The Texas Supreme Court today decided a case of first impression over the "arranger liability" provision of the Texas Solid Waste Disposal Act.
AUSTIN, Texas, — The Texas Supreme Court today decided a case of first impression over the "arranger liability" provision of the Texas Solid Waste Disposal Act.
Attorneys from Houston law firm Hicks Thomas & Lilienstern LLP successfully represented Naperville, Ill.-based R.R. Street & Co. Inc., a manufacturer of equipment and chemical products used by dry cleaners, against claims that the company should be held strictly liable for environmental cleanup costs incurred by Pilgrim Enterprises Inc., the former owner of a chain of dry cleaning businesses in Houston and San Antonio.
"This is vindication for us," says Street's President and Chief Executive Officer, L. Ross Beard. "The Supreme Court's ruling confirms a principle that has guided R.R. Street for more than 125 years, that companies which provide useful and accurate advice to their customers should be respected, not punished."
The decade-long legal battle focused on who was responsible for more than $7 million in environmental cleanup costs at 16 of Pilgrim's dry cleaning facilities. Although the contamination came from operations at the Pilgrim facilities, the company filed a lawsuit in 1995 seeking to shift financial responsibility for the cleanup to various manufacturers, including Street. Among Pilgrim's theories was the claim that communications concerning product use constituted an "arrangement" for the disposal of solid waste and required Street to pay cleanup costs associated with the disposal of those wastes.
After losing before a Harris County jury, Pilgrim convinced a trial judge that Street was responsible as an "arranger" and ordered the company to pay $1.5 million in cleanup costs.
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In the decision issued today, the state high court clarified the standard for imposing arranger liability and concluded that the facts did not establish that Street was an "arranger" under the Solid Waste Disposal Act.
"The Court eliminated a possible Catch-22 for companies doing business in Texas," says John Thomas of Houston's Hicks Thomas, who argued the case before the Supreme Court on behalf of Street. "Companies can continue to give the best information and advice available on product use without fear of having to pay for the legacy of environmental harm caused by negligent use of the product."
Founded in Houston in 1997, Hicks Thomas & Lilienstern is a litigation firm representing plaintiffs and defendants in Texas and across the nation. The firm's experience includes oil and gas, environmental, products liability, corporate governance, securities, banking, insurance coverage, transportation and trade secrets litigation.
Source: PRNewswire, Hicks Thomas & Lilienstern
