckrodt Specialty Chemicals Company (collectively "defendants"). Plaintiffs Laidlaw Waste Systems (Belleville), Inc. and Laidlaw Waste Systems, Inc. oppose the motion. This is a civil action for cost recovery, contribution, declaratory and monetary relief pursuant to sections 107 and 113 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9607, 9613; the Declaratory Judgment Act, 28 U.S.C. § 2201(a); and state common law.
Defendants have submitted matters outside the pleadings in support of portions of their motion to dismiss. A motion to dismiss pursuant to Rule 12(b)(6) "must be treated as a motion for summary judgment when matters outside the pleadings are presented and not excluded by the trial court." Woods v. Dugan, 660 F.2d 379, 380 (8th Cir. 1981) (per curiam). As plaintiffs have had an adequate opportunity to respond to defendants' motion, and have based some of their arguments on documents submitted by defendants, the Court will treat the motion, to the extent appropriate, as one for summary judgment. See Davis v. Johnson Controls, Inc., 21 F.3d 866, 867 (8th Cir. 1994), cert. denied. __ U.S. __, 115 S. Ct. 426, 130 L. Ed. 2d 340 (1994); Angel v. Williams, 12 F.3d 786, 788-89 (8th Cir. 1993); Gibb v. Scott, 958 F.2d 814, 816 (8th Cir. 1992). In so doing, the Court will apply the following standards.
Dismissal Standard. When ruling on a motion to dismiss, this Court must take the allegations of the complaint as true. Conley v. Gibson, 355 U.S. 41, 45-46, 78 S. Ct. 99, 101-02, 2 L. Ed. 2d 80 (1957). The complaint must be liberally construed in a light most favorable to the plaintiff. Coleman v. Watt, 40 F.3d 255, 258 (8th Cir.1994); Morton v. Becker, 793 F.2d 185, 187 (8th Cir.1986). A motion to dismiss should not be granted merely because a complaint does not state with precision every element of the offense necessary for recovery. Roberts v. Walmart Stores, Inc., 736 F. Supp. 1527, 1528 (E.D.Mo.1990). "A complaint is sufficient if it contains allegations from which an inference can be drawn that evidence on these material points will be introduced at trial." Id. (internal quotations and citation omitted). Therefore, a motion to dismiss a complaint should not be granted unless it appears beyond doubt that the plaintiff can prove no set of facts which would entitle him or her to relief. Coleman, 40 F.3d at 258; Kohl v. Casson, 5 F.3d 1141, 1148 (8th Cir. 1993).
The initial burden is placed on the moving party. City of Mt. Pleasant, Iowa v. Associated Elec. Co-op., Inc., 838 F.2d 268, 273 (8th [27 ELR 20393] Cir. 1988) (the moving party has the burden of clearly establishing the non-existence of any genuine issue of fact that is material to a judgment in its favor). Once this burden is discharged, if the record does in fact bear out that no genuine dispute exists, the burden then shifts to the non-moving party who must set forth affirmative evidence and specific facts showing there is a genuine dispute on that issue. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S. Ct. 2505, 2510, 91 L. Ed. 2d 202 (1986).
Facts. With these principles in mind, the Court turns to an examination of the facts. Plaintiffs are Laidlaw Waste Systems (Belleville) Inc. ("Laidlaw Belleville"), a Missouri corporation, and Laidlaw Waste Systems, Inc. ("Laidlaw"), a Delaware corporation (collectively "plaintiffs"). Plaintiffs filed this action on October 26, 1995, seeking recovery from defendants for response costs and damages plaintiffs allegedly incurred arising out of the release and/or threatened release of hazardous substances at a licensed and permitted sanitary landfill site (the "Site") owned and operated by Laidlaw Belleville, and for a declaration of defendants' liability for future response costs and damages which plaintiffs will incur at and in connection with the Site.
