Implications of CERCLA in Corporate Reorganizations, The

Abstract

INTRODUCTION|During the past few years there have been corporate mergers and acquisitions of previously unseen proportions. Along with these reorganizations come questions of successor liability. These liabilities often become apparent to the parties during negotiations. That norm, however, has been altered as a result of the enactment of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (the "CERCLA"). The CERCLA subjects owners and operators of hazardous waste sites to liability for clean-up costs. A purchaser must now consider environmental waste problems from the outset in order to avoid liability under CERCLA. In view of the potential costs imposed by CERCLA, this Comment first addresses corporate successor liability in general, and then discusses relevant CERCLA provisions. Next, corporate successor liability is examined with respect to the environmental issues posed by CERCLA. Finally, this Comment presents practical ways to deal with environmental liabilities in corporate mergers and acquisitions...