Fourth Circuit Unanimously Declines To Rehear Ruling Upholding Strict Liability For Arrangers Under CERCLA

On July 23, the U.S. Court of Appeals for the Fourth Circuit denied a petition for rehearing in 68th Street Site Work Group v. Alban Tractor Co., Inc., et al., 4th Cir., No. 23-01155, declining the opportunity to potentially narrow "arranger liability" under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA).

Background: District Court's Dismissal Decision and Fourth Circuit's Reversal

The denial of rehearing comes about a month after a three-judge panel reversed two district court rulings dismissing claims against arranger defendants in 2022. The district court held that arranger liability under CERCLA required scienter, i.e., that the defendant intentionally arranged for the disposal of material knowing the material contained hazardous substances. Finding no allegation of scienter in the complaint, and not allowing the plaintiffs to amend their complaint, the district court dismissed the claims against the arranger defendants.