06.06.14

Publication,

Mindy DeYoung Quoted in BNA Toxics Law Reporter Article

PRACTICE GROUPS

Mindy DeYoung was quoted in Bloomberg BNA Toxics Law Reporter about a Seventh Circuit trial court refusal to follow a recent Ninth Circuit Superfund decision.  In Chubb Custom Ins. Co. v. Space Sys./Loral, Inc., 710 F.3d 946 (9th Cir. 2013), the Ninth Circuit barred Chubb’s subrogation claim made under CERCLA’s cost recovery provision, Section 107, because the insurer did not, itself, become statutorily liable for response costs by just reimbursing its policyholder for their costs.  See Riddell Williams Newsletter explaining the Chubb decision.

The Seventh Circuit trial court in Blue Tee Corp. v. XTRA Intermodal, Inc., 2014 BL 138737, S.D. Ill., No. 13-0830-DRH, 5/19/14, declined to follow Chubb and allowed the claim to proceed, noting that the Seventh Circuit had yet to address the issue.  DeYoung explained that “It’s too soon to tell whether the trend is to diverge from the Ninth Circuit approach.”  She pointed to another Seventh Circuit trial court that had ruled in line with Chubb.  See Appleton Papers Inc. v. George A. Whiting Paper Co., 955 F. Supp.2d 947 (E.D. Wis. 2013).

“Given the competing decisions in Blue Tee and Appleton, the Seventh Circuit may eventually take up the issue, which could pave the way for a circuit split, or, a majority rule,” DeYoung said.  “It will take some time before the dust will settle among circuits on this issue.  We’re even further away from seeing a circuit split-type grant of cert. by the Supreme Court.”  DeYoung was previously quoted by Law 360 (subscription required), when the U.S. Supreme Court denied cert of the Chubb decision.

To continue reading the article in its entirety, click here (PDF).