IN THE UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION ___________________________________ ) THE CITY OF BLOOMINGTON, INDIANA, ) THE UTILITIES SERVICE BOARD OF ) BLOOMINGTON, INDIANA, and ) MONROE COUNTY, INDIANA, ) Plaintiffs, ) ) vs. ) (No. IP 81-448-C) ) (Consolidated) WESTINGHOUSE ELECTRIC CORPORATION, ) (with) Defendant, ) ) UNITED STATES OF AMERICA, ) No. IP 83-9-C Plaintiff, ) ) THE STATE OF INDIANA, ) THE ENVIRONMENTAL MANAGEMENT BOARD ) OF THE STATE OF INDIANA, ) Intervening Plaintiffs, ) ) vs. ) ) WESTINGHOUSE ELECTRIC CORPORATION ) Defendant. ) ___________________________________) MOVANTS InPIRG's AND COPA's CONSOLIDATED REPLY TO MEMORANDA IN OPPOSITION TO MOVANTS' JOINT AMENDED MOTION FOR RELIEF FROM JUDGMENT INTRODUCTION This memorandum incorporates Movants COPA's and InPIRG's replies to Westinghouse's, the State of Indiana's, Monroe County's, and the City of Bloomington's (hereinafter the parties) responses to Movant's Joint Amended Motion for Relief from Judgment. Movant's have previously filed their reply to the United State's response. It is important to note that on June 20, 1991 following the City of Bloomington's June 3, 1991 response in opposition to Movant's motion that the Bloomington City Council passed a resolution which substantially supports Movants' positions. The City resolution specifically and unequivocally urges Westinghouse and the government leaders at all levels to abandon plans to use the incinerator and to abandon plans for a hazardous waste landfill in Monroe County. See Exhibit 2. This same City Council resolution explicitly acknowledges that most citizens of Bloomington and Monroe County oppose the use of an incinerator in Monroe County, that the proposed incinerator is a technology that has never been used anywhere, that Westinghouse has failed to demonstrate that the proposed incinerator is effective or sufficiently safe to protect the health and safety of the people of Bloomington and Monroe County, incineration of solid waste as proposed under the decree is not consistent with the community's needs for long term solid waste management, and that the City only recently realized that the incinerator ash will be hazardous requiring construction of a hazardous waste landfill in Monroe County. This same City Council Resolution specifically requests and urges the Environmental Protection Agency (EPA) to conduct the Environmental Impact Statement (EIS) (or alternatively the Remedial Investigation Feasibility Study or RI/FS) which Movants here allege EPA failed to perform thereby violating federal law and voiding the EPA decision process (and consequently voiding the instant decree based upon that decision process). The City of Bloomington attorneys have yet to inform this Court of this resolution and the substantial change in the City's position regarding the instant decree that it represents. Further, the Monroe County Council and Commissioners have also recently passed a similarly dramatic resolution unequivocally stating that the County government opposes the proposed incinerator and ash landfill and believes that this opposition reflects the will of the community and the considered opinion of numerous experts in the field. See Exhibit 3. This County Resolution also explicitly states that no Remedial Investigation/Feasibility Study (RI/FS) was performed as required by law and that an RI/FS is needed to fully investigate and determine the extent of PCB contamination and to carefully consider the alternative methods of addressing that contamination. See Exhibit 3. As in the City resolution, the County acknowledges that the need to construct a hazardous waste landfill in Monroe County to handle the incinerator ash is a new and unanticipated major development and one which the government opposes. Id. This important County resolution was passed on May 14, 1991 approximately two weeks prior to the filing by the County of its response to Movant's motion for relief. It is important to note that the County has not opposed Movant's motions for relief and for an evidentiary hearing. The County attorneys have yet to inform this Court of the County's opposition to the remedy incorporated into this Consent Decree. Neither has the State of Indiana remained silent in recent days regarding the issue of the proposed experimental garbage fueled PCB soil and sludge incinerator. The Indiana General Assembly recently passed two bills which require a study of alternatives to PCB incineration and require that an incinerator may not be permitted and constructed unless the county has included incineration in its solid waste plan. Monroe County officials are already on record in the County resolution as opposing the incinerator and the City resolution makes clear that incineration is not part of the City solid waste plan. Thus these two new State Bills have by intent and effect the same purpose as the recent City and County resolutions: to oppose use of the proposed solid waste fueled PCB incinerator and to obtain a study of alternative methods which might be used to clean up the PCB contamination in Bloomington. Exhibits ___ and ___. Finally, the United States