ELR Citation: ELR 21383
No(s). 89-436-B (M.D. La. Jun 19, 1991)

The court holds that a responsible party under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) may not maintain a direct action against the insurer of an owner or operator for contribution under CERCLA or under the Louisiana direct action statute, and that it lacks subject matter jurisdiction over state-law claims. The court holds that neither CERCLA §107(a), which establishes a list of responsible parties, nor §107(e)(1), which disallows any bar to any insurance agreement, creates a direct right-of-action against insurers. In a footnote, the court observes that CERCLA §108(c) does allow a direct right-of-action against guarantors, but only for third-party claims rather than for contribution claims. The court next holds that the responsible party may not maintain an action under the Louisiana direct action statute, which is one of a few state statutes that allow a suit directly against an insurer. The court holds that federal rights and remedies created under CERCLA are complete without state-law supplementation. The court concludes that Congress intended to allow direct actions under CERCLA only in cases involving guarantors, not insurers. Finally, since the federal claim is dismissed, the court holds that it lacks subject matter jurisdiction over state pendent party claims. The suit was filed before the effective date of the federal statutory provision creating pendent party jurisdiction.

Counsel for Plaintiffs
Frank S. Craig III, James R. Chastain Jr.
Breazeale, Sachse & Wilson
1 American Pl., 23rd Fl., P.O. Box 3197, Baton Rouge LA 70821
(504) 387-4000

Counsel for Defendants
Docia L. Dalby, Edward F. LeBreton
Rice, Fowler, Kingsmill, Vance & Flint
Poydras Ctr., Ste. 2600, 650 Poydras St., New Orleans LA 70130
(504) 523-2600

Gary M. Zwain, Andrew D. Weinstock
Duplass, Witman, Zwain & Williams
3 Lakeway Ctr., Ste. 2900, 3838 N. Causeway Blvd., Metairie LA 70002
(504) 832-3700