Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

NL Industries v. State of New Jersey Spill Act Decision

Author: John M. Scagnelli

Date: September 28, 2015

Key Contacts

Back

Legal Update: New Jersey Spill Act Decision

Important legal updates to the NJ Spill Act: The State can no longer assert exemption from liability under the New Jersey Spill Act

The State of New Jersey can no longer assert that it should be exempt from liability under the New Jersey Spill Compensation and Control Act, N.J.S.A. 58:10-23.11, et seq. (“Spill Act”), based on a decision by the New Jersey Superior Court, Middlesex County in NL Industries v. State of New Jersey, Docket No. L-1296-14, affirmed by the Appellate Division this week (Docket No. A-0869-1413). In this case, Plaintiff NL Industries filed a complaint against the State seeking contribution under the Spill Act for cleanup costs associated with remediating contamination resulting from the construction of a sea wall and jetty at the Laurence Harbor shoreline in Old Bridge Township. The complaint alleged that the State, in accordance with its regulatory jurisdiction, approved the construction of a sea wall incorporating the use of heavy metal slag materials which ultimately caused or contributed to lead contamination for which the estimated cost of remediation was likely to exceed $75 million dollars. The State moved to dismiss, arguing, inter alia, that the Spill Act did not retroactively abrogate sovereign immunity, i.e., that they should not be held liable for any offending action or omission (in this case, lead contamination) that occurred prior to the enactment of the Spill Act in 1977 and that the N.J. Tort Claims Act requirements applied before the Spill Act liability could be imposed on the State.

In denying the State’s motion to dismiss Plaintiff NL Industries’ Complaint, Superior Court Judge Wolfson ruled that since the Spill Act’s definition of a “person” subject to the provisions of the Act expressly included the State of New Jersey, and because Spill Act liability extends to any person “who is in any way responsible” for discharging a hazardous substance, and granted a right of contribution against “persons who are in any way responsible” for discharging a hazardous substance,  it would be illogical to exclude the State from Spill Act liability. Judge Wolfson further ruled that the N.J. Tort Claims Act requirements did not apply to the State’s liability under the Spill Act.

Given this ruling, we can expect Plaintiffs and other parties involved in Spill Act litigation will be looking for opportunities to add the State as a party in their cases in appropriate situations.

If you have any questions about the NL Industries v. State of New Jersey decision or believe that it might apply to your case, please contact me, John M. Scagnelli.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities post image

The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities

On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]

Author: Dan Brecher

Link to post with title - "The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities"
Common Legal Mistakes NYC and New Jersey Business Owners Make post image

Common Legal Mistakes NYC and New Jersey Business Owners Make

Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]

Author: Dan Brecher

Link to post with title - "Common Legal Mistakes NYC and New Jersey Business Owners Make"
What Founders Can Learn From Start-up Suits post image

What Founders Can Learn From Start-up Suits

High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]

Author: Dan Brecher

Link to post with title - "What Founders Can Learn From Start-up Suits"
Corporate Governance Reviews: A Practical Guide for New Jersey Companies post image

Corporate Governance Reviews: A Practical Guide for New Jersey Companies

Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]

Author: Ken Hollenbeck

Link to post with title - "Corporate Governance Reviews: A Practical Guide for New Jersey Companies"
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights post image

What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights

Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]

Author: Robert E. Levy

Link to post with title - "What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights"
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities post image

Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities

Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]

Author: Dan Brecher

Link to post with title - "Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!