Question:
Seindenberg and Hutchinson (the site owners) leased a fouracre tract of land (the Bluff Road site) to a chemical manufacturing
corporation (COCC). While the lease initially was for the sole purpose of allowing COCC to store raw materials and finished products in a warehouse on the land, COCC later expanded its business to include the brokering and recycling of chemical waste generated by third parties. COCC’s owners subsequently formed a new
corporation, South Carolina Recycling and Disposal, Inc. (SCRDI), for the purpose of taking over COCC’s waste-handling business. The site owners accepted rent from SCRDI. The waste stored at Bluff Road contained many chemical substances that Federal law defines as hazardous. Subsequently, the Environmental Protection Agency concluded that the site was a major fire hazard. The Federal government contracted with a third party to perform a partial cleanup of the site. South Carolina completed the cleanup. The Federal government and South Carolina sued SCRDI,COCC, the site owners, and three third-party generators as responsible parties under the Resource Conservation and Recovery Act and Comprehensive Environmental Response, Compensation, and Liability Act. Explain whether the United States and South Carolina will prevail.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...