Atlantic Richfield Co. v. California Regional Water Quality etc.Annotate this Case
In this case's previous trip to the Court of Appeal, the Court reversed the trial court’s judgment overturning a cleanup order issued by the California Regional Water Quality Control Board, Central Valley Region (Regional Board). The cleanup order directed Atlantic Richfield Company (ARCO) to remediate hazardous waste associated with an abandoned mine in Plumas County. The mine was owned by the Walker Mining Company, a subsidiary of ARCO’s predecessors in interest, International Smelting and Refining Company and Anaconda Copper Mining Company (International/Anaconda). The Court of Appeal held the trial court improperly applied the test articulated in United States v. Bestfoods, 524 U.S. 51 (1998) for determining whether a parent company is directly liable for pollution as an operator of a polluting facility owned by a subsidiary. On remand, the trial court entered judgment in favor of the Regional Board, concluding “[t]he record supported a determination of eccentric control of mining ‘operations specifically related to pollution, that is, operations having to do with the leakage or disposal of hazardous waste.’ ” ARCO appealed, contending: (1) the trial court improperly applied Bestfoods to the facts of this case, resulting in a finding of liability that was unsupported by substantial evidence; (2) the Regional Board abused its discretion by failing to exclude certain expert testimony as speculative; (3) the Regional Board’s actual financial bias in this matter required invalidation of the cleanup order for violation of due process; and (4) the cleanup order erroneously imposed joint and several liability on ARCO. Finding no reversible error to this order, the Court of Appeal affirmed the trial court.