City of San Diego v. National Steel & Shipbuilding Company et al

Filing 549

ORDER Confirming Settlement Between BAE Systems San Diego Ship Repair Inc., Southwest Marine, Inc., Star And Crescent Boat Company And The San Diego Unified Port District, And Barring And Dismissing Claims (Re Dkt # 542 ): The Motion is granted, and the Settlement Agreement is approved. Signed by Judge William Q. Hayes on 11/13/2015. (All non-registered users served via U.S. Mail Service.) (mdc)

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FILED

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NOV 1 B 2015

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CLERK, U.S. ["ST~T=OUR
SOUTHERN DIST~flt:T fll&/ll6Jo.lF. NIA
BY
Jlj/. {'KIA. EPUTY

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UNITED STATES DISTRICT COURT

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SOUTHERN DISTRICT OF CALIFORNIA

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CITY OF SAN DIEGO,

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Plaintiff,

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CASE NO. 09-CV-2275 WQH (JLB)
ORDER CONFIRMING
SETTLEMENT BETWEEN BAE
SYSTEMS SAN DIEGO SHIP
REPAIR INC SOUTHWEST

v.

C

14 NATIONAL STEEL AND
15 SHIPBUILDING COMPANY; et aI.,

~~:N\NB(t~~1:~ttPANY AND
THE SAN DIEGO UNIFIED PORT
DISTRICT, AND BARRING AND
DISMISSING CLAIMS

Defendants.

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17 AND RELATED CROSS-ACTIONS
18 AND COUNTERCLAIMS
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The Joint Motion ofBAE Systems San Diego Ship Repair Inc., Southwest

22 Marine, Inc. (collectively, "BAE Systems"), Star & Crescent Boat Company ("Star
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& Crescent"), and the San Diego Unified Port District ("Port District") for an

24 Order Con~ttlement and Barring and~ng Claims came 9B­
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before this Court OR NQI,'emeel' 30, 20 1~" the Honorable

26 William Q. Hayes presiding.
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After considering the moving and opposition papers, declarations submitted

28 by the parties, the Settlement Agreement submitted to the Court for approval
09-CY-2275 WQH (JLB)
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1 (attached to the Declaration of Michael S. Tracy) (the "Settlement Agreement")
2 and the record as a whole, the COURT HEREBY FINDS THAT the Settlement
3 Agreement entered into by and between BAE Systems, Star & Crescent, and the
4 Port District is in the public interest, is fair and reasonable, both procedurally and
5 substantively, consistent with the purposes of the Comprehensive Environmental
6 Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C. section 9601,
7 et seq., and the Uniform Comparative Fault Act ("UCFA"), 12 U.L.A. 147, and
8 was entered into in good faith under California Code of Civil Procedure sections
9 877 and 877.6 and the rule of Tech-Bilt, Inc. v. Woodward-Clyde & Associates, 38
10 Ca1.3d 488 (1985), and that Star & Crescent and the SDMCC Entities 1 are entitled
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to contribution and indemnity protection under federal and state law theories for

12 the apportionment of liability among alleged joint tortfeasors.
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This matter having been briefed and submitted for decision, and good cause

14 appeanng,
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IT IS HEREBY ORDERED that the Motion is GRANTED, and the

16 Settlement Agreement is APPROVED.
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IT IS FURTHER ORDERED that:

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1.

The Settlement Agreement is hereby approved as a good faith

19 settlement and shall be afforded all the rights and protections that accompany this
20 determination.
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2.

The Court further finds and determines that Section 6 of the UCF A is

22 adopted in this case for purposes of determining the legal effect of the Settlement
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1 "SDMCC Entities" shall mean and refer to San Diego Marine Construction
ComI>any (aka San Diego Marine Construction Co.), Star 8i Crescent Investment
Co., Star and Crescent Boat Comp_any, a division of San Diego Marine
26 Construction Company, Star and Crescent Boat Company, Sfar and Crescent
Investm~~t Company1'. ap.4 Star and Crescent Ferry Comp~ny', except to ~he extent
27 such entItIes, or any OIVlSlOn of them, were merged, acqUlrea, or otherwIse
succeeded in interest by MCCSD, San Diego Marine Construction CO~l Campbell
28 Industries, Marine Construction and Design Co., or their respective affiltates.

