Appeals Court Rules That Useful Product Defense May Not Apply in Lead Recycler Case

摘要

On November 28, 2007, the U.S. Court of Appeals for the Ninth Circuit reversed a district court ruling that sales of lead-containing materials to a lead recycler fall within CERCLA's useful product defense doctrine and, thus, the involved companies were not liable as arrangers for disposal or treatment of hazardous waste. (California Department of Toxic Substances Control v. Alco Pacific, Inc., No. 05-55962 [9th Cir., Nov. 28, 2007]). The appeals court found that "the totality of circumstances" must be considered when determining whether the useful product defense applies, and that, in this case, the record was not sufficient to establish that the doctrine did apply. Accordingly, the case was remanded to the district court for further proceedings.