3550 STEVENS CREEK ASSOC. v. BARCLAYS BANK OF CALIFORNIA Case Brief

United States Court of Appeals, Ninth Circuit1990
915 F.2d 1355

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Case Brief Summary & Legal Analysis

4 min read

tl;dr: A property owner sued a prior owner under CERCLA to recover costs for removing asbestos installed during construction. The court held that installing asbestos as a building material is not “disposal” of a hazardous substance, precluding a private cost recovery action.

Legal Significance: This case established that CERCLA’s private cost recovery provision does not apply to the removal of asbestos-containing materials that are part of a building’s structure, as the initial installation for a productive use does not constitute “disposal” of a hazardous substance under the statute.

3550 STEVENS CREEK ASSOC. v. BARCLAYS BANK OF CALIFORNIA Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

In 1963, a predecessor to Barclays Bank of California (Barclays) constructed a commercial building using asbestos insulation and fire retardants. Barclays later acquired the property and, in 1984, sold it to 3550 Stevens Creek Associates (Stevens Creek). During a subsequent remodel, Stevens Creek incurred over $100,000 in costs for the voluntary removal of the asbestos-containing materials. Stevens Creek then filed suit against Barclays, seeking to recover these cleanup costs under § 107(a)(2)(B) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Stevens Creek’s theory of liability was that Barclays was a person who owned the facility “at the time of disposal” of a hazardous substance, namely the asbestos installed during the building’s construction. The district court granted Barclays’ motion for judgment on the pleadings, holding that CERCLA provided no authority for such relief. Stevens Creek appealed to the Ninth Circuit.

Court Holding & Legal Precedent

Issue: Does the installation of asbestos-containing materials as part of a building’s construction constitute “disposal” of a hazardous substance under CERCLA, thereby allowing a subsequent owner to bring a private cost recovery action under § 107(a) against the owner at the time of installation?

No. The court affirmed the judgment for the defendant bank. The installation Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dol

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Legal Issue

Does the installation of asbestos-containing materials as part of a building’s construction constitute “disposal” of a hazardous substance under CERCLA, thereby allowing a subsequent owner to bring a private cost recovery action under § 107(a) against the owner at the time of installation?

Conclusion

This decision significantly narrowed the scope of CERCLA liability by distinguishing between Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fu

Legal Rule

A private party cannot recover costs under CERCLA § 107(a)(2) for the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariat

Legal Analysis

The court's analysis centered on the statutory definition of "disposal." To establish Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. U

Flash-to-Full Case Opinions

Flash Summary

  • A private party cannot recover costs under CERCLA for the voluntary
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolor

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