WILLIAM B. SHUBB, District Judge.
The City of West Sacramento, California ("the City") and the People of the State of California initiated this action to address toxic levels of soil and groundwater contamination in the environment within the City. Before the court is defendant Richard Leland's Motion to Dismiss the Second Amended Complaint. (Docket No. 37.)
This court's prior two orders dismissing complaints as against defendant Richard Leland (Docket Nos. 18 & 33) describe the parties and detail much of the procedural and factual background to this lawsuit. In its most recent order issued on September 4, 2018, the court granted defendant Richard Leland's motion to dismiss in full and gave plaintiffs twenty days to file an amended complaint. (Docket No. 33.)
On September 20, 2018, plaintiffs filed the Second Amended Complaint, which alleges the following causes of action against Leland: (1) violation of the Resource Conservation and Recovery Act ("RCRA") § 7002(a), 42 U.S.C. § 6972(a)(1)(B); (2) violation of the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") § 107(a), 42 U.S.C. § 9607(a); (3) violation of The Gatto Act, California Health & Safety Code §§ 25403-25403.8; (4) statutory indemnity; and (5) declaratory relief and costs allegedly incurred in response to soil and ground water contamination at and around the property. (Second Am. Compl. ("SAC") (Docket No. 34).) Defendant Richard Leland moves to dismiss the SAC against him in full.
On a Rule 12(b)(6) motion, the inquiry before the court is whether, accepting the allegations in the complaint as true and drawing all reasonable inferences in the plaintiff's favor, the plaintiff has stated a claim to relief that is plausible on its face.
Plaintiffs contend that Leland qualifies an "operator" under CERCLA and RCRA
CERCLA defines "owner or operator" as "any person owning or operating such facility" but excludes any "person, who, without participating in the management of a vessel or facility, holds indicia of ownership primarily to protect his security interest in the vessel or facility." 42 U.S.C. § 9601 20(A)(ii).
Given the circular definition of "operator" in the statute, the Supreme Court clarified that "under CERCLA, an operator is simply someone who directs the workings of, manages, or conducts the affairs of a facility."
Plaintiffs rely on three separate allegations in their complaint to support a theory of operator liability.
Plaintiffs' first two allegations are based on information and belief. While facts may be alleged on information and belief, conclusory allegations asserted on such a basis are insufficient to state a claim.
None of Leland's statements that plaintiffs rely on support these allegations. Those statements merely show that Leland had knowledge after-the-fact about environmental contamination at the property, not that he had control over the source of the contamination. (
Finally, Leland's mere status as a lessee of the property cannot support a theory of operator liability. As this court previously observed, this allegation does not demonstrate that Leland participated in the disposal of hazardous wastes or that he "had the authority to control the cause of contamination at the time the hazardous substances were released into the environment."
Accordingly, the court will grant Leland's motion to dismiss plaintiffs' CERCLA and RCRA claims based on "operator" liability.
Plaintiffs' third and fourth causes of action are state law claims that, as the court's two prior orders indicated, require plaintiffs to allege facts indicating that Leland owned or operated the facility, or that he created the alleged contamination. Plaintiffs have failed to carry that burden, and as such all state law claims will be dismissed.
Plaintiffs also request declaratory relief, contending that because they have alleged a CERCLA claim, they are entitled to declaratory relief under 42 U.S.C. § 9613(g)(2). In the absence of a valid claim for recovery under CERCLA, declaratory relief is unavailable.
IT IS THEREFORE ORDERED that Leland's Motion to Dismiss Plaintiffs' Second Amended Complaint (Docket No. 37) be, and the same hereby is, GRANTED.
Plaintiffs have twenty days from the date this Order is signed to file a Third Amended Complaint, if they can do so consistent with this Order.
To be liable as an "owner" for CERCLA purposes, the individual must be an
Similarly, plaintiffs' allegations as to piercing the corporate veil are identical to those in the original and first amended complaints, which the court determined were "no more than a recitation of the elements, and `[c]onclusory allegations of `alter ego' status are insufficient to state a claim.'" (Docket No. 18 (quoting