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November 20, 2008



Party Bringing Claim Need Not Be Subject of 107 Claim

A potentially responsible party need not be the subject of a cost recovery claim under superfund Section 106 or 107 to bring a superfund contribution claim under Section 113 of the Comprehensive Environmental Response, Compensation, and Liability Act, a federal district court held Sept. 30 (Port of Tacoma v. Todd Shipyards Corp., W.D. Wash., No. 08-5132, 9/30/08).

So long as the party's contribution action stems from an underlying Section 106 or 107 claim, the party has a valid contribution claim, even if the Section 106 or 107 claim was filed against another party, the U.S. District Court for the Western District of Washington held.

On that basis, the court held that a Washington state company, Todd Shipyards Corp., could maintain a third-party contribution claim against the United States related to which of them is responsible for hazardous substances contamination that allegedly occurred near Tacoma during World Wars I and II.

The company filed its Section 113 claim against the federal government after Washington state's Port of Tacoma filed its own contribution claim against the company over the cleanup. The court held that because the Port of Tacoma's contribution claim came after the port was sued by the federal government for cleanup costs under Section 107, a Section 107 claim ultimately underlay Todd Shipyards' contribution action, and its action did not run afoul of U.S. Supreme Court and other superfund precedent.

“In Atlantic Research, the Supreme Court framed CERCLA's contribution provision as follows: '[Section 9613(f)(1)] authorizes a contribution action to PRPs with common liability stemming from an action instituted under [Section 9606 or Section 9607].'”

The government had argued that Cooper Industries Inc. v. Aviall Services Inc., 543 U.S. 157, 59 ERC 1545 (2004), United States v. Atlantic Research Corp., 127 S. Ct. 2331 (2007), and Kotrous v. Goss-Jewett Co. of Northern Cal., 523 F.3d 924 (9th Cir. 2008) all required Todd Shipyards itself to be sued for cost recovery to maintain its claim.


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