Contractual allocation of environmental liabilities: Recent developments and practice considerations

Abstract

This article provides an overview of the concerns associated with contractual allocations of environmental liabilities and focuses on practice considerations in drafting contract provisions in light of recent case law developments relating to specific contractual language. It discusses the mechanisms most often used to allocate liabilities: representations and warranties, indemnities and assumption of liability clauses, releases, and remediation agreements. As discussed in this article, a drafter of such provisions cannot be too careful in crafting language that achieves its intended purpose.