Opinion ID: 579513
Heading Depth: 3
Heading Rank: 1

Heading: Was the Indemnity Clause against Public Policy under CERCLA?

Text: 14 CERCLA's provision regarding indemnity clauses is truly murky:No indemnification, hold harmless, or similar agreement or conveyance shall be effective to transfer from the owner or operator of any vessel or facility or from any person who may be liable for a release or threat of release under this section, to any other person the liability imposed under this section. Nothing in this subsection shall bar any agreement to insure, hold harmless, or indemnify a party to such agreement for any liability under this section. 15 42 U.S.C. § 9607(e)(1). As the district court noted in its opinion, courts around the country have reached different interpretations of this language. This court has held that enforcement of indemnification clauses does not frustrate public policy as expressed in CERCLA. Mardan Corp. v. C.G.C. Music, Ltd., 804 F.2d 1454, 1459 (9th Cir.1986). In Mardan, we reasoned that CERCLA policy would not be frustrated because all responsible parties would remain fully liable to the government, although they would be free to enter into private contractual arrangements essentially tangential to the enforcement of CERCLA's liability provisions. Id. Thus enforcement of the indemnification agreement would not violate public policy under CERCLA.