Barclay Lofts LLC v. PPG Indus.

1

BARCLAY LOFTS LLC, Plaintiff, v. PPG INDUSTRIES, INC., et al., Defendants.

No. 20-CV-1694

United States District Court, E.D. Wisconsin

September 18, 2024

DECISION AND ORDER FOLLOWING COURT TRIAL

NANCY JOSEPH, UNITED STATES MAGISTRATE JUDGE

Introduction 2

Findings of Fact 3

Evidentiary Rulings 14

Analysis and Conclusions of Law 17

1. Barclay's CERCLA Cost Recovery Claim ................................................................. 18

1.1 Whether the Properties are “Facilities” under CERCLA ......................................... 19

1.2 Whether PPG Qualifies as a PRP ........................................................................... 20

1.3 Whether There Was a Release ................................................................................ 23

1.4 Whether Barclay Incurred Necessary Response Costs .............................................. 24

1.4.1 Environmental Consultant Costs .................................................................. 26

1.4.2 Site Security and Monitoring Costs ............................................................... 30

1.4.3 Legal Fees .................................................................................................... 31

1.5 Summary of Findings ............................................................................................. 35

2. Declaration of Joint and Several Liability ................................................................. 36

3. PPG's CERCLA Contribution Claims ....................................................................... 36

3.1 Contribution Claim Against Sherman .................................................................... 38

3.2 Allocation of Past Costs ........................................................................................ 40

3.3 Allocation of Future Response Costs ..................................................................... 43

3.4 Allocation of Liability for Future Response Costs ................................................... 45

3.4.1 PPG ............................................................................................................. 45

3.4.2 Hydrite ........................................................................................................ 55

3.4.3 Wayne Chemical, Wayne Pigment/MD Fifth Ward, and Lumimove ........... 57

3.4.3.1 Wayne Chemical ........................................................................... 59

3.4.3.2 Wayne Pigment/MD Fifth Ward .................................................... 60

3.4.3.3 Lumimove ..................................................................................... 63

3.4.4 Barclay and Sherman ................................................................................... 64

4. Hydrite's Request for a Contribution Bar .................................................................. 65

4.1 Fair and Adequate ................................................................................................. 67

4.2 Reasonable ........................................................................................................... 68

4.3 Faithful to Objectives of CERCLA ......................................................................... 69

4.4 Conclusion ............................................................................................................ 69

5. RCRA Claim ............................................................................................................. 70

5.1 Relevant Law ........................................................................................................ 70

5.2 Imminent and Substantial Danger ......................................................................... 71

Conclusion ..................................................................................................................... 76

Barclay Lofts LLC is the current owner of two parcels of property located in Milwaukee, Wisconsin, at 300 South Barclay Street and 139 East Oregon Street. Both parcels contain environmental contamination of the soil, soil vapor, and groundwater. Barclay sues PPG Industries, Inc. and Hydrite Chemical Co. seeking the recovery of response costs, damages, declaratory relief, and injunctive relief under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. § 9601, et seq. and the Resources Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901, et seq.

PPG counterclaims against Barclay and Sherman Associates, Inc. for contribution and declaratory relief under CERCLA, and cross-claims against Hydrite and Lumimove for CERCLA contribution. Hydrite cross-claims against PPG for CERCLA contribution. A trial to the Court was held in this case from January 22, 2024 to February 2, 2024. Considering the testimony at trial and the other evidence submitted by the parties, I enter the following findings of fact and conclusions of law pursuant to Fed.R.Civ.P. 52.

FINDINGS OF FACT

Pursuant to Fed.R.Civ.P. 52(a)(1), the Court makes the following findings of fact based on the parties' stipulation (Docket # 322):

Parties' Claims and Procedural History

1. This is an action for recovery of response costs, declaratory relief, and injunctive relief arising from environmental contamination existing in the soil, soil vapor and groundwater at, and buildings on, property located at 300 South Barclay Street (the “South Barclay Parcel” or “East Parcel”) and 139 East Oregon (the “East Oregon Parcel” or “West Parcel”) (collectively, the “Properties”) in Milwaukee, Wisconsin.

