In Brief

Vol. 43 No. 4

Theodore L. Garrett is a partner at Covington & Burling in Washington, D.C. He is a former chair of the Section and is a contributing editor of Trends.


A district court dismissed a bank’s strict liability and negligent misrepresentation claims against companies that prepared and implemented an environmental remediation plan for property in which the bank holds an interest. Bankcorpsouth Bank v. Environmental Operations, Inc., No. 4:11CV9, 2011 WL 4815389 (E.D. Mo. Oct. 11, 2011). The companies cannot be held strictly liable as sellers of a product, namely an engineered containment cell, because the cell was incident to the services provided by defendants, the court held. However the court denied the companies’ motion to dismiss the bank’s Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) claims, holding that the complaint alleges that defendants engaged in unearthing, spilling, and releasing of contaminants and sufficiently alleges control to state an operator, generator, or arranger claim.

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