Opinion ID: 2028080
Heading Depth: 1
Heading Rank: 2

Heading: CNW's Liability.

Text: A. Claimed release of liability. In considering the liability imposed on CNW, we first dispose of its claim that the agency released it from all liability as part of a negotiated agreement on or about December 4, 1980. The record reflects that at that time there were discussions between CNW and agency officials concerning remedial actions to be taken by CNW. Following these discussions, CNW scraped eight inches of soil from both the east and west sides of the track in the refueling area, regraded the area and filled it with rock. It also extended the tile in the ditch north of the area past the refueling area. A memo from environmental specialist Larry Bell to an agency attorney dated January 13, 1981, states as follows: I spoke with R.J. Christiansen of C & NW concerning their progress in dealing with the Iowa Falls problem. He indicated that they had [at this point memo describes remedial action previously discussed]. This action is part of the negotiated action agreed to on November 4, 1980. The railroad was supposed to write you to confirm their intended actions. Did you ever receive any such letter? At the contested case hearing, the agency indicated that other parts of their file dealing with CNW's remedial action discussed in the Larry Bell memo were missing. CNW was also unable to produce any documentation of the alleged settlement other than the Bell memorandum. While we believe that the administrative law judge could have found a settlement agreement based upon Bell's memo, the action taken by CNW, and the fact that the agency took no further action with respect to the Iowa Falls property for nearly six years, the agency was not compelled to so find. CNW bore the burden of proof on this issue. We have recognized that a party found to have presented insufficient proof of an issue on which it bears the burden must show on judicial review that a contrary result is demanded as a matter of law. Ward v. Iowa Dep't of Transp., 304 N.W.2d 236, 238 (Iowa 1981). B. Whether CNW actively polluted the site during its operation of Rock Island's line. The administrative law judge based the agency's finding of pollution by CNW on reports of diesel fuel spills in fueling operations and the report to the agency by CNW of the 2000-gallon spill in December 1980. Our review of the record suggests that substantial evidence supports that conclusion and that CNW was properly found to have been guilty of prohibited discharges under section 455B.186 based on those occurrences. It is thus subject to sanctions imposed under section 455B.175 subject to our prior determination concerning cleanup costs. C. Validity of emergency order. CNW suggests that the initial order against it was promulgated as an emergency order under section 455B.388(1). It argues that no emergency was shown to exist. The district court disposed of this contention by concluding that, even if there was no basis for the emergency order, the sanctions imposed are now justified based upon the result of the contested case hearing in which CNW and the other appellants had a full opportunity to participate. We agree with that conclusion. Following the contested case adjudication of the agency's authority to impose sanctions, its authority to issue an emergency order ceased to be of significance in the proceeding. That is true as to all appellants. D. Apportionment of sanctions based on the extent of the prohibited discharge caused by each petitioner. CNW contends that all sanctions imposed should be limited to the extent of the prohibited discharge caused by each petitioner. As a corollary to this contention, it argues that it is not responsible for that portion of the pollution caused by Rock Island. We agree with this contention with respect to the liability of the parties for cleanup costs. As we concluded earlier in this opinion, that liability only requires the violator to clean up hazards caused by that person. Iowa Code § 455B.392(1)(a) (1991). This conclusion is not based on principles of comparative fault either common law or statutory. It is based on our conclusion that, under the applicable statutes, a violator is only required to clean up that portion of the hazardous condition caused by its own actions. This apportionment of harm to causes must consider the acts of entities that are not parties to the proceeding. Restatement § 433A cmt. a. We do not agree with CNW's contention that the other sanctions imposed against it should be apportioned based on the extent of the total pollution caused respectively by each petitioner and by Rock Island. Each violator that has been found to have actively contributed to the pollution, including the type of passive pollution to the groundwater by Blue Chip, is individually subject to liability for submitting and implementing a plan of investigation to determine the extent of contamination. On the present record, the necessity of having a full investigation of all hazards as a result of causing some hazards is obvious. This circumstance supports the liabilities for submitting and implementing a plan of investigation that was imposed against CNW and Blue Chip under section 455B.175(1).