U.S. parent corporations should be held liable for environmental pollution caused by their foreign subsidiaries. The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) already holds parent corporations liable in some ways for pollution caused by domestic subsidiaries. Regulations similar to CERCLA's could be applied extraterritorially and would be facilitated by abrogation of two common law principles: limited liability and forum non conveniens. Extraterritorial application of U.S. environmental regulations would greatly enhance transnational corporations' environmental behavior and facilitate just adjudication of plaintiffs' claims against irresponsible companies. Establishing the corporate parent's liability and upholding U.S. environmental standards in such cases would end many current hazardous practices that create pollution in developing countries.
