In Team Enterprises, LLC v. Western Investment Real Estate Trust, et al (2011 WL 3075759 (C.A.9 (Cal.))), Team Enterprises, LLC (“Team,” a dry cleaner) pursued R.R. Street and Co. (“Street,” the manufacturer of a PCE filter & still) in an attempt to get CERCLA contribution for cleanup costs as an arranger and disposer of hazardous waste (used PCE). The original action was brought in the eastern district of California where Judge O’Neill granted Street’s motion for summary judgment, finding that Street’s manufacture and sale of the useful dry-cleaning equipment did not rise to the level of arranging for the disposal of the hazardous waste and that Street’s facilitation of PCE delivery to Team did not make Street responsible for its ultimate disposal.
Following Judge O’Neill’s summary Judgment, Team appealed on several similar grounds, asserting that Street “took intentional steps” and “planned a disposal” of PCE, neither of which Circuit Judge O’Scannlain accepted, again referencing the useful product doctrine (the sale of useful products for legitimate business purposes is not the same as selling or arrange the transfer of hazardous waste, which no longer has a useful purpose and is likely done to avoid liability for disposing of hazardous waste). Judge O’Scannlain’s example clarifies the issue, “It would be odd, for example, to say that an auto parts store sells motor oil to car owners for the purpose of disposing of hazardous waste.” Without Team’s proving that Street’s sale of the Rescue 800 distiller was intended to result in Team’s disposal of the PCE, no liability could be attached under CERCLA. Continue reading “Ninth Circuit Upholds Manufacturer CERCLA Useful Product Defense”