Guam v. United States, 593 U.S. ___ (2021)
The Ordot Dump was constructed on Guam by the Navy in the 1940s. Both the federal government and Guam allegedly deposited waste at Ordot. A 2004 consent decree between the EPA and Guam resolved litigation concerning Clean Water Act violations.
About 13 years later, Guam sued the U.S. under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9601. A section 107(a) action sought recovery of the costs of a “removal or remedial action” from the government based on its ownership or operation of the site at the time of the disposal of hazardous substances. A section 113(f) action sought "contribution," alleging that Guam “has resolved its liability to the United States…for some or all of a response action or for some or all of the costs of such action in [a] settlement." The D. C. Circuit held that cost recovery was not available if a party could have brought a contribution action and found the contribution claim untimely under a three-year limitations period in light of the 2004 settlement.
A unanimous Supreme Court reversed. A settlement of environmental liabilities must resolve a CERCLA-specific liability to give rise to a section 113(f)(3)(B) contribution action. That remedial measures under different environmental statutes might functionally overlap with a CERCLA response action does not justify reinterpreting section 113(f)(3)(B)’s phrase “resolved its liability . . . for some or all of a response action” to instead mean “settled an environmental liability that might have been actionable under CERCLA.” A party may seek CERCLA contribution only after settling CERCLA-specific claims, as opposed to resolving environmental liability under another law.
A settlement of environmental liabilities must resolve a CERCLA-specific liability to give rise to a CERCLA contribution action; resolution of Clean Water Act claims did not trigger the limitations period for bringing a CERCLA contribution action.
SUPREME COURT OF THE UNITED STATES
Syllabus
TERRITORY OF GUAM v. UNITED STATES
certiorari to the united states court of appeals for the district of columbia circuit
No. 20–382. Argued April 26, 2021—Decided May 24, 2021
Guam and the United States dispute liability for environmental hazards at the Ordot Dump, a site constructed on the island by the Navy in the 1940s and into which both parties allegedly have deposited waste over the decades. The Environmental Protection Agency (EPA) and Guam entered into a consent decree in 2004 that resolved litigation filed by the EPA alleging violations of the Clean Water Act. The decree in relevant part required Guam to pay a civil penalty and to take certain actions at the dump, and also stated that Guam’s compliance would constitute full settlement and satisfaction of the civil claims of the United States as alleged in the EPA’s complaint (i.e., claims under the Clean Water Act). More than a decade later, Guam sued the United States under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), alleging that the United States’ use of the dump exposed it to two possible actions under the Act. The first was a “cost-recovery” action under §107(a), which allows recovery of the costs of a “removal or remedial action” from “any person who at the time of disposal of any hazardous substance owned or operated any facility at which such hazardous substances were disposed of.” The second was a “contribution” action under §113(f), which provides that a party that “has resolved its liability to the United States…for some or all of a response action or for some or all of the costs of such action in [a] settlement may seek contribution from any person who is not [already] party to a [qualifying] settlement.” §113(f)(3)(B). The D. C. Circuit rejected Guam’s CERCLA claims against the United States. The court determined that although Guam had once possessed a CERCLA contribution claim based on the 2004 consent decree that sufficiently “resolved Guam’s liability” for the dump, that claim was time barred. The court further held that a party eligible to pursue a contribution claim under §113(f) cannot assert a cost-recovery claim under §107(a), leaving Guam no CERCLA remedy. As relevant here, Guam now contends that the 2004 consent decree did not give rise to a viable CERCLA contribution claim, leaving Guam free to pursue a cost-recovery action. The case turns on whether CERCLA authorizes a contribution claim only when a party resolves a CERCLA-specific liability or whether settlement of environmental liabilities under other laws will do.
