Human Resource Selection 9th Edition by Marianne Jennings

Exercise 4

Philip Carey Company owned a tract of land in Plymouth Township, Pennsylvania, on which it deposited a large pile of manufacturing waste containing asbestos. Carey sold the land to Celotex, and Celotex sold the land to Smith Land Improvement Corporation. The EPA notified Smith in July 1984 that unless Smith took steps to eliminate the asbestos hazard, the EPA would do the work and pursue reimbursement. Smith proceeded with the cleanup to the EPA's satisfaction at a total cost of $218,945.44. Smith then turned to Celotex and Carey, as previous owners of the property, for reimbursement. These firms say they have no liability under CERCLA. Which firms are liable? [ Smith Land Improvement Corp. v Celotex, 851 F.2d 86 (3rd Cir. 1988)]