Recent EPA Ruling May Increase Brownfield Financing

Under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), commonly known as “Superfund,” strict, joint, and several liability for past contamination is imposed on all parties within the “chain of title” from the onset of contamination.” For instance, in Interfaith Community Organization v. Honeywell International, Inc., Honeywell, a recent successor of a brownfield site, was held liable under CERCLA for damages resulting from the prior owners’ contamination that affected surrounding property owners. Moreover, in United States v. Fleet Factors Corp., the Eleventh Circuit held that a “secured creditor may incur CER- CLA liability... by participating in the financial management of a facility ... indicating a capacity to influence the treatment of hazardous waste.