Kelley v. ARCO Indus. Corp.

ELR Citation: ELR 21425
No(s). K87-372-CA4 (W.D. Mich. Jan 18, 1990)

The court holds that third-party defendants in a Comprehensive Environmental Response, Compensation, and Liability Act contribution action are not liable because the sale of a useful product, even if it contains hazardous substances, does not constitute "arranging for disposal" under §107(a)(3). Third-party defendants supplied defendant manufacturer with various neoprene compounds for the production of rubber goods and products. Defendant manufacturer then leached the rubber products of waste-soluble materials, including hazardous substances such as toluene, and disposed of the waste stream in a lagoon at the facility. The court holds that no language in §107(a)(3) supports an interpretation that would make the sale of a useful product with a hazardous substance, which is not necessary to the functioning of the product and thus of no use to the purchaser, the equivalent of arranging for the disposal of hazardous substances. Rather, the cases are careful to limit broad readings of the language "or otherwise arranged for" the disposal of hazardous substances.

[Prior opinions in this case are published at 20 ELR 20179 and 20264.]

Counsel for Plaintiffs
Stanley F. Pruss, Ass't Attorney General; Frank J. Kelley, Attorney General
Environmental Protection Division
Law Bldg., Lansing MI 48913
(517) 373-1110

Counsel for Defendants
Joy Shawl Witte
Plunkett & Cooney
Skyrise Business Ctr., 535 S. Burdick St., Ste. 256, Lansing MI 49007
(616) 382-5935

Jay E. Brant
Honigman, Miller, Schwartz & Cohn
2290 First National Bldg., Detroit MI 48226
(313) 256-7800

Jon R. Muth
Miller, Johnson, Snell & Cummiskey
800 Calder Plaza Bldg., Grand Rapids MI 49503
(616) 459-8311

Counsel for Third-Party Plaintiff
Sidney D. Durham
Butler, Durham & Svikis
202 N. Riverview Dr., Parchment MI 49004
(616) 349-7686

Counsel for Third-Party Defendants
J. Richardson Johnson
Early, Lennon, Fox, Thompson, Peters & Crocker
900 Comerica Bldg., Kalamazoo MI 49007-4752
(616) 381-8844

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