Defendants arranged with plaintiff for the disposal of filter cake based on defendants' representations that the filter cake was non-hazardous waste. Between October 1983 and May 1991, defendants sent numerous shipments of waste (including filter cake) to the Site, through Laidlaw as transporter. Laidlaw Belleville accepted and disposed of these shipments at the Site. During this time, defendants certified to plaintiffs and IEPA that the filter cake was a non-hazardous waste. Defendants later revealed that a portion of the filter cake transported to the Site was a hazardous waste within the meaning of § 101(14) of CERCLA,1 because it had higher than allowable levels of barium and chromium.
Plaintiffs allege that there have been releases or threatened releases of hazardous substances from the Site, caused by practices and actions of defendants. Plaintiffs allege they have incurred costs in excess of $ 50,000.00 in responding to the releases and threatened releases, and will continue to incur necessary response costs to remove and remedy future releases or threats of release, as required by a Consent Order between Laidlaw Belleville and the State of Illinois. Plaintiffs allege they have not conducted or knowingly permitted generation, storage, treatment or disposal of hazardous substances at the Site.
The corporate predecessor of Mallinckrodt Chemical, Inc. also entered into a Consent Order with the State of Illinois, in People of the State of Illinois v. Mallinckrodt Specialty Chemicals Company, Case No. 92-CH-58 (See Exh. B to Defts.' Mem.Supp.) The Consent Order was based on an action to recover civil penalties, not to recover response costs. As part of the Consent Order, Mallinckrodt Chemical, Inc.'s corporate predecessor did not admit any violation, and no issue of law or fact was adjudicated. (Id., p. 1.)
Defendants first move to dismiss Counts I and II, plaintiffs' claims under § 107 of CERCLA. Defendants' primary argument is that plaintiffs lack standing to bring a cost recovery action under Section 107, because plaintiffs are liable parties under CERCLA,2 and a liable party cannot bring an action under Section 107. The Court treats this aspect of defendants' motion as a motion for summary judgment because defendants refer to matters outside the pleadings in support of their motion.
Section 107(a) sets forth the scope of liability which may be imposed on private parties and the defenses they may assert. 42 U.S.C. § 9607(a). Liability under this section is imposed on four categories of potentially responsible parties ("PRPs"): (i) the owner and operator of a facility; (ii) any person who owned or operated the facility at the time the hazardous substances were disposed of; (iii) any person who by contract, agreement, or otherwise arranged for disposal or treatment of hazardous substances owned or possessed by that person, or by any other party or entity; and (iv) any person who accepted any hazardous substances for transportation to disposal or treatment sites selected by that person. 42 U.S.C. § 9607(a)(1)-(4).
(c) Such release or threatened release has caused the plaintiff to incur response costs that were necessary and consistent with the national contingency plan under 42 U.S.C. §§ 9607(a)(4) and (a)(4)(B); and
(d) The defendant is a "covered person" under 42 U.S.C. § 9607(a)(1)-(4).
The United States Supreme Court has held that Section 107(a) provides an implied cause of action for private parties to seek recovery of cleanup costs. Key Tronic Corp. v. United States, __ U.S. __, __, 114 S. Ct. 1960, 1966, 128 L. Ed. 2d 797 (1994). Under § 107(a), PRPs are strictly liable if there is a release or threatened release of a hazardous substance at a facility, and a person incurred necessary response costs consistent with the national contingency plan. 42 U.S.C. § 9607(a); Control Data, 53 F.3d at 935. Liability under § 107(a) is joint and several unless a PRP can demonstrate that [27 ELR 20394] the harm it caused is divisible, which is a "very difficult proposition" to establish. Control Data, 53 F.3d at 934 n.4; see United States v. Monsanto Co., 858 F.2d 160, 171-72 (4th Cir. 1988), cert. denied, 490 U.S. 1106, 109 S. Ct. 3156, 104 L. Ed. 2d 1019 (1989).
