What should property managers do to avoid liability under CERCLA?

To minimize liability under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), property managers should conduct thorough due diligence. This process involves investigating the property to identify any potential environmental hazards or contamination issues before acquiring or managing the property. By performing due diligence, property managers can uncover past activities or existing conditions that may pose liability risks under CERCLA, which holds certain parties accountable for environmental cleanup and damages.

A comprehensive due diligence process often includes reviewing historical property records, conducting environmental site assessments, and consulting with environmental experts. This proactive approach not only helps in identifying risks but also positions property managers to mitigate potential liabilities effectively. In many cases, showing that reasonable steps were taken to investigate environmental conditions can serve as a defense against potential liability claims.

Other options would not effectively mitigate liability. Allowing hazardous dumping with permits does not absolve responsibility for contamination. Selling the property does not eliminate liability if issues were known or should have been known prior to the sale. Stopping environmental monitoring efforts could lead to unnoticed contamination and increased risk of liability.