Environmental Advisory Bulletin
Documents Worth Saving
By Lawrence
B. Burke
[June 2004]
Businesses and individuals should carefully consider
which documents to save over the long term—regardless of retention
requirements.
Insurance policies
Save insurance policies “forever.”
Changes to insurance policy forms in 1987 made insurance policies
extremely valuable for businesses and individuals who later encounter
environmental problems that could be traced to conditions originating
before 1987. No one can predict which policies may be valuable in
the future, but it is clear that insurance companies have an incentive
to destroy policies, whereas individuals have an incentive to retain
them. Insurance policies are one type of document that will not
harm you and can only help you if you retain your records.
Purchase and sale contracts
Any agreement that provides you a release or
indemnity should be retained. For example, a court has enforced
a 1945 indemnity provision from the federal government and found
that it protected a company from Superfund liability. (E.I.
Du Pont de Nemours & Co., Inc. v. United States, No. 03-5137
[Fed.Cir. April 28, 2004])
Correspondence with government agencies
Incredible as it may seem, government agencies
do lose files. If you have obtained a favorable determination from
a government agency, by all means retain that determination and
any records needed to support it.
Records from prior owners and operators
If you buy a property or business, you may become
liable for the acts or omissions of your predecessor. Although most
state laws provide protection for property owners in situations
where contaminants migrate onto their property, it is more difficult
to obtain protection for contamination originating on your property—even
if it was caused by prior property owners. Therefore, records from
operations and environmental testing before your purchase of a business
or property may help you defend against future claims. Try to obtain
copies of such records as a part of any property or business purchase.
A word of caution!
This list is by no means complete. Not all records
deserve permanent retention. However, the types of records listed
above are often of assistance when problems arise – even far
into the future.
For more information
Davis Wright Tremaine has successfully assisted
clients in disputes involving liability for environmental contamination
at facilities throughout the western United States. We have the
technical expertise and experience to help you protect your rights.
We welcome the opportunity to meet with you and discuss your individual
legal needs, and to devise effective strategies to address potential
concerns.
For further information, contact:
This Environmental Law Advisory is a publication
of the Environmental Law Department of Davis Wright Tremaine LLP.
Our purpose in publishing this Advisory is to inform our clients
and friends of recent developments in environmental law. It is not
intended, nor should it be used, as a substitute for specific legal
advice as legal counsel may only be given in response to inquiries
regarding particular situations.
Copyright © 2004, Davis Wright Tremaine
LLP.
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