Common use of Maximum and Minimum Liability Amounts Clause in Contracts

Maximum and Minimum Liability Amounts. Maximum Liability Amount: The maximum liability is found in CWC section 13385 subdivision (c) and is $10,000 per day of violation plus $10 per gallon multiplied by the number of gallons discharged but not cleaned up over 1,000 gallons. The statutory maximum for Violation 1 is $85,087,900 based on two days of violation and a discharge of 8,507,790 gallons. The statutory maximum for Violation 2 is $880,460 based on 13 days of violation and a discharge of 75,046 gallons discharged to a water of the United States, less 1,000 gallons, and was not recovered. The combined total maximum liability for the two violations is $85,968,360. Minimum Liability Amount: CWC section 13385, subdivision (e) requires that, at a minimum, the economic benefit derived from the violations be recovered. The statutory minimum liability amount for Violations 1-2 is equal to the economic benefit of $4,594. The Enforcement Policy requires the Water Boards to recover 10% greater than the economic benefit. The economic benefit derived from the violations addressed in this matter is $5,053. Therefore, the minimum under the Enforcement Policy is $5,053.