Receivers’ Liability for Contamination in the UK

Abstract

This article provides guidance on non-administrative receivers’ liability for contamination, including contaminated land, water pollution, escapes of hazardous substances and management asbestos in the UK. Statutory and common law liabilities are critically assessed.In England and Wales receivers have statutory duties under the Environmental Protection Act 1990 (Part IIA) in respect of contaminated land.Regarding liability for the remediation of contaminated land, a receiver is personally liable only for acts and omissions that it is unreasonable for a person acting as a receiver to do or make (Environmental Protection Act 1990, s.78X(3)).A receiver will usually expect to be indemnified by the mortgagee for any liability for unreasonable acts and omissions in relation to contaminated land. However, in the absence of indemnification, appropriate insurance cover may be available.Insurance should be considered because although receivers have a limited liability under the contaminated land regime (Environmental Protection Act 1990, Part IIA), environmental claims could also occur under the Water Resources Act 1991 or common law.