EPA v. Caribbean Auto Group (CAG) International, Inc.

Case summary

Between 1999 and 2003, Caribbean Auto Mart of St. Croix, Inc. (CAMSTX) 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 is CAMSTX's corporate parent. On March 5, 2013, CAMSTX filed for bankruptcy under Chapter 7 of the U.S. Bankruptcy Code. 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 CAMSTX bankruptcy proceeding. Under a 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 CAMSTX bankruptcy. The United States does not expect the CAMSTX 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 will reimburse EPA for $137,500 in Site-related past response costs. In the consent decree, the United States provided the Defendant and several affiliated companies with a covenant not to sue for past response costs. In the bankruptcy Settlement Agreement, CAMSTX will receive a site-wide covenant not to sue pursuant to CERCLA. The consent decree with the Defendant 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, and the Defendant reimbursed EPA for $137,500 on September 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)

• CAG International, Inc.Named in complaintNamed in settlement

Facilities (1)

• T.C. WASTE OIL FACILITY INC.

  NO. 1 ESTATE CARLTON, FREDERIKSTED, VI, 00840

  Registry ID: 110029529099

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• Caribbean Auto Group (CAG) International, Inc.entered 2016-08-26

  Primary law: CERCLA

Timeline (6 milestones)

• 2016-04-05Enforcement Action Data Entered
• 2016-04-29Referred To Dept Of Justice
• 2016-05-03Final Order Lodged
• 2016-05-03Complaint Filed With Court
• 2016-08-26Final Order Entered
• 2016-08-26Concluded