A Kansas court ruled that CERCLA environmental liability for hazardous waste cleanup cannot be avoided through indemnification clauses in contracts. Trinity Industries operated a contaminated facility and tried to shift cleanup costs to BACC through an indemnity agreement, but the court enforced CERCLA's strict liability rules instead. The decision means subcontractors and operators cannot contractually escape responsibility for pre-existing environmental contamination at job sites.
Indemnification clauses do not protect you from CERCLA liability—you remain responsible for environmental cleanup costs even if your contract says the other party must indemnify you.
Operating a hazardous waste facility makes you a 'responsible party' under CERCLA regardless of who caused the contamination; liability is strict and non-delegable.
Before taking on a project at an industrial or previously-used site, conduct environmental due diligence and negotiate explicit environmental liability caps or exclusions in your contract, knowing they may not hold up in court.