Environmental Protection agency has conceded, via a public statement by the remedial project manager for the Bloomington cleanup, that EPA would not select solid waste as a fuel for an incinerator if EPA were to decide today how to cleanup the Bloomington contamination. Thus it is clear that four of the five Consent Decree parties, all of the government parties, have concluded that the proposed incineration technology for the Bloomington cleanup, the centerpiece for the instant Consent Decree, is the wrong technology for the job. Under these circumstances, how can it be equitable and in the public interest to insist that this decree be implemented as written. The decree is no longer equitable to enforce and must be modified. Only one of the parties, Westinghouse, which stands to benefit through receipt of tens of millions of dollars from the City and County tipping fees to be paid under the decree, has not publicly rejected the decree's proposed incineration technology. Thus Westinghouse's statement that none of the parties have raised similar concerns to those of Movants, see Westinghouse Opp. Mem. at 19, is off the mark. Further, the President of the Monroe County Commissioners at the time of County approval of the decree, Ms. Charlotte Zietlow, has raised several of the same concerns about illegality, misrepresentation and improper public process during the decree approval process. See Exhibit 4. Commissioners' President Zietlow states that had the County government known then, in 1985, 1) that EPA had cancelled the planned RI/FSs on Lemon Lane and Bennetts, 2) that the EPA had kept secret from the County the fact that EPA had signed the Record of Decision selecting the incineration remedy prior to all of the public meetings and comment process, and 3) that the County was going to pay millions of dollars more in tipping fees to Westinghouse under the decree than they could conceivably pay for garbage disposal and cleanup of the County landfill otherwise, that the County would not have approved the decree and would not approve it today. See Exhibit 4. Whether or not the parties ever decide to inform this Court of these critical developments or not, the Court must act decisively to protect the public interest in this matter. The Court should exercise its equitable powers to vacate this decree so that the parties and Movants can get on with the efficient, constructive and long overdue process of studying alternative remedies, taking public comment, and selecting a cleanup method that can truly be effective and safe, and that the community can accept and support. This process is nothing more than the EIS and RI/FS process required by federal law since 1982. The recent actions of the City, County, State, and EPA officials clearly support Movants' legal arguments under Fed. R. Civ. Proc. 60(b). As discussed in Movants' Motion and Memorandum filed previously, such fundamental changes in circumstance requires the Court to dissolve the Consent Decree pursuant to Fed. R. Civ. P. 60(b)(5) and permit Movants to intervene in this action and the new remedy selection process that must follow. The fundamental changes in circumstances surrounding the decree including the recent announcements by the United States Fish and Wildlife Service that the proposed incinerator poses a threat to endangered species in the Monroe County area, that the cleanup plan may otherwise be insufficient to protect valuable natural resources, and that the plan may not adequately compensate for harm to natural resources already incurred, as well as the dramatic reversals of positions of most of the parties to the decree regarding the need for an Environmental Impact Statement and their newly announced opposition to the proposed incinerator and ash landfill are sufficient grounds for vacating this decree. These grounds which were alleged by Movants have been essentially ignored by the parties in their responses. I. Movants' Motion for Relief from Judgment Raises New Issues of Fraud on the Court, Fraud, Illegality, and Recent Changes in the Fundamental Circumstances Underlying the Consent Decree Which Issues Have Heretofore Been Undecided, Making Law of the Case and Related Preclusion Doctrines Inapplicable As a Bar to Movant's Motion for Relief Westinghouse and other parties claim, citing City of Bloomington v. Westinghouse, 824 F.2d 531 (7th Cir. 1987), that COPA's and InPIRG's Motion for Relief from Judgment is merely an attempt to recast the issues that InPIRG presented to the district court and the Court of Appeals in InPIRG's prior motion to intervene and in InPIRG's comments on the Consent Decree. See Westinghouse Opp. Mem. at 5-8; City Opp. Mem. at 6; Indiana Department of Environmental Management Response at 4. This argument of the parties can not prevail because the issues of fraud, fraud on the court, and change in law and material circumstances raised in Movants' original and amended motions were not decided nor could they have been decided by the district court when it entered the decree. Neither do the later appellate decisions in this case address these issues. See City of Bloomington v. Westinghouse, 