Liabilities of Corporate Individuals for Environmental Claims Under CERCLA: The Current State of the Law and Strategies for Coping

February 1993
Citation:
23
ELR 10074
Issue
2
Author
Geoffrey M. Dugan

Editors' Summary: The Superfund law already acts like a dragnet to sweep corporations into the net of liability. Now more and more individual officers, directors, employees, and shareholders find themselves caught up in the liability net as well, and such corporate individuals across the country wonder about the contours of Superfund liability and how to stay out of it.

In this Article, the author traces the erosion of the traditional "corporate veil" doctrines that shield individuals from the corporation's liability. He explores the court opinions and their rationales, first for civil liability and then for criminal liability. Finally, he outlines steps that can reduce the risk of CERCLA liability, including preventive measures, insurance, and indemnification from the corporation.

Mr. Dugan is a partner in the law firm of Landels, Ripley & Diamond in San Francisco, where he specializes in corporate and commercial law. He frequently counsels corporate, real estate, and industrial clients on corporate and commercial law issues affecting environmental liabilities. Mr. Dugan is a graduate of Harvard University (A.B. 1973) and Georgetown University Law Center (J.D. 1976). Landels, Ripley & Diamond is nationally recognized for its expertise in environmental counseling and litigation matters.

Article File