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Croda Litigation NCC
Croda Litigation NCC
DAVIS
COUNTY EXECUTIVE COUNTY ATTORNEY
87 READS WAY
NEW CASTLE, DE 19720
(302) 395-5130
nccde.org
OFFICE OF LAW
MEMORANDUM
TO: Attached Distribution List
ATTACHMENTS: Complaint
Please be advised that on August 17, 2020, Croda, Inc. filed a Verified Complaint for
declaratory and injunctive relief. A copy of the Complaint is attached to this Memorandum. The
litigation relates to the adoption of a zoning ordinance, O19-046, regarding landfills and the HI
(heavy industrial) zoning district by New Castle County. Additional facts pertaining to this action
can be found in the Complaint, attached hereto.
Federal and state laws and rules define obligations to preserve documents, electronic
information, and other materials when a party is involved in or reasonably foresees, as in the instant
matter, that it may become involved in litigation. In this regard, this Memorandum is to remind
you that you should retain, preserve and not destroy any and all documents, information and any
other evidence concerning the person/claims discussed above. For these purposes, documents and
other information includes, but is not limited to, hard copies, handwritten notes, e-mails, text
messages, computer files, correspondence, photographs, audio files, videotapes, voicemails, word
processing documents, power point presentations, spreadsheets, databases, calendars, telephone
logs, internet usage files and all other electronically-stored information maintained, created,
received and/or maintained on computer systems. Sources of the documents and other information
include, but are not limited to, all hard copy files, computer hard drives, removable media (e.g.,
CDs, DVDs and flash drives), social media computers, tablets, smartphones, iPods, zip drives,
offsite storage and any other locations where hard copy and electronic data are stored. The above-
mentioned sources of relevant information may include personal computers you or your employees
have access to at home or other locations. It also includes inaccessible storage media such as back-
up tapes which may contain relevant electronic information that does not exist in any other form.
You are required to search all files, documents, and any other information in your
possession where relevant information relating to the person/claims discussed above, including
any electronic files that may have been “deleted,” sent to storage or to other record custodians may
be contained. You also are required to segregate and preserve such documents. The obligations
under this litigation hold are continuing and apply equally to information created after, as well as
before, this Memorandum was delivered.
Please continue to follow the steps listed below to preserve all relevant materials relating
to the person/claims discussed above until this matter has been concluded and you are advised by
the Office of Law to lift the hold:
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8. Defer any significant hardware/software upgrade, repair or replacement that
might impact the identification and preservation of electronically-stored
information relating to this matter. Any significant upgrade, replacement,
or disposal of hardware or software should be discussed with the Office of
Law beforehand.
10. Notify Mary A. Jacobson, at (302) 395-5130, or via County e-mail, if you
have any information or electronic data that may be relevant to the above
person/claims or are aware of others who should be included on the below
distribution list.
If you have any doubt about whether a particular document or file is relevant or should be
maintained, you should err on the side of retention. You should not make a decision to destroy,
otherwise dispose of, or alter a potentially-relevant document on your own.
Jon Yearly may contact you to confirm that your computer files will continue to be
collected and stored properly. You periodically will receive friendly reminders to preserve this
information. In the meantime, if you have any questions concerning this Memorandum, please
contact Mary A. Jacobson, at (302) 395-5130, or via County e-mail.
All communications with and through the Office of Law, its attorneys and outside counsel,
including this Memorandum, are privileged and confidential. Please do not discuss these matters
with anyone outside of the Office of Law or those you must inform so as to ensure that no
potentially-responsive documents are destroyed, discarded, or altered.
Please note that all departing County officers, employees or agents in receipt of this
Memorandum are under an obligation to inform the Office of Law about any impending departure
from the County or cessation of business with the County. You must contact Mary A. Jacobson,
at (302) 395-5130, or via County e-mail, when you learn of your departure so that we can arrange
for preservation of your electronic data and collection of all relevant other information related to
this claim.
