EPA v. MW GROUP, LLC

Case summary

MW GROUP IS INCORPORATED IN THE STATE OF NORTH CAROLINA AND COMMENCED DOING BUSINESS IN 1999. MW GROUP'S PRIMARY BUSINESS INVOLVES LEASING AND MANAGING REAL ESTATE PROPERTY, INCLUDING MARLBOROUGH WOODS CONDOMINIUM WHICH CONSISTS OF 48 CONDOMINIUM UNITS AND WEYLAND APARTMENTS WHICH CONSISTS OF 200 APARTMENT UNITS. MW GROUP'S LEASED PROPERTY, WEYLAND APARTMENTS, IS LOCATED AT 2814 MARLOW AVENUE, CHARLOTTE, NC, AND IS THE SUBJECT OF THE REGION 4 ENFORCEMENT ACTION. EPA'S ENFORCEMENT ACTION WAS INITIATED AFTER A COMPLAINT WAS MADE BY A LESSEE AND RESIDENT OF WEYLAND APARTMENTS ON OR ABOUT JAN 3, 2011. ON FEB 7, 2011, REGION 4 CONDUCTED AN INSPECTION AT WEYLAND APARTMENTS, TO DETERMINE MW GROUP'S COMPLIANCE WITH 40 CFR PART 745, SUBPART F. BASED ON THE FINDINGS OF THE INSPECTION, REGION 4 IDENTIFIED NUMEROUS VIOLATIONS OF THE DISCLOSURE RULE AND THE REGULATIONS SET FORTH AT 40 CFR PART 745, SUBPART F. ON APRIL 13, 2011, REGION 4 ISSUES A NOTICE OF VIOLATION (NOV) TO MW GROUP ALLEGING 123 VIOLATIONS ASSOCIATED WITH 20 SEPARATE LEASES. THE NOV ALSO INCLUDED A PROPOSED CIVIL PENALTY. ON SEPT 29, 2011, REGION 4 HELD A SHOW CAUSE MEETING WITH MW GROUP TO DISCUSS THE MERITS OF THE VIOLATIONS AND THE PROPOSED PENALTY. SUBSEQUENTLY, MW GROUP SUBMITTED SUPPORTING DOCUMENTATION TO THE REGION FOR CONSIDERATION. ON OCT 21, 2011, MW GRUP FILED A CHAPTER 11 BANKRUPTCY PETITION IN THE U.S. BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF NC. AFTER THE BANKRUPTCY COURT GRANTED MW GROUP'S REQUEST TO ALLOW THEIR ATTORNEY TO CONTINUE LEGAL REPRESENTATION IN THE EPA ENFORCEMENT ACTION, SETTLEMENT DISCUSSIONS RESUMED. EPA AND MW GROUP ULTIMATELY ARRIVED AT A SETTLEMENT VALUED AT $40,000, WHICH INCLUDES A PAYMENT OF $4,000 IN CIVIL PENALTIES AND AN EXPENDITURE OF NOT LESS THAN $36,000 TO PERFORM A SUPPLEMENTAL ENVIRONMENTAL PROJECT. THE SEP INVOLVES THE REPLACEMENT OF 48 EXISTING WOODEN EXTERIOR DOORS CONTAINING LEAD-BASED PAINT WITH NEW, LEAD-FREE ENERGY-STAR RATED METAL DOORS AT WEYLAND APARTMENTS. IN ANTICIPATION OF RESOLVING THIS MATTER, EPA HAS DRAFTED A CAFO WHICH WAS REVIEWED BY DOJ'S NATIONAL BANKRUPTCY COORDINATOR. 6/4/14 - BANKRUPTCY ORDER CONFIRMING JOINT PLAN OF REORGANIZATION OF MW GROUP, LLC AND BANK OF AMERICAN, N.A. ENTERED. NO PAYMENT OF PENALTIES OR INJUNCTIVE RELEIF. THE ORDER APPROVED THE REORGANIZATION AND GAVE THEM THE AUTHORITY TO FINALIZE A SEPARATE CONSENT AGMT AND FINAL ORDER (RESOLVING TSCA SECTION 1018 VIOLATIONS) THAT WAS NEGOTIATED PRIOR TO THE BANKRUPTCY FILING. PURSUANT TO THE CAFO, MW GROUP PAID A PENALTY OF $4,000, AS WELL AS SPENT $40,000 TO PERFORM A SEP.

Defendants (1)

• MW GROUP, LLCNamed in complaintNamed in settlement

Facilities (1)

• WEYLAND APARTMENTS C/O LAURANCE REALTY ASSOCIATES. LLC

  2814 MARLOWE AVENUE, CHARLOTTE, NC, 28208

  Registry ID: 110043472364

Statutes cited

• TSCA 409 — Lead: Violation of Section 1018

Enforcement conclusions (1)

• MW GROUP, LLC (04-2015-C011)entered 2014-06-04

  Primary law: TSCA

Timeline (6 milestones)

• 2012-04-11Referred To Dept Of Justice
• 2012-04-18Complaint Filed With Court
• 2012-05-17Enforcement Action Data Entered
• 2014-05-02Final Order Lodged
• 2014-06-04Final Order Entered
• 2014-06-04Concluded