Opinion ID: 728910
Heading Depth: 3
Heading Rank: 6

Heading: Transporter Site-Selection

Text: 56 Summary judgment also was granted to several alleged transporters of hazardous substances for various reasons, including those we have already discussed. An additional reason was offered for the decision concerning the transporters--they were held not liable because they were directed to the sites or transfer stations by others. Id. Hence, we must address the legal question of whether site-selection is a required element for transporter liability. The Act imposes liability on 57 any person who accepts or accepted any hazardous substances for transport to disposal or treatment facilities, incineration vessels or sites selected by such person, from which there is a release, or a threatened release which causes the incurrence of response costs, of a hazardous substance 58 42 U.S.C. § 9607(a)(4). This awkwardly worded provision requires that we decide whether selected by such person modifies the entire phrase disposal or treatment facilities, incineration vessels or sites or only the immediately antecedent word sites. If the latter reading is correct, there is no basis for imposing a site-selection requirement for transporter liability where the substances were, as here, disposed of at a disposal or treatment facility. 59 The appellants offer two principal arguments in support of this reading. First, they point out that the Act elsewhere defines a facility as any site ... where a hazardous substance has been deposited, stored, disposed of, or placed. 42 U.S.C. § 9601(9). They aver that reading the selected by such person language to apply only to sites other than those where hazardous substances have been deposited, stored, disposed of, or placed, is therefore necessary to prevent the word sites from being redundant. See, e.g., Bailey v. United States, --- U.S. ----, ----, 116 S.Ct. 501, 507, 133 L.Ed.2d 472 (1995) (construing statute to avoid making words redundant). Second, they urge that we keep in mind the Act's legislative purpose of making all who profit from pollution pay for their conduct. 60 Recently, a sister Circuit concluded that CERCLA includes a site-selection requirement for transporters. Tippins Inc. v. USX Corp., 37 F.3d 87, 94 (3d Cir.1994). While noting the canon of statutory construction that absent a clear intention to the contrary, a modifier's reference is to the closest noun, id. at 93, the court recognized that this canon need not be followed in all instances. Id.; see also Nobelman v. American Sav. Bank, 508 U.S. 324, 330-31, 113 S.Ct. 2106, 2110-11, 124 L.Ed.2d 228 (1993) (reliance on the rule of the last antecedent is not compelled). Here, following the canon and adopting the appellants' rule would create an odd paradox: A transporter who brought hazardous substances to a disposal facility would be strictly liable, while a transporter who brought hazardous substances to some site other than a facility would not be liable unless the transporter itself selected the site. Tippins, 37 F.3d at 93-94. Thus, the coalitions' reading, while quite sensible as a matter of grammar, Nobelman, 508 U.S. at 330, 113 S.Ct. at 2111, would lead to a curious result. Tippins, 37 F.3d at 93. 61 The Third Circuit's conclusion is consistent with most other courts that have considered the subject. See id. (collecting cases); see also United States v. Hardage, 985 F.2d 1427, 1435 (10th Cir.1993) (requiring site selection for transporter liability); United States v. Petersen Sand & Gravel, Inc., 806 F.Supp. 1346, 1356 (N.D.Ill.1992) (same); Alcatel Info. Sys. v. Arizona, 778 F.Supp. 1092, 1096 (D.Ariz.1991) (same); United States v. Western Processing Co., 756 F.Supp. 1416, 1420 (W.D.Wash.1991) (same). But see Prisco v. New York, 902 F.Supp. 374, 388 (S.D.N.Y.1995) (stating test for transporter liability without noting a site selection requirement); Jersey City Redevelopment Auth. v. PPG Indus., No. CIV.A. 85-2014, 1987 WL 54410, at  5 (D.N.J. Sept. 3, 1987) (finding that selected by the transporter modifies only sites), aff'd without written opinion, 866 F.2d 1410, 1411 (3d Cir.1988). 