ELR Citation: ELR 20796
No(s). 90-1761 (E.D. Pa. Feb 19, 1992)

The court holds that during World War II the United States "owned" and "operated" a high tenacity rayon manufacturing facility within the meaning of §§101(20) and 107(a)(2) of the Comprehensive Environmental Response, Compensation, and Liability Act, and must indemnify the former owner of the national priorities list site where the facility was located for past and future response costs incurred at the site. The court finds that the government required the facility to produce specified, increased quantities of high-tenacity rayon yarn and to convert and expand the plant to fulfill these production requirements. The government exercised active control and hands-on participation in the facility's conversion and expansion and supplied government-owned equipment to the facility. The government exercised control of raw materials required for production of the yarn, caused the raw materials to be supplied to the facility, and controlled their use through the production process. The court finds that the government obtained and retained labor at the facility and constructed housing for that labor force. The government developed and provided specifications for the yarn and required the facility's owner to disclose confidential information to other producers and to the government. The court finds that the government defined and controlled the market, end uses, and price of high-tenacity rayon yarn produced at the facility, and required and received extensive information relating to virtually all aspects of the facility. Finally, the court finds that the government knew that the disposal or treatment of hazardous substances was inherent in the manufacture of high-tenacity rayon yarn and that its production requirements caused a significant increase in the amount of hazardous substances generated and disposed of at the facility.

[A previous decision in this litigation is published at 20 ELR 21403.]

Counsel for Plaintiff
Neil G. Epstein, Steven J. Engelmyer, Carol L. Press, Joyce Collier Brong
Hangley Connolly Epstein Chicco Foxman & Ewing
1515 Market St., 9th Fl., Philadelphia PA 19102
(215) 851-8400

Counsel for Defendant
Ronald M. Spritzer, Glenn Freyer
Environment and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 514-2000