ELR Citation: 47 ELR 20154
No(s). 17-cv-11174 (E.D. Mich. Nov 28, 2017) (Winslow, J.)

A district court held that the federal government must answer claims that it is liable for the cleanup of World War II-era hazardous waste from 12 oil refineries in seven states. Property owners brought a contribution claim against the U.S. government under CERCLA, claiming that the government exercised control over the refineries before and during World War II pursuant to Executive Order No. 9276, issued by Franklin Roosevelt. The EO, which established the Petroleum Administration for War (PAW), vested PAW with broad discretionary authority to carry out national plans, policies, and objectives for the petroleum industry. The owners alleged that PAW proceeded to operate the nation’s refineries by directing and controlling all aspects of production at the refinery level. The Government moved to dismiss the case for improper joinder, arguing that a systematic, nationwide plan and policy of refinery control during the relevant wartime period is insufficient, on its own, to satisfy the permissive joinder standard. The court agreed with the owners, finding that the nationwide policy was not the sole factual basis of the claim, and that the alleged day-to-day operations were sufficient to give rise to a cause of action. The motion was denied.