Opinion ID: 2971540
Heading Depth: 3
Heading Rank: 1

Heading: Milford took reasonable actions

Text: To establish a prima facie case for cost recovery under CERCLA, a plaintiff must prove that: (1) a polluting site is a “facility” within the statute’s definition; (2) the facility released or threatened to release a hazardous substance; (3) the release caused the plaintiff to incur necessary costs of response; and (4) the defendant falls within one of four categories of potentially responsible parties. Centerior Serv. Co. v. Acme Scrap Iron & Metal Corp., 153 F.3d 344, 347-48 (6th Cir. 1998). At issue is whether Milford’s costs in monitoring its wells and investigating the source of their contamination were “necessary costs of response.” Whether Milford’s response costs were necessary is a mixed question of law and fact. G.J. Leasing Co. v. Union Elec. Co., 54 F.3d 379, 386 (7th Cir. 1995). We thus consider the issue de novo. Franklin County Convention Facilities Auth. v. Am. Premier Underwriters, Inc., 240 F.3d 534, 541 (6th Cir. 2001). No. 03-1597 Village of Milford v. K-H Holding Corp., et al. Page 5 In our view, certain of Milford’s costs may have been necessary inasmuch as they were related to monitoring and evaluation following a release of hazardous substances. Monitoring and evaluation costs may be recovered as “removal” costs under CERCLA if they were reasonable, and the activities were not scientifically deficient or unduly costly. See Johnson v. James Langley Operating Co., 226 F.3d 957, 963–64 (8th Cir. 2000); Lansford-Coaldale Joint Water Auth. v. Tonolli Corp., 4 F.3d 1209, 1219 (3d Cir. 1993). The district court concluded that Milford’s response activities “were not cost effective and environmentally sound, and did not contribute in any significant manner to directly addressing the release of contaminants from the [K-H] facility.” But the court’s findings of fact conflict with this conclusion. The court found that Milford learned of contaminants in the water and then studied the situation. MDNR, upon learning of the contamination, directed Milford to increase its monitoring activities. Milford did this, and it also hired consultants, who performed and analyzed studies. As it undertook these activities, Milford met with MDNR to report on its investigation and held public meetings for discussion of the contamination and response activities. Milford undertook more studies as advised by MDNR. Milford also requested MDEQ’s involvement, and MDEQ later determined that K-H was a PRP based upon Milford’s studies. These activities are of the type one would reasonably conduct upon learning that one’s municipal water supply had been contaminated by hazardous substances. The close involvement of MDNR and MDEQ suggests to us that at least some of these activities could be considered recoverable monitoring and evaluation costs, not “unreasonable” and not “environmentally unsound” or “scientifically deficient.”