Trustee Liability Under CERCLA

January 1991
Citation:
21
ELR 10003
Issue
1
Author
Joel S. Moskowitz

When Congress enacted the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or the Superfund),1 it "intended that those responsible for problems caused by the disposal of chemical poisons bear the costs and responsibility for remedying the harmful conditions they created."2 Unfortunately, the combination of remedial costs, which greatly exceed available funding,3 and CERCLA's imprecise language, which is susceptible to broad interpretation,4 have allowed the Environmental Protection Agency (EPA) to impose remedial costs on those who did not contribute to the contamination.

Under CERCLA §107, owners of property are absolutely liable for remediating their property, regardless of whether they are responsible for its contamination.5 Similarly, lessees have been held liable, irrespective of any contribution to contamination of the property, through the tortured reasoning that the unavailability of the third-party defense to lessees6 creates an inverse inference of liability for lessees.7 And recently, a lender that had the capacity to control waste-handling activities was found liable under a similarly expansive interpretation, notwithstanding that the lender was not the operator of the site, did not influence waste-handling decisions, and was otherwise not negligent.8

Joel S. Moskowitz is a partner in the Los Angeles office of Gibson, Dunn & Crutcher. He is the author of Environmental Liability and Real Property Transactions (John Wiley & Sons, 1989). Mr. Moskowitz was formerly in charge of California's hazardous substances control programs and was for 13 years a California Deputy Attorney General.

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Trustee Liability Under CERCLA

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