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Sumitomo Mach. Corp. of Am. v. AlliedSignal, Inc.

ELR Citation: 26 ELR 20977
Nos. 95-5138, 81 F.3d 328/42 ERC 1545/(3d Cir., 04/11/1996)

The court reverses a district court decision that an agreement requiring a company to remediate contaminated property its predecessor sold does not require the property's purchaser to execute deed restrictions limiting future property uses. After the purchaser and the seller's successor entered into the agreement, the New Jersey Department of Environmental Protection (NJDEP) tightened the radioactive remediation requirements applicable to the property, effectively giving the purchaser the choice of executing a declaration of environmental restrictions and grant of easement (DER) or remediating to a higher standard than originally approved. A provision in the agreement requires the purchaser to provide any future purchaser or lessee with a copy of any DER the NJDEP may impose or require for the site. The court finds the provision ambiguous concerning the purchaser's obligations with respect to the radiological DER and remands the district court's decision for further proceedings.

Counsel for Appellee
Mark J. Malone
Stier, Anderson & Malone
1120 Rte. 22 E., Bridgewater NJ 08807
(908) 707-1212

Counsel for Appellants
Douglas S. Eakeley
Lowenstein, Sandler, Kohl, Fisher & Boylan
65 Livingston Ave., Roseland NJ 07068
(201) 992-8700

Before Stapleton, McKee, and Norris,* JJ.