A Minor Setback In Recovering CERCLA Costs

Law360, New York (May 4, 2012, 1:46 PM EDT) -- Government contractors are increasingly looking to their long-expired government contracts to recover today’s Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) liabilities from the U.S. government.

On March 7, 2012, however, the U.S. Court of Appeals for the Federal Circuit in Shell Oil Co. v. United States, Case No. 2010-5161 (Fed. Cir. 2012) upended an important $69 million trial court ruling in favor of government contractors for reasons best described as a significant, though perhaps temporary, setback.

The Federal Circuit concluded that, notwithstanding six years of...
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