ELR Citation: ELR 21350
No(s). s. 1:92-CV-713, 4:92-CV-139 (W.D. Mich. Mar 17, 1994)

The court holds that a solvent producer's customers are not liable as arrangers under §107(a)(3) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) because the government failed to show that they intentionally arranged to dispose of residual solvents remaining in drums they returned to the producer in exchange for deposits paid at the time of purchase. The court holds that the phrase "otherwise arranged for disposal" contained in §107(a)(3) does not apply to situations where there was no intent to dispose of a hazardous substance. The purpose of defendants' returning the drums was to recover their deposits. The fact that they incidentally got rid of the residues does not mean that they purposefully intended to dispose of the residues; this was merely incidental to the drum return.

Counsel for Plaintiff
Vicki A. O'Meara
Environment and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 514-2000

Counsel for Defendants
John R. LaParl Jr.
Smith, LaParl & Mequio
550 W. Center Ave., Portage MI 49002
(616) 323-0200