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Business Assoctiations Keyed to Gabalson, 3rd Ed.
United States v. Bestfoods
Citation:
524 U.S. 51 (1998)Facts
In 1957, Ott Chemical Co. (Ott I) began manufacturing chemicals at a plant near Muskegon, Michigan, causing significant pollution. In 1965, CPC International Inc. (now Bestfoods) incorporated a wholly owned subsidiary to buy Ott I’s assets. This new company, Ott II, continued chemical manufacturing and pollution at the site. CPC kept Ott I’s managers as officers of Ott II, and several Ott II officers also held positions at CPC. In 1972, CPC sold Ott II to Story Chemical Company, which operated the plant until its bankruptcy in 1977. The Michigan Department of Natural Resources found severe environmental contamination at the site. Aerojet-General Corp. eventually purchased the property through subsidiaries. By 1981, the EPA had undertaken cleanup efforts costing tens of millions of dollars. The United States filed suit under CERCLA in 1989 against CPC and others to recover these costs, arguing that CPC was liable as an operator of the facility during Ott II’s ownership.
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