Federal Court Ruling Could Raise The Bar For Proving Causation Under CERCLA

Without widespread alarm, the United States District Court for the Central District of California rejected a plaintiff's claim this past October for reimbursement of millions of dollars in the CERCLA cost-recovery case, California Department of Toxic Substances Control v. NL Industries, Inc., ___ F. Supp. 3d ___, No 2:20-CV-11293-SVW-JPR, 2022 WL 14769903 (C.D. Cal. Oct. 20, 2022). The implications of this decision, however, could echo loudly in future CERCLA cost-recovery actions, as the decision defines a new standard for establishing the causation prong in such an action.

Background

In NL Industries, the remediation costs stem from lead contamination from a former Exide plant near Los Angeles, where lead-acid batteries were recycled for more than 100 years. The cleanup area extends 1.7 miles around the plant. The immediate 0.5-mile radius is an industrial area, while the remaining cleanup area is residential. The California Department of Toxic