ELR Citation: ELR 20382
No(s). 88-4901 (5th Cir. Jan 29, 1990)

The court rules that parent corporations are not liable under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for the violations of their wholly owned subsidiaries. The court, disagreeing with the Second Circuit, refuses to alter the general rule in corporation law of limited liability absent an express congressional directive to do so. Neither CERCLA nor its legislative history indicate that Congress intended to alter traditional principles of corporation law. The court holds that the corporate veil should not be pierced in this case. The subsidiary faithfully adhered to basic corporate formalities and the daily operations of the parent and subsidiary were separate.

[The district court's decision is published at 19 ELR 20518.]

Counsel for Plaintiff-Appellant
Robert E. Holden
Liskow & Lewis
One Shell Sq., 50th Fl., New Orleans LA 70139
(504) 581-7979

Counsel for Defendant-Appellee
Donald B. Mitchell Jr.
Arent, Fox, Kintner, Plotkin & Kahn
1050 Connecticut Ave. NW, 5th Fl., Washington DC 20036-5339
(202) 857-6172

Before GEE and JONES, Circuit Judges, and HUNTER, District Judge:^*