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United States v. Bestfoods

United States Supreme Court

524 U.S. 51 (1998)

Relevant factsFree

Ott Chemical, a wholly-owned subsidiary of CPC International (later Bestfoods) (defendant), polluted a Michigan manufacturing site, and after Ott dissolved, the EPA (plaintiff) sought CERCLA contribution from CPC based on shared directors/officers and CPC's general control over Ott's business, plus the direct environmental-management role of CPC employee Williams (who worked only for CPC, not Ott) at the site; the district court found CPC directly liable based on its degree of control, but the court of appeals reversed, requiring either veil-piercing or a joint venture, and the government appealed.

IssueFree

Whether a parent corporation may be held liable under CERCLA if its agents exercised significant control over a subsidiary's facility.

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