Plaintiff Janki Bai Sahu and several others similarly situated (referred to together as "Sahu") bring this tort suit to recover from injuries allegedly caused by exposure to soil and drinking water polluted by hazardous wastes produced by the Union Carbide India Limited ("UCIL") pesticide plant ("Bhopal plant" or "plant") in Bhopal, India. Sahu seeks monetary damages and an injunction requiring remediation and medical monitoring from the Union Carbide Corporation ("Union Carbide"), which was formerly a majority owner of UCIL, and from Warren Anderson (together with the Union Carbide Corporation, "UCC"), Union Carbide's former CEO. Sahu now appeals from an order of the District Court granting summary judgment to UCC.
UCIL was incorporated in India in 1934. The Bhopal plant was built in 1969 to produce "Sevin," a pesticide patented by Union Carbide, which then owned 60% of UCIL. At that time, the plant functioned only to mix several chemical components produced elsewhere into the final formula for Sevin. In 1973, however, UCIL began a project to "back-integrate" the plant so that it could produce the components of the pesticide itself, in compliance with a mandate by the Government of India to replace imports with local manufacture. In order to raise money for this project, UCIL issued new stock, reducing Union Carbide's ownership stake from 60% to 50.9%.
As part of the production of chemical pesticides, the plant created harmful waste. Solid waste was disposed of in tanks and pits, while waste water was treated and pumped into three solar evaporation ponds lined with low-density black polyethylene sheets to prevent seepage into the ground. Sahu claims that the hazardous waste did, in fact, escape into the ground, contaminating the soil and wells in the surrounding area. Sahu further alleges that, because local residents had no choice but to continue to use the water from these wells, over time they suffered ailments including reproductive and neurological impairments, respiratory tract irritation, skin lesions, headaches, and cancers.
Sahu identifies several actions taken by UCC which, in her view, contributed to the contamination of the local drinking water. As construed by Sahu, the evidence in this case demonstrates that UCC (as opposed to UCIL) did the following: (1) approved UCIL's plan to retrofit the plant in order to manufacture pesticides, knowing full well that the manufacturing of pesticides, if not handled properly, can result in harmful pollution; (2) sold to UCIL the technology for manufacturing pesticides knowing the same; (3) provided UCIL with basic designs for the disposal of waste products knowing full well that the improper implementation of waste disposal designs can result in harmful pollution; and (4) provided guidance and advice to UCIL regarding remediation of the polluted site.
In 1984, a catastrophic gas leak occurred at Bhopal
This case has an extensive procedural history, and several events are salient here. Sahu and her fellow plaintiffs in this case were initially putative members of an earlier class action, styled Bano v. Union Carbide Corporation, which was filed in November of 1999 and also sought damages relating to the operation of the Bhopal plant. That suit was ultimately dismissed on several grounds, including the expiration of the statute of limitations. Sahu and her fellow plaintiffs here, whose claims were not barred by the statute of limitations, filed this action in the Southern District of New York in November of 2004.
On December 1, 2005, the District Court addressed UCC's motion to dismiss and/or for summary judgment. See Sahu v. Union Carbide Corp., 418 F.Supp.2d 407 (S.D.N.Y. 2005) ("Sahu I"). The District Court converted the motion into one for summary judgment, and granted UCC summary judgment on all claims, save for Sahu's claim that UCC could be held liable by piercing the so-called corporate veil. On that claim only, the District Court granted Sahu's motion for a stay in order to conduct additional discovery. After an additional course of discovery directed at the veil-piercing issue, the District Court granted UCC's renewed motion for summary judgment and dismissed the case in its entirety. See Sahu v. Union Carbide Corp., No. 04 Civ. 8825(JFK), 2006 WL 3377577 (S.D.N.Y. Nov. 20, 2006) ("Sahu II").
