ELR Citation: ELR 20794
No(s). 89-2512 (D.N.J. Feb 9, 1993)

The court holds that a stockholder and corporate officer is not liable as an owner under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) unless the corporate veil is pierced, but may be liable as an operator if he participated in disposal of hazardous substances. The case concerns chemical releases from the Redon Plant in Chatham, New Jersey. Plaintiffs and codefendants seek contribution under CERCLA and the New Jersey Spill Act for cleanup costs from a stockholder who is also the former president of the closely held, family-run company that operated the plant. The stockholder moved for summary judgment. The court first holds that, absent piercing the corporate veil, the property of a corporation is not that of the stockholders as owners. No plaintiff or cross-claim plaintiff asserted any of the factual elements justifying piercing the corporate veil and, thus, the movant is not liable under CERCLA as an owner. The court next rules that, under CERCLA, a corporate officer may be liable as a CERCLA operator only if the officer personally participated in the plant's disposal activities. It is not enough for the officer to have had sufficient control to direct the disposal or prevent the damage. Because there is a genuine issue of material fact concerning the movant's personal involvement in decisionmaking regarding disposal ofwaste, the court denies the movant summary judgment. Finally, the court holds that the movant cannot be liable under the New Jersey Spill Act absent piercing of the corporate veil and, thus, grants summary judgment as to claims under that act.

Counsel for Plaintiffs
George J. Grochala
Carella, Byrne, Bain, Gilfillan, Cecchi & Stewart
Six Becker Farm Rd., Roseland NJ 07068
(201) 994-1700

Counsel for Defendants
Philip R. Sellinger, Douglas R. Weider
Sills, Cummis, Zuckerman, Radin, Tischman, Epstein & Gross
One Riverfront Plaza, Newark NJ 07102
(201) 643-7000

John H. Klock, Craig E. Johnson
Crummy, Del Deo, Dolan, Griffinger & Vecchione
One Riverfront Plaza, Newark NJ 07102
(201) 596-4500