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Channel Master Satellite Sys., Inc. v. JFD Elecs. Corp.

Citation: 19 ELR 20839
No. No. 88-605-CIV-5, 702 F. Supp. 1229/29 ERC 1172/(E.D.N.C., 12/29/1988) Contractual bars to liability

The court holds that a buyer of land may recover response costs from the seller under §107 of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), despite provisions in the sales agreement dealing with warranties, the "as is" condition of the land, and indemnification. The court first holds that the sales agreement provision negating the existence of warranties is irrelevant to an action under CERCLA §107, which imposes obligations on prior owners regardless of their warranties when selling the land. Similarly, the sales agreement's "as is" clause does not shift affirmative obligations of the parties imposed by CERCLA. Finally, the court holds that the sales agreement's indemnity clause is not applicable because, by its language, it applies to state law but not federal laws such as CERCLA. North Carolina's hazardous waste law does not include a provision for private actions to recover cleanup costs.

Counsel for Plaintiff
Charles C. Meeker, John J. Butler
Adams, McCullough & Beard
One Exchange Plaza, P.O. Box 389, Raleigh NC 27602
(919) 828-0564

Counsel for Defendant
Cecil W. Harrison Jr.
Poyner & Spruill
3600 Glenwood Ave., P.O. Box 10096, Raleigh NC 27605
(919) 787-7451