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Blasland, Bouck & Lee, Inc. v. City of North Miami

Citations: 283 F.3d 1286; 32 Envtl. L. Rep. (Envtl. Law Inst.) 20486; 53 ERC (BNA) 2153; 2002 U.S. App. LEXIS 3328; 2002 WL 331961Docket: 00-14975

Court: Court of Appeals for the Eleventh Circuit; March 1, 2002; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In a complex environmental case, the City contracted Blasland, Bouck and Lee to remediate a polluted site under a consent decree with the EPA pursuant to CERCLA. The City terminated the contract alleging negligence, while Blasland claimed wrongful termination and unpaid fees, leading to a lawsuit for breach of contract and CERCLA cost recovery. A jury favored Blasland on breach of contract but sided with the City on its negligence counterclaims. The court ruled in favor of Blasland on CERCLA claims, setting off the City’s counterclaim by prior CERCLA recoveries, and awarded Blasland prejudgment interest. The City appealed several issues, including the setoff and interest, while Blasland cross-appealed on statute of limitations and contractual payment issues. The appellate court affirmed, reversed, and remanded certain decisions, particularly addressing prejudgment interest and the impact of a pay-when-paid clause. The case underscores complex interactions between contract law and environmental statutes.

Legal Issues Addressed

Breach of Contract and Professional Negligence

Application: The jury found in favor of Blasland on its breach of contract claim but ruled for the City on its counterclaims for professional negligence, highlighting the complexity in contractual obligations and professional standards.

Reasoning: A jury ruled in favor of Blasland on its breach of contract claim but sided with the City on its counterclaims for negligence and breach of contract.

CERCLA Cost Recovery

Application: The court ruled in favor of Blasland for CERCLA claims, demonstrating that environmental remediation costs can be recovered despite contractual disputes.

Reasoning: The court subsequently ruled on the CERCLA claims in favor of Blasland, affirming the jury's damage award but setting off the City’s counterclaim by amounts recovered in a prior CERCLA suit.

CERCLA Liability and Defenses

Application: The court ruled that the pay-when-paid clause did not constitute a valid CERCLA defense, reinforcing strict liability principles for environmental cleanup costs.

Reasoning: The district court incorrectly relied on the Town of Munster case and concluded that the pay-when-paid clause in the contract between Blasland and the City constituted a valid defense under CERCLA.

Prejudgment Interest Entitlement

Application: The court awarded prejudgment interest to Blasland, despite the City's arguments against it, emphasizing the typical entitlement to such interest in breach of contract cases.

Reasoning: Blasland's motion to tax prejudgment interest was granted by the district court, resulting in an approximate total judgment of $556,000.

Setoff Under Florida Statutes § 46.015(2)

Application: Blasland successfully argued for a setoff against the City’s counterclaim award, reflecting statutory provisions for non-tort cases.

Reasoning: Blasland's motion to offset the City’s counterclaim award with the amounts from the Berger and A&E settlements was granted, effectively nullifying the counterclaim award.

Statute of Limitations Defense

Application: Blasland's statute of limitations defense against the City’s malpractice counterclaim was rejected due to waiver, illustrating the necessity of timely assertion of defenses.

Reasoning: Blasland filed four motions for judgment as a matter of law, including one based on a statute of limitations defense against the City’s malpractice counterclaim; all motions were denied, with the statute of limitations defense rejected on the basis of waiver due to lack of trial assertion.