Defendants argue that (i) only an "innocent" party may bring a cost recovery action under § 107(a); and (ii) because plaintiffs are PRPs facing their own liability for CERCLA violations as owners and operators of the Site, they may not bring cost recovery claims under § 107(a). Defendants rely on Akzo Coatings, Inc. v. Aigner Corp., 30 F.3d 761, 764-65 (7th Cir. 1994); United Technologies Corp. v. Browning-Ferris Industries, Inc., 33 F.3d 96, 103 (1st Cir.1994), cert. denied, __ U.S. __, 115 S. Ct. 1176, 130 L. Ed. 2d 1128 (1995); and United States v. SCA Services of Indiana, Inc., 849 F. Supp. 1264 (N.D.Ind.1994).3
Plaintiffs respond that (i) defendants have oversimplified the holdings of the cases on which they rely; and (ii) there is a split of authority among courts which have addressed the issue whether a potentially responsible party may bring a cost-recovery action against another potentially responsible party under § 107. Plaintiffs contend that the critical determination is whether a defendant is formally liable under § 107. Plaintiffs contend that the critical determination is whether a defendant is formally liable under § 107, and if there has been no formal admission or adjucation of liability, the better-reasoned cases hold that a § 107 action may proceed.
The issue before the Court is whether a liable or potentially liable party may bring an action to recover response costs under § 107 of CERCLA. The Eighth Circuit has not addressed this issue directly. It should be noted, however, that the Eighth Circuit stated in a recent CERCLA case,
Once liability is established, the focus shifts to allocation. . . . Allocation is a contribution claim controlled by 42 U.S.C. § 9613(f) (CERCLA Section 113(f)).
In Control Data, the Eighth Circuit did not directly address the issue presented by the instant case: Whether a potentially responsible party, which has not formally admitted liability or been formally adjudicated liable, is limited to a contribution action under § 113. This is particularly significant since the plaintiff in Control Data apparently did assert a claim under § 107 for declaratory judgment, which was not addressed by the Eighth Circuit's opinion. (See Appellee's Brief, Control Data, Nos. 94-1875, 94-2414, 94-2506 EMSL.) Further, in stating that allocation is a contribution claim controlled by CERCLA § 113, the Eighth Circuit did not cite the existing cases from other jurisdictions which hold that a liable party may not bring a § 107 action. In addition, unlike the present case, the plaintiff in Control Data admitted that it was responsible for the release of hazardous waste. Finally, in the past, both the Eighth Circuit and the United States Supreme Court have permitted liable parties to raise claims under a § 107 theory, although the issue was merely a background to the cases and not explicitly addressed.4
In the absence of controlling Eighth Circuit precedent, this Court concludes that plaintiffs may pursue their § 107 claims against defendants. The plain language of sections 107 and 113 does not indicate that PRPs are prohibited from bringing claims pursuant to Section 107. Bethlehem Iron Works, Inc. v. Lewis Industries, Inc., 891 F. Supp. 221, 225 (E.D.Pa.1995). Section 107 imposes liability on PRPs for necessary response costs "incurred by any other person". 42 U.S.C. § 9607(a). While the private right of action under § 107 is implied, see Key Tronic, __ U.S. at __, 114 S. Ct. at 1966, there is no indication that the private right of action is limited to "innocent" private parties. "The § 107 liability provision, with its use of the term 'any other person' and its limited defenses of liability, implies that Congress intended the liability of the provision to sweep broadly." Companies for Fair Allocation v. Axil Corp., 853 F. Supp. 575, 579 (D.Conn.1994) (citing United States v. New Castle County, 642 F. Supp. 1258, 1264 (D.Del.1986)). Similarly, the text of § 113(f) provides a right of action for contribution, but does not provide that it is the exclusive remedy for PRPs. Bethlehem, 891 F. Supp. at 225. Further, as the Supreme Court noted in Key Tronic, actions under §§ 107 and 113 actions provide "somewhat overlapping" remedies. Key Tronic, __ U.S. at __, 114 S. Ct. at 1996; see Pneumo Abex Corp. v. Bessemer and Lake Erie R. Co., Inc., 921 F. Supp. 336, 346 (E.D.Va.1996). A number of district courts which have addressed this issue reject the argument that a PRP may not bring a cost-recovery action under Section 107(a).5 The Court finds these decisions persuasive.
