Indiana Clarifies Statute of Limitations
For Environmental Claims
Yesterday, May 10, 2011, Governor Mitch Daniels signed into law Senate Enrolled Act 346, an act that clarifies the statute of limitations for two of Indiana's environmental claims statutes, the Underground Storage Tank Act (USTA) and the Environmental Legal Action statute (ELA). Under these statutes, when someone conducts a clean-up of contaminated property, he can seek reimbursement from the person who caused or contributed to the contamination.
Prior to this amendment, the USTA and the ELA did not specify when a claim had to be filed, which led to confusion among parties, their lawyers and the courts. Some argued that Indiana's default ten-year statute of limitations applied and that it did not begin to run until clean-up costs were actually spent, or the State issued an order requiring a clean-up.
Others argued that a six-year statute of limitations applied, and that it began to run when the owner of the property knew or should have known of the contamination. Despite several years of litigation over these issues in Indiana's state and federal courts, this issue was never completely resolved.
Senate Enrolled Act 346 solved that problem. Now, a ten-year statute of limitations will apply to all actions under the USTA and ELA, and it will begin to run when clean-up costs are incurred. In other words, any costs incurred during the ten-year period prior to the date the lawsuit is filed can be recovered, even if other (non-recoverable) costs were incurred more than ten years ago.
With this amendment, parties seeking relief under the USTA and the ELA now know when suit can be brought, and what clean-up costs can be recovered.
This clarification will be particularly useful in litigation involving older properties. By specifically defining when these types of lawsuits must be filed, and what costs can be recaptured through a lawsuit, parties will be able to avoid procedural issues involving the statute of limitations and focus instead upon the merits of the claim.
This development will enhance a plaintiffs' ability to recover costs for the clean-up of older contaminated sites, while providing defendants legal consistency and clarity.
If you would like more information about Senate Enrolled Act 346, or specific advice on pursuing or defending claims for environmental cost recovery, Ice Miller's lawyers would be pleased to assist you. Ice Miller's environmental practice group
is experienced with these statutes, and has
litigated this issue on multiple occasions. Please contact Don Snemis, Brent Huber,
Seth Thomas, or any member of Ice Miller's environmental practice group for more details.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances. | 