General Environmental Law and Natural Resources No. 64-00 establishes environmental liability through the incorporation of the principle of strict liability; therefore, traditional exclusions commonly found in liability clauses do not apply to environmental civil liability. Legal liability arises from the occurrence of the damage itself. This doctrine establishes that any person who causes damage to the environment and natural resources shall be responsible for such damage and must restore the environment to its previous condition. If restoration is not possible, additional compensation shall apply.
Administrative liability, on the other hand, has become the most common type of liability when a violation of environmental laws and/or permits is verified.
The main administrative sanctions provided for under environmental legislation are the following:
(1) Fines of up to three thousand times the minimum wage;
(2) Seizure and/or confiscation; and
(3) Prohibition or temporary suspension of activities, or partial or total closure of the establishment.
Regarding civil liability, damages and losses caused to third parties as a result of pollution are addressed under the Civil Code. Several sanctions may arise:
(1) An order to materially restore the damage caused;
(2) An order for compensation in favor of the State (for the community where the damage occurred) and/or any affected individuals; and
(3) An order to restore the environment to the condition it was in prior to the damage, whenever possible.
Regarding criminal liability, the competent criminal jurisdiction may impose sanctions on individuals or companies that have committed violations, including the following:
(1) Imprisonment if deaths occurred as a result of the violation;
(2) Fines;
(3) Confiscation;
(4) The obligation to compensate those who suffered damages;
(5) Temporary or permanent withdrawal of the authorization, license, or permit; and
(6) The obligation to repair, replace, compensate, restore, or rehabilitate the affected natural resource to its original condition.
Regardless of the type of liability involved, sanctioned individuals or companies will always have the corresponding remedies and procedural defenses available, both in administrative proceedings and before the courts.
