How Wrong Does A District Court Have To Be To Abuse Its Discretion?

The 9^th Circuit Court of Appeals has reversed a District Court decision allocating 100% of CERCLA response costs at a San Diego Superfund site to TDY Holdings, which operated an aeronautical manufacturing plant from 1939 to 1999. TDY has sought contribution from the United States, which was the source of the vast majority of TDY's business, and which directed TDY to use certain hazardous substances, release of which caused the relevant contamination.

What makes the case so interesting was that the District Court had found that both TDY and the United States were liable parties, held a lengthy trial on the allocation issues, and made specific findings justifying its 100% allocation share to TDY. The Court of Appeals repeatedly noted that its review was subject to an abuse of discretion standard, and acknowledged that the facts found by the District Court justified a significant allocation to TDY.