The Court recognizes that the circuit courts of appeal which have directly addressed this issue have come to a contrary conclusion. See, e.g., Akzo Coatings, Inc., 30 F.3d at 764-65 (plaintiff conceded liability as one of many PRPs which had delivered hazardous waste to a site; on the facts presented the plaintiff's claim against other PRPs was one for contribution, although the Seventh Circuit noted that under different facts Akzo might have the right to pursue a Section 107 cost recovery action, for example if it were "a landowner forced to clean up hazardous materials that a third party spilled [27 ELR 20395] onto its property"); United Technologies Corp., 33 F.3d at 103 (statute of limitations was the key issue; the Court held that where plaintiffs admitted liability after conducting contamination-producing activities at a site, their claim was necessarily classified as one for contribution, in part because of the First Circuit's view that actions under §§ 107 and 113 were "distinct, non-overlapping anodynes").6 The Court has carefully considered these decisions and finds them less persuasive than the district court opinions cited, as well as factually distinguishable from the instant case, and therefore declines to follow them.
Plaintiffs respond that they seek a declaration that defendants are liable for future response costs pursuant to and consistent with CERCLA Sections 107 and 113. Plaintiffs contend that defendants' real objection is that any final declaratory judgment order should not include specific future damages which have not yet been incurred. Plaintiffs state that to the extent the Court finds their listing of damage categories in Count I to be over-inclusive, this error could be corrected in the final order.
CERCLA specifically contemplates entry of a declaratory judgment on liability for response costs or damages which will be binding in subsequent actions to recover further response costs or damages. CERCLA § 113(g)(2); 42 U.S.C. § 9613(g)(2). "The only criterion for the recoverability of response costs under CERCLA is whether costs are consistent with the National Contingency Plan (NCP). All response costs not inconsistent with the NCP are recoverable." United States v. Kramer, 757 F. Supp. 397, 436 (D.N.J.1991) (statutory citation omitted). Thus, allegations that damages are remote, speculative or contingent "do not state an appropriate challenge" to the propriety of asserted response costs. Id. While the plaintiffs may not recover costs they have not yet incurred, they are authorized under CERCLA § 113(g)(2) to obtain a declaratory judgment that defendants are liable for future costs not inconsistent with the NCP. Id. at 437 (striking as premature and insufficient defenses that future costs are unrecoverable).
Defendants next move to dismiss Counts I, II and III on the basis that defendants resolved their potential CERCLA liability to the State of Illinois in the Consent Order discussed above,7 and thus are protected from plaintiff's cost-recovery and contribution claims by virtue of CERCLA's contribution protection rule. CERCLA § 113(f)(2); 42 U.S.C. § 9613(f)(2). The Court construes this aspect of defendants' motion as a motion for summary judgment, as it implicates matters outside the pleadings.
Any person may seek contribution from any other person who is liable or potentially liable under section 107(a), during or following any civil action under section 106 or under section 107(a). . . . In resolving contribution claims, the court may allocate response costs among liable parties using such equitable factors as the court determines are appropriate. . . .
42 U.S.C. § 9613(f). The statute also provides, however, that a "person who has resolved its liability to the United States or a State in an administrative or judicially approved settlement shall not be liable for claims for contribution regarding matters addressed in the settlement." CERCLA § 113(f)(2); 42 U.S.C. § 9613(f)(2). See Farmland Industries, Inc. v. Morrison-Quirk Grain Corp., 54 F.3d 478, 482 (8th Cir.1995). Defendants assert that by virtue of this provision, the Consent Order they executed with the State of Illinois protects them from all of plaintiffs' CERCLA claims. Plaintiffs respond that defendants' argument is unsupported by caselaw or by the terms of the Consent Order.
