1st Circ. Sticks Orix With Testing Costs, Atty Fees

Law360, New York (November 12, 2013, 10:00 PM EST) -- The First Circuit on Tuesday partially reversed the decision of a Massachusetts state court awarding Orix Capital Markets the environmental testing costs on a foreclosed property, finding no chemical liability that violates the property's environmental indemnity agreement.

Cadlerocks Centennial Drive LLC defaulted on nearly $1.5 million in 2010, prompting Orix, a trustee for lender Salomon Brothers, to begin foreclosure proceedings. After discovering trace levels of the carcinogen ethylene perchlorate on the property and detecting a payment from Cadlerocks' business account to his personal one, Orix sued,...
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