Guam v. United States
Overview
Overview
The Supreme Court held that the United States, not Guam, bears primary liability for cleaning up a landfill used by the U.S. Military during Guam's administration as a U.S. Territory. Rejecting the government's attempt to shift the cleanup costs to Guam by invoking the Comprehensive Environmental Response, Compensation, and Liability Act's cost-recovery provisions.
The Facts
Facts
The United States administered Guam as a military and civilian territory for decades and operated a landfill, the Ordot Dump, that contaminated local waters with hazardous waste including Agent Orange and DDT. The United States later transferred the landfill to Guam. Guam spent hundreds of millions on cleanup and sued the United States under CERCLA to recover costs. The United States argued that because Guam had accepted the territory under federal law, it was primarily responsible and the U.S. was entitled to contribution rather than direct liability.
The Issue
Issue
Whether CERCLA permits Guam to sue the United States for contribution and cost recovery for contamination that originated during federal control of the Ordot Dump, and whether a prior federal law governing the transfer of Guam's assets affects Guam's CERCLA rights against the United States.
The Rules
Rule
CERCLA, 42 U.S.C. § 9601 et seq., imposes liability for cleanup costs on parties who owned or operated contaminated sites or arranged for hazardous waste disposal. Section 113(f) provides for contribution among liable parties. The Organic Act of Guam transferred certain property and liabilities from the United States to Guam. The relationship between the Organic Act and CERCLA determines whether Guam retained the right to sue the United States for contamination costs.
The Application
Analysis
The United States' operation of the Ordot Dump during its administration of Guam established it as an operator liable under CERCLA's cost-recovery provisions for the contamination and cleanup costs incurred by the territory. Although the Organic Act transferred the landfill property to Guam, the Court held that this transfer did not extinguish the federal government's liability for contamination originating during its prior period of ownership and operation. Guam therefore could maintain a direct cost-recovery action against the United States as the original operator, allowing the territory to recover hundreds of millions in cleanup expenses rather than being limited to a contribution claim among liable parties.
The Conclusion
Conclusion
Decided June 14, 2021. The Court held unanimously that Guam may sue the United States for cost recovery under CERCLA. The Organic Act did not extinguish Guam's CERCLA rights, and the U.S. military's operation of the dump during federal administration created federal liability independent of any property transfer. The ruling preserved Guam's ability to seek hundreds of millions in cleanup reimbursement from the federal government.
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