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Corporations Keyed to O’Kelley
United States v. Bestfoods
Citation:
524 U.S. 51 (1998)Facts
In 1980, the Comprehensive Environmental Response, Compensation, and Liability Act was enacted in response to the serious environmental and health risks posed by industrial pollution. If it satisfies certain statutory conditions, the United States may, for instance, use the hazardous substance superfund to finance cleanup efforts which it may then replenish by suits. In 1957, Ott Chemical Co. (Ott I) began manufacturing chemicals at a plant near Muskegon, Michigan, and its intentional and unintentional dumping of hazardous substances significantly polluted the soil and ground water at the site. In 1965, respondent CPC International, Inc. incorporated a wholly owned subsidiary to buy Ott I’s assets in exchange for CPC stock. The new company, also dubbed Ott Chemicla Co. (Ott II), continued chemical manufacturing at the site, and continued to pollute its surroundings. CPC kept the managers of Ott I,, including its founder, president, and principal shareholder, Arnold Ott, on board as officers of Ott II. Arnold Ott and several other Ott II officers and directors were also given positions at CPC to Story Chemical Company, which operated the Muskegon plant. By 1981, the federal Environmental Protection Agency had undertaken to see the site cleaned up. The court focuses on the issues of whether CPC and Aerojet, as the parent corporations of Ott II and the Cordova companies, had owned or operated the facility.
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Topic Resources
Topic Outline
Corporate Liability