ILNews

Justices: City can proceed with ELA claim

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Supreme Court held that the city of South Bend's claim under the Environmental Legal Action statute can continue because the statute of limitations hadn't run out. The high court did reverse summary judgment in favor of the city in its torts claims against a company because the statute of limitations bars the common law claims for environmental damage.

The Supreme Court issued a 32-page, unanimous decision Thursday in Cooper Industries, et al. v. City of South Bend, et al., No. 49S04-0711-CV-541. At issue was whether Cooper could be held liable for South Bend's claims of negligence, private nuisance, trespass, public nuisance, and an environmental legal action under Indiana Code Section 13-30-9-2 after discovering land it purchased that housed Studebaker manufacturing sites was contaminated. It discovered the contamination in the late 1980s. Through a series of acquisitions and mergers, Cooper Industries obtained the assets of Studebaker.

The city filed suit in March 2003. The trial court granted summary judgment in favor of South Bend on the issue of successorship, the city's common law claims, and that the ELA claim was timely because the city filed it less than six years after the ELA statute became effective. The Indiana Court of Appeals reversed, holding the 6-year statute of limitations barred all the claims.

The high court reversed the grant of summary judgment in favor of South Bend's common law claims, ruling the claims accrued more than six years before they were filed.

But South Bend can proceed with its ELA claim because it can be a plaintiff under the ELA and the addition of the ELA to current code created a new action, wrote Chief Justice Randall T. Shepard. Since a new action was created, no cause of action could have existed before its effective date. South Bend's claims under the ELA couldn't have been brought before the action was added on Feb. 28, 1998. Adopting the six-year statute of limitations for this case, South Bend fell within the limits by filing its action March 19, 2003.

The Supreme Court also affirmed Cooper holds the corporate liability for surviving claims as a result of Studebaker's actions. There is sufficient evidence to support the 1967 transaction between Studebaker and Worthington, to form Studebaker-Worthington, constituted a de facto merger such that Cooper may be held to answer South Bend's claims, wrote Chief Justice Shepard. The trial court was also correct to find the 1967 transaction was a mere continuation of the earlier corporate forms.

Even though Cooper argues Delaware law should control because all of the acquiring entities were Delaware corporations, the Supreme Court ruled Indiana law applies because the claim is about property damage which happened in Indiana. The law of the place of the wrong occurred governs, wrote the chief justice.

The Supreme Court remanded for further proceedings on the merits of the city's ELA claim.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

ADVERTISEMENT