ELR Citation: ELR 20003
No(s). 92-0247-B (D. Me. Mar 31, 1993)

Adopting the recommendations of a magistrate judge, the court holds that a bank is not liable under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) as an "owner or operator" of property it acquired in foreclosure and then sold without revealing to the purchaser that it was contaminated. The bank is a "holder" under CERCLA §101(20)(A)'s security interest exemption, and not an owner or operator, because it owned the property in the past, but not at the time the hazardous substance was disposed of. The court holds that CERCLA §101(35)(C), on which plaintiff bases its cause of action, did not change the definition of "owner or operator," because such a change could have been explicit in §101(35) or by amendment to §101(20).

Counsel for Plaintiff
Alfred Frawley
Brann & Issacson
P.O. Box 3070, Lewiston ME 04243
(207) 786-3566

Counsel for Defendant
David Vanslyke
Preti, Flaherty, Beliveau & Pachios
P.O. Box 11410, Portland ME 04104
(207) 775-5831