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NL Industries V NJ Dept of Envtl Protection, 936 A2d 469 (NJ Sup CT 2007)
NL Industries V NJ Dept of Envtl Protection, 936 A2d 469 (NJ Sup CT 2007)
2d 469 Page 2
397 N.J.Super. 127, 936 A.2d 469
(Cite as: 397 N.J.Super. 127, 936 A.2d 469)
**471 Within that opinion we set forth the history of contends in response that it is entitled nonetheless
this site and the disputes that have arisen between the to relief under the Declaratory Judgment Act,
parties in connection with the efforts at remediation N.J.S.A. 2A:16-50 to -62. N.J.S.A. 2A:16-53 de-
and SERA's many attempts to replace NL as the fines “questions determinable and rights declara-
remediating party. There is no need to restate that ble” as follows:
history here; it is not material to the issue before us.
A person interested under a deed, will, written con-
At the conclusion of that opinion, we noted that the tract or other writing constituting a contract, or
Legislature had only recently adopted N.J.S.A. whose rights, status or other legal relations are
58:10B-3.1. We further noted that the trial court had affected by a statute, municipal ordinance, con-
not had the opportunity to consider the effect of that tract or franchise, may have determined any
statute upon the rights and duties of the parties and question of construction or validity arising under
that NL had already filed a declaratory judgment ac- the instrument, statute, ordinance, contract or
tion seeking relief with respect to that statute. We franchise and obtain a declaration of rights,
thus declined to consider the question in connection status or other legal relations thereunder.
with that earlier appeal. The order before us on this
appeal was entered in connection with the declaratory This statute “empowers the courts to declare rights,
judgment action to which we referred and thus the status and other legal relations ‘to afford litigants
question of the effect, if any, of N.J.S.A. 58:10B-3.1 relief from uncertainty and insecurity.’ ” In re
upon these parties and this site is squarely before us. Ass'n of Trial Lawyers, 228 N.J.Super. 180, 183,
549 A.2d 446 (App.Div.), certif. denied,113 N.J.
*131I 660, 552 A.2d 180 (1988) (quoting U.S.A. Cham-
ber of Commerce v. State, 89 N.J. 131, 140, 445
[1] We turn first to the question whether the trial A.2d 353 (1982)). “Its purpose is to end uncertainty
court had jurisdiction to entertain NL's declaratory concerning the legal rights and relations of parties
judgment action. DEP argues that the trial court did before they have suffered ineradicable damage or
not have jurisdiction and thus should not have pro- injury for **472 which only a compensatory or co-
ceeded to rule on the merits of the question. DEP ercive remedy can provide redress.” Ibid.
presented a substantially similar argument in connec-
tion with its earlier appeal. In that appeal we stated: Although our courts have consistently refused to be
drawn into issuing advisory opinions, ibid.;In re
We reject the DEP's argument that the order under Park-Madison Site, 372 N.J.Super. 544, 859 A.2d
review should be reversed because the matter 1232 (App.Div.2004); JUA Funding Corp. v. CNA
should have been commenced in the first instance Insurance Co., 322 N.J.Super. 282, 730 A.2d 907
in this court under R. 2:2-3(a)(2). That rule pro- (App.Div.1999); Binkowski v. State, 322 N.J.Super.
