In recent years, the scope of environmental liability has broadened considerably. Cleanup costs are no longer solely the concern of those directly engaged in the generation and disposal of hazardous wastes. Federal and state environmental statutes now create potential liability for parties to a variety of seemingly innocent transactions. Purchasers of contaminated property may be required to pay for hazardous waste cleanup. Corporate entities may also face environmental liability through mergers, consolidations and asset acquisitions. In addition, lenders may risk liability or impairment of collateral when contaminated property is used to secure a loan.
Timothy G. Hayes & William J. Dinkin,
Environmental Liability in Real Property Transactions,
U. Rich. L. Rev.
Available at: http://scholarship.richmond.edu/lawreview/vol23/iss3/3