The court of appeals affirmed a judgment of the district court. The court held that a company selling a product that uses and/or generates a hazardous substance as part of its operation may not be held liable as an arranger under CERCLA absent proof that the company entered into the relevant transaction with the specific purpose of disposing of a hazardous substance.
Team Enterprises, LLC operated a dry cleaning store in a shopping center in Modesto. From 1980 to 2004, Team used perchlorethylene (PCE), a volatile organic compound defined as a “hazardous substance” by the State of California, it is dry cleaning operation. Team’s cleaning machines used PCE as part of the cleaning process, thereby generating wastewater containing the chemical.
