New Mexico v. General Electric Co.

The South Valley site in Albuquerque, New Mexico, had been the subject of remedial efforts to clean up chemical contamination after General Electric’s (GE) and ACF Industries’ (ACF) (defendants) use of the site resulted in groundwater contamination. The Environmental Improvement Division of the New Mexico Health and Environment Department (NMEID) determined that certain volatile organic compounds were present in the area’s municipal wells. New Mexico, under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), requested that the United States Environmental Protection Agency (EPA) place the South Valley site on the National Priorities List. The EPA conducted remedial investigations and developed a remedial design. The action phase of the cleanup followed, and GE was ordered to clean up the contamination pursuant to EPA directives. The CERCLA-mandated removal and response plan was followed, and the cleanup was set to conclude in 2016. CERCLA allowed for the State of New Mexico to bring an action against GE and ACF for the natural-resource damages to the groundwater. The New Mexico Attorney General (AG) (plaintiff) was not satisfied with the CERCLA remediation. The AG filed suit against GE and ACF in federal court for money damages under CERCLA and in state court for trespass, public nuisance, and negligence. The district court limited the AG’s claims, and the AG narrowed her claim for damages to those not recoverable under CERCLA. The AG argued that the CERCLA remediation process was under-inclusive and inadequate and claimed a loss of use from not being able to appropriate the South Valley groundwater for beneficial use. The district court found that the AG failed to establish contamination in the South Valley beyond the reach of CERCLA and the EPA’s remedial plan.