Opinion ID: 894680
Heading Depth: 3
Heading Rank: 1

Heading: Technical Services and Advice

Text: Street contends it did not become an arranger by providing technical services and advice to Pilgrim, even when the advice related to waste disposal, because Street had neither the authority nor the obligation to control such disposal. Street also argues that subjecting chemical suppliers to arranger liability for providing technical services and advice, without the accompanying ability or authority to control whether that advice is followed, will have the deleterious effect of discouraging suppliers from disseminating safety-related information to its customers. Pilgrim responds that Street did not merely sell products and equipment to Pilgrim and render occasional technical advice regarding their use; rather, Street regularly came into Pilgrim's facilities, gave direct instructions on how to dispose of waste containing PCE, and knew that Pilgrim relied upon and followed its instructions. Pilgrim argues that while Street, through Corbin, may have had no obligation to become involved in the disposal of waste generated through the use of its equipment, Street nevertheless chose to do so on a frequent and ongoing basis. We have found no federal cases holding that a defendant's provision of technical services and advice rendered it an arranger under CERCLA, and there are few cases that even discuss the issue. But we find instructive two cases with facts similar to those before us. In Edward Hines Lumber Co. v. Vulcan Materials Co., 685 F.Supp. 651 (N.D.Ill.1988), Hines owned and operated a wood treatment plant and purchased CCA, a chemical used in the treatment process, from Osmose Wood Preserving Company of America. Pursuant to an agreement, Osmose also designed, constructed, and installed a CCA treatment system, trained Hines personnel to run the system, and provided technical information and marketing assistance to Hines, while Hines maintained sole responsibility for the plant's operation, maintenance, and compliance with government regulations. Osmose also had a contractual right of full access to the plant for quality control purposes, though its employees did not visit the plant on a regular basis. Hines stored run-off from the treatment process, including CCA, in a holding pond at the site, and the chemicals were later identified as posing a potential environmental risk. The district court held, in relevant part, that Osmose was not liable as an arranger for any future liability Hines incurred as a result of the contamination. Id. at 654-56. The court determined that Osmose's mere knowledge of the manner in which Hines disposed of run-off containing the hazardous substances was irrelevant; rather, the crucial inquiry was `who decided' the location and method of disposal or treatment of the hazardous substance. Id. at 655. Because Osmose did not decide how the CCA would be disposed after its use in the wood treatment process, the court concluded, Osmose as a matter of law was not responsible as an arranger under CERCLA. Id. at 656. Jordan v. Southern Wood Piedmont Co., 805 F.Supp. 1575 (S.D.Ga.1992), aff'd, 861 F.2d 155 (7th Cir.1988), also involved a CERCLA-arranger claim against a supplier of chemicals used at a wood treatment plant. The plaintiffs relied on evidence that the supplier, Dow Chemical Company, provided a Material Safety Data Sheet (MSDS) that described a disposal method for the chemical, provided various technical bulletins and communications inviting inquiries regarding chemical handling, and conducted tests and surveys at the site. The district court noted that the MSDS, which recommended incinerating the chemical if local regulations permitted and otherwise storing it in closed containers and contacting the supplier, was distributed in compliance with OSHA regulations and could not provide the basis for arranger liability. Id. at 1580. With regard to the bulletins and communications, the court held there was no evidence of instances where Dow actually gave advice concerning disposal and that the context of the statements showed Dow sought to ensure that chemicals it manufactured were properly handled and not that it was attempting to arrange for or control their disposal. Id. Finally, the court held there was no evidence that the tests and surveys Dow performed at the site related to disposal. Id. The facts in this case are similar to the situations presented in Hines and Jordan in a number of respects. Pilgrim does not dispute that it retained ultimate authority and responsibility for operating its facilities, which included disposing of PCE waste after it was recycled. And clearly it is not enough to establish arranger status that Street supplied the PCE and equipment to Pilgrim, maintained the equipment that it supplied, or knew how Pilgrim was disposing of the waste that was generated. Neither does sending technical bulletins relating to waste disposal qualify as arranging for disposal, as the court of appeals held. 81 S.W.3d at 295; see Jordan, 805 F.Supp. at 1580. The court of appeals, however, distinguished this case from Jordan because Street actually gave direct advice to Pilgrim ... to dispose of PCE-containing separator water by dumping it into the public sewer. [11] 81 S.W.3d at 295. We agree with the court of appeals that this is a closer case than Hines and Jordan due to the extent of Corbin's involvement with Pilgrim over the years, the fact that he gave Pilgrim advice regarding a disposal method for the separator water, and the fact that Pilgrim followed his recommendations most of the time. But we think it significant that Street did not actually control the specific method and manner in which Pilgrim disposed of the separator water, instead simply responding, when asked, that Pilgrim could dispose of its separator water the same way everybody else was doing it, pouring it down the drain. Although the presence of authority to make disposal decisions is not necessarily a prerequisite for arranger status, such as when a party physically disposes of solid waste with no authority to do so, it is a key factor when arranger status is based on mere advice regarding disposal that another party is free to ignore. Without such authority, we fail to see how Street could have made the decision to dispose of the separator water or exercised sufficient control over the disposal method such that the causal nexus between Street's conduct and the disposal of solid waste was established. Given the absence of any obligation with regard to waste disposal decisions, Street's lack of ownership of or authority over the chemicals that Pilgrim discarded, and the fact that Pilgrim never ceded ultimate control over this aspect of its operations, we disagree with the court of appeals' conclusion that Corbin's advice rendered Street a person responsible for solid waste under SWDA. Street and several amici curiae [12] raise valid concerns that imposing arranger liability on chemical manufacturers and suppliers for providing technical services and advice will have the adverse effect of discouraging these companies from providing valuable advice to customers regarding the safe use and handling of their products. In Jordan, the district court noted that, in addition to the fact that Dow never gave advice regarding disposal, the context of the technical bulletins and communications at issue demonstrate[d] that in making them Dow sought to ensure that chemicals it manufactured were properly handled and not that it was attempting to arrange for or control their disposal. 805 F.Supp. at 1580. The court emphasized that imposing liability upon a manufacturer on account of its dissemination of safety-related information is anathematic, even to the broad and salutary remedial purposes of CERCLA. Id. We agree. If a chemical manufacturer can subject itself to potential SWDA liability for disseminating safety information about its chemical products, which often includes their proper handling and disposal, they will likely be less inclined to provide this type of information at all.