Environmental liability and reducing corporate exposure

As public concern continues to focus on environmental safety, the government responds with an ever-expanding web of environmental regulation of business and industry. The federal, state, and local laws enacted to protect the environment impose numerous obligations on managers and directors. Failure to comply with these environmental regulatory schemes may result in harsh civil and criminal penalties. Liability is also associated with real property transactions. Past and present owners as well as other parties involved in real estate transactions may be liable for contamination and be required to pay tremendous cleanup costs. To protect themselves from such liability, companies must be familiar with the law and adopt a comprehensive and ongoing in-house environmental management program. This chapter will focus on potential liability and the use of environmental audits to meet the ever-increasing legal obligations.