American Cyanamid Co. v. King Indus., Inc.
ELR Citation: ELR 20919 No(s). 87-0110 (D.R.I. Mar 1, 1993)
The court approves a proposed settlement agreement between the plaintiffs and four co-defendants in a contribution action under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) §113(f)(1) and dismisses cross-claims between the settling defendants (settlors) and the nonsettling defendants (NSDs). The court first holds that the comparative fault rule of the Uniform Comparative Fault Act (UCFA) is applicable to this case involving proposed CERCLA settlements between private litigants. The comparative fault rule of the UCFA will advance CERCLA's policy of encouraging settlements while achieving an equitable apportionment of liability for the NSDs. Under the UCFA, the NSDs' liability to the plaintiffs will be reduced by the settlors' equitable share of liability. They therefore may not sue the settlors for contribution. In addition, the NSDs are still liable to the plaintiffs and may not be sued by the settlors for contribution, because the settlement did not extinguish the nonsettling defendants liability to the plaintiffs. The court next holds that CERCLA §113(f)(2), which provides for reduction of the NSDs' liability by the dollar amount of the settlement, rather than the settlors' equitable share of liability, applies only to settlements with the government. The court holds that Federal Rule of Civil Procedure 41(c) does not bar it from dismissing defendants' cross-claims notwithstanding the fact that the motion was made by the plaintiffs rather than a cross claimant and the plaintiffs' claims for contribution from the NSDs remain outstanding.
Counsel for Plaintiffs
Deming E. Sherman
Edwards & Angell
2700 Hospital Trust Tower
Providence RI 02903
(401) 274-9200
Counsel for Defendants
John A. Baglini
Higgins & Slattery
Greater Providence Bank Bldg.
170 Westminster St., Ste. 1100, Providence RI 02903
(401) 751-3600