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What is a Covenant Not to Sue?

Covenant Sue
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What is a Covenant Not to Sue?

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A Covenant Not To Sue (CNS) (NJSA 58:10B-13.1) accompanies all letters of No Further Action (NFA). The CNS is a finality document; it is NJDEP’s own commitment that it will not institute civil actions to require more clean up or funds for cleanups against those who conducted the remediation that resulted in the NFA or against and subsequent owners, lessees, or operators who come onto the site after the NFA/CNS is issued. Note: There are no CNS protections for Spill Act dischargers or those “in any way responsible” under the Spill Act for the existence of hazardous substances, nor does it address liability protections from 3rd party lawsuits. It can be revoked if the NFA conditions are not complied with, including monitoring and maintaining institutional or engineering controls. In addition to the protections provided by law, NJDEP also enters into Prospective Purchaser Agreements (PPAs) in certain cases when requested. PPAs are often obtained by parties taking title to contaminated pro

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