EPA v. CENTAUR INSURANCE COMPANY (SHARON STEEL FACILITY)

Case summary

On November 17, 2017, DOJ submitted a Proof of Claim (POC) in the Receivership Action of the Centaur Insurance Company (Centaur), Case Number 87 CH 8615, Circuit Court of Cook County, Illinois, which includes Region III�s claims for the Avtex Fibers, Inc. Superfund Site in Front Royal, Virginia, and the Sharon Steel Corp. (Farrell Works Disposal Area) Superfund Site in Hermitage, Pennsylvania; these claims, if successful, will provide funding for EPA�s past and future response actions, including ongoing cleanups of soil and/or groundwater contamination at the Sites. The claims arise out of excess liability insurance policies issued by Centaur to Avtex Fibers, Inc. and Sharon Steel Corporation, both bankrupt former owner/operators of their respective Sites. EPA has incurred, and will continue to incur, response costs in implementing response actions at the Sites, with total costs estimated at approximately $136.6 million for the Avtex Fibers Site and approximately $48.6 million for the Sharon Steel Farrell Works Site. The claims asserted in the POC are for the full property damage limits of the Centaur policies issued to Avtex Fibers and Sharon Steel, i.e., $10 million and $500,000, respectively, subject to Centaur�s coverage defenses. This is a direct implementation claim for the federal government which arises under the Illinois receivership statute and the Federal Priorities Act. The United States previously settled claims in this Receivership Action under a Centaur policy issued to LCP Chemicals & Plastics, Inc. (LCP) for the LCP�s liability at three Superfund Sites, including Region III�s claim for the Hanlin-Allied-Olin Site. This POC will enable DOJ to include these additional claims in the negotiations with the Liquidator under the above Centaur policies. This POC also asserts a claim on behalf of the Department of Interior (DOI) under the same Avtex Fibers policies for DOI�s damages at the Avtex Fibers Site as well as a separate claim by DOI and the National Oceanic and Atmospheric Administration under the LCP policy for costs incurred by the Trustees at a Superfund Site in New Jersey. As stated in the POC, the United States expects that these claims will be the final claims asserted by the United States in the Centaur Receivership Action.

Defendants (1)

• CENTAUR INSURANCE COMPANYNamed in complaint

Facilities (6)

• SHARON STEEL CORP STEEL DIV

  15 ROEMER BLVD, FARRELL, PA, 16121

  Registry ID: 110033144817

• SHARON STEEL CORP STEEL DIV

  15 ROEMER BLVD, FARRELL, PA, 16121

  Registry ID: 110033144817

• SHARON STEEL CORP STEEL DIV

  15 ROEMER BLVD, FARRELL, PA, 16121

  Registry ID: 110033144817

• SHARON STEEL CORP STEEL DIV

  15 ROEMER BLVD, FARRELL, PA, 16121

  Registry ID: 110033144817

• SHARON STEEL CORP STEEL DIV

  15 ROEMER BLVD, FARRELL, PA, 16121

  Registry ID: 110033144817

• SHARON STEEL CORP STEEL DIV

  15 ROEMER BLVD, FARRELL, PA, 16121

  Registry ID: 110033144817

Statutes cited

• CERCLA 107A — Cost Recovery

Timeline (3 milestones)

• 2013-09-30Referred To Dept Of Justice
• 2013-10-21Enforcement Action Data Entered
• 2017-11-17Complaint Filed With Court