This Memorandum is being sent to you via e-mail or U.S. mail. To that end, please
acknowledge your receipt, review, and understanding of this policy by signing your name at the
bottom and forwarding it back to the Office of Law, at your earliest convenience.
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Nicholas J. Brannick, Assistant County Attorney
Mengting Chen, Assistant County Attorney
Matthew Meyer, County Executive
Richard Hall, General Manager, Land Use
The Honorable Kenneth Woods, District 1
The Honorable Dee Durham, District 2
The Honorable Janet Kilpatrick, District 3
The Honorable Penrose Hollins, District 4
The Honorable Lisa Diller, District 5
The Honorable David Carter, District 6
The Honorable George Smiley, District 7
The Honorable John Cartier, District 8
The Honorable Timothy Sheldon, District 9
The Honorable Jea Street, District 10
The Honorable David Tackett, District 11
The Honorable James W. Bell, District 12
The Honorable Karen Hartley-Nagle, President of Council
Michael Migliore, Counsel to County Council
Nellie Hill, Clerk of County Council
Jon Yearly, Manager, IS Department
Stephanie Tickle, Insurance and Loss Control Manager
Audrey Hope-Milton, Central Services Technician
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EFiled: Aug 17 2020 05:20PM EDT
Transaction ID 65854912
Case No. 2020-0677-
IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
CRODA INC.
v.
VERIFIED COMPLAINT
Plaintiff Croda Inc. (“Croda”) by and through its undersigned attorneys,
brings this action against New Castle County (“Defendant”), and in support alleges
as follows:
NATURE OF ACTION
1. This lawsuit arises out of a New Castle County’s adoption of a mis-
imposed by Delaware law and failed to put affected property owners on notice that
with respect to Ordinance 19-046 (the “Ordinance,” copy attached as Exhibit A),
all “heavy industry” uses in the County’s “HI” zone – which had been permitted by
right – are now required to obtain a “special use permit,” which is a discretionary
permit. As result, all heavy industrial property owners will now need to seek this
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2. New Castle County’s adoption of the Ordinance was invalid because:
(1) the defective title violated Delaware and New Castle County’s single subject
rule; (2) notice of the Ordinance did not comply with Delaware’s and New Castle
County’s notice requirement; (3) the resulting hearing did not provide Croda with a
Ordinance was arbitrary and capricious. Croda seeks declaratory and injunctive
THE PARTIES
principal place of business at 300-A Columbus Circle, Edison, New Jersey, 08837.
It is the sole owner and operator of the Atlas Point facility located at 315 Cherry
JURISDICTION
5. This Court has jurisdiction over this action pursuant to 10 Del. C. §
341 and § 342, which empowers this Court “to hear and determine all matters and
causes in equity.” This action primarily seeks equitable relief and Plaintiff has no
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adequate remedy at law. This Court has concurrent jurisdiction over Croda’s
FACTS
6. Croda owns and operates a chemical manufacturing facility in New
became the first facility in the nation to manufacture ethylene oxide using biofuels
instead of petroleum products. The Atlas Point facility has been in operation at its
current location since at least 1937. Croda purchased the facility in 2006. The
Atlas Point facility is located on land that has been zoned “HI” (Heavy Industrial)
throughout the time Croda has owned and operated the facility.
capital expenditures of at least $20 million to modernize, improve and expand its
existing production capacity at the Atlas Point site, with all such plans and designs
and carbon footprint. Among other benefits, the project will reduce Croda’s
current project, reduce air emissions. All such plans would have constituted a
conforming use in a district zoned for heavy industrial use prior to the passage of
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Ordinance 19-046 and would have been permitted “by right;” but now Croda’s
requirements and the discretionary standards for the grant of such permits.
introduced proposed Ordinance No. 19-046 (attached hereto as Exhibit A). The
proposed Ordinance was titled “To Amend New Castle County Code Chapter 40
9. Thus, the title to the Ordinance indicated that it would make changes
to the County Code “regarding landfills.” Those who did not own or operate
landfills would conclude, incorrectly as it turns out, that the Ordinance would not
affect them.
specifically relate to landfills. Section 1 limits the height of a landfill to 140 feet.
