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United States v. South Carolina Recycling & Disposal, Inc.

Citation: 17 ELR 20845
No. No. 80-1274-6, 653 F. Supp. 984 at 1010/(D.S.C., 12/19/1985) Defendant dismissed on settlement

The court holds that companies that sold a chemical manufacturing plant to a defendant in a Comprehensive Environmental, Response, Compensation, and Liability Act (CERCLA) cost recovery action are not liable as third-party defendants because the defendant assumed all liabilities of the plant under the agreement of sale. The court holds that the defendant assumed all liabilities under the acquisition contract, including the liability for off-site waste disposal. Defendant has failed to substantiate its claim that the third-party defendants committed fraud by failing to disclose violations of environmental laws. Further, CERCLA § 107(e)(1) implicitly recognizes that liability between private parties may be dealt with contractually.

[Other decisions in this litigation are published at 14 ELR 20272 and 20895, and 17 ELR 20843 and 20847.

Counsel are listed at 17 ELR 20843.