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Sixth Circuit Holds that GE’s Sale of Railcars and Transformers to Railroad Does Not Give Rise to CERCLA Operator or Arranger Liability
The Sixth Circuit’s recent decision in American Premier Underwriters v. General Electric Company addressed the sometimes murky question under CERCLA of whether the manufacturer of a product is liable as an “arranger” or “operator” when it sells a product that releases hazardous substances into the environment. __ F.4th __, No. 20-4010, 2021 WL 4272652 (6th Cir. 2021). In this case, GE had designed, manufactured, and sold transformers and railcars that contained a coolant with PCBs to APU’s predecessor Penn Central Railroad. The transformers and railcars were specifically designed to “burp” coolant under certain conditions, which had the effect of releasing PCBs into the environment at various railyards. The court held that, under the facts of the case, GE was neither an “arranger” or “operator.”
