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Ruling: Company's Car Crash Billing Claim Bogus

Emergency Services Billing Used CERCLA To Justify $28,000 House Fire Charge

POSTED: 9:53 am EDT March 23, 2010
UPDATED: 6:58 pm EDT March 23, 2010

A federal court ruling could keep a company from charging fees some consider outrageous for fire services and car accidents.

A federal judge in northern Indiana ruled against Emergency Services Billing Corp. less than a month after a 6News investigation called its practices into question in a different case.

The case in northern Indiana that led to the ruling pertained to car crashes and the company's contention that it and fire departments could recover thousands of dollars for environmental cleanup that it claimed was necessary.

The judge ruled that cars should be considered consumer products in consumer use and that ESB can't charge people involved in crashes federal environmental cleanup fees.

The court ruled that ESB's case has no merit and the company cannot recover response costs under federal law.

ESB claimed that under the Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, it could get fees to cover the response to environmental hazards.

Jon Zarich, a spokesman from the Insurance Institute of Indiana, said the industry is pleased with the decision.

"This was one step in the process, but there is more work to be done," he said.

In February, 6News' Joanna Massee talked to a New Castle family who was sent a bill for nearly $28,000 after a fire at their home.

ESB cited CERCLA in that case, too, claiming the scene of the fire was a hazardous waste site.

6News sought comment from ESB's owner on Monday, but calls were not returned.

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