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09-CV-2275 WQH OLB)
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1 Agreement, which means the proportionate share rule (and not the pro tanto rule of
2 the Uniform Comparative Fault Among Tortfeasors Act ("UCATA")) shall apply
3 to reduce BAE Systems' claims against non-settling parties.
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3.

Pursuant to Section 6 of the UCFA, Section 877.6 of the California

5 Code of Civil Procedure, and CERCLA section 113(f), any and all claims, cross6 claims or counterclaims for contribution or equitable indemnity against Star &
7 Crescent and/or any or all of the SDMCC Entities arising out of the facts alleged in
8 the claims, counterclaims, and cross-claims in this Action, regardless of when such
9 claims are asserted or by whom, relating to Covered Matters under the Settlement
10 Agreement are hereby BARRED. Such claims are barred regardless ofwhether
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they are brought pursuant to any federal or state statute, common law, or any other

12 theory, as any such claims against Star & Crescent and/or any and all of the
13 SDMCC Entities arising out of the facts alleged in this Action are in the nature of
14 contribution claims arising out of a common liability, whether framed in terms of
15 federal or state statute or common law.
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4.

Subject to Paragraphs 6 and 7 of this Order, and this Order becoming

17 final and effective, all claims by BAE Systems and the Port District, respectively,
18 against Star & Crescent and the SDMCC Entities with respect to "Covered

19 Matters" under the Settlement Agreement (which expressly does not include
20 "Excluded Matters") are hereby dismissed with prejudice. Star & Crescent and the
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SDMCC Entities have not alleged claims in this Action, and therefore, have no

22 claims to dismiss.
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5.

Upon this Order becoming final and effective, all claims by BAE

24 Systems and the Port District, respectively, against Star & Crescent and the
25 SDMCC Entities relating to "Excluded Matters" shall be reserved and not deemed
26 barred by entry ofjudgment or dismissal pursuant to the Settlement Agreement.
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6.

All claims relating to Polygon SW-29 and the Tidelands Property (as

28 said terms are defined in the Tolling and Standstill Agreement previously entered
09~CV~2275

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WQH (JLB)

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1 into by and between BAE Systems, the Port District, San Diego Gas & Electric
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Company, the City of San Diego, Star & Crescent and Campbell Industries (the

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"Tolling and Standstill Agreement")) including, without limitation, contract-related

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claims, made by BAE Systems and/or the Port District against Star & Crescent

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and/or against the SDMCC Entities, shall be dismissed WITHOUT prejudice,

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subject to the terms of the Tolling and Standstill Agreement.

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7.

The Court shall retain jurisdiction over both the subject matter of the

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Settlement Agreement and the parties to the Settlement Agreement for the duration

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of the performance ofthe terms and provisions of the Settlement Agreement for the

10 purpose of enabling BAE Systems, the Port District, and Star & Crescent, and each
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of them, to apply to the Court at any time for such further order, direction, and

12 relief as may be necessary or appropriate to construe, implement, or enforce
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compliance with the terms of the Settlement Agreement or for any further relief as

14 the interest ofjustice may require.
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8.

BAE Systems, the Port District, and Star & Crescent, shall each bear

16 their own costs and expenses, including attorneys' fees in this Action through the
17 date of this Order but shall retain their respective right to seek costs and expenses,
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including attorneys' fees, from other parties to this Action to the extent such claims

19 have not been dismissed or barred.

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IT IS SO ORDERED.

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22 Dated:

I&,.d/~
Hon. William
Judge, United

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09-CV-2275 WQH (JLB)
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