Elusive Nature of Defenses to CERCLA Liability: Beyond Conducting "All Appropriate Inquiry"

Conducting environmental due diligence as part of a real property transfer, or an asset or stock purchase, makes good business sense. One should know what problems may be lurking and be prepared to address them. Many people also insist on conducting due diligence to obtain the benefits of the so-called innocent purchaser defense to liability under CERCLA. In this one-minute memo, we update the reader on the status of the proposed regulatory change to the CERCLA standard for conducting “all appropriate inquiry,” and we discuss the steps that one must take to maintain the CERCLA defense.