David Berg and Marge Berg v. David and Tsukiko Popham, d/b/a Alladin Cleaners, Norge Corporation, and its successors in interest Magic Chef Corporation, Maytag Corporation, ABC Inc., ABC Co., and ABC Corp.

Summary

The Supreme Court of Alaska answered two certified questions concerning arranger liability under Alaska Statute 46.03.822(a)(4), Alaska's counterpart to CERCLA. The court held that arranger liability does not require ownership, possession, control, or a duty to dispose of the hazardous substance, but requires substantial or integral actual involvement in the decision to dispose of waste or how to dispose of it. It further held that the useful-product exception does not protect an entity that manufactures, sells, or installs a product intended to direct hazardous substances into a city sewer system.

Holdings

1. AS 46.03.822(a)(4) does not require ownership, possession, authority to control, or a duty to dispose of the hazardous substance. Arranger liability may attach to any person actually involved in the decision to dispose of, or in deciding how to dispose of, the hazardous substance, including through substantial or integral facilitation of the disposal.
2. Although AS 46.03.822 recognizes a useful-product exception, the exception does not protect an entity that manufactures, sells, or installs a useful product intended to direct, and that when used as designed directs, a hazardous substance into a city sewer system.

Questions Presented

1. Whether AS 46.03.822(a)(4) requires a person to own, possess, have authority to control, or have a duty to dispose of the hazardous substance before being subject to arranger liability.
2. Whether an entity may be subject to arranger liability when it manufactures, sells, and installs a useful product that, when used as designed, directs a hazardous substance into a city sewer system.
3. Whether the Bergs could maintain additional contribution claims under other Alaska statutes was not decided.

Disposition

other