Are Concurrent CERCLA Claims For Section 107(a) Cost Recovery and Section 113(f) Contribution Permissible?

Foley Hoag LLP - Environmental Law
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Given the uncertainties after Cooper Industries v. Aviall about what cause of action a PRP has for recovering response costs under CERCLA, many parties take the prudent course of pleading claims under both for cost recovery and for contribution.  A federal court in South Carolina in PCS Nitrogen, Inc. v. Ross Develop Corporation recently held that when a PRP can satisfy the pleading requirements of both a cost recovery claim and a contribution claim it is limited to only a contribution claim.

In that case, a PRP performed certain response work pursuant to a Section 106(a) unilateral order and sought to recovery its costs under both Section 107(a) and Section 113(f).  The court reasoned that the PRP had a potential cause of action under Section 107(a) since it had incurred necessary response costs and also had a potential cause of action for contribution since a unilateral order was the functional equivalent of a civil action under Section 106.  The court then ruled that whenever a party may properly bring a contribution action, it is precluded from bringing a cost recovery action as well:

if [the PRP] has met one of the statutory triggers for a  § 113 action, then [the PRP] may proceed under only § 113 and not under § 107(a).

While a consensus is gradually growing in the case law as to what facts will permit a CERCLA contribution claim, there remains considerable uncertainty .  Until that uncertainty is resolved, the prudent course remains for a party to plead a claim for both cost recovery and contribution.

 

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.

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