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Environmental Law

In a state noted for its strict and pace-setting environmental laws, Riker Danzig’s Environmental Law Group is among...

Third Circuit Establishes Liability Test for Officers/Shareholders of Hazardous Waste Transporters

October 30, 2016

In a case of first impression, the U.S. Court of Appeals for the Third Circuit established the test for determining when officers or shareholders of transporters of hazardous waste are liable under the federal Superfund law. Looking to traditional principles of corporate liability, the court in United States v. Hughes, Hubbard & Reed, stated that in order to impose Superfund liability there must be a showing that (1) the officer or shareholder of the transporter was actually aware that hazardous materials were being accepted by the company for transport and (2) that the transporter substantially participated in the selection of the disposal facility. The Third Circuit has, in effect, created a different standard of Superfund liability for officers and shareholders of corporations involved in transporting hazardous waste, as opposed to corporations generating or accepting hazardous waste for disposal. This adds to the numerous anomalies in the Superfund law that are fueling the reform effort in Washington.

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