32 ELR 20572 -- Karras v. Teledyne Industries, Inc.

Karras v. Teledyne Industries, Inc.

No. 99CV0996BTMJAH (191 F. Supp. 2d 1162) (UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA March 25, 2002)

ELR Digest

The court holds that a trustee, on behalf of a trust created for the cleanup of a contaminated industrial site, may seek contribution from other potentially responsible parties (PRPs). The PRPs, who are grantors to the trust, argued that the trust has not incurred response costs as required by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) because the grantors fund the trust pursuant to the trust agreement. The court first holds, however, that the trust, and not the individual grantors to the trust, have incurred costs in carrying out cleanup of the site as evidenced by checks payable to environmental consultants, contractors, and the state environmental agency. Moreover, plaintiff associations, such as trusts, are permitted under CERCLA to sue for contribution despite the fact that they are creatures of contract. The court next holds that because the trust undertook the liability for the cleanup of the site, it is undeniably a PRP and, therefore, can seek contribution. The court further holds that the trust is a real party in interest. The PRPs' fear that the trustee could individually bring the same claims asserted in the complaint is unfounded. The trustee's contribution action will bind the PRPs because it is brought on their behalf.

The full text of this decision is available from ELR (10 pp., ELR Order No. L-492).

Counsel for Plaintiffs
Steven P. McDonald
Luce, Forward, Hamilton & Scripps
600 W. Broadway, Ste. 2600, San Diego CA 92101
(619) 236-1414

Counsel for Defendants
James J. Dragna
McCutchen, Doyle, Brown & Enersen
355 S. Grand Ave., Ste. 4400, Los Angeles CA 90071
(213) 680-6400

[OPINION OMITTED BY PUBLISHER IN ORIGINAL SOURCE]