ELR Citation: ELR 20648
No(s). 92-506 (E.D. Va. Dec 3, 1992)

The court rules that sole proprietors who succeed in interest to responsible parties may be liable for response costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). A sole proprietor, who inherited her company, moves to dismiss a plaintiff's CERCLA claims on the ground that she is not a responsible party. The court first determines that federal common law, not West Virginia law, governs the analysis and that it is undisputed that successor corporations are liable under CERCLA. The court holds that the movant is a successor in interest, not a mere shareholder receiving an attenuated asset distribution from a defunct corporation. Although the movant inherited the company at issue from her husband, had no contact with the business before his death, and may not have had any reason to anticipate CERCLA liability, she continued company operations. She presented no evidence to dispute that she maintains a continuity of the predecessor enterprise. The court concludes that the movant is more appropriately positioned to participate in cleanup efforts than the average taxpayer and denies her motion to dismiss.

Counsel for Plaintiff
Richard K. Bennett
McSweeney, Burtch & Crump
P.O. Box 1463, Richmond VA 23212
(804) 783-6800

Counsel for Defendants
Irving Blank
Wells, Paris, Blank & Brown
P.O. Box 5347, Richmond VA 23220
(804) 355-0691