The Court must look to the Consent Order as a whole to decide whether its provisions encompass the type of activity for which plaintiffs seek to hold defendants liable. See Akzo Coatings, 30 F.3d at 766. "Ultimately, the 'matters addressed' by a consent decree must be assessed in a manner consistent with both the reasonable expectations of the signatories" and congressional intent. Id. By its terms, the Consent Order between Mallinckrodt Specialty Chemical Company ("MSCC") and the State of Illinois (i) was limited to recovery of civil penalties and did not seek to recover response costs; (ii) was brought pursuant to the Illinois Environmental Protection Act, Ill.Rev.Stat.1991, ch. 111 1/2, para. 1042; and the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. §§ 6901 et seq.; and did not mention or implicate CERCLA; (iii) preserved the State of Illinois' right to bring further actions against MSCC; and (iv) specifically excepted from the scope of its covered matters any potential liability of MSCC for natural resource damage or other environmental damages, and private-party common law or statutory claims for contribution and/or response costs arising from the facts stipulated in the Consent Order.
The Court concludes that defendants have failed to establish the non-existence of any genuine issue of fact material to a judgment in their favor on plaintiffs' CERCLA claims in Counts I, II and III. See City of Mt. Pleasant, 838 F.2d at 273. Therefore, defendants' motion to dismiss Counts I, II and III on the basis of CERCLA's contribution protection [27 ELR 20396] rule, construed as a motion for summary judgment, should be denied.
Defendants next move to dismiss plaintiffs' state law breach of contract/warranty claim (Count IV) and misrepresentation claim (Count V). Defendants argue that in order to prevail on these claims, plaintiffs must establish that a contract existed between plaintiffs and defendants.8 In support of their argument, defendants refer to certain purchase orders pertaining to the alleged disposal of defendants' waste products between October 1983 and May 1991. (See Exh. D to Defts.' Mem.Supp.) Thus, the Court treats this aspect of their motion to dismiss as a motion for summary judgment. Defendants contend the purchase orders reflect that plaintiff Laidlaw (Belleville) was not a party to any contract with defendants.
Defendants next move to dismiss plaintiffs' state law nuisance claim (Count VI). Defendants argue that plaintiffs fail to allege facts to support a nuisance theory, because they have not and cannot allege that defendants invaded the use of plaintiffs' property, as required under both Missouri and Illinois law.9 Defendants contend that the only alleged damage is the diminished economic value of the Site, diminished potential for waste disposal, and alleged increased post-closure overhead costs. Plaintiffs respond that defendants' disposal of hazardous waste on their property "has unquestionably interfered" with peaceful use and enjoyment of the Site, primarily relating to (i) plaintiffs' now-abandoned intent to expand the Site, and (ii) the hazardous waste disposal requirements imposed upon plaintiffs by IEPA. Defendants reply that plaintiffs' Complaint did not include any allegations concerning abandonment of the Site, and therefore the Court should disregard this contention.
The Court agrees with plaintiffs. Even if plaintiffs' claims regarding expansion were disregarded, plaintiffs adequately allege in their Complaint the key element which defendants claim to be absent, i.e., that defendants interfered with plaintiffs' use and enjoyment of their property. (See Complaint, P 58.) The Court liberally construes the Complaint in a light most favorable to the plaintiffs. Coleman v. Watt, 40 F.3d at 258. A motion to dismiss will not be granted merely because a complaint does not state with precision every element of the offense necessary for recovery. Roberts v. Walmart Stores, Inc., 736 F. Supp. at 1528. Plaintiffs' complaint is sufficient as it contains allegations from which an inference can be drawn that evidence on material points will be introduced at trial. Id. Further, as plaintiffs note, nuisance may be established based on a defendant's conduct which is unreasonable as a matter of law. See Frank v. Environmental Sanitation Management, Inc., 687 S.W.2d 876, 880 (Mo. banc 1985).