824 F.2d 531 (7th Cir. 1987), and Schalk v. Reilly, 900 F.2d 1091 (7th Cir. 1990). Further, despite the parties' conclusory and erroneous representation to the contrary, InPIRG did not raise these issues of fraud and fraud on the court in its comments on the decree because the fraud had yet to be discovered due to EPA's, and other parties', concealment of material facts, key documents and the record of decision itself, as well as due to the active misrepresentation of the facts and law by the EPA and other parties' representatives in Bloomington. InPIRG also did not raise these issues of change of law and material circumstances in its comments on the decree for the simple reason that the events which changed the law and circumstances did not occur until 1986, 1987, 1988, 1989, 1990, and 1991, while the decree was entered in 1985. It is not surprising that the parties, other than Westinghouse, in their respective responses, fail to specifically list each of the issues raised by movants in the instant motion and fail to cite specifically to the place in the district court opinion or public comments where the specific issues were discussed. Under the circumstances this would be an impossible task since the specific issues raised here were not discussed in the prior decisions. Westinghouse does attempt to demonstrate a similarity in issues by way of an exhibit and while Westinghouse's comparison is erroneous it is creative and deserves special attention. The Westinghouse argument and exhibit is treated in detail below in Exhibit 1 which is attached to this Memorandum. Apart from the Westinghouse Exhibit, the parties merely make conclusory statements to the effect that the issues presented in Movant's instant motion were previously raised. In an attempt to support their specious preclusion argument the parties cite to City of Bloomington v. Westinghouse, 824 F.2d 531 (7th Circuit 1987) alleging that many or all of the issues raised by Movants here were the same as those raised in InPIRG's comments on the decree. However, the City of Bloomington decision does not identify a single comment made by InPIRG but simply acknowledges that some comments were made. Id. The parties, to prevail on their preclusion argument, have the burden of demonstrating that the specific issues raised here were actually raised before by the same parties, fully and fairly litigated and actually decided. The parties have failed to show any of these essential facts, nor could they. City of Bloomington v. Westinghouse, 824 F.2d 531 (7th Cir. 1987), and Schalk v. Reilly, 900 F.2d 1091 (7th Cir. 1990) can not act as a bar to Movants' motion for relief here. The issues raised here were not fully and fairly litigated nor decided in the prior actions, and the legal standards were different. In the prior decisions relied on by the parties the decisions were on procedural and timing issues rather than on fraud, fraud on the court, change of circumstance and law making the decree no longer equitable, and illegality making the decree void. Denial of a motion to intervene on procedural grounds does not resolve any issues presented by the underlying claims and is not a decision on the merits, therefore not barring later actions on the merits by the denied intervenor because the determinative issues are not the same. Young v. Higbee Co., 324 U.S. 204, 208-09 (1945) Also See Wright & Miller, Federal Practice & Procedure, Civil  4416. As the Seventh Circuit Court of Appeals acknowledges, the district court denied InPIRG's motion to intervene as untimely. City of Bloomington v. Westinghouse, 824 F.2d 531, 533 (7th Cir. 1987). The court of appeals also restricts its holding to the issue of timeliness. Id. at 537. InPIRG never was granted party status to litigate even the substantive issues known to it at the time, which did not include the current issues of fraud, fraud on the court, and change in law and circumstance. Even much of the conclusive evidence on EPA's illegal decision process -- including the facts that EPA actually canceled work on RI/FS studies on Bloomington sites which it claimed then and claims now it was not obligated to perform, that the EPA record of decision was kept secret from the court, local government and the public during the critical public comment period and years after, and that EPA has performed the RI/FS studies in dispute at every other Superfund National Priorities List site in the country except Bloomington -- was not available to be raised at the time the decree was entered and InPIRG's intervention motion was decided The Schalk case is not a related case and establishes no bar to Movants motion for relief. The parties ion Schalk are not the same as here. Neither COPA nor InPIRG were a party to the Schalk case nor did they have any decision authority over the plaintiffs there. No such relationship between the parties in Schalk and the parties here has been alleged. There is none. Thus even had the issues here been decided in Schalk, the Movants would not be precluded from raising and litigating these issues, being different parties. See Wright & Miller, Federal Practice & Procedure, Civil  4416.