EPA v. CHARLES GEORGE TRUCKING COMPANY, ET AL.

Case summary

THIS IS A CIVIL ACTION FOR COST RECOVERY UNDER SECTION 107 OF CERCLA, 42 U.S.C. SECTION 9601 ET SEQ., AGAINST THE CHARLES GEORGE TRUCKING CO., & ITS TRUSTEES. SYNOPSIS: THE CASE INVOLVES A 70-ACRE LANDFILL IN TYNGSBORO & DUNSTABLE, MA (THE SITE), WHICH IS ESTIMATED TO BE THE 2ND LARGEST PRIVATELY OWNED LANDFILL IN MASS & HAS BEEN LISTED ON THE NPL SINCE 12/82. IT HAS BEEN OWNED & OPERATED BY THE CHARLES GEORGE LAND RECLAMATION TRUST (CGLRT) SINCE 1971. DOROTHY & CHARLES GEORGE SR. NAMED THEMSELVES AS TRUSTEES OF THE CGLRT & OPERATED THE LANDFILL IN THE STYLE OF A FAMILY BUSINESS -- I.E., W/THEIR CHILDREN, JAMES GEORGE, CHARLES GEORGE JR., & KAREN KARRAS PARTICIPATING IN THE DAY-TO-DAY OPERATIONS. PURSUANT TO PERMITS ISSUED BY MASS, THE SITE WAS OPER- ATED AS A HAZARDOUS WASTE DISPOSAL FACILITY FROM 1973-JAN 1976. IN 1979 DOROTHY & CHARLES, SR. RESIGNED AS TRUSTEES, & JAMES GEORGE BECAME SOLE TRUSTEE OF THE CGLRT. DESPITE SIZEABLE REVENUES PRODUCED BY THE CGLRT FROM 1971-1983, THE CGLRT FILED A PETITION FOR BANKRUPTCY IN APR '83 & ABANDONED THE SITE SHORTLY THEREAFTER. BANKRUPTCY COURT DISMISSED THE PETITION & AN APPEAL TO U.S. DIST. COURT IS PENDING. IN NOV 1983, EPA'S CONTRACTORS BEGAN INVESTIGATING THE RELEASE OF HAZARDOUS SUBSTANCES AT THE SITE. PURSUANT TO SECT 104 OF CERCLA, EPA HAS CONDUCTED SEVERAL STUDIES ON EN- VIRONMENTAL PROBLEMS CREATED BY THE SITE. THUS FAR, EPA'S RESPONSE ACTIONS INCLUDE FENCING, SURVEYING, & COVERING OF EXPOSED REFUSE AT THE SITE & PROVIDING EMERGENCY WATER TO NEARBY RESIDENTS WHOSE WELLS HAVE BEEN CONTAMINATED BY THE SITE. EPA RECENTLY COMPLETED THE STUDY & DESIGN OF A PERMA- NENT WATERLINE TO THESE RESIDENTS. APPROX $1.5 MILLION HAVE BEEN EXPENDED FOR RESPONSE ACTIONS. THE COST OF THE ENTIRE RESPONSE ACTION IS EXPECTED TO REACH $20 MILLION. PRECEDENTIAL LEGAL ISSUES: THIS CASE POSES AT LEAST 6 PRECEDENTIAL LEGAL ISSUES. FIRST, THE RECOVERY OF FUNDS UNDER SECT 107 OF CERCLA IS COMPLICATED BY THE FACT THAT THE GEORGES OWNED & OPERATED THE FACILITY IN THEIR CAPACITY AS TRUSTEES FOR CGLRT. THE LIABILITY OF TRUSTEES UNDER CERCLA IS AN UNSETTLED QUESTION; HOWEVER, EPA HAS STRONG ARGUMENTS THAT, NOTWITHSTANDING THE EXISTENCE OF CGLRT, EPA MAY HOLD ITS PAST & PRESENT TRUSTEES - JAMES GEORGE, DOROTHY GEORGE, & CHARLES GEORGE SR. - PER- SONALLY LIABLE FOR EPA'S RESPONSE COSTS ON THE THEORY THAT AS INDIVIDUALS THEY WERE OWNERS & OPERATORS OF THE SITE. KAREN KARRAS & CHARLES GEORGE JR. - 2 OTHER CHILDREN OF DOROTHY & CHARLES SR. - MAY ALSO BE HELD PERSONALLY LIABLE BECAUSE OF THEIR PARTICIPATION IN MGT OF THE SITE. A FURTHER COMPLICATION IS THE FACT THAT THE CGLRT, THOUGH DISMISSED AS A DEBTOR IN BANKRUPTCY, IS STILL BEING PROTECTED FROM SUIT BY A STAY PENDING OUTCOME OF THE APPEAL OF THE DISMISSAL. U.S. MAY ARGUE THAT THE INDIVIDUALS WHO MANAGED THE CGLRT ARE NOT PROTECTED BY ANY STAY. THERE IS ALSO AN IMPORTANT FRAUDULENT CONVEYANCE ISSUE PRESENT. APPARENTLY IN ANTICIPATION OF CERCLA LIABILITY, DOROTHY GEORGE CONVEYED PROPERTIES IN MASS & NH VALUED IN EX CESS OF $1.5 MIL TO HER DAUGHTER, DOROTHY GEORGE LACERTE. UNDER UNIFORM FRAUDULENT CONVEYANCES ACT ADOPTED IN BOTH STATES, THESE CONVEYANCES MAY BE SET ASIDE & USED TO SATISFY A JUDGEMENT IN FAVOR OR THE U.S. THE FRAUDULENTLY CONVEYED REAL ESTATE IS OF CRUCIAL IMPORTANCE TO THE SUCCESS OF THIS SECT 107 ACTION. THE KNOWN ASSETS OF THE GEORGE FAMILY ARE PRIMARILY IN REAL PORPERTY, A LARGE PORTION OF WHICH HAS BEEN FRAUDULENTLY CONVEYED. AS SOON AS THE FRAUDULENTLY CONVEYED PROPERTY IS SOLD TO BONA FIDE PURCHASERS, THOSE AS- SETS ARE EFFECTIVELY PUT BEYOND THE GOVT'S REACH. IN THE SUMMER & FALL OF 1984, >$100,000 WO

