Enercon’s Liability Limited to Refund for Spread of Contaminant

Nov. 19, 2021, 6:52 PM

The owner of a former dry-cleaning site can only recover $15,000 from cleanup contractor Enercon Services Inc. for the release and spread of perchloroethylene to previously uncontaminated areas caused by the company’s drilling, after the Northern District of California upheld a limitation of liability.

Enercon’s liability is limited to the amount of its fee as stated in its contract with Golden Gate Way LLC, the U.S. District Court for the Northern District of California said Thursday.

Limitation of liability clauses “have long been recognized as valid,” and the clause is neither unconscionable nor contrary to public policy, Judge Edward M. ...

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