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Pro Rata or Pro Tanto? Why Equity Dictates the Choice Is Not a “Toss Up” in Private Party CERCLA Settlements
Authors:Fred M Blum  Erin K Poppler
Institution:1. fblum@behblaw.com
Abstract:The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is extremely complicated. Adding to this complexity is the near impossible task of predicting how settlements will be credited. In most tort cases, courts use the pro tanto approach and give the remaining defendants a dollar-for-dollar credit for settlement amounts received by the plaintiff. However, the trend in CERCLA cases is to forego the pro tanto approach and give the remaining defendants credit for the settling defendants’ proportional, or pro rata, share of the liability. This article examines the two approaches and posits which one is more aligned with the spirit of CERCLA.
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