Burlington Northern & Santa Fe Ry. Co. v. United States — Quick Summary

Burlington Northern & Santa Fe Ry. Co. v. United States

556 U.S. 599 (2009)

In Brief

The case of Burlington Northern & Santa Fe Ry. Co.

Key Issue

Is Shell Oil Company liable under CERCLA for arranger liability, and are the railroads jointly and severally liable for the cleanup costs at the site?

The Rule

Under CERCLA, parties can be held liable for cleanup costs as an arranger only if they intended for disposal of hazardous substances to occur, and joint and several liability applies unless a reasonable basis for apportionment exists.

Bottom Line

The Supreme Court held that Shell was not liable as an arranger under CERCLA because it did not intend for chemicals to be disposed of through spills during the normal course of business. Furthermore, the Court found sufficient evidence to support apportionment of liability between the railroads, which were thus not jointly and severally liable for all cleanup costs.

Why It Matters

This case is significant because it clarifies the standards for determining arranger liability under CERCLA and sets precedent for apportioning liability. It limits arranger liability to situations where there is intent to dispose, thus protecting certain industries from extensive liability. This distinction is critical for businesses involved in the production and distribution of hazardous materials, ensuring they are not held responsible for unintended environmental contamination without clear intent.

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