In a December 19, 2012 decision, the Appellate Division of Superior Court of New Jersey made clear that a property owner or operator cannot escape liability for environmental compliance by shifting blame to their environmental consultants.
In 2000, Ross Fogg Enterprises detected a leak in the underground storage tanks at its gas station property. DEP directed Ross Fogg to begin remediating the property. Ross Fogg sold the property to Nanak Auto Fuel, Inc., and DEP directed both companies to sample nearby residential potable water wells. Ultimately, DEP ordered the companies to maintain and sample a "point of entry" treatment unit, known as POET, at the residence adjacent to the gas station. After a series of delays, DEP assessed a $20,000 civil penalty, which was subsequently upheld by an Administrative Law Judge.
The property owners appealed claiming, among other things, that the failure to report the well sampling was the fault their environmental consultant. In DEP v Nanak Auto Fuel, Inc., the Appellate Division unequivocally rejected this defense strategy, noting that the law imposes the responsibility for environmental compliance on the owners and operators of a property. This decision sends a clear warning to property owners that they cannot shift to others legal liability to ensure compliance with environmental laws.