Anderson Brothers, Inc. v. St. Paul Fire and Marine Insur

The Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq. (“CERCLA”), establishes a retroactive strict liability regime that imposes joint and several liability upon past and current landowners or operators of properties or facilities from which hazardous substances have been released or disposed into the environment. Plaintiff-Appellee Anderson Brothers, Inc., (“Anderson”) received two letters from the Environmental Protection Agency (“EPA”) notifying Anderson of its potential liability under CERCLA for environmental contamination of the Portland Harbor Superfund Site. The first letter required Anderson to submit an extremely detailed response to a questionnaire about its activities at its properties, under threat of severe civil penalties. The questionnaire required Anderson to respond to questions that necessarily established its liability under CERCLA. The second formally identified Anderson as a potentially responsible party (“PRP”) and “encourage[d]” it to participate in settlement negotiations with other PRPs.

Anderson’s general liability insurer, Defendant-Appellant St. Paul Fire and Marine Insurance Co. (“St. Paul”),…