Winston & Strawn Wins in Federal Circuit, Military Liable for Environmental Cleanup on Closed Former Bases

On January 11, 2013, Winston & Strawn scored a significant win in the U.S. Court of Appeals for the Federal Circuit in Indian Harbor Insurance Company v. United States. The Federal Circuit issued a decision that will result in broad protection from environmental liabilities for any entity that acquires ownership or control of closed former military bases. The Court held that the statutory provision requiring the Department of Defense to indemnify and hold harmless developers of former bases for environmental cleanup costs related to prior military use should be read broadly. 

The lower court had construed this statutory provision narrowly, severely limiting the Department of Defense's liability for environmental cleanup costs related to prior military use. However, the appellate court overturned the lower court's decision, finding that the legislature intended to encourage economic development of former bases by eliminating the potential for developers or municipalities to be shouldered with costs for environmental cleanup related to prior military use.