EPA v. CUYAHOGA EQUIPMENT CORPORATION, IN RE

Case summary

THIS IS A PROPOSED ACTION IN THE CUYAHOGA WRECKING COR- PORATION BANKRUPTCY MATTER AS IT AFFECTS THE PUBLICKER CERCLA SITE. THE RECOMMENDATION IS THAT A COMPLAINT BE FILED IN THE BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, PURSUANT TO SECTIONS 104 AND 107 OF CERCLA AND SECTIONS 503 AND 506 OF THE BANKRUPTCY CODE, ALLEGING THAT THE UNITED STATES IS ENTITLED TO THE PROCEEDS OF THE DEL- AWARE AVENUE ENTERPRISES, INC.'S OPTION AGREEMENT WITH THE BANKRUPTCY TRUSTEE FOR THE OVERLAND CORPORATION ( A WHOLLY OWNED SUBSIDIARY OF THE BANKRUPT CUYAHOGA WRECKING CORPOR- ATION) AND WITH FREEDOM SAVINGS AND LOAN ASSSOCIATION (A SECURED CREDITOR OF THE BANKRUPT OVERLAND CORPORATION). THE PROPOSED CLAIM IS FOR REIMBURSEMENT OF CERCLA REMOVAL RE- SPONSE EXPENDITURES OF THE EPA. THIS CASE INVOLVES THE PUBLICKER SITE IN PHILADELPHIA, PENNSYLVANIA, A 37 ACRE, FORMER INDUSTRIAL ALCOHOL PRODUC- TION PLANT. ON JUNE 26, 1987, A FIRE OCCURRED AT THE SITE. DURING THE FIRE, THERE WERE NUMEROUS EXPLOSIONS AND FIRE. FLARES, LEADING FIREMEN AND EPA TO BELIEVE THAT CHEMICAL PRODUCTS WERE STILL PRESENT AT THE SITE. EPA PERFORMED A SITE INSPECTION ON JULY 9, 1987 AND OBSERVED THE PRESENCE OF HAZARDOUS SUBSTANCES THROUGHOUT THE SITE. SINCE JUNE 26, 1987, EPA HAS SPENT IN EXCESS OF 4 MILLION IN REMOVAL RESPONSE COSTS AND EXPECTS TO INCUR FURTHER COSTS. EPA BELIEVES THAT THE RESPONSE COSTS SHOULD BE EN- TITLED TO PRIORITY GIVEN TO PAYMENT UNDER SECTION 507 OF THE BANKRUPTCY CODE. FURTHERMORE, THE UNITED STATES SHOULD ALLEGE THAT ITS CLAIM TO THE PROCEEDS IS SUPERIOR TO THE EX- PENSES BENEFITTED THE PROPERTY WHICH SECURED FREEDOM SAVINGS AND LOAN ASSOCIATION'S CLAIM. SINCE THE UNITED STATES FILED AN OBJECTION TO AN APPLICA- TION FOR APPROVAL OF SETTLEMENT AGREEMENT WITH FREEDOM SAVINGS AND LOAN ASSOCIATION ON JULY 19, 1988, REGION III, DEPARTMENT OF JUSTICE AND UNITED STAES ATTORNEY FOR THE SOUTHERN DISTRICT OF NEW YORK STAFF NAVE DISCUSSES SETTLE- MENT OF EPA'S CLAIM WITH THE CHAPTER 11 TRUSTEE, THE TRUSTEE'S COUNSEL, FREEDOM SAVINGS AND LOAN ASSOCIATION, COUNSEL FOR FREEDOM SAVINGS AND LOAN ASSOCIATION, COUNSEL FOR THE FEDERAL DEPARTMENT OF ENVIRONMENTAL RESOURCES. NO SETTLEMENT, HOWEVER, HAS BEEN REACHED.

Defendants (4)

• CUYAHOGA EQUIPMENT CORPORATIONNamed in complaintNamed in settlement
• FREEDOM SAVINGS AND LOAN ASSOCIATIONNamed in complaintNamed in settlement
• OVERLAND CORPORATIONNamed in complaintNamed in settlement
• SALOMON, CHESTER B., TRUSTEENamed in complaintNamed in settlement

Facilities (1)

• PUBLICKER

  3223 S DELAWARE AVE, PHILADELPHIA, PA, 19148

  Registry ID: 110016715508

Statutes cited

• CERCLA 104A — CERCLA 104(a)
• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• IN RE CUYAHOGA EQUIPMENT CORP.entered 1992-01-14

  Primary law: CERCLA

• CUYAHOGA EQUIPMENT CORPORATION, IN REentered 2000-06-30

  Primary law: CERCLA

Timeline (7 milestones)

• 1987-09-26Enforcement Action Data Entered
• 1988-12-30Referred To Dept Of Justice
• 1990-12-20Complaint Filed With Court
• 2000-06-07Final Order Lodged
• 2000-06-30Final Order Entered
• 2000-08-09Concluded
• 2000-08-09Enforcement Action Closed