United States v. Bestfoods
United States v. Bestfoods | |
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Court membership | |
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Case opinion | |
Majority | Souter, joined by unanimous |
Laws applied | |
CERCLA |
United States v. Bestfoods, 524 U.S. 51 (1998), is a
Facts
A chemical manufacturing plant developed a significant
The question before the court, was whether a parent corporation that exercised control over the operations of a subsidiary be held liable under CERCLA Section 107(a)(2)?
Decision of the Court
Justice Souter delivered the unanimous decision in favor of the United States. The Court found the CERCLA statute definition of "owner or operator" as "any person owning or operating such facility" to be a circular definition in need of clarity. To determine whether Congress intended to include parent corporations when imposing liability on an owner or operator, the Court examined the legislative history of CERCLA, but due to the Act's hurried enactment, there was not much history to interpret.[1] The Court concluded that Congress did not intend CERCLA to displace all of the established principles of corporate law, including the principle that a parent corporation is not usually liable for the acts of its subsidiary, but a corporate parent that actively participated in and exercised control over the operations of the facility may be held directly liable in its own right as an 'operator' of the facility.[2][3] The Court held that the corporate law principles read into the statute meant that liability will be attached under CERCLA for a parent corporation when the corporate veil can be pierced and when the parent actually participated in the operations of the facility where the release of hazardous substances was made.[4]
See also
- United States corporate law
- Unilever, which acquired the Bestfoods Corporation in 2000
- List of United States Supreme Court cases, volume 524
Notes
- ^ "The Impact of United States v. Bestfoods on "Owner or Operator" Liability Under CERCLA". Retrieved November 11, 2021.
- ^ "United States v. Bestfoods - 524 U.S. 51 (1998)". The Oyez Project: Chicago-Kent College of Law. Retrieved October 10, 2013.
- ^ "United States v. Bestfoods - 524 U.S. 51 (1998)". Justia. Retrieved October 10, 2013.
- ^ "United States v. Bestfoods: Decree on Parent Corporation Liability for Illegal Discharges Made by Subsidiaries Under the Comprehensive Environmental Response, Compensation, and Liability Act". Retrieved November 11, 2021.
External links
- Text of United States v. Bestfoods, 524 U.S. 51 (1998) is available from: Cornell CourtListener Google Scholar Justia Library of Congress Oyez (oral argument audio)