Federal courts apply the Federal Rules of Civil Procedure to matters of procedure when considering non-federal questions, whether in a diversity action or as here when a state claim is heard under supplemental jurisdiction. Sayre v. Musicland Group, Inc., 850 F.2d 350, 352 (8th Cir.1988); Bank of St. Louis v. Morrissey, 597 F.2d 1131, 1134-35 (8th Cir.1979). The applicable pleading standard is established by Federal Rule of Civil Procedure 9(b). Rule 9(b) requires that "the circumstances constituting fraud . . . be stated with particularity." In this context, "'Circumstances' include such matters as the time, place and contents of false representations, as well as the identity of the person making the misrepresentation and what was obtained or given up thereby." Bennett v. Berg, 685 F.2d 1053, 1062 (8th Cir.1982), cert. denied sub nom Prudential Ins. Co. of America v. Bennett, 464 U.S. 1008, 104 S. Ct. 527, 78 L. Ed. 2d 710 (1983); see also Greenwood v. Dittmer, 776 F.2d 785, 789 (8th Cir.1985) (conclusory allegations that a defendant, through its agents, made untrue statements of material fact or omitted to state material facts insufficiently specific to satisfy Rule 9(b)); see generally 2A J. Moore & J. Lucas, Moore's Federal Practice, P 9.03 (2d ed. 1995).
Plaintiffs allege in Count V and the common allegations of the Complaint that defendants repeatedly represented to plaintiffs that the waste was non-hazardous, when defendants either (i) knew the waste was hazardous; or (ii) made the representations to plaintiffs in reckless disregard for their truth or falsity; and (iii) the waste was subsequently revealed to be hazardous. (See Complaint, PP 11-14, 50-53.) These allegations are lacking in specific supporting facts from which it can be inferred that defendants knew their representations were false when made, or made the representations recklessly, without knowing if they were true or false. Further, plaintiffs have not alleged with adequate particularity what representations were actually made, by whom, when and where. See Bennett v. Berg, 685 F.2d at 1062; Greenwood v. Dittmer, 776 F.2d at 789.
[27 ELR 20397]
Defendants next move to dismiss plaintiffs' claims for nuisance (Count VI), negligence (Count VII), and negligent misrepresentation (Count VIII), on the basis that plaintiffs are improperly seeking to recover under tort theories for economic losses arising out of a contractual relationship. See Moorman Mfg. Co. v. National Tank Co., 91 Ill.2d 69, 61 Ill.Dec. 746, 435 N.E.2d 443 (1982); Sharp Bros. Contracting Co. v. American Hoist & Derrick Co., 703 S.W.2d 901 (Mo.banc 1986).10 Defendants state that in each of these counts, plaintiffs allege a diminution in value of the Site and an increase in post-closure maintenance expenses as a result of defendants' "alleged breach of the alleged waste disposal contract". (Defts.' Mem.Supp., p. 13.) Defendants contend that all of plaintiffs' claimed damages arise out of disappointed contract expectations, and therefore may not be recovered under a tort theory.
'Economic loss' has been defined as 'damages for inadequate value, costs of repair and replacement of the defective product, or consequent loss of profits—without any claim of personal injury or damage to other property . . . as well as the 'diminution in the value of the product because it is inferior in quality and does not work for the general purposes for which it was manufactured and sold.'
Moorman Mfg. Co., 91 Ill.2d at 82, 61 Ill.Dec. at 752, 435 N.E.2d at 449 (citations omitted). "To recover in negligence there must be a showing of harm above and beyond disappointed expectations. A buyer's desire to enjoy the benefit of his bargain is not an interest that tort law traditionally protects." Redarowicz v. Ohlendorf, 92 Ill.2d 171, 177, 65 Ill.Dec. 411, 414, 441 N.E.2d 324, 327 (1982); see also Crowder v. Vandendeale, 564 S.W.2d 879, 882 (Mo.banc 1978) (personal injury or damage to property interests compensable in tort, while a mere deterioration or loss of a bargain is not). The economic loss doctrine bars recovery on a tort theory in "the commercial context wherein harm is to a consumer's commercial expectations." Chicago Heights Venture v. Dynamit Nobel of America, Inc., 782 F.2d 723, 728 (7th Cir.1986) (quoting Ferentchak v. Village of Frankfort, 121 Ill.App.3d 599, 605, 76 Ill.Dec. 950, 955, 459 N.E.2d 1085, 1090 (1984)).
