EPA v. UNION FINANCIAL SERVICES GROUP, IN RE

Case summary

1. A cost recovery claim, pursuant to Section 107 of CERCLA, 42 U.S.C. ' 9607, and a claim for injunctive relief, pursuant to Section 7003 of RCRA, 42 U.S.C. ' 6973, against Union and Metal Bank arising out of the Metal Bank Superfund Site in Philadelphia, Philadelphia County, Pennsylvania. This site was a former scrap metal and transformer reclamation facility located on the Delaware River. The facility was owned and operated by Union and its subsidiary, Metal Bank. During operations at the site, transformer oils were regularly released into the environment. As a result of these events, the soil and groundwater at the site became contaminated with polychlorinated biphenyls ( PCB ), polycyclic aromatic hydrocarbons ( PAH ), heavy metals, volatile organic compounds ( VOCs ) and semi-volatile organic compounds ( SVOC ). In 1980, the United States commenced an action against Union, Metal Bank and others in the United States District Court for the Eastern District of Pennsylvania, which was captioned United States v. Union Corporation, et al., Civil Action No. 80-1589. The United States sought an injunction requiring defendants to clean up the contamination from the soils and groundwater and to reimburse the United States for prior studies. The case was placed in suspense for many years while the defendants attempted to conduct certain remedial actions and the United States continued to study the site. In 1998, the case was reactivated. A trial on defendants' liability was conducted in 2002. In January 2003, the court held all of the defendants, including Union and Metal Bank, liable for the contamination of the site under Section 107 of CERCLA, 42 U.S.C. ' 9607 and Section 7003 of RCRA, 42 U.S.C. ' 6973. Although the court has not yet decided on the amount of past and future costs for which the defendants are liable, the United States' past costs claim, including prejudgment interest, has been calculated as $6,337,471.65 as of May 12, 2003. The future remedial work believed to be necessary to cleanup the site has been estimated in the range of $20 million. Please refer to Enclosure A appended hereto for further information about this site. 2. A cost recovery claim, pursuant to Section 107 of CERCLA, 42 U.S.C. ' 9607, against Union arising out of the Spectron Superfund Site near Elkton, Maryland. The site was operated for decades as a solvent recovery facility and soils and groundwater at the site are contaminated by various solvents. Union generated and sent various trichloroethylene wastes to the site for disposal. EPA expects to issue a Record of Decision selecting the first component of the final remedy for the site in the near future. As of January 2002, EPA had incurred approximately $2.2 million in costs in responding to conditions at this Site. The estimated total future costs associated with the anticipated remedy is $33.7 million. A more detailed description of the nature and scope of the claim arising from this site may be found at Enclosure B. 3. A potential cost recovery claim, pursuant to Section 107 of CERCLA, 42 U.S.C. ' 9607, as well as a potential claim for injunctive relief, pursuant to Section 7003 of RCRA, 42 U.S.C. ' 6973, against Union's subsidiary, ARC, arising out of the company's former facility at 1901 Birch Street, Baltimore, Maryland. ARC operated a hazardous waste recycling facility at this location between 1970 and 1984. As a result of ARC's operations, the groundwater beneath the property became contaminated. ARC began field investigations of the facility in 2001 as part of a corrective action pursuant to RCRA. The anticipated remedial work to be implemented at this site has been estimated as approximately $9 million. Additional information about this site may be found at Enclosure C.

Defendants (26)

• UNION FINANCIAL SERVICES GROUPNamed in complaintNamed in settlement
• UCO-MBA CORPORATIONNamed in complaintNamed in settlement
• AMERICAN RECOVERY COMPANY, INCNamed in complaintNamed in settlement
• OUTSOURCING SOLUTIONS, INCNamed in complaintNamed in settlement
• RWC CONSULTING GROUP, LLCNamed in complaintNamed in settlement
• PAE LEASING, LLCNamed in complaintNamed in settlement
• PACIFIC SOFTWARE COUNSULTING, LLCNamed in complaintNamed in settlement
• GREYSTONE BUSINESS GROUP, LLCNamed in complaintNamed in settlement
• QUALINK, INCNamed in complaintNamed in settlement
• PROFESSIONAL RECOVERIES INCNamed in complaintNamed in settlement
• PAYCO AMERICAN INTERNATIONAL CORPNamed in complaintNamed in settlement
• OSI OUTSOURCING SERVICES INTERNATIONAL, LTDNamed in complaintNamed in settlement
• UNION CORPORATIONNamed in complaintNamed in settlement
• OUTSOURCING SERVICES, INCNamed in complaintNamed in settlement
• TRANSWORLD SYSTEM INCNamed in complaintNamed in settlement
• C.S.N. CORPNamed in complaintNamed in settlement
• GENERAL CONNECTOR CORPORATIONNamed in complaintNamed in settlement
• UCO PROPERTIES, ICNORPORATEDNamed in complaintNamed in settlement
• UNION-SPECIALTY STELL CASTING CORPORATIONNamed in complaintNamed in settlement
• UNIVERSITY ACCOUNTIN SERVICE, LLCNamed in settlement
• NORTH SHORE AGENCY, INCNamed in complaintNamed in settlement
• OSI PORTFOLIO SERVICES, INCNamed in complaintNamed in settlement
• PERMITER CREDIT L.L.C.Named in complaintNamed in settlement
• ASSET RECOVERY & MANAGEMENT CORPNamed in complaintNamed in settlement
• GRABLE, GREINER & WOLFF, INCNamed in complaintNamed in settlement
• …and 1 more

Facilities (2)

• METAL BANK COTTMAN SUPERFUND

  7301 MILNOR ST, PHILADELPHIA, PA, 19107

  Registry ID: 110001042185

• METAL BANK (STATE ROAD)

  6800 STATE ROAD, PHILADELPHIA, PA, 19135

  Registry ID: 110037234392

Statutes cited

• RCRA 7003 — Imminent Order: Solid or Hazardous Waste
• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• UNION FINANCIAL SERVICES GROUP, ET AL, IN REentered 2003-12-09

  Primary law: CERCLA

• UNION FINANCIAL SERVICES GROUP, IN REentered 2003-12-09

  Primary law: CERCLA

Timeline (5 milestones)

• 2003-09-30Referred To Dept Of Justice
• 2003-09-30Enforcement Action Data Entered
• 2003-11-07Complaint Filed With Court
• 2003-11-09Final Order Lodged
• 2003-12-09Final Order Entered