Common use of Minimum Liability Clause in Contracts

Minimum Liability. Water Code section 13385, subdivision (e) requires, at a minimum, that an administrative civil liability be imposed that will capture the economic benefit to the violator from the violation. In this case, the Discharger realized an economic benefit of approximately $179,000 in the form of cost savings for delaying the construction and replacement of the failed force main for nine years. The State Water Resources Control Board’s Water Quality Enforcement Policy (Enforcement Policy) recommends the Regional Water Board assess liability at least 10 percent higher than the economic benefit so that liabilities are not construed as the cost of doing business and that the assessed liability provides a meaningful deterrent to future violations. Accordingly, the minimum administrative civil liability for the Discharger’s SSO is $196,469. See Attachment A for the full economic benefit analysis.