Wednesday, September 16, 2009

3. Decision of the court: Burlington N. & S. F. R. Co. v. United States

On May 4, 2009, the United States Supreme Court issued its first "apportionment" opinion under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). In reversing the Ninth Circuit, the Supreme Court, in an 8-to-1 decision, held in Burlington Northern & Santa Fe Railway Co. v. United States that a potentially responsible party will not be jointly and severally liable under CERCLA if there is a reasonable basis upon which a court can apportion its share of liability. http://www.buchananingersoll.com/media/pnc/1/media.2331.pdf. Four cases in total were used as previous precedent, as the final eight to one decision was finally reached.
In 1980, Congress enacted the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 94 Stat. 2767, as amended, 42 U. S. C. §§9601–9675, in response to the serious environmental and health risks posed by industrial pollution. See United States v. Bestfoods, 524 U. S. 51, 55 (1998). The Act was designed to promote the "‘timely cleanup of hazardous waste sites’" and to ensure that the costs of such cleanup efforts were borne by those responsible for the contamination. Consolidated Edison Co. of N. Y. v. UGI Util., Inc., 423 F. 3d 90, 94 (CA2 2005); see also Meghrig v. KFC Western, Inc., 516 U. S. 479, 483 (1996); Dedham Water Co. v. Cumberland Farms Dairy, Inc., 805 F. 2d 1074, 1081 (CA1 1986). These cases raise the questions whether and to what extent a party associated with a contaminated site may be held responsible for the full costs of remediation. http://www.supremecourtus.gov/opinions/08pdf/07-1601.pdf. The Justices had come to the conclusion the the lower courts had incorrectly calculated the total area in which Shell Oil Corp. was responsible for clean-up, and readjusted the total liability owed by Shell.

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