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Sell of Chemicals Not "Arranger" Under CERCLA

In the case of Freeman v. Glaxo Wellcome Inc., 189 F.3d 160 (2d Cir. 1999), the Circuit Court of Appeals for the Second Circuit affirmed summary judgment in favor of the seller of chemicals, Glaxo. The plaintiffs had purchased the chemicals from Glaxo when Glaxo abandoned its manufacturing facilities located adjacent to plaintiffs. Later, EPA had to clean up some of those chemicals from plaintiffs' site and sought reimbursement for its costs from plaintiffs. The District Court granted Glaxo summary judgment when the plaintiffs brought a third party action against it. The Circuit Court affirmed on the basis that the material was not a "waste" as included in the definition of "disposal." On the contrary, the record showed that Glaxo has sold "unused chemicals that it would ordinarily use in its laboratories ...so that [plaintiffs] would use or resell them in their unadulterated form."

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