ELR Citation: ELR 20086
No(s). F 89-29 (N.D. Ind. Jun 28, 1993)

The court approves Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) private-party settlements and holds that they bar contribution claims brought by the nonsettling defendants against the settling defendants, but the liability of the nonsettlors will be reduced by the equitable share of the settling defendants' liability. The court first holds that under CERCLA §113(f)(2), private parties who settle CERCLA claims with other private parties are free from claims for contribution. Barring contribution claims by the nonsettlors against the settling defendants furthers CERCLA's policy favoring settlement by avoiding wasteful litigation. The court approves the settlement agreement. The agreement is in accordance with law and CERCLA's purposes, and is fair and adequate because the parties had a sufficient factual record and negotiated extensively at arm's-length. Moreover, the settlement is reasonable and in the public interest because the site will be cleaned up at the earliest possible time. Addressing the liability of the nonsettling parties, the court holds that their liability will be reduced by the settling defendants' equitable share of liability, rather than by the actual amount paid by the settling defendants. This approach, which following that of the Uniform Comparative Fault Act, will promote CERCLA's policy of encouraging settlements while securing equitable apportionment of liability for the nonsettlors, and will give plaintiffs an incentive to negotiate settlements that closely approximate settlors' reasonable shares of the cleanup costs.

Counsel for Plaintiffs
Angila M. Prather, Ass't Attorney General
Attorney General's Office
219 State House, Indianapolis IN 46204
(317) 232-6201

Maureen M. Katz
Environmental and Natural Resources Division
U.S. Department of Justice, Washington DC 20530
(202) 514-2000

Counsel for Defendant
J. Frank Kimbrough
Wilks & Kimbrough
803 S. Calhoun St., 3d Fl., Fort Wayne IN 46802
(219) 422-7553

Percy L. Angelo
Mayer, Brown & Platt
190 S. LaSalle St., Chicago IL 60603
(312) 782-0600