Sahu then appealed. On November 3, 2008, we vacated the judgment of the District Court on the ground that the District Court did not give Sahu sufficient notice to permit an adequate response before converting UCC's motion into one for summary judgment. See Sahu v. Union Carbide Corp., 548 F.3d 59, 66-70 (2d Cir. 2008) ("Sahu III"). We explained that, although it is "a close case[,] . . . we think there is a reasonable likelihood that, in light of the peculiarly difficult procedural history of this and related litigation, the plaintiffs were not aware that they were in danger of an adverse grant of summary judgment based on the submissions prior to the district court's order converting the motion and then deciding it." Id. at 70. We went on to express our view that "it is appropriate to remand for what would appear to be relatively limited further proceedings in connection with consideration of summary judgment." Id.
Despite this supposition, upon remand, Sahu proceeded, in the words of the District Court, to "embark[ ] on a discovery expedition worthy of Vasco de Gama." Sahu v. Union Carbide Corp., No. 04 Civ. 8825(JFK), 2012 WL 2422757, at *2 (S.D.N.Y. June 26, 2012) ("Sahu IV"). This new discovery period included numerous discovery motions decided either by the District Court or by the assigned magistrate judge, as well as one motion filed by Sahu for Judge Keenan to reassign the case to another district judge. That motion was denied.
Finally, at the close of this extended discovery period, the District Court once again considered UCC's motion for summary judgment. See Sahu IV, 2012 WL 2422757. On June 26, 2012, the District Court granted the motion in its entirety, concluding that Sahu had failed to adduce any evidence from which a reasonable juror could find that UCC was directly involved in the allegedly tortious conduct or should be held liable on any theory of indirect liability, and again dismissed the case. The District Court entered judgment on June 27, 2012. We now consider Sahu's appeal from that judgment.
Sahu makes three broad arguments on appeal: (1) the District Court erred in granting summary judgment to UCC; (2) the District Court erred in denying certain of Sahu's motions for additional discovery; and (3) the District Court erred in declining to reassign the case to a different judge after the cause was remanded. Each argument is addressed in turn.
Sahu first claims that the District Court erred by awarding summary judgment to UCC. "We review de novo a district court's grant of summary judgment after construing all evidence, and drawing all reasonable inferences, in favor of the non-moving party." Sotomayor v. City of New York, 713 F.3d 163, 164 (2d Cir. 2013). Summary judgment is appropriate only when "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). Sahu argues that the District Court improperly granted summary judgment on her theories of both direct and indirect liability.
Sahu contends that UCC may be held directly liable for the nuisance
New York
Sahu appears to focus on public nuisance,
We conclude, substantially for the reasons set out at length in the District Court's clear and thorough Opinion and Order of June 26, 2012, that under either public or private nuisance no reasonable juror could find that UCC participated in the creation of the contaminated drinking water. See Sahu IV, 2012 WL 2422757, at *5-16. Neither UCC's approval of the plan to "back-integrate" the plant, nor its transfer of technology for pesticide manufacture, nor its designs for a waste disposal system, nor its limited involvement in remediation amount to participation in the failure of the evaporation ponds to contain the hazardous waste.
We note in particular that it is clear from the undisputed facts that UCIL, and not UCC, designed and built the actual waste disposal system and Sahu points to nothing in the record (or even in the Complaint) that suggests that the mere idea to use evaporation ponds as a means to dispose of wastewater was a cause of the hazardous conditions. See Joint App'x 30 (alleging that UCC was aware that toxic waste was leaching into the soil and groundwater because the lining of the solar evaporations ponds had developed leaks). In short, no reasonable juror could find that the actions taken by UCC legally caused or otherwise indicated UCC's participation in the creation of the nuisance.
