Statute of Limitations in Environmental Legal Proceedings -- SB 105

Since 1988, when the Ohio Supreme Court held that a general statute of limitations could not be used as a defense against actions brought by state government, the business community has sought greater certainty in environmental legal proceedings. Now, that certainty is at hand. On March 20, 2002, the Ohio Chamber won passage of Am.Sub.SB 105 (Hottinger, R-Newark), a law that forces state agencies to bring environmental actions for civil fines and penalties in a timely fashion.

During legislative deliberations on SB 105, Ohio Chamber members, including the Timken Company and Belden Brick Company along with World Kitchen, shared many examples with lawmakers of why an environmental statute of limitations is necessary. Enforcing agencies often delay bringing actions for 10,15, even 20 years, forcing companies to mount ineffective and expensive defenses. Not only is that time-consuming and costly to companies, but it is detrimental to obtaining a cleaner environment. These costs, often in the hundreds of thousands of dollars, would be much better directed toward investment in new environmental technologies.

SB 105 establishes a five-year statute of limitations that can be raised as a defense by companies in environmental actions brought by the state or local governmental authorities. The five-year time period begins on the date the enforcing agency actually knew or was informed of the event that is the basis of the cause of action.

The statute of limitations defense is only available in actions for civil or administrative penalties, not in criminal actions nor actions for injunctive relief or cost recovery.

SB 105 also allows the alleged violator and enforcing agency to mutually agree to waive the five-year statute of limitations.

This was a major victory for Ohio Chamber members. Now Ohio businesses can avoid the untenable position of mounting defenses against stale claims while trying to maintain an advantage over competitors in neighboring states.