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United States v. Maryland Bank & Trust Co.

632 F. Supp. 573 (1986)

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United States v. Maryland Bank & Trust Co.

United States District Court for the District of Maryland

632 F. Supp. 573 (1986)

Facts

Herschel and Nellie McLeod owned property referred to as the California Maryland Drum site (the site). The McLeods permitted the dumping of hazardous wastes on the site. In 1980, Mark McLeod received a loan from Maryland Bank & Trust Company (the bank) (defendant) to purchase the site from Herschel and Nellie. Mark purchased the site but soon failed to make payments on the loan. The bank initiated a foreclosure action against the site in 1981 and purchased the property at the foreclosure sale in 1982. In 1983, the Environmental Protection Agency (EPA) tested the wastes on the site and used its own funds to clean up the wastes. The EPA sent a letter to the bank summarizing the costs incurred and demanding payment. The bank did not tender payment. Subsequently, the United States (plaintiff) brought suit under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) to recover the costs incurred by the EPA for the cleanup. The bank moved for summary judgment, and the United States moved for partial summary judgment on the issue of liability.

Rule of Law

Issue

Holding and Reasoning (Northrop, J.)

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