Question
In: Finance
Ace Property Company is a subsidiary of Beta Investments, Inc. Ace operates a hazardous waste disposal...
Ace Property Company is a subsidiary of Beta Investments, Inc. Ace operates a hazardous waste disposal site. ChemiCo is one of many parties who generate waste disposed of at the site. Ace borrows money from Delta Bank, which takes over the site when Ace goes bankrupt. The bank sells the site to Eagle Company. The Environmental Protection Agency discovers a leak at the site. Can any of these private parties be forced to pay for the cleanup? If so, who?
Solutions
Expert Solution
Yes, any of these private parties can be forced to pay for the clean-up.
This is because the CERCLA (Comprehensive Environmental Response, Compensation and Liability Act) will become applicable in this case. As per the provisions of CERCLA the potential responsible parties who can be asked to bear such costs will include persons or entities that generated wastes that has been disposed at the site. It will also include persons or entities that owned or operated the site at the time of the disposal.
Thus as per the provisions of CERCLA Beta (parent company of Ace) may be held liable. Delta Bank and other lenders can also be held liable.
jeff jeffy answered 2 years agoRelated Solutions
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Required rate of return
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31
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