New Jersey Dep’t of Envtl. Prot. v. Dimant

The issue before the Supreme Court in this case concerned the nature of the nexus that must be proven by the New Jersey Department of Environmental Protection (DEP) under the Spill Compensation and Control Act (Spill Act or Act) against Sue’s Clothes Hanger (Sue’s), the only direct defendant that remained in the case, for costs expended in the investigation and remediation of contaminated groundwater that tainted private wells in Bound Brook. The trial court dismissed the Spill Act claim, concluding that even if the building where Sue’s was located is a contamination source, the evidence was insufficient to establish that Sue’s discharged PCE that contaminated the groundwater. The court found: the groundwater and soil contamination preceded Sue’s dry cleaning operation; there was no evidence that the drip from Sue’s continued or the pavement below showed signs of contamination; the DEP took no other action regarding the drip, suggesting it was not considered to be significant; there is no evidence that PCE in the groundwater or soil came from Sue’s rather than from others who had conducted dry cleaning operations in the building; and because there are alternative sources of contamination from the building and Zaccardi’s, the DEP had not established by a preponderance of the evidence that Sue’s contributed to the groundwater contamination. Upon review of the matter, the Supreme Court affirmed the Appellate Division in holding that in order to obtain damages under the Spill Act, the DEP must demonstrate, by a preponderance of the evidence, a reasonable connection between the discharge, the discharger, and the contamination at the damaged site. The proofs failed to establish a sufficient nexus between the groundwater contamination and Sue’s discharge during its operation. View "New Jersey Dep't of Envtl. Prot. v. Dimant" on Justia Law