503 CMR 2.13
Gross Negligence or Willful or Reckless Conduct
Notwithstanding any other provision of 503 CMR 2.00, no Reimbursement for any cost,
expense, obligation, or Claim for Bodily Injury or Property Damage or Damage to Natural
Resources that was proximately caused from Gross Negligence or Willful or Reckless Conduct
on the part of the principal(s) of the Claimant or an employee(s) or agent(s) working under the
specific direction of the principal(s) of the Claimant or Owner/Operator shall be eligible for
Reimbursement from the Fund.
2. 12: continued
1 . Any obligation for which the Claimant can be held liable under Workers
Compensation, unemployment compensation, disability benefits, or similar law
protecting employees of the Claimant.
2. Any damages to an employee or independent contractor of the Claimant connected
to the employment or contracting relationship.
3. Any damages to any business associate of the Claimant (or to a related enterprise),
including without limitation, a partner, shareholder (except one owning or controlling
less than 5% of a publicly traded company), or joint venture of the Claimant or of a
related enterprise or by any business entity or individual (or the Owners, agents or
employees thereof) that owns, leases, operates, or manages the Site except to the extent
arising from a business relationship with the Claimant that is unrelated or incidental to
the Claimant's relationship to the Site.
4. Any liability assumed by the Claimant under any contract or agreement if the liability
would not exist without a contract or agreement.
5. Compensation to the third-party for expenses related to one of the specific types of
costs designated in 503 CMR 2.12(4):
a. Pain and suffering;
b. Loss of consortium;
c. Fear of future harm or disease;
d. Medical monitoring in the absence of present harm or disease;
e. Punitive damages, civil penalties, or criminal fines;
f.
Damages in excess of the actual and verifiable costs incurred by the third-party
for one of the types of damage listed in 503 CMR 2. 12;
g. Emotional distress;
h. Diminution of property value;
i. Attorneys' fees, expert witness fees and other similar costs associated with
litigation or court-ordered arbitration; or
j. Any off-site rents for the placement and/or operation ofremediation equipment
or recovery wells.
(d) Eligible Reimbursements for Final Judgments shall be governed by the following:
1 . The Reimbursement Fee Schedule that sets forth charges representing the maximum
amounts the Board will regard as reasonable and appropriate for certain costs.
For activities not covered by the Reimbursement Fee Schedule, reasonable and
appropriate amounts for the different types of damages shall be determined by the Board.
(6) Other requirements Related to Claims Arising from Civil Court Action.
(a) Other requirements related to claims arising from civil court action. Only one Claim may
be filed for each Final Judgment except as set out below. If a Final Judgment requires
payment over time, a Claimant may file Claims and the Board may schedule Reimbursements
according to the Final Judgment. If the Final Judgment benefits multiple persons, the Board
may treat each person independently or as a group as the Board determines.
(b) Any Claim arising from a Final Judgment shall be filed as prescribed by the Board, and
shall include a copy of the Final Judgment, including information to satisfy the requirements
of 503 CMR 2. 12.
(c) The application shall list and be accompanied by documentation of amounts paid by the
Claimant to the third party and shall specify the purpose of the payments.
(d) Within 45 days of presentation to the Board of a Claim for Reimbursement or, if later,
within 45 days of presentation to the Board of any supplemental information requested by
the Board or DOR, the Board shall notify the Claimant in writing of its determination on the
Claim for Reimbursement. For the purposes of administering the program, a Claim shall be
considered complete upon its receipt, review by DOR, and presentation to the Board.