vides in pertinent part that actions “to review final 359, 731 A.2d 64 (App.Div.1999), declaratory re-
decisions or actions of any state administrative lief is nonetheless appropriate “when there is an ac-
agency or officer” shall be brought directly in the tual dispute between parties who have a sufficient
Appellate Division. The DEP has yet to make a stake in the outcome.” *132N.J. Ass'n for Retarded
“final decision” or take a “final action.” Exchange Citizens v. Dept. Human Services, 89 N.J. 234,
of correspondence between SERA and the DEP 241, 445 A.2d 704 (1982); Registrar & Transfer
with regard to the willingness of the DEP to enter a Co. v. Director, Div. of Tax., 166 N.J.Super. 75,
Memorandum of Agreement with SERA does not 78, 398 A.2d 1335 (App.Div.) (noting that plain-
contain the “unmistakable notice of [ ] finality” re- tiff's declaratory judgment action was properly
quired to constitute a final administrative decision. brought to “adjudicat[e] [plaintiff's] rights under
In re CAFRA Permit No. 87-0959-5, 152 N.J. 287, the tax statute where there existed a bona fide con-
299, 704 A.2d 1261 (1997). troversy that had not yet reached the stage at which
either party could have sought a coercive rem-
Indeed, it is that very lack of finality that the DEP edy”), certif. denied,81 N.J. 63, 404 A.2d 1161
utilizes to support the second prong of its argument (1979). The declaratory judgment statute is “reme-
on jurisdiction, that the matter is premature. NL dial legislation entitled to liberal construction and
administration.” N.J. Ass'n, supra, 89 N.J. at 241- disregards the fact that the Superior Court is a unitary
42, 445 A.2d 704. Accordingly, a declaratory court. **473Boardwalk Props., Inc. v. BPHC Acqui-
judgment may issue “when to do so would be just sition, Inc., 253 N.J.Super. 515, 526, 602 A.2d 733
and fair.” Id. at 241, 445 A.2d 704. (App.Div.1991) (“The jurisdiction of the Chancery
Division to adjudicate all controversies brought be-
We find no error in the trial court's determination fore it and render both legal and equitable remedies is
that NL properly framed its action as one seeking co-extensive with that of the Law Division.”). We are
declaratory relief. A dispute had existed between satisfied the trial court properly entertained NL's
the parties for more than three years as to whether complaint.
the DEP and SERA had the right to act to super-
sede NL in its cleanup of this contaminated prop- *133II
erty absent a finding that NL had defaulted in some
manner on its obligations. SERA had estimated its We turn now to the parties' substantive arguments
costs to complete the remediation of this site at with respect to their rights and responsibilities under
nearly three times the amount that NL had esti- this statute. The statute provides in pertinent part as
mated. The DEP, however, had previously indi- follows:
cated that NL's estimate was reasonable when it
accepted NL's self-guarantee for that lesser sum. If a local government unit condemns contaminated
property ... and the property is undergoing a reme-
SERA, of course, was not proposing that it would diation, the local government unit may petition the
pay these sums completely on its own (indeed, its [DEP] ... for authority to perform the remediation
limited budget made that all but impossible) but of the condemned property. The department, upon
would look to NL, as the owner responsible for the a determination that the local government unit has
contamination in the first instance, to make SERA demonstrated sufficient resources to perform the
whole. We are satisfied that NL, faced with the remediation, may replace the person performing
prospect of losing the authority to direct this reme- the remediation ... with the local government unit
diation project and being compelled to pay substan- that has condemned the property, provided that, at
tially more to have someone else complete the task the time the condemnation action is filed, more
without any indication that its work to date has than four years have elapsed since the person per-
been inadequate, had a “sufficient stake” to warrant forming the remediation first entered into an over-
declaratory relief. N.J. Ass'n, supra, 89 N.J. at 241, sight document for the site with the [DEP] and the
445 A.2d 704. person has not begun implementation of a remedial
action workplan for each area of concern on the
We are, moreover, cognizant of the significant pub- property. The department shall not replace the per-
lic interest involved in having this cleanup project son performing the remediation of the condemned
continue on an uninterrupted basis through comple- property unless the local government unit enters
tion. If NL were to wait until a formal removal ac- into an appropriate oversight document with the
tion occurred before it challenged the validity of department to perform the remediation.
such a step, the remediation would be threatened
by delay and uncertainty. In the context of this [N.J.S.A. 58:10B-3.1.]
