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ARTICLE · 13 DECEMBER 2001

Former Owner Environmental Liability for Passive Waste Migration

United StatesReal Estate and Construction
Donald Clary
Donald Clary

Co-Written By Ms Toby Mallen

"Something is rotten in the state of Denmark." Hamlet, Act I, Scene 4

In a ruling that should be of great interest to the owners of retail centers upon which environmental contamination has been discovered,  the 9th Circuit Court of Appeal has held that former property owners may be liable for the “passive” migration of waste occurring while they owned a property, even if the waste was placed on the property prior to their ownership.  The 9th Circuit’s ruling in Carson Harbor Village Ltd.  v. Unocal Corp. 227 F.3d 1196 (9th Cir.  2000), aligns the court with the 4th Circuit, which also has adopted a position that passive migration can lead to liability for previous land owners, and against the 2nd, 3rd, and 6th Circuits, which have indicated that passive migration of materials will not be a sufficient basis for liability.

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