Opinion ID: 482542
Heading Depth: 2
Heading Rank: 3

Heading: Individual Liability under RCRA Sec. 7003(a), 42 U.S.C.A. Sec. 6973(a) (West Supp.1986)

Text: 86 The district court did not reach the question of individual liability under RCRA because it concluded that RCRA did not impose liability upon past non-negligent off-site generators like NEPACCO. As we discussed in Part IV, RCRA is applicable to past non-negligent off-site generators. The government argues Lee and Michaels are individually liable as contributors under RCRA Sec. 7003(a), 42 U.S.C.A. Sec. 6973(a) (West Supp.1986). We agree. 87 RCRA Sec. 7003(a), 42 U.S.C.A. Sec. 6973(a) (West Supp.1986), imposes strict liability upon any person who is contributing or who has contributed to the disposal of hazardous substances that may present an imminent and substantial endangerment to health or the environment. As defined by statute, the term person includes both individuals and corporations and does not exclude corporate officers and employees. See RCRA Sec. 1004(15), 42 U.S.C. Sec. 6903(15); cf. United States v. Johnson & Towers, Inc., 741 F.2d 662, 665-66 (3d Cir.1984) (employees could be criminally prosecuted for RCRA violations), cert. denied, 469 U.S. 1208, 105 S.Ct. 1171, 84 L.Ed.2d 321 (1985); United States v. Ward, 676 F.2d 94, 97 (4th Cir.) (chairperson of board convicted of unlawful disposal of toxic substances in violation of 15 U.S.C. Secs. 2605, 2614, and 40 C.F.R. Sec. 761.01(b)), cert. denied, 459 U.S. 835, 103 S.Ct. 79, 74 L.Ed.2d 76 (1982). As with the CERCLA definition of person, Congress could have limited the RCRA definition of person but did not do so. Compare CERCLA Sec. 101(20)(A), 42 U.S.C. Sec. 9601(20)(A) (limiting definition of owner and operator). More importantly, imposing liability upon only the corporation, but not those corporate officers and employees who actually make corporate decisions, would be inconsistent with Congress' intent to impose liability upon the persons who are involved in the handling and disposal of hazardous substances. See United States v. Price, 523 F.Supp. at 1073; see also H.R.Conf.Rep. No. 1133, 98th Cong., 2d Sess. 119, reprinted in 1984 U.S.Code Cong. & Ad.News at 5690; S.Rep. No. 172, 96th Cong., 2d Sess. 5, reprinted in 1980 U.S.Code Cong. & Ad.News 8665, 8669. 88 Our analysis of the scope of individual liability under the RCRA is similar to our analysis of the scope of individual liability under CERCLA. NEPACCO violated RCRA Sec. 7003(a), 42 U.S.C.A. Sec. 6973(a) (West Supp.1986), by contributing to the disposal of hazardous substances at the Denney farm site that presented an imminent and substantial endangerment to health and the environment. Thus, Lee and Michaels can be held individually liable if they were personally involved in or directly responsible for corporate acts in violation of RCRA. Cf. United States v. Pollution Abatement Services of Oswego, Inc., 763 F.2d at 134 (corporate officers and shareholders individually liable for company discharging refuse into creek in violation of Rivers and Harbors Appropriations Act of 1899); United States v. Johnson & Towers, Inc., 741 F.2d at 664-66 (employees criminally liable for RCRA violations). 89 We hold Lee and Michaels are individually liable as contributors under RCRA Sec. 7003(a), 42 U.S.C.A. Sec. 9673(a) (West Supp.1986). Lee actually participated in the conduct that violated RCRA; he personally arranged for the transportation and disposal of hazardous substances that presented an imminent and substantial endangerment to health and the environment. Unlike Lee, Michaels was not personally involved in the actual decision to transport and dispose of the hazardous substances. As NEPACCO's corporate president and as a major NEPACCO shareholder, however, Michaels was the individual in charge of and directly responsible for all of NEPACCO's operations, including those at the Verona plant, and he had the ultimate authority to control the disposal of NEPACCO's hazardous substances. Cf. New York v. Shore Realty Corp., 759 F.2d at 1052-53 (shareholder-manager held liable under CERCLA). 90 In summary, we hold Lee individually liable for arranging for the transportation and disposal of hazardous substances in violation of CERCLA Sec. 107(a)(3), 42 U.S.C. Sec. 9607(a)(3), and Lee and Michaels individually liable for contributing to an imminent and substantial endangerment to health and the environment in violation of RCRA Sec. 7003(a), 42 U.S.C.A. Sec. 6973(a) (West Supp.1986).