Gould Electronics Inc., F/k/a Gould Inc. American Premier Underwriters, Inc. v. United States of America Gould Electronics Inc. American Premier Underwriters, Inc.
220 F.3d 169 | Court of Appeals for the Third Circuit | 2000
What This Case Means for Subcontractors
Gould Electronics and an insurance company settled a toxic tort lawsuit involving pollution from a battery plant. They then sued the U.S. Army (which designed and operated the plant) for contribution to their settlement costs. The court ruled that under federal law, the Army must share costs fairly with them (contribution), but cannot be forced to cover their entire liability (indemnification). This matters because it limits how much you can shift costs to other responsible parties.
Key Takeaways
- •Contribution claims (splitting costs fairly) are stronger than indemnification claims (one party paying everything) when multiple parties share responsibility for environmental damage
- •The government can be held liable for its share of cleanup and settlement costs, but won't cover the full burden for private contractors
- •If you settle a toxic tort claim, you may recover only your proportional share from other responsible parties, not the entire settlement amount
the United States would be liable for contribution, but not indemnity.
Frequently Asked Question
If I settle environmental liability with other contractors, can I make one party pay the whole bill?
No. Courts distinguish between contribution (splitting costs fairly based on fault) and indemnification (one party covering everything). You can typically recover only your proportional share from other responsible parties. Full indemnity is harder to enforce, especially against the government.
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