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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I can understand a 10 yr suspension for drinking and driving and not following the rules,but don't you think the people who compleate their sentences and are trying to be good people of their community,and are on the right path should be able to obtain a drivers license to do as they please.We as a state should encourage good behavior instead of saying well you did all your time but we can't give you a license come on.When is a persons time served than cause from where I'm standing,its still a punishment,when u can't have the freedom to go where ever you want to in car,truck ,motorcycle,maybe their should be better programs for people instead of just throwing them away like daily trash,then expecting them to change because they we in jail or prison for x amount of yrs.Everyone should look around because we all pay each others bills,and keep each other in business..better knowledge equals better community equals better people...just my 2 cents

  2. I was wondering about the 6 million put aside for common attorney fees?does that mean that if you are a plaintiff your attorney fees will be partially covered?

  3. I expressed my thought in the title, long as it was. I am shocked that there is ever immunity from accountability for ANY Government agency. That appears to violate every principle in the US Constitution, which exists to limit Government power and to ensure Government accountability. I don't know how many cases of legitimate child abuse exist, but in the few cases in which I knew the people involved, in every example an anonymous caller used DCS as their personal weapon to strike at innocent people over trivial disagreements that had no connection with any facts. Given that the system is vulnerable to abuse, and given the extreme harm any action by DCS causes to families, I would assume any degree of failure to comply with the smallest infraction of personal rights would result in mandatory review. Even one day of parent-child separation in the absence of reasonable cause for a felony arrest should result in severe penalties to those involved in the action. It appears to me, that like all bureaucracies, DCS is prone to interpret every case as legitimate. This is not an accusation against DCS. It is a statement about the nature of bureaucracies, and the need for ADDED scrutiny of all bureaucratic actions. Frankly, I question the constitutionality of bureaucracies in general, because their power is delegated, and therefore unaccountable. No Government action can be unaccountable if we want to avoid its eventual degeneration into irrelevance and lawlessness, and the law of the jungle. Our Constitution is the source of all Government power, and it is the contract that legitimizes all Government power. To the extent that its various protections against intrusion are set aside, so is the power afforded by that contract. Eventually overstepping the limits of power eliminates that power, as a law of nature. Even total tyranny eventually crumbles to nothing.

  4. Being dedicated to a genre keeps it alive until the masses catch up to the "trend." Kent and Bill are keepin' it LIVE!! Thank you gentlemen..you know your JAZZ.

  5. Hemp has very little THC which is needed to kill cancer cells! Growing cannabis plants for THC inside a hemp field will not work...where is the fear? From not really knowing about Cannabis and Hemp or just not listening to the people teaching you through testimonies and packets of info over the last few years! Wake up Hoosier law makers!

ADVERTISEMENT