Describe the corporate ownership history that surrounds the Muskegon
facility. Ott owned the chemical plant that originally operated the Muskegon plant. Ott sold to CPC (eventually became Best Foods). CPC incorporated Ott II to run the plant. Ott II was sold to Story. Story went into bankruptcy. Aero-Jet purchased the plant in bankruptcy. 2. What must be shown to hold a parent liable for the actions of the subsidiary? Is CERCLA liability determined under the same corporate veil standards as other issues? No, the silence makes it clear that there is only the common law corporate doctrine and not any special CERCLA veil piercing standard. There must be something more than joint directors and control of the company – here there must be control of the operations and involvement. 3. Are joint directors of parent and corporate subsidiaries evidence of a need to pierce the corporate veil? No, the court makes it clear that such is one of the necessary functions of corporate accountability and that a conclusion of liability from such cross-directorships is not appropriate under common law or CERCLA. There is some evidence that an officer of the parent had hands-on involvement with the facility and it is that level of control and involvement that is necessary to establish liability.
Describe the corporate ownership
history that surrounds the Muskegon facility. Ott owned the chemical plant that originally operated the Muskegon plant. Ott sold to CPC (eventually became Best Foods). CPC incorporated Ott II to run the plant. Ott II was sold to Story. Story went into bankruptcy. Aero-Jet purchased the plant in bankruptcy. 2. What must be shown to hold a parent liable for the actions of the subsidiary? Is CERCLA liability determined under the same corporate veil standards as other issues? No, the silence makes it clear that there is only the common law corporate doctrine and not any special CERCLA veil piercing standard. There must be something more than joint directors and control of the company – here there must be control of the operations and involvement. 3. Are joint directors of parent and corporate subsidiaries evidence of a need to pierce the corporate veil? No, the court makes it clear that such is one of the necessary functions of corporate accountability and that a conclusion of liability from such cross-directorships is not appropriate under common law or CERCLA. There is some evidence that an officer of the parent had hands-on involvement with the facility and it is that level of control and involvement that is necessary to establish liability 1. Describe the corporate ownership history that surrounds the Muskegon facility. Ott owned the chemical plant that originally operated the Muskegon plant. Ott sold to CPC (eventually became Best Foods). CPC incorporated Ott II to run the plant. Ott II was sold to Story. Story went into bankruptcy. Aero-Jet purchased the plant in bankruptcy. 2. What must be shown to hold a parent liable for the actions of the subsidiary? Is CERCLA liability determined under the same corporate veil standards as other issues? No, the silence makes it clear that there is only the common law corporate doctrine and not any special CERCLA veil piercing standard. There must be something more than joint directors and control of the company – here there must be control of the operations and involvement. 3. Are joint directors of parent and corporate subsidiaries evidence of a need to pierce the corporate veil? No, the court makes it clear that such is one of the necessary functions of corporate accountability and that a conclusion of liability from such cross- directorships is not appropriate under common law or CERCLA. There is some evidence that an officer of the parent had hands-on involvement with the facility and it is that level of control and involvement that is necessary to establish liability