matter, we are satisfied that NL acted properly
when it invoked the declaratory judgment jurisdic- NL argued to the trial court, and the trial court
tion of the trial court. agreed, that N.J.S.A. 58:10B-3.1 provides no author-
ity for DEP to replace NL as the remediating party
[ NL Indus., supra, Nos. A-5804-04T2 and A-6094- with SERA because the statute limits the DEP's
04T2, 2007 WL 622216 at *3-*5.] power of substitution to sites for which an oversight
document has been executed, and NL was proceeding
[2] In addition, the DEP contends in connection with to clean up the vast majority of this site without hav-
this appeal that the trial court did not have jurisdic- ing entered into an oversight document. NL stressed
tion because such a declaratory judgment action that the cleanup of the site as a whole was proceeding
properly belongs in the Law Division. The argument before the DEP under separate cases under the Indus-
trial Site Recovery Act (“ISRA”), N.J.S.A. 13:1K-6 The statute itself does not contain a definition of the
to -35. The twenty-acre portion of the site generally term “oversight document.” The parties point to the
referred to as the Marsulex tract was being cleaned definition of “oversight document” contained within
up under an administrative consent order as ISRA the administrative code, and the trial court relied
case 89331. The balance of the four-hundred-acre upon that definition in coming to its conclusion. That
tract was being cleaned up under the general supervi- definition provides the following:
sion of the DEP and with its approval as ISRA case
88768, but without NL having entered into a formal “Oversight document” means any document the De-
administrative consent order. partment or a court issues to define the role of a
person participating in the remediation of a con-
On appeal, the DEP contends that the manner in taminated site or area of concern, and may include,
which the trial court construed this statute would without limitation, an administrative order, admin-
permit it to substitute SERA for NL as the remediat- istrative consent order, court order, memorandum
ing party for the twenty-acre Marsulex *134 tract but of understanding, memorandum of agreement, or
not for the balance of the site. This, the DEP asserts, remediation agreement.
greatly weakens the scope of the statute and it urges
that we should construe this statute in a manner that [N.J.A.C. 7:26C-1.3.]
would avoid this result.
*135 The trial court construed this regulation as “ex-
We recognize the principles of statutory construction clusively” limiting an oversight document to admin-
to which the DEP points in support of its argument. istrative consent orders, court orders, memoranda of
We are satisfied, nonetheless, that they are inapplica- understanding, memorandum agreements, or reme-
ble to the present question, and are more properly diation agreements. We are satisfied that the trial
addressed to the Legislature. A court's “overriding court erred in this construction for it overlooks the
goal in interpreting a statute is to determine the Leg- significance of the phrase “without limitation.” By
islature[']s intent.” Brodsky v. Grinnell Haulers, Inc., including that phrase within the definition, the DEP
181 N.J. 102, 109, 853 A.2d 940 (2004). “If it is clearly signaled its intention that an oversight docu-
clear, ‘the sole function of the courts is to enforce ment could include something beyond those specifi-
[the statute] according to its terms.’ ” U.S. Sports- cally listed exemplars. The trial court's interpretation,
men's Alliance Found. v. N.J. Dep't of Envtl. Prot. however, limited an oversight document to those
182 N.J. 461, 469, 867 A.2d 1147 (2005) (quot- items identified within the definition rather than giv-
ing**474 Hubbard ex rel. Hubbard v. Reed, 168 ing effect to the meaning of the phrase, “without
N.J. 387, 392, 774 A.2d 495 (2001)). “When the limitation.”
words of the statute do not provide a clear answer,
then the context of those words in relation to other [3] That we decline to adopt the interpretive frame-
provisions of the statute may reveal their meaning,” work utilized by the trial court does not, however,
and if it is still not clear, the court should look to the lead to a reversal of the trial court's order. SERA ar-
legislative history. Brodsky, supra, 181 N.J. at 110, gued to the trial court, and urges to us, that the term
853 A.2d 940. “oversight document” within N.J.S.A. 58:10B-3.1
should be construed to mean any writing that formal-
[W]hen a statute is subject to more than one plausible izes a party's role in remediating a site. Adopting
reading, our role is to effectuate the legislative in- such a construction would mean that virtually any of
tent in light of the language used and the objects the documents that might be exchanged during the
sought to be achieved. In the end, our interpretation course of remediation could qualify as an “oversight
will not turn on literalisms but on the breadth of the document.” It has not escaped our notice that the
objectives of the legislation and the commonsense DEP did not urge such a position to the trial court and
of the situation. does not make that argument to us now.
[ U.S. Sportsmen's Alliance, supra, 182 N.J. at 469, Rather, we agree with the analysis of NL, that the
867 A.2d 1147 (internal citations omitted).] language of N.J.S.A. 58:10B-3.1, with its reference to
having “entered into an oversight document” indi-
cates a bi-lateral document, executed by the DEP and (3) the expectation of the parties warrant the retroac-
the remediating party. Neither the DEP nor SERA tive application of the statute.
contend that such a document exists for anything
other than the Marsulex portion of the NL site. [ Id. at 385, 609 A.2d 781.]
