Court Reverses 'Arranger' Liability; Says Sale of Chemical Isn't Disposal

摘要

Borg Warner didn't assume Superfund "arranger" liability by selling a useful but hazardous chemical with the intent that it be used-not disposed of-by a dry cleaning business that discharged the contaminant into ground water, the U.S. Court of Appeals for the Fifth Circuit ruled Jan. 14 (Vine Street, LLC v. Borg Warner Corp., 2015 BL 8885, 5th Cir., No. 07-40440, 1/14/15). Lead counsel for Borg Warner said the decision should assist litigators in identifying the strengths and pitfalls in their cases. "The Supreme Court clarified that a business transaction only gives rise to arranger liability if the transaction is specifically intended to dispose of a hazardous substance, but some lower courts have been reluctant to fully embrace the intent requirement," Marie Fiala, of Sidley Austin's San Francisco office, told Bloomberg BNA in an e-mail Jan. 15.