United States v. American Cyanamid Co.
ELR Citation: ELR 20091 No(s). 89-0565P (D.R.I. May 31, 1990)
The court holds that chemical manufacturers are barred by collateral estoppel from relitigating their liability, under §107 of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) to Rhode Island for the state's cleanup costs at the Picillo Pig Farm hazardous waste site in Coventry, Rhode Island. The court previously determined the manufacturers' liability in O'Neil v. Picillo, 18 ELR 20893, which was brought by the state of Rhode Island. The court holds that application of issue preclusion in this federal CERCLA §107 action is not unfair to the manufacturers, because they had a clear incentive to litigate the state's suit vigorously. Moreover, given the magnitude of their potential liability, they had sufficient opportunity to pursue discovery and call all necessary witnesses, and a future suit by the federal government was foreseeable. The only issue different in this case is the existence and size of the federal government's response costs. The court also holds that the federal government should not be precluded from invoking collateral estoppel, because even though it could have joined the prior suit, it is not a typical "wait-and-see" plaintiff.
[The court's decision as to the amount of federal liability is published at 22 ELR 20976. Related cases are published at 15 ELR 20426, 16 ELR 20331, 17 ELR 20629, 18 ELR 20893, and 20 ELR 20115.]
Counsel for Plaintiff
Alex A. Beehler, Steve C. Gold
Environment and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 514-2000
Counsel for Defendant
Deming Sherman
Edwards & Angell
2700 Hospital Trust Tower, Providence RI 02903
(401) 274-9200