CTS Corp. v. Waldburger

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The Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. 960, contains a provision (section 9658) that preempts statutes of limitations applicable to state-law actions for personal injury or property damage arising from the release of a hazardous substance, pollutant, or contaminant into the environment. Section 9658 adopts the discovery rule, so that statutes of limitations begin to run when a plaintiff discovers, or reasonably should have discovered, that the harm was caused by the contaminant because person who is exposed to a toxic contaminant may not develop or show signs of resulting injury for many years. CTS sold property on which it had stored chemicals as part its operations as an electronics plant; 24 years later, owners of parts of that property and adjacent landowners, sued, alleging damages from the stored contaminants. CTS moved to dismiss, citing a state statute of repose that prevented subjecting a defendant to a tort suit brought more than 10 years after the defendant’s last culpable act. Because CTS’s last act occurred when it sold the property, the district court granted the motion. The Fourth Circuit reversed, holding that the statute’s remedial purpose favored preemption. The Supreme Court reversed in part, concluding that section 9658 does not pre-empt state statutes of repose. Statutes of limitations promote justice by encouraging plaintiffs to pursue claims diligently and begin to run when a claim accrues. Statutes of repose effect a legislative judgment that a defendant should be free from liability after a legislatively determined amount of time and are measured from the date of the defendant’s last culpable actor omission. Under the language of the statute, pre-emption is characterized as an exception to the regular rule that the “the statute of limitations established under State law” applies; it is proper to conclude that Congress did not intend to preempt statutes of repose. View "CTS Corp. v. Waldburger" on Justia Law