Defense Prevails in Underground Storage Tank Leak Case

Marshall Dennehey attorneys prevailed on a motion for summary judgment as to liability in an environmental case involving claims related to a leaking underground storage tank (UST). In this environmental subrogation case, we represented a major insurance carrier in their capacity as the subrogee of their insured. Our client sued a fuel delivery company under the New Jersey Spill Compensation and Control Act for delivering fuel oil to the UST while the UST was leaking, and also asserted claims for negligence and breach of contract. In response, the defendant filed a cross-motion, seeking to hold our client liable under the Spill Act and to dismiss the negligence and breach of contract claims. Following oral argument, the court granted our motion and denied the cross-motion, finding that a fuel delivery company can be liable under the Spill Act for delivering to a UST while the UST is leaking, even absent actual or constructive notice of the leak.