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United States v. Sterling Centrecorp Inc.

Citations: 209 F. Supp. 3d 1151; 2016 WL 5159397; 83 ERC (BNA) 1345; 2016 U.S. Dist. LEXIS 128371Docket: No. 2:08-cv-02556-MCE-JFM

Court: District Court, E.D. California; September 20, 2016; Federal District Court

Narrative Opinion Summary

This case involves a legal dispute under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) concerning cleanup costs at the former Lava Cap Mine, a designated Superfund site due to arsenic contamination. The United States and California Department of Toxic Substances initiated action against Sterling Centrecorp Inc. and associated parties to recover costs incurred from environmental remediation efforts. Sterling counterclaimed, asserting that the U.S. government was liable as an 'operator' by virtue of a World War II order (Order L-208) that temporarily closed the mine, hindering waste management. The court conducted a bifurcated bench trial and found Sterling liable for cleanup costs. Upon reviewing summary judgment motions, the court determined that the government did not qualify as an 'operator' under CERCLA, as it lacked active management or decision-making authority over mining operations during the closure. The court granted the government's motion for summary judgment, denying Sterling's counterclaim and motion for partial summary judgment. The ruling emphasized the necessity of direct operational control to establish operator liability, referencing standards from the U.S. Supreme Court and the Ninth Circuit. Consequently, the court absolved the government of liability, reaffirming previous findings against Sterling and related defendants.

Legal Issues Addressed

CERCLA Operator Liability

Application: The court ruled that the government was not an 'operator' of the site under CERCLA, as it did not manage or conduct operations at the mine during the closure period imposed by Order L-208.

Reasoning: The Court ruled that the government was not an 'operator' of the site under CERCLA as it acted in compliance with the War Production Board's Order L-208.

Historical Government Orders and CERCLA Liability

Application: The court found that the issuance of Order L-208 by the War Production Board did not constitute government control or operation of the mine, thereby not establishing CERCLA liability.

Reasoning: The government's actions were limited to issuing and enforcing Order L-208, which closed the mine for the war effort, without participating in its operation or the management of mining waste disposal.

Requirements for Operator Liability

Application: To establish operator liability under CERCLA, active management and decision-making authority over waste disposal operations are required, which the government did not exhibit.

Reasoning: The Ninth Circuit emphasizes that operator liability necessitates active management and decision-making authority over waste disposal operations.

Summary Judgment Standards

Application: The court considered whether there was any genuine dispute of material fact regarding the government's role as an operator, ultimately finding none and granting the government's motion for summary judgment.

Reasoning: In summary judgment motions, the evidence favoring the opposing party is accepted as true, and reasonable inferences must be drawn in their favor, provided there is a factual basis for those inferences.