United States v. R.W. Meyer, Inc.
United States Court of Appeals for the Sixth Circuit
889 F.2d 1497 (1989)
- Written by Sean Carroll, JD
Facts
The United States Environmental Protection Agency (EPA) (plaintiff) administered the Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA) and operated a cleanup response program for instances in which it learned of CERCLA violations. CERCLA permitted the government to recover all its costs that supported a cleanup action. The EPA found hazardous substances on the property of R.W. Meyer, Inc. (Meyer) (defendant). The EPA instituted a removal action and then filed suit to obtain reimbursement from Meyer for the costs of the removal pursuant to CERCLA. Among other costs, the EPA sought reimbursement of indirect costs such as rent and payroll for offices and staff that supported the EPA’s CERCLA program. An EPA witness described these costs as overhead costs that were necessary for the program but could not be attributed directly to the cleanup at Meyer’s property. The EPA allocated these indirect costs of cleanup actions on a proportional basis based on the amount the costs supported a specific cleanup action. The district court granted the EPA’s motion for summary judgment. Meyer appealed.
Rule of Law
Issue
Holding and Reasoning (Guy Jr., J.)
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