National Real Estate Exam (PSI)Property DisclosuresHard
A property being sold once had a leaking underground storage tank (UST) that contaminated the soil, though it was removed and remediated 15 years ago by a prior owner. Under CERCLA principles, who can potentially be held liable for cleanup costs today?
- APotentially any current or past owner/operator in the chain of title, due to CERCLA's strict, joint, and several liability standard
- BNo one, since the remediation was already completed 15 years ago
- COnly the current property owner, regardless of who caused the contamination
- DOnly the party who originally caused the contamination
Show answer & explanationAnswer & explanation
Correct answer: A. Potentially any current or past owner/operator in the chain of title, due to CERCLA's strict, joint, and several liability standard
CERCLA (the federal Superfund law) imposes strict, joint, and several liability on current owners, past owners/operators at the time of contamination, and other responsible parties, regardless of fault, making even an innocent current owner potentially liable for cleanup costs.
Why the other options are wrong
- B. Past remediation doesn't necessarily eliminate liability if contamination resurfaces or was incomplete.
- C. Liability can also reach past owners/operators, not just the current owner.
- D. CERCLA liability is not limited to the party who caused contamination.
CERCLA Strict Liability
The Comprehensive Environmental Response, Compensation, and Liability Act imposes strict, joint, and several liability on responsible parties for hazardous contamination, regardless of fault.
- Applies to current owners, past owners/operators, and others
- 'Innocent landowner' defense requires due diligence (environmental site assessment)
- Also called Superfund law
Memory trick: Superfund spreads the blame — everyone in the chain can share it.