ELR Citation: ELR 20201
No(s). 09-55389 (9th Cir. Jul 22, 2010)

The Ninth Circuit held that the owner of the property at the time cleanup costs are incurred is the current owner for purposes of determining CERCLA liability. The case arose after the California Department of Toxic Substance Control sought cleanup costs under CERCLA from a developer for costs incurred cleaning PCB contamination. The developer argued it was not responsible for the cleanup costs because it sold the property before the Department filed suit. CERCLA’s definition of “owner,” however, does not specify the proper date from which to measure ownership. But considering the broader context of CERCLA liability, the view that ownership is measured at the time of cleanup best aligns with CERCLA’s statute of limitations. And an analysis of CERCLA's purposes yields the same conclusion—that current ownership is measured at the time of cleanup. Accordingly, "owner" status is determined at the time a response-recovery claim accrues, not at the time the lawsuit is initiated.