Pennsylvania Department of Environmental Protection v. Trainer Custom Chemical LLC, No. 17-2607 (3d Cir. 2018)Annotate this Case
In 2007, the Site, in Trainer Borough, was owned by SCT, and used for making corrosion inhibitors, fuel additives, and oil additives. SCT kept flammable, corrosive, and combustible chemicals. Pennsylvania’s Department of Environmental Protection (PADEP) determined that “there is a release or threat of release of hazardous substances or contaminants, which presents a substantial danger to human health or the environment. The federal EPA initiated removal actions. SCT could not afford the cleanup expenses, including electricity to power pollution control and security equipment, The power company was going to shut off the Site's electricity, so PADEP assumed responsibility for the bills. Delaware County forced a tax sale. Buyers purchased the Site for $20,000; the purchase agreement stated that the Site had ongoing environmental issues and remediation. Trainer Custom Chemical took title in October 2012. The EPA and PADEP completed their removal actions in December 2012. PADEP had incurred more than $818,000 in costs. The buyers had demolished many of the Site’s structures; reclaimed salvageable materials were sold for $875,000. In 2014, PADEP received reports indicating that hazards still existed at the Site; its buildings had asbestos-containing materials. PADEP sued under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9601-28, and Pennsylvania’s Hazardous Sites Cleanup Act (HSCA), to recover cleanup costs. The Third Circuit held that the Buyer is liable for environmental cleanup costs incurred at the Site both before and after the Buyer acquired it.