62 We are persuaded by the reasoning of Tippins and hold that only transporters who select the disposal location are liable under CERCLA. As a consequence, we agree with the district court that unless the transporters selected the facility or disposal site, they cannot be found liable under the Act. However, the meaning of the word selected is hardly clear. Tippins, 37 F.3d at 94, determined that a transporter is properly liable under the Act when it ultimately selects the disposal facility or when its active participation in the decision amounted to substantial input into which facility was ultimately chosen. 63 This view accords with the Act's language and purpose. First, a transporter can be said to select a facility or site when it helps the generator choose a disposal facility by recommending a facility or set of facilities. Second, a transporter who plays an active role in choosing the disposal facility is obviously more culpable and responsible for the resultant harm than a transporter who simply does the bidding of a given generator; the latter has a more attenuated connection to the harm. An active participation standard recognizes the often significant role played by transporters in choosing the disposal site. Hence, in cases of transporter liability, we must vacate the grants of summary judgment and remand for further consideration in light of the above discussion. II Procedural Issues 64 We address next appellants' procedural arguments that are common to a great many of the cases before us. A. Summary Judgment Standard 65 We have recognized in CERCLA's context that summary judgment is a powerful legal tool[ ] that can avoid lengthy and perhaps needless litigation. Alcan, 990 F.2d at 720. This tool is one well adapted to encouraging settlement and speeding remediation. See In Re Cuyahoga Equip. Corp., 980 F.2d at 119 (CERCLA designed to encourage settlement to reduce litigation costs). Its utility in CERCLA litigation is not a license to use it when material facts are genuinely disputed. Just as there is no heightened pleading standard in CERCLA cases, see Warwick Admin. Group v. Avon Prods., Inc., 820 F.Supp. 116, 121 (S.D.N.Y.1993); cf. Leatherman v. Tarrant County Narcotics Intelligence & Coordination Unit, 507 U.S. 163, 168, 113 S.Ct. 1160, 1163, 122 L.Ed.2d 517 (1993) (heightened pleading requirement exists only in cases involving fraud or mistake), the showing required to survive summary judgment also remains the same. 66 We now briefly describe the standard for summary judgment under Fed.R.Civ.P. 56. A party moving for summary judgment has the burden of showing the absence of a genuine issue of material fact. Adickes v. S.H. Kress & Co., 398 U.S. 144, 157, 90 S.Ct. 1598, 1608, 26 L.Ed.2d 142 (1970). When a court is confronted with facts that permit several different conclusions, all inferences from the underlying facts must be drawn in the nonmovant's favor. Quaratino v. Tiffany & Co., 71 F.3d 58, 64 (2d Cir.1995). The trial court must bear in mind that [c]redibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those of a judge. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 2513-14, 91 L.Ed.2d 202 (1986). 67 If the movant demonstrates an absence of material issues of fact, a limited burden of production shifts to the non-movant, which must demonstrate more than 'some metaphysical doubt as to the material facts, ... [and] must come forward with specific facts showing that there is a genuine issue for trial. '  Aslanidis v. United States Lines, Inc., 7 F.3d 1067, 1072 (2d Cir.1993) (citations and emphasis omitted). Summary judgment, then is granted only when there is an absence of evidence to support the nonmoving party's case, Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2553-54, 91 L.Ed.2d 265 (1986), or, in other words, only if no rational jury could find in favor of the nonmoving party because the evidence to support its case is so slight. Gallo v. Prudential Residential Servs., 22 F.3d 1219, 1224 (2d Cir.1994). The trial court's task is carefully limited to discerning whether there are any genuine issues of material fact to be tried, not to deciding them. Its duty, in short, is confined at this point to issue-finding; it does not extend to issue-resolution. Id. B. Sua Sponte Summary Judgment 68 The district court granted summary judgment sua sponte in a number of cases. A sua sponte grant of summary judgment may be appropriate so long as the losing party was notified prior to its grant and given the opportunity to produce whatever proof it has in opposition. Celotex, 477 U.S. at 326, 106 S.Ct. at 2554; see also FLLI Moretti Cereali S.P.A. v. Continental Grain Co., 563 F.2d 563, 565 (2d Cir.1977) (power to grant summary judgment sua sponte must be exercised with great caution and with care taken to give the parties an opportunity to present materials in opposition). To ensure the parties have notice and an opportunity to be heard, we have established a policy of adhering closely to the ten day notice period specified by Rule 56(c). See Scottish Air Int'l, Inc. v. British Caledonian Group, PLC, 945 F.2d 53, 55 (2d Cir.1991) (per curiam). 