Is Your Vehicle a CERCLA Facility?

by Greenberg Glusker Fields Claman & Machtinger LLP
Contact

Contaminated PropertyWhile we tend to think of a CERCLA “facility” as the real property where environmental contaminants have come to be located, it is important to remember that CERCLA’s definition of “facility” is actually much broader than that and can serve to open the door to “Potentially Responsible Parties” not considered in your initial cost recovery analysis.

Pursuant to CERCLA, the owner of a facility from which hazardous substances have been released is liable for the costs of responding to the release.  Two recent CERCLA cases  involving motor vehicles illustrate how CERCLA’s broad definition of “facility” expands CERCLA “owner” liability beyond ownership of contaminated real property to ownership of equipment and vehicles from which contaminates have been released.  These cases also provide us with an answer to the question:  Is your vehicle a CERCLA facility?  And the answer is:  It depends.

In Emergency Billing Services Corporation v. Allstate Insurance Co. WL 313578 (7th Cir. Feb. 7, 2012), the 7th Circuit Court of Appeals reviewed a district court’s dismissal of a CERCLA cost recovery action brought by a municipal billing agent against the insurers of vehicles involved in car accidents to which a volunteer fire department responded.  The billing agent alleged that the cars involved in the accidents were CERCLA facilities and that the fire department was entitled to be reimbursed for its costs of responding to a release or threatened release from these “facilities.”  Although the definition of a CERCLA “facility” expressly includes a “motor vehicle,” the insurers argued that the vehicles involved in the accidents fell outside of CERCLA’s reach.  Specifically, the insurers argued that the automobiles were excepted from the definition of “facility” by an exclusion for “any consumer product in consumer use.”  The Seventh Circuit agreed and found that these personally owned automobiles were in personal use at the time of the accidents and therefore did not constitute CERCLA facilities.

Not to be outdone, the billing agent apparently found a more favorable set of facts in the case of Emergency Services Billing Corporation v. Vitran Express, Inc., 2011 U.S. Dist. LEXIS 140891 (Dec. 7, 2011).  In this case the billing agent filed a CERCLA cost recovery action on behalf of another volunteer fire department that had responded to a tractor-trailer leaking a corrosive liquid disinfectant.  The district court’s opinion states that the operator of the tractor-trailing was delivering a load of textbooks to a high school when it became clear that the truck was leaking fluid.  It seems that along with the text books, the truck was also carrying 300 gallons of a hazardous substance in a large plastic container.  The operator relocated the truck away from the high school to an area where the leaking fluid threatened a nearby waterway.  The town’s volunteer fire department was dispatched and later the owner of the truck was invoiced for the costs incurred in the town’s response.  The invoice was never paid and suit was filed.  The truck owner and operator motioned the court to dismiss the case because the truck was a “consumer product in consumer use” and thus not a “facility” under CERCLA.  The court disagreed and denied defendants’ motion, noting that the tractor-trailer was a commercial vehicle that was transporting a corrosive liquid and thus met the definition of a CERCLA “facility.”

These cases, in addition to providing us with examples of creative municipal billing, also serve to remind us that in evaluating a cost recovery claim it is important to work with your counsel to determine whether CERCLA liability can attach to “owners” of equipment or vehicles that have released hazardous substances at your cleanup site, even if those “owners” have never had an interest in the real property now contaminated.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Greenberg Glusker Fields Claman & Machtinger LLP | Attorney Advertising

Written by:

Greenberg Glusker Fields Claman & Machtinger LLP
Contact
more
less

Greenberg Glusker Fields Claman & Machtinger LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!