ELR Citation: ELR 20585
No(s). s. 92-7458, 94-0662 (E.D. Pa. Nov 1, 1994)

The court holds that an indemnity clause of an agreement under which a chemical manufacturer leased machinery from a federal agency does not indemnify the United States from a contribution claim by the company's successor under the Comprehensive Environmental Response, Compensation, and Liability Act. The clause provides that the manufacturer will hold the agency harmless from liability resulting from accidents occurring in connection with the company's operation of the machinery. The court finds that the contract does not clearly or unequivocally allocate all present and future claims. And it is not a broad waiver of all liabilities of any type, but rather a waiver of all liabilities of a specific nature.

[A related case is published at 24 ELR 20352.]

Counsel for Plaintiff
William J. Kennedy, Frederick G. Herold
Dechert, Price & Rhoads
4000 Bell Atlantic Tower
1717 Arch St., Philadelphia PA 19103
(215) 994-4000

Counsel for Defendant
Michael R. Lazerwitz, Charles F. Lettow
Cleary, Gottlieb, Steen & Hamilton
1752 N St. NW, Washington DC 20036
(202) 728-2700