Refined Metals Corp. v. NL Industries Inc., No. 18-3235 (7th Cir. 2019)Annotate this Case
Refined has owned the contaminated Beech Grove, Indiana lead smelter site since 1980 when it acquired it from NL. After years of litigation, Refined entered into a settlement with the federal Environmental Protection Agency (EPA) and the Indiana Department of Environmental Management (IDEM) in 1998. The 1998 Decree required Refined to close the site, pay a $210,000 fine, and remedy the contamination. EPA and IDEM agreed not to bring suit against Refined on some of their potential claims, effective immediately upon the entry of the Decree. In 2017, Refined sued NL to recoup some of the cleanup costs. The district court found that Refined’s claim was a “contribution action” under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9613(f)(3)(B), subject to a three-year statute of limitations and dismissed the suit. The Seventh Circuit affirmed, rejecting Refined’s argument that its suit was a “cost-recovery” action under CERCLA section 9607(a), and timely under that subsection’s limitations period. The 1998 Decree qualified under section 9613(f)(3)(B), which creates a right to contribution for a party that has “resolved its liability to the United States or a State for some or all of a response action or for some or all of the costs of such action in an administrative or judicially approved settlement” and triggers the limitations period.