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State v. Chrysler Outboard Corp.

Citations: 580 N.W.2d 203; 219 Wis. 2d 130; 46 ERC (BNA) 1810; 1998 Wisc. LEXIS 104Docket: 96-1158

Court: Wisconsin Supreme Court; June 19, 1998; Wisconsin; State Supreme Court

Narrative Opinion Summary

In this case, the Supreme Court of Wisconsin considered an appeal involving environmental enforcement actions against Chrysler Outboard Corporation concerning hazardous waste disposal. The State of Wisconsin sought injunctive relief and civil penalties under the Solid Waste Law and the Spills Law. The Circuit Court initially dismissed the State's claims, ruling the Solid Waste Law action time-barred and the Spills Law inapplicable to Chrysler's pre-1978 actions. On appeal, the court affirmed the dismissal under the Solid Waste Law, determining that the discovery rule does not extend to such claims. However, it reversed the lower court's decision regarding the Spills Law, concluding that it applies to ongoing discharges from pre-1978 actions. Despite Chrysler's arguments against retroactive liability, the court held that the Spills Law mandates remediation for continuous hazardous discharges, aligning with legislative intent. The case was remanded for further proceedings to determine penalties for violations from February 16, 1985, to December 1993. Justice Bablitch dissented on the application of the discovery rule, advocating for its extension to Solid Waste Law claims. The decision underscores the court's interpretation of statutory limitations and retroactivity in environmental law enforcement.

Legal Issues Addressed

Interpretation of 'Cause' in Environmental Law

Application: The term 'cause' in Wis. Stat. 144.76(3) was interpreted to include both actions and omissions related to hazardous waste discharges.

Reasoning: The ongoing nature of hazardous waste leaking aligns with the statutory definition of 'discharge,' which does not necessitate human conduct.

Liability for Hazardous Waste Disposal

Application: Chrysler was held liable under the Spills Law for failing to remediate hazardous waste after 1978, despite the waste being initially disposed of prior to the law's enactment.

Reasoning: Chrysler is deemed responsible for the hazardous discharge at the Bark River site, which is characterized as an ongoing issue due to Chrysler's failure to remediate the spill after the Spills Law took effect in 1978.

Retroactive Application of Environmental Statutes

Application: The court determined that the Spills Law applies to ongoing discharges from pre-1978 actions, but not retroactively for penalty purposes.

Reasoning: However, it reversed the dismissal under the Spills Law, ruling that it could apply to ongoing discharges from pre-1978 actions.

Statute of Limitations in Environmental Enforcement Actions

Application: The court ruled that the discovery rule does not apply to enforcement actions under the Solid Waste Law, affirming that claims accrue at the time of the violation.

Reasoning: The court concluded that the discovery rule does not apply to the Solid Waste Law enforcement actions and affirmed the dismissal for that claim.

Statutory Construction and Retroactivity

Application: The court found that the Spills Law's remedial provisions apply retroactively, while penalties do not, to avoid ex post facto violations.

Reasoning: The legislative intent for retroactive application of the Spills Law for remediation is supported, while the imposition of penalties does not constitute retroactive application.