ELR Citation: ELR 21003
No(s). s. C-84-6273-SBA et al (N.D. Cal. Nov 21, 1991)

The court holds that the minority shareholder of a company that leased property to operators of a pesticide manufacturing and processing facility is not liable in contribution as an "operator" under §107(a)(2) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for hazardous substances disposed of on the property. The evidence shows that the officer at various times was a minority shareholder and director of the leasing company, and helped keep the books and obtain major financing for important sales and leases. The evidence showed that the officer never participated in the actual operations of the facility or otherwise exercised control over the companies that operated the facility. The officer has no personal liability in contribution under CERCLA for the hazardous substances disposed of at the facility, because an individual cannot be liable as an "operator" under CERCLA §107(a)(2) unless that individual actually participates in the operation of the facility where hazardous substances are disposed, exercises control over the company immediately responsible for the operation of that facility, or is otherwise intimately involved in that company's operations.

Counsel for Plaintiffs
Roger Pool
Farella, Braun & Martel
235 Montgomery St., 29th Fl., San Francisco CA 94104
(415) 954-4400

Counsel for Defendants
Arthur Albrecht
Thacher, Albrecht & Ratcliff
300 Montgomery St., Ste. 700, San Francisco CA 94104