EPA v. OLD DAVIS HOSPITAL AND PINEVILLE TEXTILE MILL

Case summary

AUGUST 5, 2022 - CONSENT DECREE: The United States District Court for the Western District of North Carolina entered a Consent Decree for the Old Davis Hospital Superfund Site located in Statesville, Iredell County, North Carolina and the Pineville Textile Mill Superfund Site located in Pineville, Mecklenburg County, North Carolina, on August 5, 2022. The defendants are Fred D. Godley, Jr., individually, 436 Cone Avenue, LLC, and F.D. Godley Number Three, LLC. The United States alleged that 436 Cone Avenue, LLC, and F.D. Godley Number Three, LLC were liable under CERCLA Section 107(a)(2) as former owners and operators of the Pineville Site and the Old Davis Site, respectively, and that Fred D. Godley, Jr., was both directly liable under CERCLA Section 107(a)(2) as a former operator of the Sites and derivatively liable under a veil-piercing theory for the companies? CERCLA liability. The action was brought for the recovery of past removal response costs incurred by the U.S. Environmental Protection Agency at both Sites to address releases and the threat of release of asbestos from improper demolition activities and the threat of release of polychlorinated biphenyls (PCBs) from drums at the Sites, which were owned and operated by the defendants. In its November 10, 2021, summary judgment order the Court found 436 Cone Ave, LLC and F.D. Godley Number Three, LLC liable as former owners of their respective Sites. Following a jury trial, from January 3 to January 5, 2022, the jury pierced the corporate veil of F.D. Godley Number Three, LLC to find Mr. Godley personally liable for the Old Davis Site. The jury trial did not resolve all of the claims brought by the United States, but the parties were able to reach a settlement of all claims following the jury trial. The settlement is memorialized in a Consent Decree under which the settling defendants will pay the EPA $1.25 million for past response costs incurred at both sites. In addition, the Consent Decree imposes obligations on Fred D. Godley, Jr. whenever he plans to conduct demolition activity on real property (other than his primary residence) that he owns or controls in any capacity over the next five years.

Defendants (6)

• TOWN OF PINEVILLENamed in settlement
• MITCHELL COMMUNITY COLLEGENamed in settlement
• MITCHELL COMMUNITY COLLEGE FOUNDATION & ENDOWMENTNamed in settlement
• 436 CONE AVENUE, LLCNamed in complaintNamed in settlement
• F.D. GODLEY NUMBER THREE, LLCNamed in complaintNamed in settlement
• FRED D. GODLEY, JR.Named in complaintNamed in settlement

Facilities (2)

• OLD DAVIS HOSPITAL SITE

  706 AND 709 WEST END AVENUE, STATESVILLE, NC, 28625

  Registry ID: 110070058367

• PINEVILLE TEXTILE MILL

  436 CONE AVE, PINEVILLE, NC, 28134

  Registry ID: 110067348007

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• OLD DAVIS HOSPITAL AND PINEVILLE TEXTILE MILLentered 2022-08-05

  Primary law: CERCLA

Timeline (5 milestones)

• 2019-04-11Referred To Dept Of Justice
• 2019-04-29Complaint Filed With Court
• 2019-05-01Enforcement Action Data Entered
• 2022-06-03Final Order Lodged
• 2022-08-05Final Order Entered