Jump to Navigation
Jump to Content

Mirant Potomac River, LLC v. EPA

ELR Citation: 39 ELR 20176
Nos. No. 08-1277, (4th Cir., 08/12/2009)

A New Jersey appellate court affirmed a lower court decision holding the seller of industrial property strictly liable under the New Jersey Industrial Site Recovery Act for all cleanup costs and damages stemming from its failure to obtain a "no further action" letter before selling the property to the current owner. The statute requires owners and operators of industrial establishments to demonstrate that the property is environmentally sound as a precondition to the sale or transfer of the property or the closure of a business. It also states that a transferor's failure to perform a remediation and obtain the state environmental agency's approval as required by the Act "entitles the transferee to recover damages from the transferor, and renders the owner or operator of the industrial establishment strictly liable, without regard to fault, for all remediation costs and for all direct and indirect damages resulting from the failure to implement the remedial action workplan." Here, the seller transferred the property to the buyer without agency approval or a remedial action workplan. Therefore, the seller is strictly liable for all remediation costs and for all direct and indirect damages resulting from the failure to implement the remedial action workplan.