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IN THIS OIL SPILL CLEAN UP SUIT AGAINST THE PROPERTY OWNER BROUGHT UNDER THE NAVIGATION LAW, THERE IS NO STATUTE PROHIBITING THE STATE FROM SEEKING INDEMNIFICATION FOR FUNDS EXPENDED FROM THE ENVIRONMENTAL RESTORATION PROGRAM FUND PURSUANT TO THE ENVIRONMENTAL CONSERVATION LAW (THIRD DEPT).

The Third Department, reversing Supreme Court, determined the complaint seeking reimbursement of oil spill clean up costs from the defendant property owner should not have been dismissed. Defendant argued the state could not seek reimbursement under the Navigation Law for funds expended from the Environmental Restoration Program Fund pursuant to the Environmental Conservation Law. The Third Department found no support for the argument in the statutes:

Nothing in the Navigation Law prohibits plaintiff from seeking indemnification for funds expended from sources other than the Oil Spill Fund. Moreover, the Environmental Conservation Law requires the state to seek recovery of the funds under any statute (see ECL 56-0507 [2]). * * *

… “[T]he state of New York and any of its political subdivisions or agents” (Navigation Law § 172 [14]). Additionally, the Legislature imposed strict liability against “[a]ny person who has discharged petroleum . . . without regard to fault, for all cleanup and removal costs and all direct and indirect damages, no matter by whom sustained” (Navigation Law § 181 [1] … ). The language of the statute does not limit recovery solely to the Oil Spill Fund. Rather, the fund simply serves as a possible means to effectuate the statute. “[B]arring plaintiff from seeking to hold defendant strictly liable for the [remediation] expenditures would thwart the plain language of Navigation Law § 181, as well as the express purposes of Navigation Law article 12 …”. State of New York v Alfa Laval Inc., 2023 NY Slip Op 01034, Third Dept 2-23-23

Practice Point: Here the state sought recovery of oil spill clean up costs from the defendant property owner. The defendant argued the state could not be indemnified for funds expended from the Environmental Restoration Program fund (pursuant to the Environmental Conservation Law) by suing under the Navigation Law, which has its own Oil Spill Fund. The Third Department found no such statutory restriction.

 

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