ASARCO v. Union Pacific Railroad Co.

Asarco filed suit against UP alleging breach of contract and seeking contribution regarding a dispute about environmental liability for a lead refinery and smelter which polluted Omaha, Nebraska. The district court granted UP's motion to dismiss, ruling that UP did not breach the agreement and consent decree that protected UP from Asarco's claims. Despite receiving notice of UP's settlement, Asarco did not object before the district court issued the consent decree. Asarco waited until after entry of the consent decree and brought this collateral case. The court concluded that the district court correctly recognized that all of Asarco's claims were prohibited contribution claims even though some were disguised as breach of contract claims. In light of the consent decree, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), 42 U.S.C. 9601-9675, protected UP against any contribution claim related to the site. Further, the district court correctly concluded that UP neither waived CERCLA's contribution protection nor breached the tolling agreement by invoking that protection. Accordingly, the court affirmed the judgment of the district court. View "ASARCO v. Union Pacific Railroad Co." on Justia Law