Second Circuit – Comprehensive environmental response: Revitalizing Auto Cmtys. Env’t Response Tr. v. Nat’l Grid USA

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United States Court of Appeals for the Second Circuit

Comprehensive environmental response, Compensation, and Liability Act

Prudentially ripe claims – Hardship

Revitalizing Auto Cmtys. Env’t Response Tr. v. Nat’l Grid USA

20-1931-cv

Judges Sack, Lynch, and Menashi

Background: The plaintiffs appealed from an order dismissing their claims for violations of the Comprehensive Environmental Response, Compensation, and Liability Act. The plaintiff was created and funded to clean up polluted locations connected to the former General Motors Corp. during the company’s bankruptcy. The plaintiff alleges cost recovery and contribution claims against dozens of defendants who contributed to pollution at a site the plaintiff was tasked to clean up. The plaintiff argues that its claims should proceed under section 107 as it has not resolved its liability. Or, in the alternative, proceed under section 113 so that it can pursue relief if the court found that its liability to clean up was resolved.

Ruling: The Second Circuit vacated and remanded. The court held that the court erred in finding the claims prudentially unripe against all defendants because it is based on costs the plaintiff has already incurred for which it may not receive repayment through the EPA investigation. Moreover, any further delay may cause the plaintiff hardship.

Matthew Littleton, of Donahue, Goldberg & Littleton, for the plaintiffs-appellants; Robert A. Wiygul, of Hangley Aronchick Segal Pudlin & Schiller, Douglas H. Zamelis, of Law Office of Douglas H. Zamelis, Charles T. Wehland, of Jones Day, and Kristin Carter Rowe, of Young/Sommer, for the defendants-appellees.