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).
The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.