ELR Citation: ELR 20698
No(s). 00-082-RRM (D. Del. Apr 30, 2002)

The court reverses in part and affirms in part its decision on the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and Delaware Hazardous Substance Cleanup Act (HSCA) liability of three corporations for costs incurred in connection with an environmental contamination cleanup settlement. The plaintiff corporation, which settled with the U.S. government, brought suit against the other two corporations seeking indemnification and contribution under CERCLA and HSCA. After the court found one corporation liable under CERCLA and HSCA and the other not, the plaintiff corporation sought to amend the court's order as it pertained to the nonliable corporation. The court first holds that although the allegations against the nonliable corporation were not as numerous and specific as the allegations against the liable corporation, they sufficiently state a claim that the nonliable corporation is a parent corporation acting as a facility "operator" and, thus, is subject to operator liability. While the allegations against the nonliable corporation are limited and lack detail, the issue of whether it may be directly liable as a CERCLA operator is fact-intensive and depends on the extent of the corporation's involvement in the pollution and hazardous waste-related activities at the site. Therefore, the court reverses its prior decision and lets the case proceed against the nonliable corporation. The court also reverses its decision that the plaintiff corporation's claims for declaratory relief were unripe. The court, in its earlier opinion, had overlooked the plaintiff corporation's allegations that it had spent money on response costs at numerous sites, each of which was polluted by hazardous waste from a subsidiary of the nonliable corporation. Thus, the court will retain as valid the plaintiff corporation's claims seeking declarations of the rights and obligations of the parties. The court then affirmed its decision to dismiss the plaintiff corporation's breach of contract claims against the nonliable corporation. Although a voluntary cleanup agreement the corporations entered into with the state created obligations with the parties and the state, it did not create a binding contractual obligation between the three corporations.

The full text of this decision is available from ELR (20 pp., ELR Order No. L-514).

Counsel for Plaintiff
James J. Maron
Maron & Marvel
1300 N. Broom St., Wilmington DE 19899
(302) 425-5177

Counsel for Defendants
David J. Baldwin
Potter, Anderson & Corroon
1313 N. Market St., Wilmington DE 19899
(302) 984-6000