Defendants (32)

• BFINamed in complaintNamed in settlement
• BORDENNamed in complaintNamed in settlement
• GEORGE, CHARLES SR.Named in complaintNamed in settlement
• GEORGE, CHARLES, JR.Named in complaintNamed in settlement
• GEORGE, DOROTHYNamed in complaintNamed in settlement
• GEORGE, JAMESNamed in complaintNamed in settlement
• GILLETTENamed in complaintNamed in settlement
• HUSSEY PLASTICS COMPANY, INC.Named in complaintNamed in settlement
• JENIKE & JOHNSON, INCNamed in complaintNamed in settlement
• KARRAS, KARENNamed in complaintNamed in settlement
• LACERTE, DOROTHY G.Named in complaintNamed in settlement
• LAM, INC.Named in complaintNamed in settlement
• MILLIPORE CORPORATIONNamed in complaintNamed in settlement
• NATIONAL ALUMINUM CORPORATION (NAC)Named in complaintNamed in settlement
• POLAROID CORPORATIONNamed in complaintNamed in settlement
• PPG INDUSTRIES, INCNamed in complaintNamed in settlement
• PRIDE PRINTERSNamed in complaintNamed in settlement
• RAYTHEONNamed in complaintNamed in settlement
• SPINCRAFT, DIVISION OF STANDEX INTERNATINamed in complaintNamed in settlement
• STEPANNamed in complaintNamed in settlement
• W.R. GRACE & CONamed in complaintNamed in settlement
• AMSTAR SUGAR CORPORATIONNamed in complaintNamed in settlement
• ANALOG DEVICES, INCNamed in complaintNamed in settlement
• CHARLES GEORGE TRUCKING COMPANY, ET ALNamed in complaintNamed in settlement
• CLEAN HARBORSNamed in complaintNamed in settlement
• …and 7 more

Facilities (2)

• CHARLES GEORGE REC TRUST

  70 CUMMINGS RD, TYNGSBORO, MA, 01879

  Registry ID: 110010639791

• GEORGE CHARLES TRUCKING CO INC

  DUNSTABLE RD, TYNGSBORO, MA, 01879

  Registry ID: 110024304028

Statutes cited

• RCRA 3008A — Compliance Order: Injunctive & Penalty
• CERCLA 104E5A — Superfund
• RCRA 3008G — Penalty Authority
• CERCLA 104E2 — Information and/or Access
• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• CHARLES GEORGE TRUCKING COentered 1993-05-24

  Primary law: CERCLA

Timeline (8 milestones)

• 1981-01-01Enforcement Action Data Entered
• 1984-12-31Referred To Headquarters
• 1985-01-31Referred To Dept Of Justice
• 1985-01-31Referred TO U.S. Attorney
• 1985-06-13Complaint Filed With Court
• 1993-05-24Final Order Lodged
• 1993-05-24Final Order Entered
• 1993-05-24Concluded