Someone who buys contaminated real estate can sometimes avoid liability under the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund), 42 U.S.C. Sections 9601-75, if that purchaser conducts “all appropriate inquiry” before the purchase. If the inquiry does not uncover a reason to believe that the site is contaminated, then the purchaser may be “innocent.” See 42 U.S.C. Section 9601(35). If the inquiry does uncover contamination and the purchaser takes certain other steps, the buyer may be a “bona fide prospective purchaser.” See Section 9601(40). A “Phase I environmental site assessment” is the colloquial term for the inquiry that constitutes “all appropriate inquiry.” A similar defense exists under the Pennsylvania Hazardous Sites Cleanup Act, 35 Pa. Stat. Ann. Section 6020.701(b).
LINKS
Read “Does a Negligent Phase I Result in Loss of the CERCLA Innocent Purchaser Defense?” authored by David G. Mandelbaum on The Legal Intelligencer website. (subscription)
Click the media link below to download the PDF.
*The opinions expressed in this column are those of the author and do not necessarily reflect the views of Greenberg Traurig or its clients.