Under the nation's contaminated property cleanup law (CERCLA), potentially response parties (PRPs) are identified as those who will pay for cleanup. However, there are exceptions:
A "good in commerce" refers to a hazardous material that is being shipped and sold. Once the hazardous material is accepted, the shipper has no liability for it under CERCLA. For example, a paint company ships paint to a local paint store. Oil based paint is toxic. When the store accepts the paint, the shipper has no future liability. The paint was never a toxic waste.
A "bona fide purchaser" refers to someone who buys property and takes all appropriate steps beforehand to ensure that no toxic contamination is on the property. In that situation, the purchaser has no CERCLA liability if toxic waste is found on the property at a later time. At a minimum, a Phase I examination (records review and site tour) must be taken to qualify for this exemption from liability. As a mentioned in class, in practice, the "bona fide purchaser" is almost useless because modern techniques to check for contamination are pretty good. In addition, the "purchaser" may be off the hook on liability, but the contamination will prevent sale or use of the property.
A "good in commerce" refers to a hazardous material that is being shipped and sold. Once the hazardous material is accepted, the shipper has no liability for it under CERCLA. For example, a paint company ships paint to a local paint store. Oil based paint is toxic. When the store accepts the paint, the shipper has no future liability. The paint was never a toxic waste.
A "bona fide purchaser" refers to someone who buys property and takes all appropriate steps beforehand to ensure that no toxic contamination is on the property. In that situation, the purchaser has no CERCLA liability if toxic waste is found on the property at a later time. At a minimum, a Phase I examination (records review and site tour) must be taken to qualify for this exemption from liability. As a mentioned in class, in practice, the "bona fide purchaser" is almost useless because modern techniques to check for contamination are pretty good. In addition, the "purchaser" may be off the hook on liability, but the contamination will prevent sale or use of the property.