Opinion ID: 71256
Heading Depth: 3
Heading Rank: 1

Heading: B. Meador was the president of Meador as well as a

Text: general partner in Saraland Limited. grading and excavating, Meador's subcontractor encountered patches of contaminated soil and deposits of the tar-like substance buried by Redwing. Meador completed construction of the Saraland Apartments complex in May 1974. Construction of the complex was subsidized by the United States Department of Housing and Urban Development (HUD) to provide low-income housing. In 1980, Saraland Limited hired Marcrum Management Company (Marcrum) as its management agent for the property. According to Marcrum, it provides administrative support to the Partnership to assure the Partnership conforms with federal regulations governing HUD-subsidized properties. Marcrum denies Redwing's claim that the company is the daily, on-site manager of the property. Redwing further alleges that after Marcrum assumed management of Saraland Apartments, two events caused a dispersal of contaminated soil at the Site. In 1986, the complex's parking lot was repaved. In 1991, contractors hired by Marcrum performed maintenance work on an underground gas line on the property. To access the pipeline, workers dug up soil at specific locations along the pipeline. Saraland Limited first became aware of tar seeping to the surface of the property in 1977. HUD noted tar in several areas of the complex during a July 1983 inspection. In an August 1984 inspection report, HUD again cited tar surfacing in various locations in the complex. By this time, residents of Saraland Apartments had been complaining about tar problems for several years. In October 1984, a group of investors bought out the original 2 partners in Saraland Limited. Robert Coit and Roar Company (Roar) purchased a 1% general partnership interest in the Partnership.3 Hutton Advantaged Properties, Ltd. and H/R Special Limited Partnership (collectively, the Hutton partners) purchased the remaining 99% interest and became limited partners in Saraland Limited. Under the amended partnership agreement signed in 1984, Coit and Roar are responsible for managing the business of the Partnership. The limited partners, however, possess certain rights giving them a measure of control over the Partnership's affairs. For example, H/R Special Partnership may force the Partnership to sell the apartment complex and may veto any proposed sale of the property. H/R Special Partnership must likewise consent to any extended management contract for the complex or any change in the managing agent.4 In 1985, Redwing entered into an administrative order by consent with the Environmental Protection Agency (EPA) agreeing to 2 Robert Coit was the principal officer and shareholder in Roar. 3 Robert Coit died while this action was pending in the district court, and Michael Coit and Christopher Weil were substituted as representatives of Robert Coit's estate. We shall refer to Michael Coit and Christopher Weil, in their joint capacity as legal representatives of Robert Coit's estate, as Coit. 4 Other notable powers of the Hutton partners include: (1) H/R Special Partnership must consent to any refinancing or prepayment of the mortgage on Saraland Apartments; (2) a general partner must obtain the consent of H/R Special Partnership before withdrawing from the Partnership; and (3) H/R Special Partnership may remove a general partner in certain circumstances. monitor the Site for tar seeps and to remove any seeps that appeared. Redwing bound itself in a second consent order in July 1990 to perform the remedial investigation/feasibility study for the property. Redwing claims it has spent approximately $1.9 million in investigating and cleaning up the Site. Redwing filed this suit seeking to recoup these costs. Redwing alleged the Partnership, Coit, Roar, the Hutton partners, Marcrum, and Meador were liable under §§ 113(f) and 107(a) of CERCLA for the costs Redwing has incurred and will incur in the future in cleaning up the Site. Redwing also sought relief under several state law theories. The Partnership, Coit, Roar, and the Hutton partners alleged counterclaims against Redwing for contribution under § 113(f) of CERCLA. These defendants also brought claims under Alabama law seeking recovery from Redwing for property damage caused by Redwing's burial of toxic chemicals on the Site. In time, Redwing and the Appellees filed cross-motions for 5 summary judgment on the CERCLA and state law claims. With the exception of Redwing's claim against Saraland Limited, the district court denied Redwing's motion for summary judgment on its CERCLA claims. Redwing Carriers, Inc. v. Saraland Apartments, Ltd., 875 F.Supp. 1545, 1555-67 (S.D.Ala.1995). The court granted the other appellees' cross-motions for summary judgment on their liability under CERCLA. Id. The Partnership, as the current owner of the 5 Other than Redwing's claims against the individual partners predicated on partnership law, the parties have not contested the district court's disposition of the state law counts. Accordingly, we will not address these claims. Site, conceded it was a covered person within the meaning of subsection 107(a)(1) of CERCLA and hence potentially responsible for response costs. Id. at 1566-67. The district court, however, granted the Partnership's motion for summary judgment on its contribution claim under § 113(f) of CERCLA. Id. at 1569. The court then allocated 100% of the response costs to Redwing, thereby absolving the Partnership of any responsibility under CERCLA. Id. Redwing appeals the district court's denial of its motion for summary judgment on its CERCLA claims as well as the court's allocation of costs under § 113(f).