We do not agree with the DEP and SERA that to con- NL contends that there is no such expression of legis-
strue the statute in this manner would disregard the lative intent; the statute cannot be deemed curative as
legislative intent and lead to anomalous results. The that term is generally understood, Kendall v. Snede-
removal of one remediating party, and the substitu- ker, 219 N.J.Super. 283, 287, 530 A.2d 334
tion of another, may entail significant financial con- (App.Div.1987); and the parties' expectations do not
sequences for the party **475 that is removed in light warrant retroactive application. NL's argument, in our
of the fact that it may remain ultimately responsible judgment, is too restrictive.
for the costs of the cleanup *136 but will have no
ability to control those costs. In view of that poten- *137 Our Supreme Court has recently addressed the
tial, it is only appropriate, in our judgment, that the curative exception to the retroactive application of
Legislature did not grant the DEP the unlimited abil- recently-enacted statutes. 2nd Roc-Jersey Assocs. v.
ity to replace a remediating party with another entity Town of Morristown, 158 N.J. 581, 731 A.2d 1
but, rather, referred to a remediating party operating (1999). In that case, the Court upheld an amendment
under an oversight document. to the statute governing special improvement districts
authorizing exemption of residential properties from
III assessments levied by such districts. In the course of
its opinion, the Court noted that the statute in ques-
[4] The trial court also concluded that N.J.S.A. tion had been adopted in response to a decision of
58:10B-3.1 could not be construed to authorize the this court that had struck down a special improve-
DEP to remove NL as the remediating party because ment district ordinance because it had exempted resi-
in the view of the trial court, to do so would improp- dential properties from such assessments. The Court
erly give retroactive effect to the statute. We do not held that the amendment came within the curative
agree with the trial court's analysis in this regard. exception because “[i]t was enacted in direct re-
sponse to the Appellate Division's [ ] decision....” Id.
[5] The general rule is that “ ‘statutes relating to sub- at 605, 731 A.2d 1. Here, there is no doubt that
stantive rights should be construed prospectively N.J.S.A. 58:10B-3.1 was enacted in direct response to
unless the legislature indicates otherwise.’ ” Schiavo the decision of the trial court, later affirmed by this
v. John F. Kennedy Hosp., 258 N.J.Super. 380, 384, court, that NL could not be removed as a remediating
609 A.2d 781 (App.Div.1992)aff'd o.b.131 N.J. 400, party absent some failure on its part to fulfill its obli-
620 A.2d 1050 (1993) (quoting Brown v. State Dep't gations. Under the Court's analysis in 2nd Roc-
of Personnel & City of Atlantic City, 257 N.J.Super. Jersey, we deem the statute curative.
84, 88, 607 A.2d 1354 (App.Div.1992) (statute in-
creasing from $10,000 to $250,000 the liability ceil- Further, courts generally address questions of retroac-
ing for a hospital did not apply to claims accruing tivity in the context of “transactions and events com-
prior to the statute's effective date)). pleted prior to [the statute's] enactment.” Schiavo,
supra, 258 N.J.Super. at 385, 609 A.2d 781 (quoting
[6] Generally, a statute may be given retroactive ef- 1A Norman J. Singer, Sutherland on Statutes and
fect in three circumstances: Statutory Construction**476 § 22.36 at 300-01 (4th
ed. 1986)). Here, we are not dealing with completed
(1) the legislature has expressed, either explicitly or transactions and events but, rather, with an on-going
implicitly, its intent that the statute apply retroac- process.
tively;
Additionally, to adopt NL's position would mean that
(2) the statute is curative; or four years would have to pass before the DEP could
exercise the power conferred upon it under this stat-
ute. Such a construction would not further the legisla-
N.J.Super.A.D.,2007.
NL Industries, Inc. v. New Jersey Dept. of Environ-
mental Protection
397 N.J.Super. 127, 936 A.2d 469
END OF DOCUMENT