Previously, there was no height limitation. Section 3 adds “landfill” to the list of
11. Section 2, however, affects every property zoned HI, whether such
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12. Specifically, Section 2 of the Ordinance 19-046 table 40.03.110B
regarding heavy industry. By striking the “Y” in the table for heavy industry in the
HI zone, meaning that heavy industry uses were permitted, and replacing the “Y”
with an “S,” the Ordinance now requires all heavy industry uses to obtain a
13. Put another way, prior to the adoption of the Ordinance, heavy
industry uses were permitted “by right,” meaning that no discretionary approvals
were required from the County and a property owner could make use of its “HI”
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zoned property for heavy industry uses so long as the user complied with the
14. Except for the change in Section 2 of the Ordinance (which was not
part of any advertisement regarding the Ordinance), nothing else in the Ordinance
indicates that a new Special Use Permit requirement was being imposed on all
15. For example, the synopsis to the Ordinance does not mention the
Ordinance’s impact on Heavy Industry uses. Rather, the Synopsis summarizes the
new height limits for solid waste landfills, and says that the Ordinance “clarifies
not comply with New Castle County Council Rule 2.2.6 requiring that “[t]he
synopsis shall summarize the matter addressed and include the title” as well as any
Rules (excerpts).
1
Of course, a property owner intending to use his or her property for a heavy
industrial use would also need to comply with state and federal environmental
laws, and may need to obtain air permits and other permits from state and federal
agencies. The County Code only deals with whether a use itself is permitted on a
property; a property owner must always comply with all applicable environmental
laws.
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17. Delaware law and the New Castle County Council Rules require
ordinances to be limited to a single subject, and further require that the title be
descriptive of the purpose of the ordinance. The title of the ordinance must be
18. On information and belief, the title of Ordinance No. 19-046 was
information regarding the various public hearings on the Ordinance. In all such
notices, the title of the Ordinance included the phrase “regarding landfills.”
19. On August 7, 2019, the New Castle County Department of Land Use
held a public hearing on the Ordinance. At the hearing, a representative from the
Department of Land Use introduced the proposed ordinance, and explained that the
general around the site of the landfill.” See Exhibit B, Planning Board Aug. 6,
20. Also at the hearing, Michael Migliore, Counsel to the New Castle
County Council, testified that “the intent of this ordinance is to address currently
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21. No one at the Planning Board hearing discussed or mentioned the fact
that the new Special Use Permit requirement would apply to all heavy industrial
uses.
August 7, 2019; but, in doing so, the Board did not articulate as to any reasons why
imposition of a Special Use Permit requirement for all HI uses was necessary or
made sense or was otherwise related to the promotion of public health, safety, or
welfare.
23. On August 27, 2019, New Castle County Council held a public
hearing on the Ordinance. During the course of the hearing, there was no
discussion of the fact that the Ordinance would require a special use permit for
every heavy industry use and that this was a change from the current code.
24. Because the Ordinance’s title did not indicate that it would affect any
uses other than landfills, the County’s adoption of Section 2 of the Ordinance did
not comply with procedures required by Delaware law, the New Castle County
No. 19-046 is invalid, and this Court should enjoin its enforcement.2 The
2
Although the Ordinance itself does not contain a severability clause, there is no
reason why the Court cannot sever Section 2 from the Ordinance and leave
Sections 1 and 3, which do relate only to landfills, in place.
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25. Delaware Code Title 9, Section 1152 codifies this requirement, stating
that “[n]o ordinance, except those relating to the budget or appropriation of funds
and those relating to the adoption or revision of the County Code shall contain
more than 1 subject which shall be clearly expressed in its title.” 9 Del.C.
