ELR Citation: ELR 21462
No(s). 90-1190 (1st Cir. Aug 2, 1990)

The court holds that the parent corporation of a defunct textile company is liable under the Comprehensive Environmental, Compensation, and Liability Act (CERCLA) for the government's cleanup costs in responding to a spill of trichloroethylene (TCE) at the textile plant. The court first rules that a parent corporation may be held liable under CERCLA §107 as an operator of a subsidiary corporation. The court next holds that the parent corporation was an operator of the textile facility under CERCLA §107(a). The parent corporation exercised pervasive control over the subsidiary's operations, including the power to control the release of TCE.

[The district court's decision is published at 20 ELR 20349.]

Counsel for Appellant
Deming E. Sherman
Edwards & Angell
2700 Hospital Trust Tower, Providence RI 02903
(401) 274-9200

Counsel for Appellee
J. Carol Williams, Cynthia S. Huber, Jacques B. Gelin
Environment and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 514-2000

Before BREYER, Chief Judge, BOWNES, Senior Circuit Judge, and SELYA, Circuit Judge.