PCS Nitrogen Incorporated v. Ashley II of Charleston, LLC
United States Court of Appeals for the Fourth Circuit
714 F.3d 161 (2013)
Ashley II of Charleston (plaintiff) purchased contaminated property in Charleston, formerly used for decades of phosphate-fertilizer production, intending to remediate it as part of a mixed-use development, and later sued PCS Nitrogen (defendant) under CERCLA for cleanup cost recovery, invoking the statute's bona fide prospective purchaser exemption. The trial court found Ashley failed to meet the exemption's requirement of exercising appropriate care and taking reasonable steps regarding known contamination, since Ashley delayed filling contaminated sumps on the property even though its own trial expert testified this step should have been taken a year earlier to prevent further releases; Ashley appealed, arguing its conduct did not disqualify it from the exemption.
Whether a property purchaser that delays addressing known contamination hazards, contrary to its own expert's recommendation, satisfies CERCLA's requirement of exercising appropriate care to qualify for the bona fide prospective purchaser liability exemption.