A company cannot be held liable for pollution committed decades ago by a business it recently purchased, the 2nd Circuit has ruled. National Service Industries purchased a dry cleaning company that had previously placed hazardous substances in a landfill. The New York attorney general's office argued that there had been a de facto merger, and that National was responsible for reimbursing the state for the $12 million cleanup. The circuit disagreed, finding no continuity of ownership between the companies.
August 10, 2006 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
A company cannot be held liable for pollution committed decades ago by a business that it recently purchased, a federal appeals court has ruled.
The 2nd U.S. Circuit Court of Appeals, in State of New York v. National Service Industries Inc., 05-4706-cv, rejected a request by Attorney General Eliot Spitzer’s office to make Georgia-based National Service Industries reimburse the state for the $12 million it spent cleaning up a Long Island landfill.
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