69 Notice furthers two important interests. First, it gives the losing party an opportunity to develop the record to demonstrate that genuine material issues are in dispute or that determinative legal questions should be resolved in its favor, and thereby prevents the losing party from suffering procedural prejudice. Second, the parties' development of a complete record facilitates de novo appellate review. See Hispanics For Fair and Equitable Reapportionment (H-FERA) v. Griffin, 958 F.2d 24, 25 (2d Cir.1992) (per curiam). When the non-moving party asserts that it cannot adequately respond to its opponent's motion for summary judgment in fewer than ten days, it should be given the full ten days unless there is good reason to believe that the assertion is a sham. See Gutwein v. Roche Labs., 739 F.2d 93, 96 (2d Cir.1984). Here, the coalitions insist they were denied notice and an opportunity to be heard before the district court granted summary judgment sua sponte against them in a number of cases. 70 Our review of the underlying procedural history indicates that such was the case. On December 20, 1993, the trial court ordered the coalitions to file a list of third parties that the coalitions intended to pursue. Murtha III, 840 F.Supp. at 191. Although it directed the coalitions to be sure that [its prior] rulings ... are fully considered and accommodated, id., this is too vague an admonition to be deemed equivalent to notice. When the coalitions asked for additional time, their request was denied and the prior order was reaffirmed. Three weeks later, on January 10, 1994, the coalitions were again ordered to review their files and list those third party claims each intends to pursue as valid. The district court further explained that [a]ny third party claim not so listed by January 21, 1994, will be dismissed as not intended to be prosecuted further. 71 The district court acknowledged--in an order dated February 5, 1994--that appellants eventually prepared and presented such lists but, rather than simply dismissing those claims the coalitions did not intend to pursue, the district court dismissed a great many others sua sponte. In a case involving some 3000 filings, the coalitions were no doubt dedicating most of their effort between December 20, 1993 and February 5, 1994 to sifting through their records and compiling the list requested by the trial court. The coalitions were not asked to produce supporting papers or legal arguments to undergird their liability claims--they were only directed to submit a list within 11 days of the January 10 order. It is hardly surprising that the coalitions simply submitted the lists and did little else. 72 A more prudent course for the district court would have been to give the coalitions ten days' notice to show good cause why summary judgment should not be granted against them. Such a course also would have given the district court the benefit of the arguments and evidence of both sides and would have provided a more complete record on appeal. See Herzog & Straus v. GRT Corp., 553 F.2d 789, 792 & n. 5 (2d Cir.1977) (notice and opportunity to make arguments are vital to making an informed judgment); cf. Volvo N. Am. Corp. v. Men's Int'l Professional Tennis Council, 857 F.2d 55, 65 (2d Cir.1988) (ruling erroneous a decision to grant motion to dismiss on ground neither raised nor briefed by parties). As the record currently stands, we have no knowledge of the precise reasons for the district court's decision to grant summary judgment sua sponte in those cases where it took that course of action. It said only that there was want of substantiation, a truism that necessarily applies to all grants of summary judgment and which adds nothing to our understanding of the trial court's decision. Because the coalitions' claims are not demonstrably frivolous, the summary judgment dismissals, made sua sponte without ten days' notice, were error.