EPA v. S.B. Building Associates, LP et al.

Case summary

SB Building Associates, LP entered into an administrative order on consent (AOC) with EPA, effective September 15, 2004. EPA also incurred removal site assessment costs prior to entry into the AOC. Although the Defendant completed the removal action in April 2005, it was delinquent in submitting certain deliverables. As such, EPA filed a complaint seeking all incurred costs (including those that were already billed) as well as stipulated penalties for, at least, the ongoing violations of the AOC. On June 23, 2011, the Court entered a Consent Decree requiring payment of past response costs and penalties from the Defendants pursuant to the AOC. The Consent Decree also provided for the recordation of a judgment lien in favor the United States and against property owned by SB Milltown Industrial Holdings, L.L.C. in the event the Defendants did not satisfy the payment of costs and penalties. On July 14, 2014, non-debtor Settling Defendants paid the United States $125,000 in full satisfaction of the Consent Decree entered into in June 2011. The Consent Decree resolved the United States’ claims for past response costs and civil penalties under CERCLA related to a removal action at the site. The Consent Decree required the Settling Defendants to pay $300,000 plus accrued interested in six installment payments and also provide for an accelerated payment of $350,000 and additional daily stipulated penalties for default of the Consent Decree. In February 2013, three of the Settling Defendants filed for protection in bankruptcy. After making five of the six installment payments, non-debtor Settling Defendants failed to make the final payment due under the Consent Decree. Following this default, the United States moved on March 7, 2014 to enforce the Consent Decree against the three non-debtor Settling Defendants and requested the Court find the non-debtor Settling Defendants jointly and severally liable for $770,044 (which included the accelerated payment, interest, and stipulated penalties minus any monies already paid). On April 7, 2014, non-debtor Settling Defendants filed an opposition to the United States’ motion to enforce the Consent Decree and a cross-motion to modify the Consent Decree. Thereafter, after a hearing and supplemental briefing by both sides, the Court entered an Opinion and Order on June 16, 2014 granting the non-debtor Settling Defendants’ motion to modify the Consent Decree and granting the United States’ motion to enforce the Consent Decree as modified. The Court further entered judgment in favor of the United States and against the non-debtor Settling Defendants in the amount of $125,000.

Defendants (5)

• 7.04 Acres of LandNamed in complaintNamed in settlement
• United States Realty Resources, Inc.Named in complaintNamed in settlement
• United States Land Resources LPNamed in complaintNamed in settlement
• SB Building GP, LLCNamed in complaintNamed in settlement
• S.B. Building Associates, LPNamed in complaintNamed in settlement

Facilities (1)

• ALGRO KNITTING MILLS

  FORD AVENUE, MILLTOWN, NJ, 08850

  Registry ID: 110015218735

Statutes cited

• CERCLA 107L — Lien
• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• S.B. Building Associates, LPentered 2011-06-23

  Primary law: CERCLA

• S.B. Building Associates, LP et al.entered 2014-07-17

  Primary law: CERCLA

Timeline (6 milestones)

• 2008-06-30Referred To Dept Of Justice
• 2008-07-02Enforcement Action Data Entered
• 2008-10-27Complaint Filed With Court
• 2014-06-16Final Order Lodged
• 2014-07-17Final Order Entered
• 2014-07-17Concluded