Farm Bureau Insurance v. Porter & Heckman, Inc.

This case involves a law suit filed by Farm Bureau Insurance on behalf of David and Peggy Carrico against Porter and Heckman, a plumbing and heating repair business. The Carrico's owned a house in Columbiaville, Michigan, which was heated by an oil-using furnace. The oil for the furnace was located in an outdoor, above-ground storage tank connected to the furnace by a pipe. The tank can hold up to 2,500 gallons of fuel oil. In January of 1991, the Carricos called Porter & Heckman to repair their furnace because their house was not being heated. The company found that ice had formed on the heating unit. They detached the ice and installed a new filter, but did not install a new filter unit. It turned out that a hole had developed in the bottom of the filter bowl, which caused oil to leak onto the ground and extensively contaminated the environment, including a nearby recreational lake.

The Carricos sued Porter & Heckman under the Michigan Environmental Response Act. They claimed that the company was an "operator" according to the Act and should be responsible for cleanup costs. They also claimed negligence and malpractice in not fixing the filter unit. Porter & Heckman counter-sued the Carricos, claiming they were at fault for failing to inspect and properly maintain the unit and for failing to take immediate corrective action.

The court in this case ruled in favor of Porter & Heckman. It stated that since Porter & Heckman had merely repaired the furnace and had not disposed of any oil in it or arranged for the disposal of any oil or other contaminants in it, they could not be held accountable as an "operator." The case is currently being appealed.

One of the big issues of environmental justice in which this case deals is responsibility for cleanup. Cleanup costs are usually enormous, so it is essential for courts to make sure the responsible parties pay for it in proportion to the extent of their involvement. The economic well-being of many people depends on these judgments. The environmental justice movement seeks to insure that only responsible parties have to pay for damages and that these damages are fairly assessed.

Source http://www.lawsite.com/RECENT/

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