Owner Can Sue Dry Cleaner Tenant for Environmental Contamination

April 30, 2003

A dry cleaner tenant allegedly disposed of toxic chemicals improperly, contaminating soil and groundwater under the space and the center. Because of the contamination, the owner would have to spend over $2 million investigating and remediating—that, is fixing—the environmental damage. So the owner sued the tenant, claiming that it had violated the lease by failing to operate its business in compliance with all regulations and laws. The tenant asked the court to dismiss the lawsuit, arguing that the owner couldn't sue it for the environmental contamination.

A dry cleaner tenant allegedly disposed of toxic chemicals improperly, contaminating soil and groundwater under the space and the center. Because of the contamination, the owner would have to spend over $2 million investigating and remediating—that, is fixing—the environmental damage. So the owner sued the tenant, claiming that it had violated the lease by failing to operate its business in compliance with all regulations and laws. The tenant asked the court to dismiss the lawsuit, arguing that the owner couldn't sue it for the environmental contamination.

A federal court in Illinois ruled that the owner could sue the tenant for the environmental contamination. The court said that if the tenant had improperly disposed of toxic chemicals as the owner claimed, it had violated the state's environmental protection law. And if the tenant had violated the law, it had also violated its lease [Great Oak, LLC v. Begley Co.].

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