ELR Citation: ELR 20276
No(s). 4:CV-98-0686 (M.D. Pa. Oct 23, 1998)

The court holds that the federal government's Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) §106(b)(1) action against a nonsettling party to enforce a unilateral administrative order (UAO) is barred by the complete relief the government obtained in a prior settlement. In 1997, the U.S. Environmental Protection Agency (EPA) and a settling party entered into a consent decree in which the settling party agreed to perform remedial action at the site in question and to pay all past, interim, and future costs incurred by the United States as a result of response actions taken at the site. Shortly thereafter, EPA issued a UAO that subjected the nonsettling party to the same terms and conditions set forth in the consent decree. The court first holds that the federal government, in the consent decree with the settling party, has already received complete relief with respect to the site at issue, and, therefore, its action against the nonsettling party is barred. Where the United States has obtained complete relief in a settlement, it does not have authority to seek a duplicative recovery or the same relief from a person who has not so resolved its liability. CERCLA's prohibition against the government's ability to seek recovery from a nonsettlor where it has obtained complete relief in a prior settlement embodies the traditional common-law prohibition against double recovery and unjust enrichment of a plaintiff who sues joint tortfeasors. In addition, the prohibition against seeking recovery from a nonsettlor where complete recovery was provided for in a settlement agreement with a responsible party is consistent with Congress' intent to ensure rapid and thorough cleanup of toxic waste sites and to conserve governmental resources. Thus, the court holds that the UAO issued by EPA is invalid because it was not necessary to protect public health and welfare and the environment as required by CERCLA §106.

Counsel for Plaintiff
Anne K. Fiorenza, Ass't U.S. Attorney
U.S. Attorney's Office
1162 Federal Bldg.
228 Walnut St., Harrisburg PA 17108
(717) 782-4482

Counsel for Defendant
Larry D. Silver
Duane, Morris & Heckscher
One Liberty Pl., Ste. 4200, Philadelphia PA 19103
(215) 979-1000