Atchison, Topeka & Santa Fe Railway Co. v. Brown & Bryant, Inc.

The Atchison, Topeka & Santa Fe Railway Company and Southern Pacific Transportation Company (the “Railroads”) are responsible parties under CERCLA 2 for soil contamination on property they leased to Brown & Bryant (“B & B”), an agricultural chemical company. The Railroads brought this action against PureGro, a B & B competitor that purchased many of B & B’s assets, alleging that PureGro is the successor-in-interest to B & B and thus liable for contribution to the Railroads under CERCLA.

In this appeal, the Railroads ask us to exercise our powers under federal common law to expand successor corporate liability under CERCLA. PureGro, on the other hand, would have us reexamine existing Ninth Circuit precedent in light of intervening Supreme Court decisions and hold that there is no need for a federal common law of successor liability under CERCLA, and that state law supplies the rule of decision in this area. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm the district court’s grant of summary judgment in favor of PureGro.

Facts

B & B operated an agricultural chemical business on property it owned and on adjacent property it leased from the Railroads. B & B was a…