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Environmental Law

Who is liable when land turns out to be contaminated?

Environmental liability commonly attaches to the current owner regardless of who caused the contamination, which is the fact that surprises purchasers most. Regulators can order the current owner to investigate and remediate, leaving them to pursue the polluter afterwards. Historic industrial use, underground storage tanks and neighbouring migration are the usual sources.

What to do next

  1. Do not disturb the site further

    Excavation or movement of contaminated soil can spread contamination, trigger reporting obligations and increase liability. Stop work and get environmental advice before doing anything else, including anything intended to help.

  2. Establish your reporting obligations

    Discovery of contamination frequently triggers a duty to report to the environmental regulator within a defined period. Failing to report is often a separate offence from the contamination itself, and is treated seriously.

  3. Commission a proper environmental assessment

    A Phase I assessment reviews history and records; a Phase II involves sampling and delineates the extent. You cannot assess liability, cost or your position against anyone else without knowing the actual extent.

  4. Identify who else may be liable

    Previous owners and operators, the party that caused the release, adjacent owners where contamination migrated, and sometimes lenders or directors depending on jurisdiction. Purchase agreements may contain environmental representations or indemnities - check them.

  5. Check insurance and any statutory relief

    Some policies respond to environmental liability, and notice periods are strict. Certain jurisdictions offer relief or certificates of compliance for innocent purchasers or completed remediation - both are worth investigating early.

Frequently asked questions

I did not cause it - am I still liable?

Frequently yes. Environmental liability commonly attaches to the current owner or person in control, who may then pursue the party responsible. That sequencing is the hard part.

Do I have to report it?

Usually, and within a defined period. Failing to report is often a separate offence, so establish the obligation immediately rather than after investigating.

Can I recover from the previous owner?

Possibly, through the purchase agreement, statutory contribution provisions, or a claim in nuisance or negligence. What you can recover depends heavily on what the agreement said.

What is a Phase I and Phase II assessment?

Phase I is a historical and records review. Phase II involves sampling to confirm and delineate contamination. Lenders and buyers commonly require both.

Which body regulates this?

The provincial or state environmental ministry, with federal involvement for fisheries, migratory birds and certain waters.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.

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