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Keywords

defendantdamagesattorneyliabilitytrialcorporationenvironmental lawstrict liabilitycommon law

liabilitycorporationstrict liabilitydumping

Related Cases

State, Dept. of Environmental Protection v. Ventron Corp., 94 N.J. 473, 468 A.2d 150, 19 ERC 1505, 13 Envtl. L. Rep. 20,837

Facts

The case arose from mercury pollution in Berry's Creek, linked to the operations of several corporations, including Velsicol Chemical Corporation and its subsidiary Wood Ridge Chemical Corporation, which processed mercury for nearly fifty years. The New Jersey Department of Environmental Protection (DEP) filed a complaint against these corporations and others for violating environmental laws and creating a public nuisance. The trial court found that the land was heavily contaminated with mercury, leading to severe ecological damage, and determined the liability of the corporations for cleanup costs.

From 1929 to 1960, first as lessee and then as owner of the entire forty-acre tract, Berk operated a mercury processing plant, dumping untreated waste material and allowing mercury-laden effluent to drain on the tract.

Issue

The main legal issues included whether the corporations were liable for the pollution under common law principles and the Spill Compensation and Control Act, and whether the Spill Act could be applied retroactively to their actions.

We granted certification to consider the retroactive application of the Spill Act, the liability of Velsicol for the removal of mercury pollution in Berry's Creek, and the liability, including costs and counsel fees, of Ventron to the Wolfs for fraudulent non-disclosure.

Rule

The court applied common law principles of nuisance and strict liability for abnormally dangerous activities, as well as the provisions of the Spill Compensation and Control Act, which imposes liability on those responsible for hazardous substance discharges.

In a 1979 amendment to the Spill Act, the Legislature imposed strict liability on any person 'who has discharged a hazardous substance or is in any way responsible for any hazardous substance' removed by DEP.

Analysis

The court found that the corporations' activities constituted an abnormally dangerous use of land, justifying strict liability for the resulting damages. It determined that the defendants had intentionally allowed mercury-laden effluent to escape into the environment, violating both common law and statutory provisions. The court also recognized the retroactive application of the Spill Act due to legislative amendments, holding the corporations accountable for the cleanup costs.

The lower courts found that each of those hazards was present as a result of the contamination of the entire tract.

Conclusion

The New Jersey Supreme Court modified and affirmed the Appellate Division's judgment, holding the corporations liable for the mercury pollution and remanding the case for further proceedings regarding attorney fees for the affected property purchasers.

We modify and affirm the judgment of the Appellate Division.

Who won?

The State of New Jersey, Department of Environmental Protection prevailed in the case, as the court held the corporations liable for the pollution and ordered them to bear the costs of cleanup.

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