In 1968, Habco, Inc. purchased property on Armour Road in North Kansas City, Missouri, that had been

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In 1968, Habco, Inc. purchased property on Armour Road in North Kansas City, Missouri, that had been contaminated by a series of firms—including U.S. Borax Inc.—that made and blended various herbicides on the premises. The contamination continued under Habco, which was principally owned by Donald Horne. Habco subsequently sold its operating assets—but not the Armour Road real property—to a new company called Habco-Loram Inc. Although Horne remained associated with Habco-Loram, he did not have a personal equitable interest in the firm. When Habco-Loram was unable to meet its obligations, it transferred its assets to Horne, who formed another new firm called Habco International, Inc. Habco International substantially carried on the herbicide operations begun by Habco and continued by Habco-Loram but at a different locale. Habco International never owned or leased the Armour Road site. The DeAngelo brothers purchased Habco International’s stock in 1997 and merged Habco International into DeAngelo Brothers Inc. in 1998. The EPA declared the Armour Road site a Superfund site in the early 1990s, and a court ultimately ordered Horne to pay 40 percent of the $1.16 million in cleanup costs, Borax 10 percent, and DeAngelo 15 percent. Should each of these parties be responsible for paying part or all of the cleanup costs? If you conclude that more than one party has liability, what percentage of the total cleanup costs should each responsible party be required to pay? [K.C. 1986 Limited Partnership v. Reade Manufacturing, 472 F.3d 1009 (8th Cir. 2007).]


Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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