U.S. Supreme Court Limits Extent of “Arranger” Liability and Upholds Apportionment of Liability Under CERCLA

On May 4, the U.S. Supreme Court issued its decision in Burlington Northern & Santa Fe Railway Co. v. United States, a closely watched case involving fundamental issues of “arranger” liability and apportioning costs for cleanups under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The Court held that under the plain language of CERCLA, an entity can be liable as an “arranger” only when it takes “intentional steps” to dispose of hazardous substances. Thus, a seller’s knowledge alone that some of its sold product may be leaked or spilled is not enough to impose arranger liability. The Court also held that apportionment of CERCLA liability at multiparty sites is proper when there is a “reasonable basis” for determining the contribution of each party.

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