Private Party Response Cost Recovery Under CERCLA

June 1991
Citation:
21
ELR 10322
Issue
6
Author
Jane E. Lein and Kevin M. Ward

The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) was designed "to facilitate the prompt clean up of hazardous dumpsites by providing a means of financing both governmental and private responses and by placing the ultimate financial burden upon those responsible for the danger." CERCLA establishes a trust fund, known as the "Superfund," that can be used to finance government response actions. The Superfund is also available to pay costs of response actions incurred by private parties, provided the costs receive prior Environmental Protection Agency (EPA) approval. In addition to the Superfund payment structure, CERCLA allows the federal government, state governments, Indian tribes, and private parties to sue those responsible for the release of hazardous substances to recover the costs of response.

The purpose of this Article is to examine a private party's right to bring suit against other responsible parties for recovery of response costs under CERCLA. The Article reviews the elements of a prima facie case for recovery of response costs, who may recover response costs, the scope of relief available, whether governmental approval or authorization is necessary prior to incurrence of response costs, what is encompassed by the requirement that costs be necessary and consistent with the NCP, and whether or not specific types of costs constitute response costs. Further, the Article discusses a private party's right to contribution, and the effect of the doctrines of res judicata and collateral estoppel on cost recovery actions.

Jane E. Lein is an Associate with the Denver law firm of Clanahan, Tanner, Downing and Knowlton, P.C. She practices primarily natural resources law, including environmental law and oil and gas law. Kevin M. Ward is a graduate of Vanderbilt University School of Law. He formerly served as an Assistant Attorney General for the state of Colorado in the CERCLA litigation section, and he is currently a Special Assistant Attorney General for the state of Michigan. Mr. Ward currently practices environmental law and litigation with Harding & Ogborn in Denver, Colorado.