CERCLA Contribution Claims and the Collateral

The questions of whether and how the collateral source rule might apply in cost recovery actions under the Comprehensive Environmental Response, Compensation, and Liability Act have been of interest to potentially responsible parties.

The collateral source rule in tort law provides that "if an injured party receives compensation for the injuries from a source independent of the tortfeasor, the payment should not be deducted from the damages that the tortfeasor must pay."

Following Friedland v. TIC, potentially responsible parties evaluating possible CERCLA § 107 cost recovery or §113 contribution claims should assume the collateral source rule will not apply —and that recovery of insurance proceeds will limit their potential recovery in later contribution actions.

Reprinted with permission by Defense Counsel Journal (Vol.76, No. 4).