ELR Citation: ELR 20927
No(s). G89-30388 CA (W.D. Mich. Jan 17, 1990)

The court holds that a corporate successor that purchased all the stock of a company that allegedly disposed of hazardous substances at a site approximately 12 years earlier may be liable for response costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Applying traditional corporate successor liability principles, the court holds that successor liability is consistent with the principles of equity and the underlying purposes of CERCLA. The court observes that to rule otherwise would allow a corporation to avoid CERCLA liability by carefully crafting corporate reorganizations. The court also rejects the decision in Anspec Co. v. Johnson Controls, 20 ELR 20442, which did not impose successor liability under CERCLA. The court next finds that summary judgment under CERCLA §113(g)(2) on the successor corporation's liability in subsequent actions to recover response costs is inappropriate. Finally, the court dismisses without prejudice the plaintiff's pendent state-law claims of indemnity, negligence, and misrepresentation.

Counsel for Plaintiff
Scott H. Hogan
Warner, Norcross & Judd
900 Old Kent Bldg., 111 Lyon St. NW, Grand Rapids MI 49503
(616) 459-6121

Counsel for Defendant
Robert D. VanderLaan, Steven D. Weyhing
Miller, Canfield, Paddock & Stone
1200 Campau Sq. Plaza, 99 Monroe NW, Grand Rapids MI 49503
(616) 454-8656