Opinion ID: 147650
Heading Depth: 1
Heading Rank: 6

Heading: Impairment of Interests

Text: Under Rule 24(a)(2) and § 113(i), an applicant must be situated such that the disposition of the action may, as a practical matter, impair or impede its ability to protect its interests. This requirement need not detain us long. It follows from our discussion of Applicants' significant protectable interests that disposition of this action may impair or impede those interests. It is undisputed that [d]isposition of the present litigation could bar or reduce the monetary value of the contribution claims of the prospective intervenors against the settling PRPs. Union Elec., 64 F.3d at 1167. Non-settling PRPs may be held jointly and severally liable for the entire amount of response costs minus the amount of the settlement. CERCLA §§ 107(a) & 122(h)(4). Thus, as a practical matter, it is highly likely that the amount that the Group of 10 pays in settlement will affect the amount the non-settling PRPs ultimately have to pay, either in settlement or after trial, to satisfy their own liability for response costs. Proposed intervenors' interests might not be impaired if they have `other means' to protect them, even if the lawsuit would affect those interests. Lockyer, 450 F.3d at 442 (quoting Alisal, 370 F.3d at 921) (emphasis in original). But Applicants have no such other means in this case. Appellees contend that Applicants have already protected their interests through participation in the SEMOU Cases, and that intervention here would replicate the process already made available in those cases. Participation in the SEMOU Cases, however, has not provided Applicants with a direct opportunity to challenge the fairness of the settlements prior to their entry as a consent decree. Appellees also contend that CERCLA's notice and comment procedure provided Applicants with an other means by which to protect their interests. Notice and comment procedures do provide non-settling PRPs some degree of protection against an unfair consent decree. Some district courts have relied on the existence of these procedures to buttress a determination that intervention as of right is not available. See, e.g., Acorn, 221 F.R.D. at 538-39; United States v. Mid-State Disposal, Inc., 131 F.R.D. 573, 577 (W.D.Wis. 1990). We disagree with those courts. Once a consent decree has been negotiated and agreed upon, the interests of the government and would-be settling PRPs are essentially aligned and are adverse to those of non-settling PRPs who oppose entry of the decree. In the case now before us, Applicants had been involved in the settlement process and had made their views known to the government. The EPA and the Group of 10 had already agreed to the terms of the proposed consent decree, despite Applicants' opposition, before comments were sought. It is unrealistic to expect the government to abandon or substantially modify the proposed consent decree in response to Applicants' comments at this late stage of the process. The statutory scheme reflects a Congressional intent that the interests of entities other than the government and settling PRPs be considered as part of the settlement process. When a settlement is submitted for judicial approval, a court is required to evaluate whether a proposed consent decree is fair, reasonable and consistent with the objectives of CERCLA before approving it. Montrose, 50 F.3d at 743. A court must consider the substantive fairness of the consent decree to non-settling PRPs by assessing whether liability has been roughly apportioned based upon some acceptable measure of comparative fault. United States v. Cannons Eng'g Corp., 899 F.2d 79, 87 (1st Cir.1990); see Montrose, 50 F.3d at 746. Applicants have the right to participate in this process and to have their interests considered by the court. We conclude that the notice and comment procedure does not provide Applicants with sufficient other means by which to protect their interests, see Lockyer, 450 F.3d at 442, and that those interests will be impaired if Applicants are not afforded the right of intervention.