South Road Assoc. v. International Business Machines Corporation

216 F.3d 251 (2000)

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South Road Assoc. v. International Business Machines Corporation

United States Court of Appeals for the Second Circuit
216 F.3d 251 (2000)

  • Written by Tammy Boggs, JD

Facts

From the 1950s until 1994, International Business Machines Corporation (IBM) (defendant) leased property in New York (the property) for various manufacturing operations. During its lease, IBM used and stored chemicals on the property, some of which were solid waste and some of which were hazardous waste. IBM stored these wastes in underground storage tanks that at one point began leaking into surrounding soil and groundwater. South Road Associates (SRA) (plaintiff) acquired the property around 1979 and continued leasing the property to IBM until 1994. During the 1980s, IBM discovered the leakage and conducted a remediation program. By 1993, New York regulators had largely relieved IBM from further environmental-remediation efforts except for continued monitoring. In 1994, SRA retook possession of the property. Thereafter, SRA brought a citizen suit against IBM for violating the Resource Conservation and Recovery Act (RCRA), and specifically, the RCRA’s prohibition on open dumping. SRA alleged that IBM’s acts had caused exceedances of the allowable maximum contaminant levels (MCLs) on the property. The trial court granted IBM’s motion to dismiss based on SRA’s failure to allege current acts of contamination. SRA appealed.

Rule of Law

Issue

Holding and Reasoning (Jacobs, J.)

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