Sahu also sets forth several theories for holding UCC liable for the negligence of or nuisance created by its subsidiary: "concerted action," "agency liability," and "piercing of the corporate veil." The District Court rejected each claim, concluding (1) that Sahu had adduced no evidence that UCC committed a tort, as required for "concerted action"; (2) that there was nothing in the record to show that UCIL manufactured pesticides on UCC's behalf, or that UCC maintained control over UCIL's operations, as required for "agency liability"; and (3) that Sahu had failed to adduce evidence that UCC exercised complete domination over UCIL with respect to the transaction at issue and that such domination was used to commit a fraud or wrong, as required to "pierce the corporate veil." See Sahu IV, 2012 WL 2422757, at *16-21.
We find no error in the District Court's legal conclusions and, based upon an independent review of the record, conclude that no reasonable juror could find for Sahu on any of these theories. Accordingly, we affirm the order of the District Court granting summary judgment to UCC.
Sahu next claims that the District Court erred in denying several motions for additional discovery pursuant to Federal Rule of Civil Procedure 56(d).
The only discovery decision that Sahu specifically challenges is the District Court's refusal to permit certain Rule 30(b)(6)
Id.
Sahu now contends that it was improper for the District Court to deny these depositions, relying on In re Dana Corp., 574 F.3d 129, 149-50 (2d Cir. 2009), for the proposition that documents are not a permissible alternative to depositions. See Sahu Br. 36. While it is true that we indicated in that case that "[n]o one type of discovery is necessarily an adequate substitute for another," In re Dana Corp., 574 F.3d at 150 (emphasis supplied), we also explained that "[a] court plainly has discretion to reject a request for discovery if the evidence sought would be cumulative or if the request is based only on speculation as to what potentially could be discovered, . . . and a bare assertion that the evidence supporting plaintiff's allegations is in the hands of the moving party is insufficient to justify the denial of summary judgment," id. at 148-49 (internal quotation marks and citation omitted). Sahu has not explained why the depositions would not be cumulative, why the request was not purely speculative, or why, in light of the extensive discovery permitted in this case, she was not afforded a reasonable opportunity to elicit information from UCC. See id. at 149.
Sahu also generally objects to the rest of the District Court's discovery rulings on the ground that the District Court "denied documents central to the issues it decided against plaintiffs." Sahu Br. 38. However, Sahu offers no support for the rather illogical notion that the denial of a discovery motion entitles the movant to go to trial on any related claim. The question is not whether Sahu would like more discovery, but rather, whether the District Court abused its discretion in denying her request. See Rajaratnam, 622 F.3d at 180; In re Dana Corp., 574 F.3d at 148-49. Sahu has made no such showing.
Finally, Sahu contends that the District Court should have granted her motion to reassign the case to another judge. As the District Court noted, "a motion for reassignment is generally addressed to the appellate court, which may reassign a case to another district judge on remand." Special App'x 39. Sahu identifies no authority which would permit a district court to grant such a motion to reassign, and we therefore find no error in the District Court's denial of Sahu's motion. Even if Sahu had filed a motion for recusal, "which we review for abuse of discretion," ISC Holding AG v. Nobel Biocare Fin. AG, 688 F.3d 98, 107 (2d Cir. 2012), we would have no reason to think that "an objective, disinterested observer fully informed of the underlying facts, would entertain significant doubt that justice would be done absent recusal," id. (internal quotation marks and brackets omitted). In sum, we identify no error, let alone an abuse of discretion, in the District Court's denial of the "motion for reassignment."
Sahu and many others living near the Bhopal plant may well have suffered terrible and lasting injuries from a wholly preventable disaster for which someone is responsible. After nine years of contentious litigation and discovery, however, all that the evidence in this case demonstrates is that UCC is not that entity. Accordingly, and for the reasons set out above, we
Fed. R. Civ. P. 56(d). Sahu actually brought her motions for additional discovery in the District Court pursuant to what was then Rule 56(f). However, in 2010, after the District Court decided those motions, Rule 56 was amended such that "[s]ubdivison (d) carries forward without substantial change the provisions of former subdivision (f)." Fed. R. Civ. P. 56, advisory committee's note (2010 amends.).