Texas Court Defines “Arranger Liability”

The Supreme Court of Texas decided a case of first impression over the “arranger liability” provision of the Texas Solid Waste Disposal Act on June 10.

R.R. Street & Co. Inc., a manufacturer of dry cleaning equipment and chemicals, will not be held strictly liable for $1.5 million of environmental cleanup costs incurred by Pilgrim Enterprises Inc., the former owner of a chain of dry cleaning businesses in Houston and San Antonio.

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. In the decision, 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.

 

 

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