Bay Corrugated Container, Inc. v. Gould

Summarized by J. Debbeler , Bricker Graydon LLP
10 years 11 months ago

Citation:

15a0244n.06; No. 14-1237

Tag(s):

Ruling:

Sixth Circuit affirmed district court's determination that litigant failed to diligently prosecute the litigant's claim under Fed. R. Civ. P. 41(b). Applying the Knoll test, the Sixth Circuit found that; (I) the litigant showed a reckless disregard for the district court docket by waiting nine years to take further action;(ii) prejudice to the defendant occurred when four witnesses dies during the nine years; (iii) notice of the prospective dismissal was waived by the litigant based on its admission; and (iv) there was no less drastic sanction which made sense.

Procedural context:

Consent judgment entered by district court in 1994 regarding settlement of environmental contamination. In related litigation the Seventh Circuit held a corporate spinoff assumed certain environmental liabilities when the spinoff bought the entity allegedly responsible for the contamination. One of the parties to the consent judgment filed a petition in 1999 to force another party to the consent judgment to comply with its terms. A mediator was appointed in 2000. Nothing happened until 2009 when the petitioner again asked the district court for enforcement of the consent judgment. District court dismissed the case and a first appeal was taken to the Sixth Circuit. The decision was reversed. On remand the district court again dismissed the case for failure to prosecute.

Facts:

In 1991 a CERCLA action as filed relating to the sale of manufacturing plant which occurred 18 years earlier. Two of the parties agreed to pay for investigation and remediation. This settlement became a consent judgment. When the parties failed to pay what they agreed to pay one of the parties to the consent judgment asked for one of the two parties to comply with the consent judgment. While the petition to enforce the consent judgment was pending the petitioner negotiated with one of the parties while one of the entities' successor in interest filed bankruptcy. The petitioner took no action in district court for nine years until the petitioner once again tried to enforce the consent judgment.

Judge(s):

Siler, Batchelder and Rogers, Circuit Court Judges

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