Asbestos left in place doesn not trigger CERCLA or RCRA liability
Good news for any business (or individual for that matter) that has sold a property containing asbestos wrapped piping or boilers. In Sycamore Industrial Park Associates v. Ericsson, Inc. the Seventh Circuit has ruled that there is no CERCLA or RCRA liability where the seller simply left the insulated equipment in place. The appellate court affirmed summary judgment in the seller’s favor.
The seller left an old heating system in place when it sold the property to one of its employees. The seller was no longer using the facility and the buyer wanted to use it as an industrial park. The old unused asbestos insulated heating system was left in place. Nineteen years later, asbestos was discovered in the old system. The buyer sued the seller to compel removal of the asbestos. It claimed that leaving the material there was a violation of CERCLA and RCRA. However, the court ruled that the sale of the property was not “disposal” of the asbestos. The court did describe some circumstances in which this might not apply – such as a facility owner who wants to get rid of a toxic retaining pond and sells a facility to an unsuspecting purchaser.