26. New Castle County Council Rule 2.2.1 further requires that the title of
an ordinance “shall clearly express the matter addressed in the legislation for
27. Ordinance No. 19-046 does not comply with the titling rules. The
Ordinance is titled “[T]o Amend New Castle County Code Chapter 40 (“Unified
Regarding Landfills.” The title of Ordinance No. 19-046 indicates that it concerns
only landfills, yet the substance of the Ordinance affects all heavy industry uses.
Given the broad impact of the Ordinance, and the limited nature of the title of the
Ordinance, the title certainly does not provide “maximum public notice” as
expansion, modernization and upgrade of its Atlas Point facility. Before the
and applies, Croda is required to secure a Special Use permit before conducting
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any new heavy industrial activities on its property or expanding existing uses, thus
Lack of Notice
29. Although the County published notice of the Ordinance prior to public
hearings on the Ordinance, the title to the Ordinance was misleading (at best) and
failed to put owners of “HI” zoned property on notice that the Ordinance would
affect their property rights. As a result, Croda did not participate in the public
process concerning the Ordinance, as Croda had no notice that the Ordinance
30. A reasonable person who read the title of Ordinance No. 19-046
would not have understood that the Ordinance impacted allowable uses in areas
zoned for Heavy Industry use. As a result, a person interested in changes to Heavy
the Ordinance could impact their use and enjoyment of land zoned Heavy Industry
or that they should seek to have their concerns heard at the public Council meeting.
31. The publication of the title of Ordinance No. 19-046 did not satisfy
the notice requirements for land use ordinances in New Castle County.
32. Since Ordinance No. 19-046 did not provide adequate inquiry notice
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was not triggered. To hold otherwise would penalize property owners who rely
upon the titles of ordinances and would, essentially, eviscerate the public notice
requirements.
33. Croda received actual notice of Ordinance No. 19-046 on June 17,
2020.
34. The New Castle County Council’s decision to enact Ordinance No.
19-046 was arbitrary and capricious, because the Council members did not
No. 19-046.
creates a record or states on the record its reasons for a zoning change, a court is
belief, the New Castle County Council did not state on the record its reasons for
Ordinance. On information and belief, the Council also failed to consider any
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36. The Council’s failure to consider any material evidence before voting
on Section 2 of the Ordinance, and its failure to state on the record any reasons for
COUNT I
(Permanent Injunction)
37. Plaintiff repeats and realleges all the allegations set forth above as if
Code. Similar requirements are also provided for in the New Castle County
Council Rules.
39. Delaware law requires that the title adequately describe the subject of
the ordinance. The title of Ordinance No. 19-046 does not adequately describe its
40. Pursuant to Delaware law, the Council must provide notice and a
No. 19-046 without proper notice, and the failure to articulate any rational relation
to the public health, welfare, or safety with respect to any uses other than landfills
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42. For these reasons, the Council’s adoption of Section 2 of Ordinance
No. 19-046 did not comply with Delaware law or New Castle County rules. As a
result, the Council’s action in adopting Section 2 of Ordinance No. 19-046 should
be enjoined, and the Court should enter an injunction barring the enforcement of
43. Plaintiff will suffer irreparable harm if the Court does not grant it the
injunctive relief requested. Absent injunctive relief, the Ordinance will stand and
further development on Croda’s Atlas Point site will be halted, impeded or delayed
unless it satisfies highly discretionary criteria for obtaining a Special Use Permit.
The accompanying detrimental effects will irreparably damage Croda’s use and
enjoyment of its property. The requirements will also impede other owners of
“HI” zoned property and may cause New Castle County to lose millions of dollars
harm that would befall the Defendant. Defendant New Castle County will suffer
no harm other than reverting to its previous zoning regulation that existed before
Section 2 of Ordinance No. 19-046 was adopted, and Plaintiff will remain
responsible for complying with all other applicable federal, state and local
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environmental, health and safety requirements, on its Atlas Point site.
Ordinance should be enjoined, and this Court should declare that Section 2 of the
Ordinance is void.
