EPA v. Jacob Manne Irrevocable Trust

Case summary

EPA is seeking reimbursement of past costs at the Shenandoah Road groundwater contamination site. The proposed defendant was the President of a company which operated at the Site and caused the release of PCE and other hazardous substances. He was involved in the day to day operations at the Site, including disposal of hazardous substances. EPA also seeks the recovery of assets, pursuant to the Federal Debt Collection Act of 1990, 28 U.S.C. 3001-3702, that were fraudulently conveyed prior to his death, and the avoidance of cash distributions from the Trust to his son. Under the terms of the Consent Decree, five parcels of property which had been owned and transferred to the Trust, will be conveyed to a management corporation established by the estate and appraised. The appraised value of these parcels will be paid to the United States within three years after the effective date of the Consent Decree, regardless of whether the parcels are sold or not. On June 23, 2017, the District Court for the Southern District of New York approved a Stipulation modifying a 2010 Consent Decree for the Shenandoah Groundwater Contamination Superfund Site. The 2010 Consent Decree resolved CERCLA cost recovery claims and fraudulent conveyance claims through the sale of five parcels of non-Site property valued through a negotiated appraisal process. The Defendant unsuccessfully judicial challenged the appraisal, then brought collateral state and federal claims against the appraisers and a peripheral party with limited ability to pay, delaying EPA's cost recovery. The Stipulation provides for dismissal of those collateral claims and payment to EPA from the property sale of $500,000, an amount reduced to reflect updated appraisals. In addition, the buyer agreed to grant a conservation easement to preserve the parcels as farmland, a result supported by the municipality and local preservation groups.

Defendants (5)

• Manne, Jacob Irrevocable TrustNamed in settlement
• Joseph S. ManneNamed in complaintNamed in settlement
• Steven A. SchurkmanNamed in complaintNamed in settlement
• Manne, Joseph
• Manne, Jacob Estate of

Facilities (1)

• SHENANDOAH ROAD GROUNDWATER CONTAMINATION

  SHENANDOAH RD & BURBANK RD, SEYMOUR LANE, EAST FISHKILL, NY, 12533

  Registry ID: 110009304001

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• Jacob Manne Irrevocable Trustentered 2017-06-23

  Primary law: CERCLA

• Jacob Manne Irrevocable Trustentered 2010-07-21

  Primary law: CERCLA

Timeline (8 milestones)

• 2006-09-29Referred TO U.S. Attorney
• 2006-09-29Referred To Dept Of Justice
• 2006-10-05Enforcement Action Data Entered
• 2008-03-03Complaint Filed With Court
• 2008-03-03Amended Complaint
• 2017-06-21Final Order Lodged
• 2017-06-23Concluded
• 2017-06-23Final Order Entered