1. See 42 U.S.C. § 9601(14).
2. See 42 U.S.C. § 9607(a).
3. The Court notes that the SCA Services decision does not support defendants' position.
4. See General Electric Co. v. Litton Indus. Automation Systems, Inc., 920 F.2d 1415, 1418 (8th Cir. 1990), cert. denied, 499 U.S. 937, 111 S. Ct. 1390, 113 L. Ed. 2d 446 (1991) (plaintiff, a former owner of a site, entered into a consent decree with a state agency and others to clean up a site prior to plaintiff's § 107(a) action against another PRP). The Eighth Circuit did not mention the General Electric Co. v. Litton decision in Control Data. See also Key Tronic v. United States, __ U.S. at __, 114 S. Ct. at 1967 (plaintiff was a liable party because it disposed of hazardous wastes in a landfill. Plaintiff sought contribution under CERCLA § 113(f), and additional response costs, including attorney's fees, under Section 107(a). The Supreme Court did not hold that the § 107(a) claim failed because the plaintiff was a liable party, but rather held only that § 107(a) did not provide for the award of attorney's fees associated with a cost recovery action.)
5. See Pneumo Abex Corp. v. Bessemer and Lake Erie R. Co., Inc., 921 F. Supp. 336, 346 (E.D.Va. 1996); Barmet Aluminum Corp. v. Doug Brantley & Sons, Inc., 914 F. Supp. 159, 164 (W.D.Ky. 1995); United States v. Taylor, 909 F. Supp. 355, 360-66 (D.N.C. 1995); Bethelehem Iron Works, Inc. v. Lewis Industries, Inc., 891 F. Supp. 221 (E.D.Pa.1995); Town of Wallkill v. Tesa Tape, Inc., 891 F. Supp. 955 (S.D.N.Y.1995); Companies for Fair Allocation v. Axil Corp., 853 F. Supp. at 579; United States v. SCA Services of Indiana, Inc., 849 F. Supp. 1264, 1281-82, reconsideration denied, 865 F. Supp. 533 (N.D.Ind.1994); Transportation Leasing Co. v. State of California, 861 F. Supp. 931, 938 (C.D.Cal.1993); Chesapeake and Potomac Telephone Co. of Virginia v. Peck Iron & Metal Co., 814 F. Supp. 1269, 1277 (E.D.Va.1992); Kelley v. Thomas Solvent Co., 790 F. Supp. 710, 717 (W.D.Mich.1990); United States v. Kramer, 757 F. Supp. 397, 416-17 (D.N.J.1991); Burlington Northern R. Co. v. Time Oil Co., 738 F. Supp. 1339 (W.D.Wash.1990); Sand Springs Home v. Interplastic Corp., 670 F. Supp. 913, 916 (N.D. Okla.1987); Chemical Waste Management, Inc. v. Armstrong World Industries, Inc., 669 F. Supp. 1285, 1291-92 (E.D.Pa.1987).
6. See also United States v. Colorado & Eastern R. Co., 50 F.3d 1530, 1536 (10th Cir.1995) (any claim to reapportion cleanup costs between PRPs is "the quintessential claim for contribution"; to permit a liable party to recover under Section 107 would render Section 113 meaningless); Amoco Oil Co. v. Borden, Inc., 889 F.2d 664, 672 (5th Cir.1989) ("when one liable party sues another to recover its equitable share of the response costs, the action is one for contribution"; however, the Fifth Circuit did not expressly foreclose the possibility of a PRP proceeding under § 107.)
7. People of the State of Illinois v. Mallinckrodt Specialty Chemicals Company, Case No. 92-CH-58. (Exh. B to Defts. Mem.Supp.)
8. Defendants also move separately to dismiss plaintiffs' misrepresentation claim. Count V. The Court will address this issue out of turn, infra, as did the parties.
9. The parties recognize the potential choice of law issues present in this case, but agree that Missouri and Illinois law is substantially in accord on the issue presented, and cite to authority from both states. The Court need not and does not reach the choice of law issue at this early juncture.