ELR Citation: ELR 21268
No(s). 92-1344-A (E.D. Va. May 11, 1993)

The court holds that time barred state-law contract claims cannot be asserted as recoupment claims in response to a contribution claim for cleanup costs under §113(f) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), because the recoupment claims do not arise from the same transaction or occurrence that forms the basis of CERCLA's contribution claim. Because the contract claims are time barred, they may not be asserted as independent claims or counterclaims under Rule 13 of the Federal Rules of Civil Procedure, but rather must be asserted as claims for recoupment. Among other requirements, recoupment claims must arise from the same transaction or occurrence as the main claim, here CERCLA's contribution claim.

Given the relationship and essential similarity between Rule 13(a) compulsory counterclaims and common-law recoupment claims, and policy considerations relating to the just and expeditious resolution of CERCLA cases, the court applies the Rule 13(a) standard to test whether the recoupment claims arise from the same transaction or occurrence as the contribution claim. The court holds that the contract-based recoupment claims do not arise from cleanup operations or actual generation or disposal of hazardous waste, and, thus, do not arise from the same transaction or occurrence that forms the basis of CERCLA's contribution claim. CERCLA's contribution claim clearly implicates different factual and legal issues from those raised by the contract recoupment claims, and the evidence required to prove CERCLA's claim differs from that needed to prove the state contract claims. Also, no logical relationship exists between the claims. Case law requires a close nexus between recoupment claims and CERCLA contribution claims, and, therefore, supports precluding the assertion of these contract-based claims, which are unrelated to the question of liability under CERCLA for the pollution and cleanup of hazardous wastes.

Counsel for Plaintiff
Michael J. Weiser
106 N. St. Asaph St., Alexandria VA 22314
(703) 684-8864

Counsel for Defendants
Robert S. Hall Jr.
1215 17th St. NW, Ste. 213, Washington DC 20036
(202) 659-0520