No Knowledge Needed: Fourth Circuit Holds There Is No Scienter Requirement for CERCLA Arranger Liability
Authors
- On June 25, the Fourth Circuit held that CERCLA arranger liability applies even when the arranger did not know the waste was hazardous
- This ruling of first impression by a court of appeals could significantly expand the scope of CERCLA arranger liability
- Businesses involved with the transport of materials to potential CERCLA sites should carefully review their practices to ensure they know what they are sending off site
In a notable decision that could have far-reaching implications for Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) liability, the U.S. Court of Appeals for the Fourth Circuit in 68th Street Site Work Group v. Alban Tractor Co., Inc. revived claims against six companies that allegedly arranged for the disposal of hazardous waste in the 68th Street dumpsite in Baltimore. Reversing the decision of the U.S. District Court for the District of Maryland, the Fourth Circuit held entities can be held liable under CERCLA for the arrangement for disposal of hazardous waste, even if they were unaware that the waste was hazardous at the time of transport.
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