ELR Citation: ELR 20694
No(s). s. K-86-164, -167 (W.D. Mich. Dec 13, 1989)

The court rules that a corporate officer is individually liable for response costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) if the officer could have prevented or significantly abated the hazardous waste discharge. CERCLA varies traditional corporate principles that prevent individual liability unless an individual has engaged in procedural irregularities that justify piercing the corporate veil or has had close, active involvement or direct supervision of the events leading to the alleged tortious harm. The court notes that strict liability is too harsh to apply to all corporate officer cases. In determining whether a corporate officer could have prevented or significantly abated the discharge, courts should weigh the individual's authority to control waste management practices and the responsibility undertaken or neglected by the individual. Evidence relevant to the control factor includes whether the individual is an officer or director and distribution of power within the corporation. Under the responsibility factor, active and direct efforts to prevent or abate contamination may work for an individual. This prevention standard will encourage increased responsibility as an individual's authority increases within the corporation. The court finds that factual issues remain concerning the liability of the president and shareholder of a company held liable under CERCLA.

[Other cases in this litigation are published at 20 ELR 20109 and 20684.]

Counsel for Plaintiffs
Robert P. Reichel, Ass't Attorney General
Environmental Protection Division
Law Bldg., Lansing MI 48913
(517) 373-1110

Joel M. Gross, Steven J. Willey
Land and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 633-2738

Counsel for Defendants
Charles E. Barbieri, John L. Collins
Foster, Swift, Collins & Coey
313 South Washington Sq., Lansing MI 48933-2193
(517) 372-8050

James M. Sullivan
Sullivan, Hamilton, Schulz, Kreter & Toth
25 W. Michigan Mall, Comerica Bldg., 10th Fl., Battle Creek MI 49017
(616) 965-3216