Holex Company purchased a property in Hollister, California, in 1957. From 1957 through 1980, Holex manufactured and tested military munitions under contract with the U.S. government. Whitaker purchased the property in 1980 and continued the government munitions contract work through 1994.

The California Department of Health Services found that there were elevated levels of TCE in the groundwater beneath the site. Remediation efforts were undertaken, and the parties dispute who is liable for the costs of the remediation of the property. Whittaker purchased a Pollution Legal Liability policy from Chartis Specialty Insurance, and the munitions site is listed as covered under the policy.

The parties and Chartis argue that those who operated the munitions site were doing so under specific direction and specification of the U.S. government. They argue that the U.S. government has liability as a responsible party under CERCLA. Explain the requirements for imposing CERCLA liability and discuss whether the U.S. government can be held to be a responsible party. [Chartis Specialty Insurance Company v. U.S., 2013 WL 3803334 (N.D. Cal. 2013)]