2. The operative complaint in this matter is the Third Amended Complaint. (Docket # 58.)

3. In Count I of its Third Amended Complaint, Barclay asserts a claim to recover pre-remediation response costs pursuant to Section 107(a) of the Comprehensive Environmental Response Compensation, and Liability Act (“CERCLA”), 42 U.S.C. § 9607(a).

4. In Count II of its Third Amended Complaint, Barclay seeks declaratory judgment for future response costs pursuant to 42 U.S.C. § 9613(g)(2).

5. In Count III of its Third Amended Complaint, Barclay seeks injunctive relief pursuant to Section 7002(a) of the Resources Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6972(a).

6. PPG has asserted a counterclaim against Barclay for contribution under CERCLA Section 113(f)(1), 42 U.S.C. § 9613(f)(1). (See Docket # 63.)

7. PPG also has asserted cross-claims against Hydrite Chemical Co. and crossdefendant Lumimove, Inc. for contribution under CERCLA Section 113(f)(1), 42 U.S.C. § 9613(f)(1). (See id.)

8. PPG has also asserted a third-party complaint against Sherman for contribution under CERCLA Section 113(f)(1), 42 U.S.C. § 9613(f)(1), and declaratory relief, alleging that Sherman is liable as an “operator.” (Docket # 206.)

9. Barclay settled its claims against Wayne Pigment Corporation (“WPC or Wayne Pigment”), Michael Denesha, Lumimove, and Hydrite, although those parties originally all remained in the lawsuit subject to cross-claims. (See PPG-1224, 1225, 1592, 1625, 1626.) Barclay also entered into a settlement with an insurance company with respect to Barclay's claims against Wayne Chemical Corp. (“WCC” or “Wayne Chemical”).

10. Prior to the trial of this matter, the parties mutually agreed to dismiss WCC, Wayne Pigment, and Michael Denesha from the lawsuit.

11. Hydrite has asserted cross-claims against PPG for contribution under CERCLA Section 113(f)(1), 42 U.S.C. § 9613(f)(1), and declaratory relief. (See Docket # 61.)

12. Hydrite previously had asserted a counterclaim for contribution and declaratory relief against Barclay, cross-claims for contribution against WCC and Lumimove (Docket # 61), and a third-party complaint against Sherman (Docket # 205), but it dismissed those claims upon settling with Barclay (Docket # 288).

Ownership and Operations at the Properties

13. The East Oregon Parcel is 0.877 acres in size and contains three vacant buildings (Buildings 33, 34, and 35).

14. The South Barclay Parcel is 0.72 acres in size and contains a vacant five-story building (Building 11).

15. PPG formerly owned and operated the South Barclay Parcel and the East Oregon Parcel for industrial purposes from approximately 1900 until 1975.

16. On or about December 12, 1975, PPG conveyed the East Oregon Parcel to Valley Industrial Park via Warranty Deed.

17. On or about January 27, 1976, Valley Industrial Park conveyed the East Oregon Parcel to Hydrite via Warranty Deed.

18. PPG conveyed the South Barclay Parcel to Wayne Chemical Corp. (“WCC” or “Wayne Chemical”) via a Warranty Deed dated April 22, 1975.

19. Wayne Chemical operated at the South Barclay Parcel from approximately 1975 to 1984, during which time it continued PPG's dry color operations business.

20. Wayne Pigment acquired the South Barclay Parcel via a Warranty Deed dated February 10, 1984 from Wayne Chemical.

21. Wayne Pigment acquired the East Oregon Parcel from Hydrite on or about December 16, 1985 via Warranty Deed.

22. Wayne Pigment changed its name to WPC Technologies, Inc. in 2011.

23. WPC Technologies, Inc. changed its name to MD Fifth Ward Properties, Inc. in August 2012.

24. Also in August 2012, Lumimove bought the assets of WPC Technologies, Inc., but not the...