COUNT II
(Declaratory Judgment)
46. Plaintiff repeats and realleges all the allegations set forth above as if
47. This Court may declare the legal rights and responsibilities of parties
48. For the reasons stated above, Defendant New Castle County has not
statute, or the New County Council Code by approving Section 2 of Ordinance No.
grounds of (1) improper and misleading public notice, (2) lack of any review of
material evidence or articulable reason for why Section 2 of the Ordinance is in the
interest of the public health, safety, or welfare with respect to uses other than
landfills.
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49. For the reasons stated above, Plaintiff respectfully requests that the
Court enter a declaratory judgment determining that New Castle County’s approval
of the Ordinance was arbitrary, capricious and illegal and should declare Council’s
COUNT III
Procedural Due Process Claim Under § 1983
50. Plaintiff repeats and realleges all the allegations set forth above as if
51. The New Castle County Council was acting under color of state law
when it enacted Ordinance No. 19-046. The New Castle County Council is a
subdivision of the State of Delaware, and was acting pursuant to delegated state
52. The New Castle County Council’s passage of Ordinance No. 19-046
Croda’s use and enjoyment of its property without proper notice or an opportunity
to be heard.
53. Croda has a vested property right in the use and enjoyment of its Atlas
Point facility, including the ability to conduct heavy industrial uses on the land
zoned as “Heavy Industry.” Croda’s property right has been vested at least since it
purchased the Atlas Point facility in 2006, when it relied in good faith on the New
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Castle County Council’s designation of the site as a “heavy industry” zone. Croda
that it would be able to use the property for industrial purposes without the need
for additional zoning approvals. Ordinance No. 19-046 has made substantial
changes to how Croda may use its property, and prevents Croda from expanding its
55. Croda had protected property interests and was therefore entitled to
adopted Ordinance No. 19-046 without giving Croda prior notice or a hearing. As
a result, Croda has been denied its procedural due process rights, and Defendant is
57. In at least one previous Delaware case, the Superior Court has held
that the County violated a property owner’s procedural due process rights when the
change in the applicable zoning laws. See, e.g., Bohemia Mill Pond v. New Castle
County Planning Board, 2001 WL 1221685 (Del.Super.) (copy attached as Ex. D).
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COUNT IV
Substantive Due Process Claim Under § 1983
58. Plaintiff repeats and realleges all the allegations set forth above as if
59. The New Castle County Council was acting under color of state law
when it enacted Ordinance No. 19-046. The New Castle County Council is a
subdivision of the State of Delaware, and was acting pursuant to delegated state
60. The New Castle County Council’s passage of Ordinance No. 19-046
laws of the United States. Specifically, Croda suffered substantive due process
violations of its property interests, which are protected by the United States
constitution.
61. Croda has a vested property right in the use and enjoyment of its Atlas
Point facility, including the ability to conduct heavy industry uses on the land
arbitrarily abused its power in passing Ordinance No. 19-046. The Council’s
decision to pass the Ordinance was arbitrary, capricious, irrational, and not
supported by adequate evidence. As a result, Croda has been denied its substantive
due process rights, and Defendant is liable to Croda under 42 U.S.C. § 1983.
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PRAYER FOR RELIEF
and grant it relief against Defendant New Castle County Council as follows:
(a) Enter a permanent injunction (a) enjoining the Defendant from relying
upon or in any way taking action based upon Section 2 of the Ordinance as it
pertains to Croda’s Atlas Point property; and (b) mandating that Defendant New
Castle County rescind and vacate its approval of Section 2 of the Ordinance, and
(b) Enter a declaratory judgment that the New Castle County’s approval
(c) Award Croda its costs and attorneys’ fees in bringing this action, and
(d) An order granting such other and further relief in the Plaintiff’s favor
Respectfully submitted,
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EFiled: Aug 17 2020 05:20PM EDT
Transaction ID 65854912
Case No. 2020-0677-
EFiled: Aug 17 2020 05:20PM EDT
Transaction ID 65854912
Case No. 2020-0677-