In Citizens Development Corporation, Inc. v. County of San Diego, et al., No. 12-CV-334-GPC-KSC, 2022 WL 4374957 (S.D. Cal. Sept. 21, 2022), the Honorable Gonzalo P. Curiel of the United States District Court for the Southern District of California granted three Motions for Good Faith Settlement Determination in an action under Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) related to alleged contamination of surface water and groundwater in and around Lake San Marcos and San Marcos Creek located in San Marcos, California.  One day later, in Maxim I Properties v. A.M. Bud Krohn, et al., No. 12-cv-00449-DMR, 2022 WL 4390433 (N.D. Cal. Sept. 22, 2022), the Honorable Donna M. Ryu of the United States District Court for the Northern District of California issued an order denying a Motion for Good Faith Settlement filed by Maxim I Properties (“Maxim”) and defendant Moyer Products (“Moyer”) in a matter concerning contamination at a property in San Jose, California.  As such settlements can provide contribution protection to parties potentially liable for clean up, these two cases provide good insight into the factors courts will consider in determining whether to approve them.      Read More »

Share | Email| Comments|  Topics: California, CERCLA, Cleanup, Contribution, Cost Recovery, Good Faith Settlement, Potentially Responsible Parties, Superfund

On August 19, 2022, a magistrate judge of the Colorado District Court held that contribution-defendants cannot assert their own contribution claims under section 113(f) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) because they are only liable for their fair share of response costs.  Atlantic Richfield Co. v. NL Indus., Inc., No. 20-cv-00234-NYW-KLM, 2022 WL 3577261, at *6 (D. Colo. Aug. 19, 2022). The magistrate judge’s analysis resolved questions for potentially responsible parties (“PRPs”) seeking to assert contribution claims against other PRPs based on a claim of inequitable distribution of common liability in a 113(f) action. Id. at *4. Read More »

Share | Email| Comments|  Topics: CERCLA, Colorado, Contribution, Cost Recovery, Potentially Responsible Parties, Superfund

In Georgia-Pacific Consumer Products LP v. NCR Corporation, the Sixth Circuit confronted a novel question concerning CERCLA’s statutes of limitations: whether a bare declaratory judgment on liability triggers the Section 113(g)(3) three-year limitations period for a contribution claim brought under Section 113(f)(1). The first circuit court to address this issue, the Court answered in the affirmative. Read More »

Share | Email| Comments|  Topics: Allocation, CERCLA, Contribution, Cost Recovery, Declaratory Relief, Michigan, PCBs, Potentially Responsible Parties, Sediment Sites, Sixth Circuit, Statute of Limitations, Superfund

There are surprisingly few cases addressing whether, for an entity to be liable as an arranger under CERCLA, it must have known that the disposed substance was dangerous or hazardous. On March 10, 2022, in City of Las Cruces and Dona Ana County v. The Lofts at Alameda, LLC, the U.S. District Court for the District of New Mexico became the third federal district court to answer this question directly.

Two local government entities sued American Linen for cost recovery and contribution, alleging its decades-long operation of dry cleaning facilities caused them to incur costs to remediate a plume of contaminated groundwater. Specifically, the plaintiffs asserted that American Linen instructed its employees to dispose of PCE-laden wastes off site and that it contracted with a truck hauler to transport these wastes to a dump site three miles away. American Linen moved to dismiss, arguing principally that at the time of disposal, it did not know the wastes were hazardous substances. Read More »

Share | Email| Comments|  Topics: Arranger Liability, CERCLA, Contamination, Cost Recovery, Groundwater, New Mexico, Potentially Responsible Parties, Remediation, Superfund

In Borough of Edgewater v. Waterside Construction, LLC, et al., 2022 WL 557903 (D.N.J. Feb. 24, 2004), Plaintiff Borough of Edgewater (“Edgewater”) brought Spill Act claims relating to PCB contaminated material which was used as fill in a public park project.  At issue was whether Arconic, as a prior owner of the property from which the fill was obtained, was “in any way” responsible for contamination resulting from use of the fill at another property.  The Court held that, because Arconic had no control over the property, and hence the fill, at the time of its subsequent use, it was not liable to the Borough under the Spill Act. Read More »

Share | Email| Comments|  Topics: Causation, Contamination, New Jersey, Owner Liability, PCBs, Potentially Responsible Parties, Real Estate, Spill Act

The Sixth Circuit’s recent decision in American Premier Underwriters v. General Electric Company addressed the sometimes murky question under CERCLA of whether the manufacturer of a product is liable as an “arranger” or “operator” when it sells a product that releases hazardous substances into the environment.  __ F.4th __, No. 20-4010, 2021 WL 4272652 (6th Cir. 2021).  In this case, GE had designed, manufactured, and sold transformers and railcars that contained a coolant with PCBs to APU’s predecessor Penn Central Railroad.  The transformers and railcars were specifically designed to “burp” coolant under certain conditions, which had the effect of releasing PCBs into the environment at various railyards.  The court held that, under the facts of the case, GE was neither an “arranger” or “operator.”    Read More »

Share | Email| Comments|  Topics: Arranger Liability, CERCLA, Decisions of Note, Operator Liability, PCBs, Potentially Responsible Parties, Railroad, Sixth Circuit

On May 4, 2020, the Third Circuit issued a precedential opinion affirming the United States District Court for the District of New Jersey’s decision that the United States Government (the “Government”) is not liable as an operator under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) for its involvement at a chromite ore processing plant in New Jersey during World Wars I and II. PPG Indus. Inc. v. United States, No. 19-1165, slip op. (3d Cir. May 4, 2020). The decision clarifies the applicable standard for parties seeking to hold the Government liable as an operator for cleanup costs at contaminated former defense sites. Read More »

Share | Email| Comments|  Topics: Allocation, CERCLA, Cleanup, Contamination, Contribution, Cost Recovery, Operator Liability, Potentially Responsible Parties, Remediation, Removal, Superfund, Third Circuit