Held: A settlement of environmental liabilities must resolve a CERCLA-specific liability to give rise to a contribution action under §113(f)(3)(B). The Court interprets §113(f)(3)(B) in light of its text and place within CERCLA’s comprehensive statutory scheme. Section 113(f)’s interlocking provisions governing the scope of a contribution claim, taken together and in sequence, anticipate a predicate CERCLA liability. See New Prime Inc. v. Oliveira, 586 U. S. ___, ___. Section 113(f)’s anchor provision—entitled “contribution”—explains the scope of contribution actions with reference to CERCLA’s other provisions, allowing contribution “during or following any civil action under §[1]06 of this title or under §[1]07 of this title.” §113(f)(1). The provision at issue here—recognizing a statutory right to contribution in the specific circumstance where a person “has resolved its liability” via “settlement,” §113(f)(3)(B)—exists within “‘the specific context’” of §113(f), which outlines the broader workings of CERCLA contribution. Merit Management Group, LP v. FTI Consulting, Inc., 583 U. S. ___, ___. Section 113(f)(3)(B)’s opening clause further ties itself to the CERCLA regime by permitting contribution after a party “has resolved its liability . . . for some or all of a response action or for some or all of the costs of such action.” (Emphasis added.) The anchor provision also discusses allocation of “response costs,” and the phrase “response action” appears dozens of times throughout the Act. That remedial measures under different environmental statutes might functionally overlap with a CERCLA response action does not justify reinterpreting §113(f)(3)(B)’s phrase “resolved its liability . . . for some or all of a response action” to instead mean “settled an environmental liability that might have been actionable under CERCLA.” Interpreting §113(f)(3)(B) to authorize a contribution right for a host of environmental liabilities arising under other laws would stretch the statute beyond Congress’ actual language. And because the word “resolve” conveys certainty and finality, it would be odd to interpret §113(f)(3)(B) as referring to a party that has “resolved its liability” if that party remains vulnerable to a CERCLA suit. The most natural reading of §113(f)(3)(B) is that a party may seek contribution under CERCLA only after settling a CERCLA-specific liability, as opposed to resolving environmental liability under some other law. The Government’s contrary arguments fail given §113(f)(3)(B)’s place in CERCLA’s comprehensive statutory scheme. Pp. 3–9.
950 F.3d 104, reversed and remanded.
Thomas, J., delivered the opinion for a unanimous Court.
JUDGMENT ISSUED. |
Judgment REVERSED and case REMANDED. Thomas, J., delivered the opinion for a unanimous Court. |
Argued. For petitioner: Gregory G. Garre, Bethesda, Md. For respondent: Vivek Suri, Assistant to the Solicitor General, Department of Justice, Washington, D. C. |
Reply of Government of Guam submitted. |
Reply of petitioner Government of Guam filed. (Distributed) |
Brief amicus curiae of Atlantic Richfield Company filed. (Distributed) |
CIRCULATED |
Brief of respondent United States filed. |
The record from the U.S.C.A. is electronic and located on Pacer. The oral argument transcript, has been electronically received and filed. |
The record received from the U.S. District and Bankruptcy Courts is electronic and located on Pacer. |
Record requested. |
SET FOR ARGUMENT on Monday, April 26, 2021. |
Brief amicus curiae of ConservAmerica filed. |
Brief amici curiae of Territories of The Commonwealth Of The Northern Mariana Islands, et al. filed. |
Brief of petitioner Government of Guam filed. |
Joint appendix filed. (Statement of costs filed) |
Petition GRANTED. |
DISTRIBUTED for Conference of 1/8/2021. |
Reply of petitioner Government of Guam filed. (Distributed) |
Brief of respondent United States in opposition filed. |
Motion to extend the time to file a response is granted and the time is further extended to and including December 9, 2020. |
Motion to extend the time to file a response from November 25, 2020 to December 9, 2020, submitted to The Clerk. |
Motion to extend the time to file a response is granted and the time is extended to and including November 25, 2020. |
Motion to extend the time to file a response from October 26, 2020 to November 25, 2020, submitted to The Clerk. |
Petition for a writ of certiorari filed. (Response due October 26, 2020) |