ELR Citation: ELR 20930
No(s). 91-7980 (2d Cir. May 13, 1992)

The court holds that oil companies that have no involvement in their lessee gas stations' disposal of waste oil are not liable in a cost recovery suit as "arrangers" under the Comprehensive Environmental Recovery, Compensation, and Liability Act (CERCLA). A corporation liable in a previous suit for the cost of cleaning up a site seeks contribution from oil companies that allegedly arranged for the disposal of waste oil at the site. The court holds that the oil companies are not liable for CERCLA cleanup costs under CERCLA §107(a)(3) because they did not arrange for disposal of the waste oil. Although the oil companies may have the opportunity or the economic bargaining power to impose conditions on the gas stations' disposal of waste oil, it is the obligation to exercise control over hazardous waste disposal that makes an entity an arranger under CERCLA's liability provision. The oil companies do not own or control the process by which waste motor oil is generated and disposed and therefore do not incur arranger liability absent contractual agreement to the contrary. The court also finds no merit to the claim that the oil companies are liable as aiders and abetters because the common-law theory of aiding and abetting liability does not apply where there is no evidence to suggest that the oil companies took part in the disposal of waste oil or had knowledge of the service stations' disposal practices.

Counset for Plaintiff-Appellant
Daniel R. Solin
100 E. 42nd St., New York NY 10017
(212) 973-8900

Counsel for Defendants-Appellees
Denise J. Kerrigan
State Bank Bidg., 75 State St., POBox 1579, Albany NY 12201
(518) 434-4171

Scott A. Barbour
State Bank Bldg., 75 State St., PO Box 459, Albany NY 12201
(518) 434-3136

David K. Floyd
3400 Marine Midland Center, Buffalo NY 14203
(716) 847-8400

Before Cardamone, Altimari, and Telesca^*, JJ.