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Business Associations Keyed to LoPucki, 2nd 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 purchase Ott I’s assets. The new company, Ott II, continued chemical manufacturing and pollution at the site. CPC placed several of its own officials on Ott II’s board and in management positions. 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 extensive environmental damage at the site. Aerojet-General Corp. eventually purchased the property through subsidiaries and continued operations until 1986. By 1981, the EPA had begun cleanup efforts costing tens of millions of dollars. In 1989, the United States sued CPC, Aerojet, and others under CERCLA to recover cleanup costs. The government argued that CPC was liable as an “operator” because it actively participated in and controlled Ott II’s operations, particularly through G.R.D. Williams, CPC’s environmental affairs director who became heavily involved in environmental issues at Ott II.
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