EPA v. AMERICAN THERMOSTAT CORP (BNK)

Case summary

ON 12/4/86, EPA REG. II SENT A MEMO TO HQ REQUESTING THE FILING OF A PROOF OF CLAIM BY 12/12/86 TO PRESERVE THE GOV- ERNMENT'S RIGHT TO SEEK RECOVERY OF COSTS FROM THE AMERICAN THERMOSTAT CORP. OF APPROXIMATELY $20,000 WHICH HAVE BEEN INCURRED, ADD'L COSTS WHICH HAVE BEEN INCURRED BUT HAVE NOT BEEN DOCUMENTED, & ADD'L COSTS WHICH ARE INCURRED. THESE COSTS HAVE BEEN OR WILL BE INCURRED BY THE GOV'T AS PART OF A REMOVAL ACTION AUTHORIZED ON 8/19/85 OR THE EXTENSION OF Q THE REMOVAL ACTION WHICH AUTHORIZED THE EXPENDITURE OF $141,000 ON 8/25/86. PURSUANT TO SECT. 104 OF CERCLA, THE EPA, THROUGH THE HAZARDOUS SUBSTANCES TRUST FUND, UNDERTOOK & WILL UNDERTAKE INVESTIGATIVE, REMOVAL AND REMEDIAL WORK AT THE FACILITY WHICH WAS OWNED AND OPERATED BY THE DEBTOR, AMERICAN THERMOSTAT CORP. SECT. 107 OF CERCLA & OTHER AUTHORITIES PROVIDE THAT THE DEBTOR, AS THE OWNER OR OPERATOR AT THE TIME OF DISPOSAL OF CONTAMINANTS, INCLUDING HAZARDOUS SUB- STANCES, AT THE SITE IS LIABLE TO THE U.S. FOR THE COSTS OF THE INVESTIGATIVE, REMOVAL AND REMEDIAL WORK. THIS CLAIM MAY BE FILED AS A PRIORITY CLAIM ON THE BASIS THAT THE MONIES EXPENDED ARE ADMINISTRATIVE COSTS PRESERVING THE ESTATE. ALTERNATIVELY, THE CLAIM MAY BE FILED AS A GENERAL UNSECURED CLAIM. AMERICAN THERMOSTAT IS LIABLE UNDER CERCLA BASED UPON THE FOLLOWING. IN 1965 THE OFFICERS OF AMERICAN THERMOSTAT CORP ACQUIRED THE SOUTH CAIRO, NY FACILITY WHICH MANUFACTURED THERMOSTATS. THE FACILITY CONTINUED TO OPERATE UNTIL IT WAS SUBJECT TO INVOLUNTARY BANKRUPTCY IN MAY 1985. THE CORPORA- TION WAS THE SUBJECT OF A STATE LAW SUIT WHICH WAS PARTIALLY BASED UPON THE CONTAMINATION OF SURROUNDING RESIDENTIAL POT- ABLE WELLS FROM THE SOLVENTS USED BY THE CORPORATION IN THE MANUFACTURING PROCESS. THE TRUSTEE IN BANKRUPTCY FOR THE CORPORATION RECEIVED A NOTICE LETTER DATED 10/10/86 ADVISING THE TRUSTEE OF POTENTIAL LIABILITY UNDER CERCLA. ATTORNEYS FOR THE PRINCIPALS HAVE INDICATED A WILLINGNESS TO PURSUE INSURANCE CLAIMS FOR POLLUTION LIABILITY.

Defendants (1)

• AMERICAN THERMOSTAT CORPNamed in complaintNamed in settlement

Facilities (1)

• USEPA AMERICAN THERMOSTAT SITE

  RTE 23B BOX 230, SOUTH CAIRO, NY, 12482

  Registry ID: 110006093510

Statutes cited

• CERCLA 107 — Superfund

Enforcement conclusions (1)

• AMERICAN THERMOSTAT CORPentered 1994-12-31

  Primary law: CERCLA

Timeline (8 milestones)

• 1986-12-04Enforcement Action Data Entered
• 1986-12-04Referred To Headquarters
• 1986-12-10Referred To Dept Of Justice
• 1986-12-12Complaint Filed With Court
• 1994-12-31Final Order Lodged
• 1994-12-31Final Order Entered
• 1994-12-31Concluded
• 1995-01-09Enforcement Action Closed