EPA v. Caribbean Auto Mart of St. Croix, Inc.

Case summary

Between 1999 and 2003, the Defendant sent approximately 28,800 gallons of hazardous substance containing wastes, including waste oil, batteries, used filters, cloths and contaminated water to the TC Waste Oil Site in St. Croix, U.S.V.I. In September 2008 EPA completed at removal action at the Site for which it paid over $3,064,373 in response costs through December 31, 2012. The Defendant filed for bankruptcy under Chapter 7 of the U.S. Bankruptcy Code on March 5, 2013. On August 9, 2013, the United States on behalf of EPA filed a proof of claim for EPA�s Site-related past response costs in the bankruptcy proceeding. Under the bankruptcy settlement agreement (Settlement Agreement) approved by the bankruptcy court on August 17, 2016, EPA will have an allowed general unsecured claim of $423,448 in the bankruptcy. The United States does not expect the bankruptcy estate to have any funds available to pay general unsecured claims such as EPA�s, and it is highly unlikely that EPA will receive a distribution under the Settlement Agreement. Under a separate but related consent decree, however, the Defendant's corporate parent will reimburse EPA for $137,500 in Site-related past response costs. In the bankruptcy Settlement Agreement, the Defendant will receive a site-wide covenant not to sue pursuant to CERCLA. In the consent decree, the United States will provide the corporate parent and several affiliated companies with a covenant not to sue for past response costs. The consent decree with the corporate parent became effective only after both the United States District Court for the District of the Virgin Islands approved the consent decree and the bankruptcy court approved the Settlement Agreement. Similarly, the Settlement Agreement provides that it would become effective only if the bankruptcy court approves the Settlement Agreement, and the district court approves the consent decree. The district court entered the consent decree on August 26, 2016. On February 5, 2015, the U.S. District Court of the Virgin Islands approved a consent decree in United States of America v. Antilles Gas Corp., et al.under which 23 private party settling defendants and two settling federal agencies reimbursed EPA for $1,877,127 in CERCLA past response costs paid with regard to the Site.

Defendants (1)

• Caribbean Auto Mart of St. Croix, Inc.Named in complaintNamed in settlement

Facilities (1)

• T.C. WASTE OIL FACILITY INC.

  1 ESTATE CARLTON, FREDERIKSTED, VI, 00840

  Registry ID: 110029529099

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• Caribbean Auto Mart of St. Croix, Inc.entered 2016-08-17

  Primary law: CERCLA

Timeline (6 milestones)

• 2013-09-27Referred To Dept Of Justice
• 2013-09-28Complaint Filed With Court
• 2013-09-30Enforcement Action Data Entered
• 2016-05-03Final Order Lodged
• 2016-08-17Concluded
• 2016-08-17Final Order Entered